Thursday, January 01, 2009

Columbia businessman found guilty in multi-million dollar fraud case, he links to Dennis Dale Cole of Clearwater Fl

Columbia businessman found guilty in multi-million dollar fraud case, he links to Clearwater Fl man... Missourian Newspaper BY Greg Mitchel.

COLUMBIA — Columbia businessman Daryl Miles Brown, 31, has been convicted by a federal jury for his part in a multi-million-dollar investment and money-laundering conspiracy.

John F. Wood, United States attorney for the Western District of Missouri, announced the conviction Friday afternoon, according to Don Ledford, Wood's public affairs officer. Brown faced 11 counts of wire and travel fraud. In December 2005, a 12th count was added, alleging Brown conspired to commit money laundering, the Missourian previously reported.

Brown had been the chairman of Columbia-based The Vertical Group and principal of Fulton-based Cerberus Inc., according to Ledford. Ledford said that Brown "devised a business scheme to solicit victims to invest in what he claimed were opportunities to purchase high-yield, short-term investments that were unavailable to the general public." He also said that victims of the fraud scheme invested more than $2 million in the fake securities, and that Brown referred to the investment opportunities as "standby letters of credit."

According to Ledford, the scheme lasted from December 2004 to September 2005, during which time Brown made numerous false statements about the investments to his victims. Ledford said that Brown also falsely claimed he had an MU business degree and that he had been a member of the Kansas City Chiefs professional football team. In September 2005, FBI agents arrested Brown at gunpoint outside his Columbia home after he tried to flee.

Brown had instructed victims to wire money to bank accounts in Florida and elsewhere and, according to Ledford, used the money for such things as "providing money to a girlfriend, entertainment and hotel rooms."

Co-defendant Sylvester L. Mitchell III, a Columbia resident and employee of The Vertical Group, pleaded guilty for his role in the investment scheme on March 28, 2007, Ledford said. Brown and his co-conspirators promised investors returns of 20 - 40 percent. The instruments did not exist.

Another co-defendant, 59-year-old Dennis Dale Cole, of Clearwater, Fla., pleaded guilty to his part in the scheme on Sept. 22, 2006, in a separate but related case, according to Ledford. Ledford said a sentencing hearing will need to be scheduled following an investigation by the United States Probation Office. Over $580,000 was wired transfered from Missouri sources to the Bank of America in Clearwater FL during 2005.

Vertical Group associates Bud Allen Wofford, Sylvester Mitchell and Dennis Dale Cole of Clearwater Fl have all pleaded guilty to federal charges of fraud in the case. Mitchell pleaded guilty to conspiracy to commit money laundering in March.

He also said that currently the office of the U.S. Attorney for the Western District of Missouri couldn't comment on its preferred sentencing of Brown."I'm not in a position to talk to that," Ledford said. "The probation office will conduct an investigation and then make a recommendation, and then we will be given an opportunity to comment on that recommendation." Brown faces more than 200 years in prison.

In Florida business connections; African Investment and Trading Corporation was incorporated by George M. Kiakii, David P. Yates, and Dennis D. Cole.

African Investment and Trading Corporation was located at 2519 N McMullen Booth Rd Ste 510-308 Clearwater, FL 33761. African Investment and Trading Corporation was incorporated on Tuesday, May 20, 2003 in the State of FL and is currently not active. Dennis D. Cole had represented African Investment and Trading Corporation as their registered agent, click here to see Florida Div. of Corp. filing, scroll down.

Bill Warner
Private Investigator