On November 17, 2009 David A. Hagen aka David DeFusco was sentenced to 540 months – 45 years, forfeiture of $27.6 million and restitution of +$22,000. Mr, Hagen will be remanded to the Bureau of Prisons at a facility as close to San Diego, CA as possible.
DAVID A. HAGEN WAS CONVICTED OF SECURITIES FRAUD AND INTERNATIONAL MONEY LAUNDERING SCHEME Local Businessman and His Co-Conspirators Made Approximately $28 Million Selling Stock to the Public CHARLOTTE, N.C. -- DAVID A. HAGEN was convicted by a jury on Friday, May 15, 2009, after a two-week trial on three counts of conspiracy to commit securities fraud, conspiracy to commit mail/wire fraud, and conspiracy to commit money laundering.
HAGEN, a United States citizen who fled to the Bahamas during the investigation of this matter, was originally arrested on a criminal complaint charging him with joining a multi-million dollar international securities fraud and money laundering conspiracy. HAGEN was arrested at J.F.K. International Airport in Queens, New York in September 2007, as he attempted to enter the United States on a commercial airline flight from Nassau, Bahamas after living in the Bahamas for approximately 18 months. HAGEN was denied bond and has been held in custody since that time.
The evidence at trial showed that HAGEN was the owner of a company in Southern Pines, North Carolina known as Gatelinx Corp. (hereafter, “Gatelinx”). Gatelinx was later merged with a publicly-traded shell company known as Autoleasecheck.com, Inc., which company was quoted on the Pinksheets and traded in the Over-the-Counter market. The merged company was renamed GTX Global Corp. (hereafter, “GTX Global”). Following this merger, HAGEN and his co-conspirators controlled approximately 90% of the company’s stock, but held the stock in the names of offshore companies. The evidence at trial showed that, from October 2005 through in or about June 2006, HAGEN and his co-conspirators engaged in a fraudulent promotional campaign designed to drive up the stock price and trading volume of GTX Global. Specifically, the evidence showed that the co-conspirators created websites fraudulently touting the company’s supposed VoIP technology and misstating the company’s financial condition. In addition, the evidence showed that the company issued press releases designed to mislead the public into believing that HAGEN – who was a two-time federal felon – was not involved in the management of the company. Finally, the evidence showed that HAGEN caused the company to issue Disclosure Statements to the public, which statements falsely stated that no one controlled more than 5% of the company’s stock.
The evidence at trial further showed that, from in or about October 2005 through in or about June 2006, HAGEN and his co-conspirators used Canadian brokerage firms to sell approximately 6 million shares of GTX Global stock held in the names of offshore companies for proceeds of approximately $32 million. HAGEN and his co-conspirators then wired these funds from the Canadian brokerage firms to bank accounts in the Bahamas, Curacao, Panama, Cyprus, Dubai, Switzerland, and Gibraltar.
Other co-conspirators included Walter Hannen, Bryan S. Kos, Jeremy D. Jayned, aka Lyle Andrews, Donald E. Oehmke, Mark e. Brecher, Mr. R., Howell We. Woltz, Vernice C. Woltz, US Attorney and North Carolina Superio Court Judge Samuel T. Currin, and Michael D. Spadaccini.
Tuesday, November 17, 2009
First Vietnamese American Bank one time Director, Chief Executive Officer, and Chief Lending Officer Walter Hannen co-conspirator David H. Hagen previously convicted of Securities Fraud and International Money Laundering Scheme sentenced to 45 years and forfeiture of $27.6 million and restitution of +$22,000
Wednesday, October 7, 2009
First Vietnamese American Bank one time Director, Chief Executive Officer, and Chief Lending Officer Walter Hannen co-conspirator Bryan S. Kos previously convicted of Securities Fraud and International Money Laundering Scheme sentenced to 45 months in Federal Prison
On October 6, 2009 Bryan S. Kos previously convicted of Securities Fraud and International Money Laundering Scheme sentenced to 45 months in Federal Prison.
The evidence at trial showed that, from in or about October 2005 through in or about June 2006, Hagen, Kos and his co-conspirators used Canadian brokerage firms to sell approximately 6 million shares of GTX Global stock held in the names of offshore companies for proceeds of approximately $32 million. Hagen, Kos and his co-conspirators then wired these funds from the Canadian brokerage firms to bank accounts in the Bahamas, Curacao, Panama, Cyprus, Dubai, Switzerland, and Gibraltar through many US and offshore banks.
