RENO, Nev. (AP) - Two Montana men and three Nevada companies
they operated have been indicted by a federal grand jury on charges
that they bilked more than 700 investors in a foreign currency
exchange investment scam, prosecutors said Tuesday.
Richard Young, 49, of Lewistown, and William Willard, 65, of
Bozeman, face 11 counts each of money laundering and engaging in
money transactions with property derived from criminal activity. In
addition, each faces five counts of mail fraud, five counts of wire
fraud, and one count of conspiracy.
The two men and their companies, Global One Group LLC, Maelee
Enterprises Inc., and Badie, Inc., were indicted Dec. 3, but the
charges were sealed until Dec. 30 and announced Tuesday by the
Nevada U.S. attorney's office in Nevada.
Young and Willard were scheduled to appear in court Jan. 22 for
arraignment before U.S. Magistrate Valerie P. Cooke in Reno. It was
not immediately known if they had lawyers.
Prosecutors allege Young and Willard received nearly $1 million
from foreign and domestic investors that they then used for their
own gain from April 2006 to October 2007.
"Individuals should be particularly cautious of promises of
unusually high rates of return on investments," Nevada U.S.
Attorney Greg Brower said in a written statement. "Offers that
sound too good to be true could actually be part of a fraudulent
scheme devised to steal your money."
According to the indictment, Young and Willard marketed Global
One, which wasn't a licensed broker, as a company that provided
educational opportunities on trading techniques on the foreign
Investors were charged $500 annual memberships for access to
Global One's Web site, conference calls and Web-based seminars, and
instructed to open accounts with foreign exchange brokers
recommended by Global One.
In presentations, investors were told that Young made 8,000
successful trades in a year without suffering one loss, and that
the company had a software trading program that could automatically
Authorities allege Global One also received money from some
investors in the form of loans, and in some cases received power of
attorney from investors to handle their trades.
Young and Willard allegedly transferred money received by Global
One from investors into the bank accounts of Maelee Enterprises and
Badie, Inc., for their own use.
Young and Willard face up to 30 years in prison and a $1 million
fine on each conspiracy, mail fraud and wire fraud count, up to 20
years in prison and a $500,000 fine on each money laundering count,
and up to 10 years in prison and a $250,000 fine on each count of
engaging in money transactions in property derived from unlawful
activity, prosecutors said.
(Copyright 2009 by The Associated Press. All Rights Reserved.)