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Michael D. Pitman reports about Butler County, Ohio, politics, county government, countywide issues and Butler County people just like you for Cox Ohio Publishing (including the Hamilton JournalNews, Middletown Journal and several weekly papers in Butler County). He wants your suggestions and questions for more news stories. Leave a comment for him here or e-mail Michael at Home > Blogs > Butler County News and Issues > Archives > 2010 > June > 09 > Entry
Judge: Dynus owner lied on stand
A prison sentence is “appropriate” for former Dynus Corp. owner Orlando Carter, according to U.S. District Judge Sandra Beckwith, and the duration of that sentence is being determined today, June 9.
Beckwith denied a motion from Carter’s defense attorneys for a delay in the sentencing to better nail down the loss his company was responsible for in fraudulent loans and lines of credit totaling more than $10 million.
Defense attorney Wende Cross said the motion was not an attempted delay, but “an effort to get a proper calculation of the loss, and that’s it.”
“The government sees this motion for continuance as an 11th hour attempt once again to delay a foregone conclusion that Mr. Carter is going to jail for a very long time, and he should,” said Assistant U.S. Attorney Jennifer Barry.
Beckwith sided with Barry, saying “eventually a day of reckoning has to come.”
The sentencing is continuing today, with both sides preparing to call witnesses.
Federal prosecutors are asking for more than 15 years behind bars for Carter’s role. Carter was found guilty in August 2009 on 11 felony charges for his part in a scheme that cost two banks more than $10 million, caused his company’s 2005 collapse and ignited political scandal in Butler County.
Prosecutors are asking for the maximum penalty of 188 months in prison and restitution totaling more than $4.8 million, the total recoverable loss calculated by the court.
Factors in this are allegations that Carter threatened the parents of former Dynus president Jim Smith with a lawsuit after Smith testified against him at trial, and that he made false statements on the stand.
Carter admitted to contacting Smith’s parents, according to Beckwith, but denied threatening them. The judge said she could think of no other reason he would be calling them.
As for the other matter, the judge said Carter committed perjury several times during trial. “I sat through the trial. Mr. Carter in my opinion did make a number of false or misleading statements and did testify inaccurately at trial,” Beckwith said.
While dipping into company coffers to fund his excesses, a jury found Carter played an active role in Dynus taking out $6.5 million in illicit loans from National City Bank in Butler County’s name — with help from local politicos — then using that fake deal to secure a line of credit with Fifth Third Bank.
“The defendant’s duplicity proved treacherous for everyone who trusted him,” wrote Assistant U.S. Attorney Jennifer Barry in a presentencing report arguing for Carter to get 188 months imprisonment.
“The 60 Dynus employees, who believed that Carter’s vision … was based on a legitimate business plan, lost their jobs because of the defendant’s unadulterated greed, which included a million dollar mansion, a Bengals suite at the 50-yard-line, luxury vehicles, luxury vacations, a luxury lifestyle,” Barry wrote.
He also had company employees make a fake W-2 to inflate his income so he could buy a $1.2 million Maineville mansion, and lied during bankruptcy proceedings.
Carter’s defense team filed for a delay in the sentencing Monday, June 7. They argue that there are unanswered questions that could affect his restitution. This includes whether Fifth Third Bank received any money from the sale of the Dynus building, worth $5 million in 2005.
Carter was the only one charged in the scandal to fight the charges. Former county auditor Kay Rogers, former company president Jim Smith and former employee Karin Verbruggen all pleaded guilty.
Verbruggen, the only one sentenced so far, was ordered to repay Fifth Third nearly $4.1 million, jointly with Carter and Smith.
Permalink | Comments (5) | Post your comment | Categories: Dynus
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By a hard working citizen
June 10, 2010 3:48 AM | Link to this
you reap what you sow, mr. carter. you do the the crime, you do the time. suck it up and go do your time quietly.
By Justice will Come
June 10, 2010 11:17 PM | Link to this
Carter has already filed his appeal!!! The whole truth did not come out in his trial and civil suits will be coming. The judge would not let Carter call certain witnesses or present certain evidence to prove his innocence. Particularly, the internal emails of National City discussing “restructuring the transaction to elude any appearance of impropriety” could not be shown to the jury. Why is the bank discussing restructuring the transaction at the last minute if they don’t have something to hide. His defense attorney’s had to read a lot of his witnesses’ testimony into the trial record outside the presence of the jury. In other words, the jury did not get to hear certain testimony or see certain evidence. This is a violation of his constitutional right to put on a full and complete defense . The gov’t got to call whoever they wanted including his ex-wife and the known liar, Jim Smith. Carter now has the whole story as the FBI had to turn over their reports and tapes. It makes for some interesting reading and listening to the tapes. That’s right, Jim Smith wore a wire to see George Lang and Scott Owens numerous times. Funny, he never wore a wire to see Carter even when Carter was trying to track him down via calls and emails. According to FBI information, Jim Smith lied many times even involving his parents.. FBI reports say Smith’s parents gave Carter thousands of dollars. This is the lowest of the low when you lie on your parents. This is a false statement to the FBI and the FBI knows it. They also know Smith lied on the witness stand by saying he had a mini-MBA when the FBI had a document from the school saying he never attended the school. Kay Rogers and Mike Fox were victims of Smith lies. I don’t think Kay would have pled if the FBI had been straight with her about the lies of Jim Smith. FBI reports also show he lied to the County after Kay told him he needs to get all approvals from the county. He says “ he panicked and lied” when asked certain questions during the meeting with the county. He forged Mike Fox’s name according to the FBI reports. FBI reports also show National City knew the deal was not completely approved but funded the deal anyway. National City Documentation says “ Book despite material deficiencies” initialed by an executive at National City. Hang in there Carter and keep fighting for the truth. The Community is behind you!!!
By edgar
June 15, 2010 2:06 PM | Link to this
Orlando was not properly represented. Martin Pinnales has been around for a long time but he never wins a case.His clients always get hammered. Has he ever won a federal jury trial. Clyde Bennet or Ken Lawson would have won this case. I hope he hires them after his conviction is reversed on appeal.
By Just Ice
June 27, 2010 7:26 AM | Link to this
Why is Jim Smith getting away with everything? Is he or his parents paying off Beckwith? What’s the connection with Jim Smith and Jim Breech? Why is Jim Smith now President of Cincinnati Commandos? Why is he being sheltered by former Cinci Bengals Jim Breech??? Is he reporting his earnings from Cinci Commandos and his gig at a marketing firm in North Carolina to the IRS??? Does he report his real earnings to the Warren County Child Support Agency?? Ask Jim Smith why he dropped his own children’s health insurance and refuses to help pay for their medical bills. Ask Jim Smith why he choses to go for months at a time without paying child support for his children? Carter was probably contacting Smith’s parents because Smith falsely uses their address as his own. Wake up Beckwith!!!!!! You need to sentence the real criminal!!!!
By maddie
December 2, 2010 12:04 AM | Link to this
THANK YOU, JUST ICE i agree with your comment! i hve all the same questions and hve been looking for answers. glad someone is actually looking more into this case than those who are actually involved.