Nationwide Multi-Million
Dollar Investment Scam
United States Attorney
Karen P. Hewitt announced today that a federal jury
sitting in San Diego found
Randall T. Treadwell, Ricky D. Sluder, and Larry C.
Saturday guilty of conspiracy and wire fraud, arising from the defendants’ participation
in a nation-wide, multi-million dollar investment scam.
According to the indictment and evidence
introduced at trial, the defendants used companies
named
Learn Waterhouse, Inc., Wealth Builders Club, Inc.,
and Qwest International, Inc., to fraudulently solicit
over
$50 million from members of the public, purportedly
for participation in high-yield trading programs and
venture capital investments. The defendants falsely
represented that the money would be used for
investments that would generate returns ranging from
a guaranteed minimum of 2% per month to projected
returns of 50% per month or more. For example, the
defendants falsely represented that they had engaged
in a $3 million “program” that returned
500% in 40 banking days. They also represented that
they dealt only
with “top” U.S. banks, that their investment
programs were “risk free,” and they had
a long track record of
success.
However, according to evidence introduced
at trial, Learn Waterhouse, Wealth Builders Club, and
Qwest never generated any profit through any investment
activity, but instead merely used investors’ funds
to make lulling payments to other investors. The defendants
also converted investor funds to their own use.
For example, Treadwell used investor funds for a Jacksonville
Jaguars luxury box, a $100,000 boat and a
Caribbean cruise and to pay the mortgage on his personal
residence in Savannah, Georgia.
The defendants’ scheme ended in
October 2004, when the Federal Bureau of Investigation
executed
multiple search warrants and when the Securities and
Exchange Commission simultaneously obtained a court
order appointing a receiver and freezing assets held
by the defendants.
Both the United States Attorney’s
Office and the Federal Bureau of Investigation specifically
note the
contributions of the Securities and Exchange Commission,
the Alabama Securities Commission, the Florida
Bureau of Financial Investigations, and the Texas State
Securities Board to this prosecution.
United States Attorney Hewitt stated, “This
case stands as a reminder that promises of exceptionally
high returns over short periods of time are typically
false. The law does not tolerate those who prey on
the
public with these types of false representations.”
FBI Special Agent in Charge Keith Slotter
stated, “Today's guilty verdicts send a clear
message to
those would falsely misrepresent their investment products
and take advantage of the public's trust.”
Sentencing for Treadwell, Sluder and
Saturday is scheduled before United States District
Judge
Thomas J. Whelan on September 22, 2008, at 9:00 a.m.
in federal court in San Diego.
A fourth defendant, Arnulfo M. Acosta,
previously pled guilty to conspiracy and making a false
statement to a federal officer. Acosta’s sentencing
is currently scheduled before Judge Whelan on July
7,
2008, at 9:00 a.m.
DEFENDANTS Case No. 05-CR-1570-W
Randall T. Treadwell Age: 50
Savannah, Georgia
Ricky D. Sluder Age: 51
Houston, Texas
Larry C. Saturday Age: 66
Savannah, Georgia
SUMMARY OF CHARGES
Title 18, United States Code, Section 371 - Conspiracy
to Commit Offenses Against the United States
Maximum penalties: 5 years in prison and a $250,000
fine
Title 18, United States Code, Section 1343 - Wire Fraud
Maximum penalties: 20 years in prison and a $250,000
fine
PARTICIPATING AGENCIES
Federal Bureau of Investigation
Securities and Exchange Commission
Alabama Securities Commission
Bureau of Financial Investigations, State of Florida
Texas State Securities Board
