Lawyer Pleads Guilty in Online Investment Scheme

Posted: Jan 23, 2014 7:14 AM
Updated: Jan 23, 2014 7:38 AM

By Steve Kanigher, I-Team Reporter

LAS VEGAS -- An attorney from North Las Vegas pleaded guilty Wednesday to helping a client launder roughly $2.25 million that was obtained fraudulently in an online investment scheme, Nevada's U.S. Attorney Daniel Bogden said.

The scheme resulted in $16 million in losses combined for more than 1,400 victims.
R. Christopher Reade, 43, pleaded guilty to one count of accessory after the fact to laundering of monetary instruments.  He faces up to 10 years in prison and a $1,125,000 fine, and is scheduled to be sentenced May 2.

Reade practiced business law and his client, Rick Young, owned and operated a Nevada corporation known as Global One Group. The web-based company purported to train others on how to trade in the foreign currency exchange market known as FOREX.

According to prosecutors, Young solicited individuals to become members of Global One, which would allow them access to his web-based live training seminars.  He claimed he developed an automated program that traded according to his strategies simply by "flipping a switch."

He also enticed members into providing money for "loans" to Global One and told them they would earn high returns on their investments. In actuality, the automated trading program allegedly did not exist in the form that Young represented. Instead, prosecutors believe Young ran an elaborate Ponzi scheme in which proceeds from the member loans were diverted to Young for his own use.

From 2006 to 2008, Young derived approximately $16 million in proceeds from the scheme.
Beginning in February 2007, Reade represented Young and Global One in connection with business litigation and transactions.  The following month Young intended to use Global One loan money to purchase a FOREX brokerage company named Trend. To disguise the source and ownership of the illegal proceeds, Young allegedly authorized Reade to create and control a holding corporation called Way FX Corp.

In April 2007, Young transferred roughly $2.25 million from Global One accounts to the Way FX bank account controlled by Reade, and Reade signed an agreement to purchase Trend. On August 21, 2007, Reade received $75,000 from Global One for services related to Way FX and the purchase of Trend.
In connection with an investigation by the National Futures Association about the ownership and funding of Trend, Reade falsely told investigators he was unaware who owned Global One or how Global One raised money. Reade knew that his statements were false and that Young had committed the offense of money laundering. Reade also knew he assisted Young to hinder the investigation of Young in connection with the money laundering.

In March 2011, Young was convicted by a federal jury in Nevada of conspiracy, fraud and money laundering charges. In December 2011, he was sentenced to 25 years in prison and ordered to pay $13.3 million in restitution.

The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by First Assistant United States Attorney Steven Myhre and Assistant United States Attorney James Keller.

Source: http://www.8newsnow.com/story/24523375/lawyer-pleads-guilty-in-online-investment-scheme

RE: WILLIAM WILLARD

This notice is to inform you that WILLIAM WILLARD will be released on March 14, 2013.  Upon release, the inmate will reside in Bozeman, Montana, and will be supervised by the United States Probation Office at USPO - District of Montana - Helena, Paul G. Hatfield United States, Courthouse, Suite 1200, 901 Front Street, Helena, Montana 59626-9708.

Requested extension

This case is still in the appeals process.  Rick Young has requested an extension until February 28, 2013 to file his final brief in the appeals process.  Usually, after the last brief is filed it takes the appellate court three to six months to issue their decision.  Everything regarding restitution is on hold until the appellate court makes their decision.

Properties on sale

I believe these to be the properties seized and now for sale from the US Dept of the Treasury

http://www.treasury.gov/auctions/treasury/rp/ohiostreet.shtml

http://www.treasury.gov/auctions/treasury/rp/cochraneave.shtml

http://www.treasury.gov/auctions/treasury/rp/12087thave.shtml

http://www.treasury.gov/auctions/treasury/rp/206main.shtml

http://www.treasury.gov/auctions/treasury/rp/212main.shtml

http://www.treasury.gov/auctions/treasury/rp/dawsstreet.shtml

Appeal and liquidation

This is an update on the Global One case.  The properties are still in the process of being liquidated.  Unfortunately, since Rick Young filed an appeal, proceeds are not able to be released until the appeal is finalized.  The appeals process is sometimes lengthy.  Currently, the briefs are due to be filed by November 21, 2012.  Once the last brief is filed, it normally takes about six months to get the decision from the appellate court.

Forfeiture process

April 09, 2012

RE: Case Number 2007R00885 and Court Docket Number 08-CR-00120

The United States Department of Justice believes it is important to keep victims of federal crime informed of court proceedings.  This notice provides information about the above-referenced criminal case.

Just an update on the forfeiture process. The forfeiture attorney is waiting for the liquidation of the real estate assets in Montana, the properties should be listed for sale within the next 3 months.He is not able to speculate on how quickly they might sell. Most of the other assets have been liquidated (trucks, business assets, etc.). Once the properties are sold, the forfeiture attorney will start the restitution process. This is a long process, so please be patient with us. This is all the information that I have at this time, I will keep you updated as I get new information.

Rick Young not eligible for parole

February 07, 2012

RICK YOUNG is currently incarcerated at FCI Florence and is scheduled for release on January 7, 2033.  The inmate is not eligible for parole.

An appeal has been filed

An appeal has been filed in the case which involves defendant(s) Ricky Young. The process may take some time before a final decision is reached. An appeal is a legal proceeding by which a case is brought before a higher court for review of the decision made by the lower court.

JUSTICE!!

