Vaughan Released Under GPS Monitoring Pending Trial
ALBUQUERQUE – During a detention hearing held this morning in the Albuquerque federal court house, the court denied the United States’ motion to detain Douglas F. Vaughan. Vaughan was released pending trial to the third party custody of Suzy Fairfield, who is required to post a $50,000 unsecured bond. While on release, Vaughan will be subject to GPS monitoring and must observe a 7:00 p.m. to 9:00 a.m curfew. Vaughan also has to surrender his passport.
As previously reported, Vaughan was arrested on February 25, 2011 based on a 30-count indictment generally alleging that, between 2005 and 2010, Vaughan operated a promissory note investment program, which he marketed as a means of generating revenue to grow his real estate business, as a Ponzi scheme. According to the indictment, Vaughan owed more than $76 million in unpaid principal and interest payments to approximately 600 investors when the fraudulent scheme collapsed in early 2010.
The case against Vaughan was investigated by the Securities Division of the New Mexico Regulation and Licensing Department, the Federal Bureau of Investigation, the United States Postal Inspection Service, and United States Secret Service. It is being prosecuted by Assistant United States Attorney Gregory J. Fouratt.
An indictment contains only charges and is not evidence of guilt, and the defendant is presumed innocent unless and until proven guilty.
The case against Vaughan was brought in coordination with the President’s Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. The task force is also making the public aware of resources available to protect against these types of fraud and how to report fraud when it occurs. To learn more about investment scams, how to take steps to protect yourself from scams or how to report investment fraud if you believe you have been victimized, the task force recommends that you visit its website, www.StopFraud.gov.