Other co-conspirators included David A. Hagen aka David DeFusco, Walter Hannen, Jeremy D. Jayned, aka Lyle Andrews, Donald E. Oehmke, Mark e. Brecher, Mr. R., Howell W. Woltz, Vernice C. Woltz, Samuel T. Currin, and Michael D. Spadaccini.
David Hagen, Mark Brecher, Howell Woltz, Vernice Woltz and Samual Currin have all been convicted and sentenced.
The evidence at trial showed that, from in or about October 2005 through in or about June 2006, Hagen, Kos and his co-conspirators used Canadian brokerage firms to sell approximately 6 million shares of GTX Global stock held in the names of offshore companies for proceeds of approximately $32 million. Hagen, Kos and his co-conspirators then wired these funds from the Canadian brokerage firms to bank accounts in the Bahamas, Curacao, Panama, Cyprus, Dubai, Switzerland, and Gibraltar through many US and offshore banks.
Other co-conspirators included David A. Hagen aka David DeFusco, Walter Hannen, Jeremy D. Jayned, aka Lyle Andrews, Donald E. Oehmke, Mark e. Brecher, Mr. R., Howell W. Woltz, Vernice C. Woltz, Samuel T. Currin, and Michael D. Spadaccini.
David Hagen, Mark Brecher, Howell Woltz, Vernice Woltz and Samual Currin have all been convicted and sentenced.
Tuesday, May 19, 2009
First Vietnamese American Bank one time Director, Chief Executive Officer, and Chief Lending Officer Walter Hannen co-conspirator David H. Hagen convicted of Securities Fraud and International Money Laundering Scheme
According to acting United States Attorney Edward R. Ryan for the Western District of North Carolina
DAVID A. HAGEN CONVICTED OF SECURITIES FRAUD AND INTERNATIONAL MONEY LAUNDERING SCHEME Local Businessman and His Co-Conspirators Made Approximately $28 Million Selling Stock to the Public CHARLOTTE, N.C. -- Acting United States Attorney Edwdard R. Ryan, Owen Harris, Special Agent in Charge of FBI Operations in North Carolina, and Jeannine Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, announced that DAVID A. HAGEN was convicted by a jury on Friday, May 15, 2009, after a two-week trial on three counts of conspiracy to commit securities fraud, conspiracy to commit mail/wire fraud, and conspiracy to commit money laundering.
HAGEN, a United States citizen who fled to the Bahamas during the investigation of this matter, was originally arrested on a criminal complaint charging him with joining a multi-million dollar international securities fraud and money laundering conspiracy. HAGEN was arrested at J.F.K. International Airport in Queens, New York in September 2007, as he attempted to enter the United States on a commercial airline flight from Nassau, Bahamas after living in the Bahamas for approximately 18 months. HAGEN was denied bond and has been held in custody since that time.
The evidence at trial showed that HAGEN was the owner of a company in Southern Pines, North Carolina known as Gatelinx Corp. (hereafter, “Gatelinx”). Gatelinx was later merged with a publicly-traded shell company known as Autoleasecheck.com, Inc., which company was quoted on the Pinksheets and traded in the Over-the-Counter market. The merged company was renamed GTX Global Corp. (hereafter, “GTX Global”). Following this merger, HAGEN and his co-conspirators controlled approximately 90% of the company’s stock, but held the stock in the names of offshore companies. The evidence at trial showed that, from October 2005 through in or about June 2006, HAGEN and his co-conspirators engaged in a fraudulent promotional campaign designed to drive up the stock price and trading volume of GTX Global. Specifically, the evidence showed that the co-conspirators created websites fraudulently touting the company’s supposed VoIP technology and misstating the company’s financial condition. In addition, the evidence showed that the company issued press releases designed to mislead the public into believing that HAGEN – who was a two-time federal felon – was not involved in the management of the company. Finally, the evidence showed that HAGEN caused the company to issue Disclosure Statements to the public, which statements falsely stated that no one controlled more than 5% of the company’s stock.
