Lawyer pleads guilty to $47 million Ponzi scheme
Headline Legal News
An Arkansas lawyer and businessman admitted today to staging a Ponzi scheme that netted more than $47 million, a scam that a prosecutor called the largest case of fraud in state history.
Kevin Lewis, 43, pleaded guilty today to one count of bank fraud in federal district court in Little Rock. He could face up to 30 years in prison, though U.S. Attorney Christopher Thyer said Lewis would likely receive between 10 to 13 years.
He will also have to pay restitution of almost $40 million, though that number could go down further as banks work to recover their losses.
Lewis acknowledged that he issued paperwork for fake rural improvement bonds often used by developers to defraud several Arkansas banks starting with a small bond in 1997.
That money went to maintain his business interests across the state, which range from a law firm to a clothing company. He used the money to make the payments on past fake bonds and support a personal lifestyle that included a house valued at more than $1 million, fancy cars and vacations, Thyer said.
Meanwhile, the bank that bought almost $23 million of the fake bonds, First Southern Bank in Batesville, was placed into receivership by authorities, Thyer said. Lewis had purchased majority ownership of First Southern, using a loan from another Arkansas bank that was backed by the fake bonds.
Related listings
-
Kansas workers seek to bar immigration questions
Headline Legal News 08/03/2011Workers who filed a class-action lawsuit against a Kansas slaughterhouse for unpaid wages and overtime have asked a federal judge to bar Creekstone Farms Premium Beef from discovering their immigration status during the litigation. The employees have...
-
DeMocker defense says former lawyer will keep mum
Headline Legal News 08/01/2011Lawyers for a Prescott stockbroker facing a murder retrial say they won't allow his former defense attorney to give a deposition in the case. John Sears is one of two attorneys who quit Steven DeMocker's case in October, citing a conflict of interest...
-
Court reverses conviction on online Obama threat
Headline Legal News 07/20/2011A federal appeals court on Tuesday overturned the conviction of a man who posted Internet messages threatening Barack Obama during his 2008 presidential campaign. A divided three-judge panel of the 9th U.S. Circuit Court of Appeals ruled that Walter ...
Nicholas C. Minshew - Minshew & Ahluwalia LLP
Nicholas C. Minshew, Attorney at Law, concentrates his practice in the area of Family Law including divorce, separation, child support, child custody, alimony, division of property, separation agreements, domestic violence, prenuptial agreements, and child support enforcement & modification. Mr. Minshew provides legal services to clients in Washington, D.C., and throughout Maryland, including Montgomery County, Frederick County, and Prince George’s County. Mr. Minshew obtained his Juris Doctorate degree from the American University, Washington College of Law in 2000, where he worked as an editor for the Administrative Law Review. After receiving his law degree, Mr. Minshew worked as an attorney for the global law firm of Morgan, Lewis & Bockius LLP, and for Leonard Street & Deinard LLP representing companies in Federal proceedings. During that time, Mr. Minshew redirected his focus to provide legal services directly to individuals and families.