Invest Your Money Wisely: Tips for Consumers

• Be extremely cautious about unsolicited offers to invest.

• Don’t believe everything you’re told. Take the time to do your own research on the investment’s potential…and on the person making the offer.

• Be wary of an investment opportunity that offers unusually high yields.

• Check with federal and state securities regulators to find out if there have been any complaints against the company or person you’re thinking of doing business with.

• Request written financial information—such as a prospectus, annual reports, or financial statements—then compare the written information to what you were told.

• Check with a trusted financial adviser, broker, or attorney about any investments you are considering.

• And if you think you’ve been scammed, report it to the Securities and Exchange Commission, your state’s securities regulator, or a law enforcement agency.

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The Despicable Story of Vernon Matthews and His Defrauding of Military Personnel and Their Dependents

They are our nation’s heroes—often risking their lives abroad to protect us at home. Which makes what one Virginia con man did all the more despicable…defrauding military personnel and their dependents in an investment fraud scheme. But one of his victims came forward and filed a complaint. And after a joint investigation conducted by the Richmond offices of the FBI and the U.S. Postal Inspection Service (USPIS)—under the auspices of the Virginia Financial and Securities Fraud Task Force—Vernon Matthews was charged in the scheme, pled guilty, and was recently sentenced to a federal prison term.

Matthews operated a company called First Capital Group (FCG), located in Virginia Beach. He had a license to sell insurance, not to give investment advice or handle securities—but that didn’t stop him from doing so. Starting in 2010 and continuing until early 2013, Matthews solicited members of the military and their families to make investments with FCG.

Often times, he set up booths at establishments known to be frequented by the military—like restaurants located near military bases—and offered promotions, like a free night at a hotel. And when potential victims came to his office to claim the prizes, Matthews would pitch them on an investment. And he lied through his teeth while doing it. Among Matthews’ misrepresentations:

• He received compensation from the U.S. government for his investment advice and services (he did not);
• He would invest his clients’ funds in certificates of deposits, mutual funds, or something similar (Matthews misappropriated all the funds for his own personal or business use);
• FCG was affiliated with several reputable investment companies and funds (it was not);
• The investment provided a good return—anywhere from 4 to 300 percent—and was low-risk or no-risk (it did not and was not).

In one particular instance, a U.S. Naval Academy graduate who invested $20,000 with FCG tried withdrawing funds. Matthews mailed a check that bounced. After being notified about it, he mailed another one…and instructed the victim not to deposit the check until he could put the funds into his account. That, of course, never happened.

Matthews received more than $235,600 from victim investors. Only a few of his victims were able to recover any money, so at his sentencing, the judge ordered Matthews to repay the outstanding balance of $204,465 in restitution to his victims.

The Bureau joined the investigation in April 2013. In July 2013—after an extensive review of financial records, documents, and e-mails, along with interviews of dozens of victims and other witnesses—Matthews was arrested.

The Virginia Financial and Securities Fraud Task Force was initially launched in 2010 to establish a partnership between criminal investigators—including the FBI and the USPIS—and civil regulators to investigate and prosecute complex financial fraud cases in Virginia. The state task force is also an investigative arm of the national Financial Fraud Enforcement Task Force, an interagency group created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. And while law enforcement, civil regulators, and prosecutors are doing all they can to address financial crimes, you should educate yourself and your loved ones on how to avoid becoming a victim of financial fraud.

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3 Chicago Men Indicted for Their Alleged Roles in a Series of Armed Robberies of 10 Retail Businesses in Chicago and Suburbs

Three Chicago men are facing federal charges for their alleged roles in a series of armed robberies of various retail businesses in Chicago and several suburbs late last year and early this year, federal law enforcement officials announced. The indictments charge nine armed robberies and an attempted armed robbery of gas stations, convenience stores, jewelry stores, and others businesses in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette between October 2013 and February this year.

Two defendants, Tyree Craig, 29, and Jacobi Pickett, 21, were charged together in a 13-count indictment returned by a federal grand jury. They were each charged with one count of robbery conspiracy, eight counts of robbery, and two counts of brandishing a firearm during a violent crime, and Pickett alone was charged with being a felon in possession of a firearm.

Craig was also charged with Jarryl Williams, 42, in a separate four-count federal indictment involving the January 10 armed robbery, involving four suspects, of James and Williams Jewelers, located at 7020 West Cermak Road in Berwyn. Craig and Williams were each charged with one count of robbery conspiracy, attempted robbery, and brandishing a firearm. Williams, who was shot by a store security officer, was also charged with being a felon in possession of a firearm with a partially obliterated serial number.

Craig and Williams have each pleaded not guilty to the charges involving the Berwyn attempted robbery. Craig and Pickett are scheduled to be arraigned on May 1 in U.S. District Court. Craig and Williams were initially arrested previously on related state charges but were later transferred to federal custody, where they remain. Pickett has been in federal custody since he was arrested in March on a criminal complaint.