The evidence at trial further showed that, from in or about October 2005 through in or about June 2006, HAGEN and his co-conspirators used Canadian brokerage firms to sell approximately 6 million shares of GTX Global stock held in the names of offshore companies for proceeds of approximately $32 million. HAGEN and his co-conspirators then wired these funds from the Canadian brokerage firms to bank accounts in the Bahamas, Curacao, Panama, Cyprus, Dubai, Switzerland, and Gibraltar.
HAGEN faces a maximum sentence of 45 years imprisonment. HAGEN was also ordered by the jury to forfeit $27.6 million in proceeds from his crimes.
Previously on September 29, 1989, David Hagen DeFusco entered into a plea agreement in which he agreed to waive indictment and plead guilty to charges of money laundering, 18 U.S.C. § 1956(a)(1)(A)(i), and conspiracy to defraud a bankruptcy trustee, 18 U.S.C. § 152, § 371. This plea agreement was tied to a separate plea agreement in which DeFusco agreed to plead guilty to mail fraud charges in the Western District of Texas. DeFusco's wife, Annette Louise DeFusco, also entered into an agreement calling for her to plead guilty to money laundering and conspiracy charges in the Eastern District of Virginia. As part of her agreement, Mrs. DeFusco was not charged in the Western District of Texas
DAVID A. HAGEN CONVICTED OF SECURITIES FRAUD AND INTERNATIONAL MONEY LAUNDERING SCHEME Local Businessman and His Co-Conspirators Made Approximately $28 Million Selling Stock to the Public CHARLOTTE, N.C. -- Acting United States Attorney Edwdard R. Ryan, Owen Harris, Special Agent in Charge of FBI Operations in North Carolina, and Jeannine Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, announced that DAVID A. HAGEN was convicted by a jury on Friday, May 15, 2009, after a two-week trial on three counts of conspiracy to commit securities fraud, conspiracy to commit mail/wire fraud, and conspiracy to commit money laundering.
HAGEN, a United States citizen who fled to the Bahamas during the investigation of this matter, was originally arrested on a criminal complaint charging him with joining a multi-million dollar international securities fraud and money laundering conspiracy. HAGEN was arrested at J.F.K. International Airport in Queens, New York in September 2007, as he attempted to enter the United States on a commercial airline flight from Nassau, Bahamas after living in the Bahamas for approximately 18 months. HAGEN was denied bond and has been held in custody since that time.
The evidence at trial showed that HAGEN was the owner of a company in Southern Pines, North Carolina known as Gatelinx Corp. (hereafter, “Gatelinx”). Gatelinx was later merged with a publicly-traded shell company known as Autoleasecheck.com, Inc., which company was quoted on the Pinksheets and traded in the Over-the-Counter market. The merged company was renamed GTX Global Corp. (hereafter, “GTX Global”). Following this merger, HAGEN and his co-conspirators controlled approximately 90% of the company’s stock, but held the stock in the names of offshore companies. The evidence at trial showed that, from October 2005 through in or about June 2006, HAGEN and his co-conspirators engaged in a fraudulent promotional campaign designed to drive up the stock price and trading volume of GTX Global. Specifically, the evidence showed that the co-conspirators created websites fraudulently touting the company’s supposed VoIP technology and misstating the company’s financial condition. In addition, the evidence showed that the company issued press releases designed to mislead the public into believing that HAGEN – who was a two-time federal felon – was not involved in the management of the company. Finally, the evidence showed that HAGEN caused the company to issue Disclosure Statements to the public, which statements falsely stated that no one controlled more than 5% of the company’s stock.
The evidence at trial further showed that, from in or about October 2005 through in or about June 2006, HAGEN and his co-conspirators used Canadian brokerage firms to sell approximately 6 million shares of GTX Global stock held in the names of offshore companies for proceeds of approximately $32 million. HAGEN and his co-conspirators then wired these funds from the Canadian brokerage firms to bank accounts in the Bahamas, Curacao, Panama, Cyprus, Dubai, Switzerland, and Gibraltar.
HAGEN faces a maximum sentence of 45 years imprisonment. HAGEN was also ordered by the jury to forfeit $27.6 million in proceeds from his crimes.
