United States V. Terry Lee Church Was Convicted On 52 Counts Securities Fraud

usdoj, Feb 10, 2005

United States v. Terry Lee Church et al. (S.D. WVA) In FY 2000, in conjunction with the United States Attorney's office, two former bank executives were convicted of obstructing a bank examination after a four-week trial in the Southern District of West Virginia in connection with the mass burial of 400 boxes of bank records and microfilm during an examination of failed First National Bank of Keystone–one of the costliest single bank failures in recent history with losses in excess of $500 million. In FY 2001, the former bank executives were further charged in a 25-count indictment with conspiracy, bank embezzlement, and mail fraud in connection with a scheme to loot the estate of the late Keystone bank president and to enrich themselves by obtaining control over his money and bank stock.

Two other former bank executives also pleaded to obstructing a federal bank examination in connection with the Keystone failure. A fifth former executive pleaded guilty to insider trading in connection with dumping Keystone stock prior to the bank's 1999 failure. United States v. Terry Lee Quatkemeyer (C.D. CA) In FY 2001, a defendant pleaded guilty to two separate indictments, one charging him with making false statements to financial institutions to obtain loans totaling nearly $1.5 million and the second to an unrelated charge of conspiracy in a fraudulent surety bond scheme. Quatkemeyer and others conspired to sell fraudulent financial guarantees and surety bonds using inflated or non-existent assets as collateral for the bonds, which resulted in a total loss to victims of more than $800,000. In related cases, three defendants pleaded guilty in separate indictments and informations to conspiracy  and substantive charges.Investment and Marketing Scams United States v. April Barnes et al. (D. OR)

In FY 2001, after a five-week trial, jointly tried with the United States Attorney's office, the jury returned guilty verdicts against three defendants in connection with an investment fraud in which investors in cattle partnerships suffered losses of more than $100 million. A rancher, who was the principal organizer of the fraud scheme, was convicted on all 52 counts charging him with conspiracy, mail fraud, bankruptcy fraud, and money laundering.

Three other co-conspirators pleaded guilty in 1999-2000. United States v. Geoffrey Benson et al. (N.D. OH) In FY 2001, following an eleven-day trial, jointly tried with the United States Attorney's office, the jury returned guilty verdicts against three defendants who operated The Infinity Group Company, a pyramid, or Ponzi, fraud scheme called an "Asset Enhancement Program," through which they collected over $26.6 million from "investors" without selling any product or service.