PRESS RELEASE
Office of the
United States
Attorney
Middle District of
Alabama
Leura Garrett
Canary
April 3, 2002
Leura Garrett Canary, United States Attorney
for the Middle District of Alabama, and Joseph P. Borg, Director, Alabama
Securities Commission, jointly announced that on April 3, 2002, James M.
Bohannon, age 62, of Montgomery, Alabama pled guilty in United States District
Court before U. S. Magistrate Judge Charles S. Coody to a charge of wire fraud
in violation of Title 18, United States Code, Section 1343. Bohannon was charged in a one count amended
information on March 27, 2002, following a joint investigation by the Federal
Bureau of Investigation and the Alabama Securities Commission. The scheme in this case involved the
defendant soliciting people to invest in a European investment venture and
transmitting the funds received by wire to accounts outside the state of
Alabama. The defendant represented to
the investors that the money would be placed in a Swiss Bank and that they
would receive a guaranteed return of approximately eighteen to twenty-eight
per-cent (18 - 28%). Contrary to the
agreement with the investors the defendant withheld approximately $497,000 of
their investment for his personal and business use and to make periodic interest
payments to lead them to believe that they were receiving interest payments on
their investments. In fact, the investors never received any legitimate return
on their investment. The defendant
has also been indicted in regards to the scheme for violations of the Alabama
Securities Act. The fraudulent scheme resulted in a loss to investors of over
2.3 million dollars.
U. S. Attorney Canary said, "This
scheme points out the perils to the investing public. Anyone contemplating an unusual investment should investigate the
experience and licensure of the person with whom they are investing. They
should do this by checking with state or other regulatory agencies before
handing over their money. Defrauded investors should not be afraid to come
forward and seek assistance from law enforcement agencies."
Bohannon faces a maximum possible sentence
of not more than five years and a maximum possible fine of $250,000 or both. He
has also agreed to an order of restitution to the victims of the fraud. A
sentencing date for the federal charge has not been set.
The U. S. Attorney's Office and the Alabama
Securities Commission cautions potential investors to thoroughly check out any
investment opportunity. Contact ASC for inquiries regarding securities
broker-dealers, agents, investment advisors, and investment advisor
representatives, the registration status of securities, to report suspected
fraud, or obtain consumer information:
Write: Alabama
Securities Commission
770 Washington Avenue, Suite 570
Montgomery, Alabama 36130-4700
Telephone: (334) 242-2984 or 1-800-222-1253
Fax: (334)242-0240
Email: asc@asc.state.al.us
<mailto:asc@asc.state.al.us>
Website: www.asc.state.al.us <http://www.asc.state.al.us>
Retta Goss
Administrative
Services Specialist
Middle District of
Alabama
334-223-7280 Ext. 155