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FBI's Dynus probe charges 3 more
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Thursday, May 08, 2008
CINCINNATI — The FBI's investigation into the now-defunct Dynus Corp. — accused of fraudulently borrowing millions of dollars for an unapproved fiber optics contract with Butler County — has resulted in charges against three more people.
A federal grand jury returned an 11-count indictment of former Dynus owner Orlando Carter Wednesday, May 7. The court also unsealed guilty pleas against former Dynus President James Smith, 40, of Lebanon, and project manager Karin Verbruggen, 50, of Loveland.
Extras
Orlando CarterCarter, 42, of Mason, is charged with making false statements to secure more than $10 million in loans and lines of credit for personal real estate and the operation of his business.
"Carter allegedly claimed that Dynus had contracts with and received revenues from governmental entities when he knew that the company was not entitled to such payments and that he provided other misleading financial information about Dynus in order to obtain credit," said Gregory Lockhart, U.S. attorney for the Southern District of Ohio.
Both Smith and Verbruggen pleaded guilty to bank fraud in February 2007 and Smith pleaded guilty to an unrelated count of failing to file a tax return. Both are awaiting sentencing.
Investigators say the company secured $7 million in credit from Fifth Third Bank by claiming bogus fiber optics contracts with Butler County and other governments.
County Auditor Kay Rogers resigned in March after pleading guilty to bank fraud for falsely representing to National City Bank that Smith was authorized to do business with the county and helping to secure a $4 million loan in the county's name.
Carter's list of charges includes five counts of bank fraud and one count each of mail fraud, conspiracy to commit mail fraud and wire fraud, conspiracy to commit bank fraud, making false statements to the Small Business Administration, bankruptcy fraud and making false oaths in a bankruptcy proceeding.
Bank fraud and conspiracy to commit bank fraud are the most serious charges, carrying up to 30 years imprisonment. No trial date has been set for Carter's initial appearance in U.S. District Court in Cincinnati.
Comments
By the bunny
August 28, 2008 12:21 PM | Link to this
KILL HIM KILL HIM
By john dow
August 28, 2008 12:19 PM | Link to this
peoplpe do dumb things and i think he did a big one all he wanted was money and now he had all the money but he lost everything he has knowone in his life, people are moving on hes going down hes going to jail because all the wrong things he did
By simone
August 28, 2008 12:15 PM | Link to this
i just go told what happen and i get it i know why hes goin down he did something bad really bad i mean yes hes black but thats not why hes going down hes going down cause he put other people names or his stuff he was hurgy for money and now this is what he gets
By simone
August 28, 2008 12:15 PM | Link to this
i just go told what happen and i get it i know why hes goin down he did something bad really bad i mean yes hes black but thats not why hes going down hes going down cause he put other people names or his stuff he was hurgy for money and now this is what he gets
By Bily Bob
August 28, 2008 12:07 PM | Link to this
SEE HE SHOULD HAVE NOT GOT GREEDY WITH HIS MONEY NOW HE BOUT TO LOOSE EVERYTHING HIS MONEY HOUSE AND HIS DAUGHTER HE SHOULD HAVE NOT BEEN SO SELFISH
By ламинат
August 13, 2008 3:30 AM | Link to this
ehg Een plaatje zegt alles, toch ? sew Het volledige rapport is hier te vinden. Lees natuurlijk u de blogposting. k c Thanks for interesting post! rar ламинированный парке 8e
By ламинат
August 11, 2008 7:50 PM | Link to this
q Een plaatje zegt alles, toch ? w Het volledige rapport is hier te vinden. Lees natuurlijk o de blogposting. w i ламинат и паркет 2e
By maggie
June 3, 2008 11:58 AM | Link to this
mastermind you say? only one person comes to mind….
By Tonia
May 23, 2008 2:21 PM | Link to this
I happen to know Mr. Carter personally and it sounds to me that there is alot more going on than what’s being made public. I hate to say it but none of the real players in this so called scandal will ever serve any real time but that african-american successful businessman is going to go down for it all.
By Ridnaway
May 9, 2008 3:57 PM | Link to this
Sometimes the wheels of justice grind very slow, as in this case. But at least this time they seem to be on target. Give the FBI time to dot all the eyes so the bottom feeding defense attorneys can’t find loopholes and these people will be put away for many years. Hopefully the impact from all this will be a decade or so of accountability and transparency in local government. I hope the guilty are made to pay not only with incarceration but also by reimbursing the taxpayers
By floyd smith
May 8, 2008 10:28 PM | Link to this
the kay rogers thing is not nearly over with,on oct 25 2006 i went to the FBI at federal bldg in cinn,i showed them how she was cheating for many of her republican friends,some in washington, columbus and many here in butler county,i had proof for years and no news media would listen for four years,dont you find it strange the news didit want hear about it, but the FBI wanted to hear what i had on these corrupt politicans,i talked for two hours to them,he said,it was called political corruption
By floyd smith
May 8, 2008 9:56 PM | Link to this
does any body but me think that the three commissioners gave conklin the 404 thousand $ without him giving some of that money back to them ???? what reason in the world would they have to give him such a large amout of money ??? poor working people are losing their houses and jobs and cars and these corrupt politicans just keep giving our money away, like it is water, do you think a politican ever went through a ression, heck no, they just raise their pay and hire more relation and friends.
By Gerald Wood
May 8, 2008 11:32 AM | Link to this
I PERSONALLY DON’T THINK THAT THE BUCK STOPPED AT kAYS WALLET. Lets see how many other good ole boys fall when the thing is over. I also find it wrong to just let people resign to avoid prosecution.
By Bill
May 8, 2008 11:30 AM | Link to this
It’s very strange that Federal officials knew of “bank fraud” issues for two years and yet did nothing about bringing charges against those responsible. Does it really take that long to build a case when it’s just a matter of collecting the facts and tracking the money? Seems like County officials are trying to do the same thing Washington politicians have been doing for years! Are all politicians immoral and unethical? Just the ones we know!
By Charles Farmer
May 8, 2008 10:51 AM | Link to this
A good time to finish the job and clean house in Butler County government. Generations of people who never worked just by being elected time after time.
By ButlerEqualizer
May 8, 2008 10:50 AM | Link to this
There is absolutley no reason why the FBI is taking so long. They have known everything about Carter and Dynus for over two years, they stalled until he spent and or hid all the bank money before this conviction. When is the FBI going to drop the hammer on the others at Kay’s house the night documents were signed and money was exchanged?
By Marcus
May 8, 2008 8:25 AM | Link to this
Time to get the rest of Kay Rogers associates. We could have had a well qualified and honest auditor in Zettler
By VietVet
May 8, 2008 7:11 AM | Link to this
Hang ‘em. Hang ‘em high! Take the politicians up on the scaffold too.