OFFICE OF THE UNITED STATES ATTORNEY
WESTERN DISTRICT OF MISSOURI
MATT J. WHITWORTH
Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106
DECEMBER 3, 2009
FOR IMMEDIATE RELEASE
RAYMORE MAN INDICTED FOR $2.2 MILLION
INVESTMENT FRAUD SCHEME
KANSAS CITY, Mo. – Matt J. Whitworth, United States Attorney for the Western District of Missouri, announced today that a Raymore, Mo., man has been indicted by a federal grand jury for his role in a $2.2 million investment fraud scheme.
Carl R. Todd, 57, of Raymore, was charged in a six-count indictment returned by a federal grand jury in Kansas City on Wednesday, Dec. 2, 2009.
The federal indictment alleges that Todd participated in a conspiracy from May 4, 2002, to April 26, 2007, to commit mail fraud, wire fraud and interstate transportation of stolen property. In addition to the conspiracy, Todd is charged with three counts of mail fraud, one count of wire fraud and one count of interstate transportation of stolen property.
According to the indictment, Todd defrauded at least 31 victims through fraudulent investment opportunities in so-called bank trading programs. Todd allegedly told victims that bank trading programs took advantage of a fractional banking system to re-loan money multiple times. Todd allegedly claimed that such investments would provide a high rate of return with little or no risk. In fact, the indictment says, no such bank trading programs existed.
In one instance, the indictment says, Todd located an investor who had previously invested with him in another venture. Todd allegedly located the investor, who was diagnosed with frontal lobe dementia, in a hospital and solicited his participation in the bank trading program. The victim provided Todd with a check for $100,000 in May 2004, then provided additional checks to Todd in October 2004.
Todd allegedly claimed that he was on a board, sometimes described as the M2 Board in Kansas City, or was a member of the World Bank, and that he was one of a small number of traders in the United States. In fact, the indictment says, Todd was not on any such board, or a member of the World Bank, and was not a trader. Todd also failed to inform investors that he was not licensed to sell securities in the state of Missouri, the indictment says.
Todd told investors that their funds would be placed in secure CDs at Wells Fargo Bank, the indictment alleges, when in fact the funds were not so placed. Any returns or refunds paid to investors came from payments by new investors, not from returns from the investment.
The indictment also contains a forfeiture allegation, which would require Todd to forfeit to the government $2,233,411, which represents the net proceeds obtained by Todd through the alleged offenses. The indictment also seeks the forfeiture of Todd’s residence, a 1970 Ford Mach 1, a 1968 Chevrolet Camaro, a 1999 Ford Shelby Mustang Series 1, a 1969 Ford Shelby Mustang GT 500 and a 2002 Avanti.
Whitworth cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Curt Bohling. It was investigated by the U.S. Postal Inspection Service.
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