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Feds offer a plea deal in fraud case

Hamilton man is expected to admit guilt in ‘classic Ponzi-type scheme’ that defrauded elderly, churchgoers.

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By Dave Greber, Staff Writer 1:58 AM Saturday, June 19, 2010

CINCINNATI — A Hamilton man is expected to enter a plea this month to accusations that he and his associates established a “classic Ponzi-type scheme” to defraud the elderly, fellow church members and others out of $9 million during the past decade.

James D. Powell, 53, was facing 40 years in prison and millions of dollars in restitution on federal charges of conspiracy to commit mail fraud and wire fraud.

A hearing has been set for June 28 in U.S. District Court in Cincinnati, at which time Powell is expected to plead guilty to lesser charges.

Powell was one of the owners of a conglomerate of real estate and financial companies that targeted dozens of area residents, according to court documents.

Among the companies in question are Hamilton-based Capital Investments, Great Miami Real Estate and Great Miami Debentures, of which Powell was owner and president, court records state.

His associates — who are not named in the government’s bill of information — owned or operated Midwest Marketing and Fiserv (formerly, the First Trust Corp. and Retirement Solutions Inc.)

Court records state Powell and his associates “would offer investments to a number victims, many of whom were elderly, unsophisticated or inexperienced investors.” Other victims were members of the Princeton Pike Church of God in Liberty Twp. and insurance clients of Powell’s associates.

The group fraudulently obtained money from the victims “under the guise of legitimate investment,” either through voluntary payments for investments or by “rolling over” existing retirement accounts, according to court records.

“More than 90 victims lost all their investments, valued in excess of $9 million, with many victims losing their life savings and retirement funds,” court records state.

Such “investments” were supposedly backed by properties owned by Powell and others that were heavily inflated, documents state.

Powell is accused of lying on financial forms, lying or misrepresenting financial information about investments and the company to clients and falsifying loan and mortgage forms to obtain real estate, according to court records.

The charges come as part of the U.S. attorney general’s “Operation Stolen Dreams,” a national campaign to oust and charge mortgage fraud.

Among others already convicted as a result of the initiative are Orlando Carter, the former president and owner of the now-defunct Dynus Corp., who was sentenced this month to 15 years in prison and to pay nearly $5 million in restitution for his role in obtaining millions of dollars in loans in Butler County’s name without county approval.

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