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Another chapter in Dynus saga unfolds
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Thursday, May 08, 2008
HAMILTON — With every indictment and guilty plea, the story of Dynus' downfall comes into sharper focus.
The setting: Bond Hill, near Cincinnati, 2004. Dynus Corp. was a growing fiber optics company with 60 employees and promising business prospects with West Chester Twp. and Butler County.
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But the company was operating at a loss and needed money. The specific motives are unclear, but the methods are outlined in court documents unsealed Wednesday, May 7, that accompanied guilty pleas from two company officials and the 11-count indictment of Dynus owner Orlando Carter.
Charges against Carter allege that in 2004 he misrepresented his company's profits to maintain a line of credit with Fifth Third Bank that eventually grew to $7 million.
Meanwhile, company president James Smith — whose guilty plea to bank fraud was also unsealed Wednesday — was receiving $100,000 in payment from a West Chester Twp. business that Dynus was paying to secure a contract with Butler County, court documents say.
While trying to secure a contract with West Chester Twp., charges allege Smith and an employee named Karin Verbruggen forged signatures on official documents to keep their financing in early 2005.
At the same time, Carter was allegedly misrepresenting his income to get an $850,500 loan on a home in Maineville in Warren County.
It was coming together for the company in July 2005, when county commissioners approved an agreement allowing the company to use four of the county's fiber optics strands so the company could lure jobs and investment to the county.
But it all fell apart that September when Butler County officials received a bill from National City Bank requesting a $99,485.78 payment on a $6.5 million lease agreement in the county's name for fiber optic equipment.
Dynus had secured financing from the bank and had been paying on the loan for eight months with $5.3 million remaining. The county had never approved the loan.
Commissioners cancelled their agreement. Commissioner Charles Furmon demanded and FBI investigation.
The company folded. In January 2006, Carter attempted to wipe out his debt by declaring bankruptcy. Even then, charges say he was funneling money into another account to hide his assets.
Two years later, County Auditor Kay Rogers was the first to be charged for federal crimes. She resigned in March after pleading guilty to bank fraud for helping the company secure the National City loan.
The FBI investigation is ongoing, according to federal officials. And Commissioner Gregory Jolivette is happy to hear that.
"I'd thought that the FBI had forgotten about it and we'd never find out how deep this had gone or who was the mastermind behind it," Jolivette said.
There are still gaps in the story: What happened to the borrowed money? Is Smith the J.S. listed in Rogers' plea agreement as the one that paid her $9,500 through an intermediary? Whose names were forged?
Who else was involved? Court records reference other conspirators, "known and unknown to grand jury."
For now, all this is unknown to the public. All the defendants in the case could either not be reached or refused to comment.
"The chapters will still unfold," Jolivette said.
Contact this reporter at jsweigart@coxohio.com.
Comments
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.