According to the Craig and Pickett indictment returned yesterday, both defendants allegedly participated in the following robberies:

• Dunkin Donuts, 3910 West Touhy Ave., Lincolnwood, on October 20, 2013
• Phillips 66 gas station, 1234 Sheridan Rd., North Chicago, on October 21, 2013
• Shell gas station, 9600 Crawford Ave., Skokie, on Oct. 21, 2013; Shell gas station, 3 East Algonquin Rd., Arlington Heights, on October 31, 2013
• Marathon gas station, 242 Waukegan Rd., Glenview, on October 31, 2013
• Shell gas station, 5055 Touhy Ave., Skokie, on Nov. 30, 2013; and Seven-Eleven, 500 Skokie Blvd., Wilmette, on November 30, 2013
• Craig alone was also charged with the December 13, 2013, robbery of Ted’s Jewelers, 5334 South Archer Ave., Chicago
• Pickett alone was charged with the February 19, 2014, robbery of EZ Pawn store, 4080 Southwest Hwy., Hometown, in which jewelry valued at approximately $73,000 was stolen

According to court documents, the charges stem from an FBI investigation of a series of similar armed robberies and attempted robberies last fall and winter of retail stores and businesses in Chicago, as well as northern and western suburbs. Typically, one or more participants entered each business and brandished a black semi-automatic handgun while demanding money or jewelry and, in some instances Newport cigarettes. The participant or participants attempted to disguise their appearance but video surveillance provided a similar pattern of clothing and appearance.

The investigation is continuing.

Each count of robbery and robbery conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Williams and Picket also faces a maximum 10-year sentence on the felon in possession charges.

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Buffy A. Bastien Indicted on Bank Embezzlement Charges

Buffy A. Bastien, 41, of Murphysboro, Illinois, was indicted on April 8, 2014, on bank embezzlement charges in an indictment returned by a federal grand jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.

Bastien was charged in a one count indictment that charges that from about 2010 to on or about February 23, 2014, in Jackson County, Bastien, being an officer and employee of The Bank of Carbondale, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The Bank of Carbondale, did willfully embezzle the sum of approximately $229,221.80 of the moneys or funds intrusted to the custody or care of The Bank of Carbondale.

Bastien faces a possible penalty of up to 30 years’ imprisonment, up to $1,000,000 fine, and supervised release of up to five years.

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Sheriff’s Office Deputies, David Benjamin and Jeff Alan Poole, Charged with Conspiracy

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service-Criminal Investigations (IRS-CI); and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce the filing of charges against David Benjamin, 48, of Boca Raton, and Jeff Alan Poole, 47, of Weston, for conspiring to commit crimes in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler P.A. (RRA).

In a criminal information filed earlier, Benjamin was charged with conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. In a separate criminal information, Poole was charged with conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. The charges allege that, during the relevant time period, both defendants were employed by the Broward Sheriff’s Office. Benjamin was a lieutenant and served as executive officer to then Sheriff Al Lamberti. Poole was a detective assigned to the Strategic Investigations Division.

The charging documents allege that both defendants agreed to utilize their respective positions within BSO unlawfully to further the interests of RRA, its chairman and CEO Scott W. Rothstein, and other persons associated with Rothstein. Specifically, the charging documents allege that Benjamin received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with Poole to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship that existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane that was used by Rothstein to flee to Morocco on October 27, 2009, as the Ponzi scheme being conducted through RRA was beginning to unravel.

U.S. Attorney Wifredo A. Ferrer stated, “David Benjamin and Jeff Poole used their official positions as law enforcement officers to commit civil rights abuses to further the interests of Scott Rothstein and others associated with Rothstein. When law enforcement officers betray the trust of the people, it strikes at the very core of our democracy. The informations filed today charging Benjamin and Poole should serve as a reminder that no one is above the law. When law enforcement officers violate the public’s trust, they will be held accountable. Benjamin and Poole are the 19th and 20th accomplices, respectively, to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”

“When David Benjamin and Jeff Alan Poole began to use their official positions to further the illegal schemes of Rothstein and his cronies, they crossed a very bright line,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Their criminal misconduct undermined the public’s trust in law enforcement. As such, the FBI will continue to work with our partners to remove those law enforcement officers who violate the law. The FBI, in particular, would like to thank BSO for their close partnership investigating this matter.”

IRS-CI SAC José A. Gonzalez stated, “Law enforcement officers and individuals in positions of our citizens’ trust are held to an even higher standard than the general public. It’s a sad day when a lieutenant and a detective of the Broward County Sheriff’s Office who are sworn to uphold the law, allegedly misuse their positions by engaging in criminal acts. IRS-CI, together with its law enforcement partners, will continue to ensure that no one operates above the law and are held accountable for their actions.”

BSO Sheriff Scott Israel stated, “Every time a law enforcement officer is implicated in a crime, it’s a blow to our profession. This indictment tarnishes the image of honest, hard-working law enforcement officers everywhere. My immediate action after taking office was to suspend Deputy Poole and Lieutenant Benjamin based on an ongoing federal investigation. I applaud the diligence and professionalism displayed by our federal partners, and we will continue working closely with them to ensure justice is served.”

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