Mont. man gets 25 years prison for investment scam By AP | December 14, 2011 RENO, Nev. (AP)

A Montana man convicted of running an investment scam on the Internet was sentenced Tuesday to 25 years in federal prison and ordered to pay $13.2 million in restitution to more than 1,400 investors. U.S. District Judge Larry Hicks in Reno told Rick Young, 52, of Lewistown, that the fraud carried out by his Nevada-based Global One Group from 2006 to 2007 was "incredibly repulsive."

Many of the victims, the judge said, were vulnerable, "middle-class working people taking money out of accounts, trading out of their 401(k) plans, their pension plans, even off of their credit cards." "Frankly, it was nothing more than a type of Ponzi scheme, but it was incredibly sophisticated," he said. Among other things, prosecutors said Young and his partner used the money for their own gain in 2006 and 2007 partly by falsely marketing the Global One as a licensed securities broker.

A federal jury in March convicted Young of one count of conspiracy to commit mail and wire fraud, two counts of wire fraud, three counts of money laundering and one count of securities fraud.

Read more: http://www.businessweek.com/ap/financialnews/D9RJVUUG0.htm

Postponed again

The sentencing hearing for defendant(s), William Willard, has been set for December 13, 2011, 01:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

13th December

The sentencing previously scheduled for defendant(s) Ricky Young on November 29, 2011, 10:00 AM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been rescheduled by the court. VNS will continue to provide you with updated case scheduling and event information. The sentencing hearing for defendant(s), Ricky Young, has been set for December 13, 2011, 09:00 AM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

New date

Today the Judge signed an order continuing Rick Young's sentencing to December 13, 2011 at 9:00 am. Due to an injury to one of the government attorneys, we asked the Judge to continue the sentencing. We will also be asking to move William Willard's sentencing to December 13th or 14th. The official notification about the change will be going out tomorrow.

William Willard - sentencing hearing

The sentencing previously scheduled for defendant(s) William Willard on October 31, 2011, 01:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been rescheduled by the court. VNS will continue to provide you with updated case scheduling and event information.

The sentencing hearing for defendant(s), William Willard, has been set for December 9, 2011, 01:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

Rick Young sentencing re-scheduled

The sentencing previously scheduled for defendant(s) Ricky Young on October 27, 2011, 02:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been rescheduled by the court. VNS will continue to provide you with updated case scheduling and event information.

The sentencing hearing for defendant(s), Ricky Young, has been set for November 29, 2011, 10:00 AM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

Rescheduled again

The sentencing previously scheduled for defendant(s) Ricky Young on October 17, 2011, 01:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been rescheduled by the court.

The sentencing hearing for defendant(s), Ricky Young, has been set for October 27, 2011, 01:30 PM at Reno Courtroom 5

Hearing cancelled - Wells Fargo

The hearing previously scheduled for defendant(s), Ricky Young, on October 13, 2011, 04:00 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been cancelled. VNS will continue to provide you with updated case scheduling and event information. This hearing is cancelled because the United States acknowledges the legal interest of Wells Fargo on the property located at 716 Ohio Street. The interest Wells Fargo has is not subject to forfeiture. That means Wells Fargo will be paid first with any money received for that property and only that property.

rescheduled sentencing

The sentencing previously scheduled for defendant(s) William Willard on October 13, 2011, 10:00 AM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been rescheduled by the court.

This hearing was rescheduled due to a conflict in the Court's calendar.

The sentencing hearing for defendant(s), William Willard, has been set for October 31, 2011, 01:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

Wells Fargo Bank petition

The case involving defendant(s) Ricky Young has been scheduled for a hearing on October 13, 2011, 04:00 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

This hearing will be regarding the petition that Wells Fargo Bank filed to adjudicate their interest in real property.

A hearing was held on September 14, 2011, regarding Richard Young's motion for release pending sentencing and appeal. The Judge denied the motion and defendant Young's sentence remains scheduled for October 17, 2011, at 1:30 p.m. in Reno, Nevada.

States v. Defendant(s) Ricky Young, William Willard

Defendant Young's motion for a new trial was denied and he will be sentenced by the Court on October 17 for the guilty verdicts on the following counts: Count 1 (Conspiracy to Commit Wire Fraud); Counts 2 and 6 (Wire Fraud); Count 11 (Money Laundering); and Count 13 (Securities Fraud). Based on the guilty verdicts, the defendant faces a maximum sentence of 80 years imprisonment and a $2 million fine. The Court, however, has complete discretion to sentence defendant Young to any range of punishment from no punishment up to the maximum , based on its consideration of, among other things, the offense characteristics, the defendant's history, and the advisory federal sentencing guidelines.

The sentencing hearing for defendant(s), William Willard, has been set for October 13, 2011, 10:00 AM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 before Judge Larry Hicks.

sentencing hearing - cancelled

The sentencing previously scheduled for defendant(s) Ricky Young on August 1, 2011, 03:00 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been cancelled.

At the hearing on July 21, 2011, the judge agreed to continue the sentencing hearing for Rick Young. The Judge heard oral argument on defendant Young's motions and will make his ruling in a couple of weeks. After the Judge makes his ruling, he will set a new date for defendant Young's sentencing.

The sentencing previously scheduled for defendant(s) William Willard on August 1, 2011, 01:30 PM at Reno Courtroom 5, Bruce R. Thompson Federal Building & U.S. Courthouse, 400 S. Virginia St., Reno, NV 89501 has been cancelled.

The sentencing hearing for William Williard has been cancelled and will be rescheduled once the Judge makes his decision on Rick Young's pending motions.