Previously on September 29, 1989, David Hagen DeFusco entered into a plea agreement in which he agreed to waive indictment and plead guilty to charges of money laundering, 18 U.S.C. § 1956(a)(1)(A)(i), and conspiracy to defraud a bankruptcy trustee, 18 U.S.C. § 152, § 371. This plea agreement was tied to a separate plea agreement in which DeFusco agreed to plead guilty to mail fraud charges in the Western District of Texas. DeFusco's wife, Annette Louise DeFusco, also entered into an agreement calling for her to plead guilty to money laundering and conspiracy charges in the Eastern District of Virginia. As part of her agreement, Mrs. DeFusco was not charged in the Western District of Texas
Friday, January 30, 2009
2nd time: FDIC Order to CEASE and DESIST in the matter of First Vietnamese American Bank Docket FDIC-06-195b
The FDIC Enforcement Decisions and Orders (ED&O) contains the full text of the formal enforcement actions against financial institutions that are regulated by the FDIC or against their affiliated parties. The ED&O is updated on a monthly basis.
The fist order to Cease and Desist issued by the FDIC to First Vietnamese American Bank was issued on 12/22/2006. The Bank opened its doors in mid 2005 to great fanfare. The second order to Cease and Desist (15 pages long) issued by the FDIC to First Vietnamese American Bank was issued on 01/29/2009 just 25 months later. The FDIC and the CDFI (Calfirornia Department of Financial Institutions considered the matter and determined that they had reason to believe that the Bank had engaged in unsafe or unsound banking practices. The FDIC and the CDFI, therefore, accepted the CONSENT AGREEMENT and issued the following: http://www.fdic.gov/bank/individual/enforcement/2009-02-42.pdf
The fist order to Cease and Desist issued by the FDIC to First Vietnamese American Bank was issued on 12/22/2006. The Bank opened its doors in mid 2005 to great fanfare. The second order to Cease and Desist (15 pages long) issued by the FDIC to First Vietnamese American Bank was issued on 01/29/2009 just 25 months later. The FDIC and the CDFI (Calfirornia Department of Financial Institutions considered the matter and determined that they had reason to believe that the Bank had engaged in unsafe or unsound banking practices. The FDIC and the CDFI, therefore, accepted the CONSENT AGREEMENT and issued the following: http://www.fdic.gov/bank/individual/enforcement/2009-02-42.pdf
Sunday, December 21, 2008
First Vietnamese American Bank one time Director, Chief Executive Officer, and Chief Lending Officer Walter Hannen named co-conspirator in Grand Jury Charges
According to Grand Jury Charges filed on December 17, 2008 in the Untied States District Court for the Western Division of North Carolina, Charlotte Division, Docker No. 3:08CR93-Britt:
Walter Hannen, one time co-founder, Director, Chief Executive Officer, and Chief Lending Officer of First Vietnamese American Bank, Westminster, California, and consultant to Sterling Bank Ltd., named co-conspirator in Grand Jury Charges filed in the Untied States District Court for the Western Division of North Carolina, Charlotte Division.
The charges in the 3 count case are:
Securities Fraud Conspiracy
Mail and Wire Fraud Conspiracy
Money Laundering Conspiracy
Other co-conspirators included David A. Hagen aka David DeFusco, Bryan S. Kos, Jeremy D. Jayned, aka Lyle Andrews, Donald E. Oehmke, Mark e. Brecher, Mr. R., Howell We. Woltz, Vernice C. Woltz, Samuel T. Currin, and Michael D. Spadaccini.
Walter Hannen, one time co-founder, Director, Chief Executive Officer, and Chief Lending Officer of First Vietnamese American Bank, Westminster, California, and consultant to Sterling Bank Ltd., named co-conspirator in Grand Jury Charges filed in the Untied States District Court for the Western Division of North Carolina, Charlotte Division.
The charges in the 3 count case are:
Securities Fraud Conspiracy
Mail and Wire Fraud Conspiracy
Money Laundering Conspiracy
Other co-conspirators included David A. Hagen aka David DeFusco, Bryan S. Kos, Jeremy D. Jayned, aka Lyle Andrews, Donald E. Oehmke, Mark e. Brecher, Mr. R., Howell We. Woltz, Vernice C. Woltz, Samuel T. Currin, and Michael D. Spadaccini.
Wednesday, September 5, 2007
First Vietnamese American Bank one time Director, Chief Executive Officer, and Chief Lending Officer Walter Hannen co-conspirator Samuel T. Currin, a one time United States Attorney and North Carolina Superior Court Judge, sentenced to 70 months in federal prison.
Samuel T. Currin, 58 of Raleigh, North Carolina, served as the United States Attorney for the Eastern District of North Carolina from 1981 to 1987 and a North Carolina Superior Court Judge from 1987 to 1990.
