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charged with Fraud in HYIP Scheme
Three Charged with a multi-object conspiracy to commit mail fraud,
wire fraud, money laundering, and the making of false statements related
to a scheme to promote and sell high yield investments
UNITED STATES ATTORNEY'S OFFICE
WESTERN DISTRICT OF VIRGINIA
[On December 27, 2002, Mr. John Daniel Deeter sent us a demand to remove
his name from our website, claiming that his name has been copyrighted. We
that, notwithstanding any copyright to his name (if any), the use of Mr.
Deeter's name below constitutes a "Fair
Use" per 17 U.S.C. § 107,
John L. Brownlee
United States Attorney
Thomas B. Mason Building
105 Franklin Rd., S.W.
Roanoke, Virginia 24011
October 1, 2002
United States Attorney John L. Brownlee announced today that RUSSELL W. JONES,
55, of Logan Utah, JOHN DANIEL DEETER, 59, of Gardnerville, Nevada, and ROBERT
N. PERRY, 63, of Tuscon, Arizona, were arraigned in United States District
Court in Harrisonburg following their indictment on September 12, 2002, by
a federal grand jury sitting in Abingdon.
All three defendants were charged with a multi-object conspiracy to commit
mail fraud, wire fraud, money laundering, and the making of false statements
related to a scheme to promote and sell false and fraudulent investments, referred
to as "high yield investments" or "high yield trading programs," to
victims in Virginia and elsewhere. The same indictment also charged JONES and
DEETER with one count of securities fraud and charged JONES with one count
of witness tampering. A separate indictment charged JONES with one count of
If convicted of all counts, JONES faces a statutory maximum penalty of 30
years in prison and a fine of $1,750,000; DEETER faces 15 years in prison and
a fine of $1,250,000; and PERRY faces five years in prison and a $250,000 fine.
A trial date in Harrisonburg has not yet been scheduled. All three defendants
were released on a $5,000 secured bond.
The case was investigated by the Merrifield office of the United States Postal
Inspection Service, the Roanoke office of the Internal Revenue Service's Criminal
Investigation Division, and the Winchester office of the Federal Bureau of
Investigation. The Securities and Exchange Commission's Office of Enforcement
also provided assistance. Assistant United States Attorney Rick Mountcastle
will prosecute the case. For further information, please contact AUSA Mountcastle
A Grand Jury indictment is only a charge and not evidence of guilt. The defendants
are entitled to a fair trial with the burden on the government to prove guilt
beyond a reasonable doubt.