Imprisoned former Dynus executive Orlando Carter has sued Butler County, several local politicians, FBI agents and others for $500 million in federal court.
Carter filed a 65-page civil lawsuit Thursday in the U.S. District Court in Cincinnati against the county commissioners, former House Speaker John Boehner, State Sen. Bill Coley, former county commissioner Chuck Furmon, Fifth Third Bank, a couple of FBI special agents and others.
“To be expressly clear, the purpose of this lawsuit is not to attack Carter’s conviction … ,” Carter wrote, noting he has a separate court action for that. “As shown herein, the conduct and investigations by certain agents within the Federal Bureau of Investigations (FBI) as well as the conduct and behavior of certain politicians named herein cannot be trusted nor relied upon.”
Carter was found guilty on 11 felony charges in 2009 in a scheme that cost two banks more than $10 million, caused Dynus’ 2005 collapse and ignited political scandal. He was sent to federal prison for 15 years. Carter’s fellow conspirators were former company president Jim Smith, former Butler County Auditor Kay Rogers and former company employee Karin Verbruggen.
Those three pleaded guilty to their role in the deal, which included Dynus taking out $6.5 million in illicit loans from National City Bank in Butler County’s name, then using that fake deal to secure a line of credit with Fifth Third Bank.
Carter claims Boehner, Furmon and others falsely accused him with statements they made about the case. He pulled Coley into the lawsuit because he said he was an attorney for National City Bank.
The Republican senator from Liberty Twp. hadn’t seen the lawsuit but said as far as he is concerned, nothing nefarious happened.
“I was the attorney for the victim in that case, and everything we did in that case I believe was a public record,” Coley said. “I have no idea why he felt the need to include me in a lawsuit. I know nothing about it.”
Carter has been trying to get out of prison for years, filing all manner of motions with the federal courts. In this lawsuit, he claims United States Attorney Benjamin Glassman on Feb. 8 “conceded” bank documents showing the $4 million debt he and or his company Dynus owed were “fake and bogus.”
Included in his lawsuit is a letter that states the only loan on record with PNC Bank — that bank bought National City in 2008 — for Carter was from December 2003 in the amount of $250,000.
In another one of Carter’s court filings, Glassman addressed this issue.
“Whatever records a successor bank may have on file in response to customer requests does not change the facts, established at Carter’s jury trial, that National City Bank wired four million dollars in loan proceeds to his company, based on fraudulent representations about a letter-of-counsel guaranty and arising out of a loan to a local government that, itself, was a fraud—and that Carter then hid the guaranty from auditors to secure more loans,” Glassman wrote. “The district court has properly characterized Carter’s post-trial-and-appeal-and-2255 litigation as frivolous.”
Butler County Prosecutor Mike Gmoser, the county’s attorney, said as with any lawsuit filed against the county, they will “vigorously” defend it.
“In this day and age, the general public is aware more than ever that anybody, can sue anybody, for anything, regardless of the merits upon which the complaints are based,” Gmoser said. “The action against the county will be vigorously defended, and I’m confident in a successful result with respect to that.”
Thank you for reading the Journal-News and for supporting local journalism. Subscribers: log in for access to your daily ePaper and premium newsletters.
Thank you for supporting in-depth local journalism with your subscription to the Journal-News. Get more news when you want it with email newsletters just for subscribers. Sign up here.