On September 5, 2007 Mr. Currin was sentenced to 70 months - 5 years and 10 months - in federal prison.
His sentence is the result of him entering a guilty plea to three charges, the first of which is conspiring to use his law firm's client trust account to conspire to launder about $ 1.35 million that he had obtained as the result of a securities fraud scheme. The second one is obstruction of the investigation by a grand jury into both the securities fraud and the money laundering and the third is interfering with the workings of the IRS by not disclosing an offshore debit card account that he had control off and contained thousands of dollars, on his income tax.
In the Bill of Information under which he was charged and pleaded guilty, it states that a group which included on of the clients of his law firm, conducted a scheme to fraudulently manipulate the prices of several publicly traded stocks by the means of spam e mails, mass fax blasts, internet searches, and voice mail broadcasting.
As a result of this scheme they were able to accumulate literally tens of millions of dollars. Currin entered into a conspiracy with the others in order to launder the money through the firm's account. For is part in the money laundering, he received more than $280,000. It also states that he opened an Anguillan company and then used a foreign bank to open a debit card account in the company's name. He then received thousands of dollars into the account, but he did not bother listing them on his 2004 income tax return.
In December of 2005, he was subpoenaed to testify before a grand jury that was investigating the securities fraud and money laundering scheme. Before he appeared, he entered into a conspiracy with a Lawyer in Raleigh, R. Shawn Wellons, to withhold documents from the grand jury and to also give false testimony. The two of them appeared before the grand jury and both committed perjury by denying that he had any offshore dealings.
On September 5, 2007 Mr. Currin was sentenced to 70 months - 5 years and 10 months - in federal prison.
His sentence is the result of him entering a guilty plea to three charges, the first of which is conspiring to use his law firm's client trust account to conspire to launder about $ 1.35 million that he had obtained as the result of a securities fraud scheme. The second one is obstruction of the investigation by a grand jury into both the securities fraud and the money laundering and the third is interfering with the workings of the IRS by not disclosing an offshore debit card account that he had control off and contained thousands of dollars, on his income tax.
In the Bill of Information under which he was charged and pleaded guilty, it states that a group which included on of the clients of his law firm, conducted a scheme to fraudulently manipulate the prices of several publicly traded stocks by the means of spam e mails, mass fax blasts, internet searches, and voice mail broadcasting.
As a result of this scheme they were able to accumulate literally tens of millions of dollars. Currin entered into a conspiracy with the others in order to launder the money through the firm's account. For is part in the money laundering, he received more than $280,000. It also states that he opened an Anguillan company and then used a foreign bank to open a debit card account in the company's name. He then received thousands of dollars into the account, but he did not bother listing them on his 2004 income tax return.
In December of 2005, he was subpoenaed to testify before a grand jury that was investigating the securities fraud and money laundering scheme. Before he appeared, he entered into a conspiracy with a Lawyer in Raleigh, R. Shawn Wellons, to withhold documents from the grand jury and to also give false testimony. The two of them appeared before the grand jury and both committed perjury by denying that he had any offshore dealings.
Friday, December 22, 2006
FDIC Order to CEASE and DESIST in the matter of First Vietnamese American Bank Docket FDIC-08-365b
The FDIC Enforcement Decisions and Orders (ED&O) contains the full text of the formal enforcement actions against financial institutions that are regulated by the FDIC or against their affiliated parties. The ED&O is updated on a monthly basis.
The fist order (15 pages long) to Cease and Desist issued by the FDIC to First Vietnamese American Bank was issued on 12/22/2006. The Bank opened its doors in mid 2005 to great fanfare. The FDIC considered the matter and determined that it had reason to believe that the Bank had engaged in unsafe or unsound banking practices and had committed violations of law and/or regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following: http://www.fdic.gov/bank/individual/enforcement/2006-12-03.pdf
The fist order (15 pages long) to Cease and Desist issued by the FDIC to First Vietnamese American Bank was issued on 12/22/2006. The Bank opened its doors in mid 2005 to great fanfare. The FDIC considered the matter and determined that it had reason to believe that the Bank had engaged in unsafe or unsound banking practices and had committed violations of law and/or regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following: http://www.fdic.gov/bank/individual/enforcement/2006-12-03.pdf
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