Two Men Charged in $90 Million Scheme
The U.S. Attorney’s Office in the Northern District of California reported on September 21, 2012 that two men were charged with one count of conspiracy to commit mail fraud and three counts of mail fraud.
United States Attorney Melinda Haag announced that James B. Catledge of Rancho Santa Fe, California and Derek F.C. Elliott of Orangeville, Ontario, illegally solicited over $90 million from investors to build a large resort in the Dominican Republic. The resort never opened.
According to the indictment by the U.S. Attorney’s Office, Catledge and Elliott has initially used a bank loan to purchase an old hotel in the Dominican Republic. As they began to make renovations and improvements to the hotel—which they called Juan Dolio Resort—they started to solicit investments as well.
The indictment also states that Catledge and Elliot neglected to tell investors “that the full commissions being taken from their investment were approximately 44 percent, that the renovations were underfunded, that investors’ money was being used on other projects, and the returns they promised were unsupportable and could not be achieved.”
The U.S. Attorney’s Office stated that Catledge and Elliott collected roughly $91.2 million, and only about $13.4 when to actual renovations at the resort. About $68.6 million was put into commissions and other types of payments.
Each count of conspiracy to commit mail fraud and mail fraud carry a maximum punishment of 20 years in prison, restitution, and a fine of $250,000 or twice of the total loss. Mail fraud is in direct violation of Title 18, United States Code Sections 1349 and 1341.
The U.S. Attorney’s Office reports that Catledge will be arraigned on October 5, 2012 in San Francisco. Elliot has yet to receive a court date.
Assistant U.S. Attorney Jonathon Schmidt is prosecuting the case along with Elizabeth Garcia and Christine Tian.
Source: Federal Bureau of Investigation
Comments
Must Read
Mail Fraud Quick OverviewMail fraud refers to any deceitful crime that includes the use of the postal system.
Accountant Fraud At A GlanceAccountant fraud (or corporate accounting scandals) often occurs as a result of an accountant not disclosing factual statements to their clients (individuals or businesses) about the state of their finances.
All You Need To Know About Mail Fraud ChargesMail fraud charges are used most frequently in federal white collar crime cases to either make an initial charge or add a charge to a list of existing ones.
All You Need To Know About Reporting BlindnessOne of the most common disability fraud types Disability fraud falling into the category of "reporting blindness" can also include criminals taking advantage of acts intended to help the legally blind return to work.
All You Need to Know About Supreme Court CasesThere are two cases that involve the proper criminal procedure involving the prosecution of wire fraud.
All You Need to Know About The History Identity TheftIdentity theft, though it has taken on new forms and has become significantly more common, is not a new crime.
Bait and Switch DefinitionIt may not necessarily be all that obvious all the time, but the bait and switch tactic used by both the retail and political world should be of no surprise to people living in nations which are fueled by consumerism and politics.
Bankruptcy Fraud At A GlanceBankruptcy fraud is any kind of fraud involving filing for bankruptcy in an attempt to gain some kind of profit from the overall scheme.