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Thread: Guilty plea reached in wire fraud case involving Iraqi currency, Dothan connection

  1. #1

    Default Guilty plea reached in wire fraud case involving Iraqi currency, Dothan connection


    Guilty plea reached in wire fraud case involving Iraqi currency, Dothan connection


    Posted: Tuesday, July 12, 2016 1:16 pm | Updated: 5:27 pm, Tue Jul 12, 2016. Matt Elofson

    Crime and courts reporter





    An Illinois man has pleaded guilty in federal court to federal wire fraud charges involving the operation of a business that unlawfully sold Iraqi currency over the internet to customers all over the country.

    According to a statement from the U.S. Attorney’s Office of the Middle District of Alabama, Husam Usama Tayeh, 36, of Oak Lawn, Illinois, pleaded guilty on Monday in federal court in Montgomery to committing wire fraud. A Dothan resident’s home was searched last year as part of the federal wire fraud investigation. That man was never charged with a crime.

    The statement said a joint federal and state investigation led to the guilty plea, which stemmed from Tayeh’s operation of a business involving the unlawful sale of Iraqi currency – dinars – over the internet.

    According to court documents, Tayeh was the owner of Dinar Corporation, Inc. (Dinar Corp.), a company registered in Nevada and headquartered in the suburbs of Chicago.

    Through Dinar Corp., Tayeh operated a website. On that website, Tayeh offered to sell customers Iraqi dinars.

    “Tayeh used advanced technology to commit classic fraud—he duped people into spending their hard-earned money on his worthless wares,” said U.S. Attorney George L. Beck. “Tayeh caused harm all over the country. I am proud to say that we in Alabama put a stop to this far-reaching scheme.”

    The statement said one of the ways that Tayeh’s customers could buy dinars was through installment contracts. Tayeh assured customers that he would ship them reserved dinars upon the customers making their final contract payments.

    Tayeh defrauded customers in that he never actually placed dinars in reserve and never had access to enough dinars to fulfill all orders should the orders all come due.

    The statement said Tayeh found his way to the Wiregrass when he was unable to find a bank in or near Chicago that would take his “ill gotten” money. Tayeh contracted with a Dothan resident to launder the Dinar Corp. proceeds through Dothan banks. The Dothan resident faces no criminal charges.

    According to an earlier Dothan Eagle report, Dothan resident Theodore S. Hudson II, who was listed as principal of My Monex Inc., agreed to have approximately $550,000 in assets frozen pending the outcome of a case against Dinar Corp., charged with violations of the Commodity Futures Trading Act.

    The order means that the assets cannot be touched without court permission. The civil case is on hold until the resolution of the criminal case filed against Tayeh.

    Tayeh faces a maximum sentence of 20 years in prison with a fine at sentencing, which has been set for October.

    Dothan attorney Stephen Etheredge, who represented Hudson, said his client has never been charged with a crime.

    “He was added to the civil case only in the capacity of a ‘relief defendant’ because he held a business relationship with Husam Tayeh, and the Commodities Federal Trade Commission is seeking to obtain a refund of any money paid to Mr. Hudson arising from the business relationship,” Etheredge said in an email.

    The U.S. Commodity Futures Trading Commission filed a complaint in late July 2015 against Dinar Corp, and its operator, Tayeh, and associated companies.

    The complaint states Tayeh and his company were not properly registered and that Tayeh made “material misrepresentations” about the company’s validity to potential customers. The complaint states the company has done about $8 million in foreign exchange transactions, often hitting customers with hidden finance charges of up to 22 percent.

    Hudson’s residence on Whatley Drive was searched July 29, 2015. Hudson and his company are listed as “relief defendants” in the case against Dinar Corp, indicating that the Commodity Futures Trading Commission believes Hudson’s company has funds intended for Tayeh’s company.

    The complaint alleges Tayeh worked with Hudson to create an Alabama company called Monex AL. Prosecutors allege Tayeh’s foreign exchange customers would write checks or money orders to “My Monex Inc.” The funds would then be deposited in one of several bank accounts in the Wiregrass tied to Monex AL, even though none of the funds were meant for the “Monex AL” company.


    http://www.dothaneagle.com/news/crim...8e507f293.html

  2. #2
    Join Date
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    Default Re: Guilty plea reached in wire fraud case involving Iraqi currency, Dothan connection


    This is what gives this investment a bad name. I hope they get what they deserve.
    Thanks guardian.

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