United States Attorney's Office Middle District of Louisiana David R. Dugas, United States Attorney

November 18, 2002 Clarence Wayne Cook and Brian E. Causey

United States Attorney David R. Dugas announced today that CLARENCE WAYNE COOK and BRIAN E. CAUSEY, residents of Baton Rouge, have pled guilty to a Bill of Information which charges wire fraud and willfully making and subscribing a false tax return. As part of the guilty plea proceedings, the defendants admitted in open court that, during the period from August 6, 1997, to January 23, 1998, while doing business as Caymen South International, Inc., and Haven Quest, they fraudulently obtained over $3,000,000 from investors residing in 17 states and the District of Columbia.

Among other schemes, Caymen South International, Inc., and Haven Quest were promoted as legitimate, virtually no-risk investments, with projected returns of 900 percent in approximately 20 weeks for the Cayman Program and up to 500 percent over approximately ten months for the Haven Quest Programs. However, these trading programs were non-existent, the funds were subject to significant risk, and there was no basis for the projected returns.

The defendants also admitted to filing false individual tax returns for the calendar year 1998. CLARENCE WAYNE COOK admitted he made $254,416.17 in 1998 and reported only $1,787.21 on his return. For the same year, BRIAN E. CAUSEY admitted he made $211,611.42 and reported only $3,179.00 on his return.

CLARENCE WAYNE COOK and BRIAN E. CAUSEY could receive a maximum sentence of imprisonment of eight years, a fine of $500,000, or both. CLARENCE WAYNE COOK's and BRIAN E. CAUSEY's sentences will be governed by the United States Sentencing Guidelines. Judge Ralph E. Tyson will sentence CLARENCE WAYNE COOK and BRIAN E. CAUSEY following the completion of a pre-sentence investigation.

The guilty plea is a result of an investigation by the Federal Bureau of Investigation, Internal Revenue Service, U.S. Customs Service, and the United States Attorney's Office for the Middle District of Louisiana.

United States Attorney David R. Dugas stated, "Corporate fraud, including securities fraud, remains a high priority of the Department of Justice and this office."