OFFICE OF THE UNITED STATES ATTORNEY
WESTERN DISTRICT OF MISSOURI
JOHN F. WOOD
Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106
NOVEMBER 19, 2007
FOR IMMEDIATE RELEASE
FORMER KC MAN SENTENCED FOR ‘BAYWATCH’ FRAUD
KANSAS CITY, Mo. – John F. Wood, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for a fraud scheme that bilked 18 investors out of nearly $360,000.
David William Port, 53, of Kansas City, a resident alien from Great Britain at the time of the offense, was sentenced by U.S. District Judge Howard F. Sachs this morning to three years and eight months in federal prison without parole. The court also ordered Port to pay $169,985 in restitution.
Port, who was extradited from England, was a fugitive from justice on a state conviction for securities fraud in New York and became a federal fugitive when the indictment was returned. The court ordered today’s sentence to be served concurrently with Port’s sentence in the New York case. Today’s federal sentence reflects a 12-month reduction for time already served on the New York conviction.
On July 3, 2007, Port pleaded guilty to five counts of interstate transportation of money obtained by fraud. Those offenses involved wire transfers of money from victim-investors in England, Utah, New York, California and Delaware in amounts ranging from $5,000 to nearly $75,000. Port admitted that, from October 1998 until October 2000, he devised a scheme to defraud potential investors in Kansas City-based PCG Media, a production and marketing company. Port solicited potential investors in PCG Media by means of false and fraudulent representations. Port then misappropriated the victim-investors funds for his own and others’ benefit.
As part of the fraud scheme, Port told potential investors that PCG Media owned the rights to syndicate the television program “Baywatch” in 17 foreign countries and the rights to merchandise “Baywatch” promotional items, when in fact it did not own such rights. Port told potential investors that PCG Media had entered into an agreement to open “Baywatch” restaurants, which were to take over the Planet Hollywood restaurants, when in fact it never entered into such an agreement. Port also told investors that he had met several times with “Baywatch” star David Hasselhoff, and that Hasselhoff was investing in PCG Media, neither of which was true.
Port also told potential investors that PCG Media was the biggest buyer of t-shirts from the Fruit of the Loom company and had a current multi-million dollar transaction in the t-shirt printing industry, when in fact neither was true. Port claimed that his merchandising clients included Coca-Cola, McDonalds, the UK Lottery and Philip Morris, which also was not true.
Port failed to disclose to potential investors that he was convicted in 1994 in the United Kingdom of obtaining property by deception.
Port fraudulently represented to a potential investor that PCG Media was financially sound, with a value of approximately $20 million, when in fact the company was not financially sound and the value of the company was negligible. Port represented to a potential investor that PCG Media had a cash balance of $275,000, providing a balance sheet that was materially false and fraudulent, when in fact the cash balance was approximately $1,000 or less.
Port told potential investors that he owned the publicly-held and publicly-traded company PCG Media, when in fact the company was neither publicly held nor publicly traded but instead was privately held. Port told potential investors that PCG Media was traded on the NASDAQ market, and issued phony stock certificates.
This case was prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the Federal Bureau of Investigation.
This news release, as well as additional information about the office of the United States Attorney for the Western District of Missouri, is available on-line at