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Carter, Dynus inflated numbers, witness says

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By Dave Greber, Staff Writer 6:46 PM Thursday, July 30, 2009

CINCINNATI — During Dynus Corp.’s 11-month run, its owner, Orlando Carter, used falsely inflated company funds to finance a million-dollar home, a private suite at Paul Brown Stadium, fancy dinners and family vacations, according to testimony Thursday, July 30, in U.S. District Court.

Carter, former owner of Dynus, is standing trial on 11 federal charges, including bank fraud and forgery, amid allegations he misrepresented his income, relationships and deals he supposedly had with government entities, including Butler County.

Testimony Thursday laid out some of the methods Carter allegedly used to secure a lifestyle above the means he — or his company — actually had.

Jurors heard details of the inner-workings of Dynus, which included checks and tax statements that had been forged by the company’s chief financial officer, promises of work that never materialized and pressure from Carter to cover up the wrongdoings.

Some of that promised work included contracts for $6 million with Butler County, $2.4 million with West Chester Twp., and more than $10 million with Greensboro, Ala.

Witnesses testified Carter instructed them to include the work — which had yet to be done — as actual revenue, which falsely broadened the company’s credit line with Fifth Third Bank.

“He ... wanted it to be recognized as soon as possible 100 percent,” testified Julia Light, former Dynus controller.

Light was also involved in falsifying tax documents and pay stubs for Carter, which allowed him to secure a loan for his $1.2 million estate in Maineville.

She said she worked on the backroom deal with Damian Ortiz, former leader of Dynus Financial, the company’s mortgage business. She said she later felt “ashamed.”

Earlier Thursday, Ortiz said he viewed Carter as a mentor, and even felt comfortable enough with him to advise him against buying such a large house.

“He had his heart set on the house,” Ortiz said. “He said ... ‘We have to make that happen. I want that house.’”

Ortiz admitted to submitting numbers Light admitted changing so that Carter could secure a home loan though Long Beach Mortgage.“I made a bad decision,” Ortiz testified. “I was under a lot of pressure to get this deal done. It was my boss that was asking me to get it done.... I had two kids to support.”

Ortiz also testified he had done the same for former Dynus Corp. President James Smith and himself.

Ortiz said the U.S government offered him immunity from any charges so long as he is truthful during testimony.

Defense attorneys continued their assault against former Dynus President James Smith, saying he — and not their client — was the driving force behind the company’s business ways.

The trial will continue Friday, July 31, as the defense resumes its cross examination of Light.

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