Las Vegas Man Sentenced to 30 Months in Federal Prison For Stock Fraud and Money Laundering
Las Vegas, Nev. - Daniel G. Bogden, United States Attorney for the District of Nevada, and Byram Tichenor, Special Agent-in-Charge of Internal Revenue Service Criminal Investigation (IRS-CI) for Nevada, announced that BARCLAY DAVIS, age 55, and a Las Vegas resident and former stock promoter, was sentenced today to 30 months in prison for his guilty pleas to conspiracy to commit securities fraud and money laundering. The sentence was handed down in federal court in Las Vegas by U.S. District Court Judge Lloyd D. George.
On December 22, 1997, DAVIS pleaded guilty to a Criminal Information charging him with Conspiracy to Commit Securities Fraud and Bank Fraud, Money Laundering, and Criminal Forfeiture. According to the court records, between April 1993 and September 1997, DAVIS and other Las Vegas residents, businessmen, and stock promoters engaged in a complex scheme to defraud the investing public and certain financial institutions by controlling and fraudulently affecting the market price of the stock of a publicly traded Las Vegas-based company known as Combined Companies International Corporation (CCIC). DAVIS was the president and Chief Financial Officer of CCIC, which was incorporated in Nevada and described itself as engaged in manufacturing, distribution of medical and infection control products, recycling tires and manufacturing and distribution of video games. DAVIS and others falsely inflated the assets of the company on financial reports, made illegal transfers of stock to designated nominees of the publicly-traded company, submitted false financial reports to lending institutions and the United States Securities and Exchange Commission (SEC), made illegal and disguised payments to securities professionals who were selling CCIC stock, and engaged in money laundering activities, which consisted of a deposit of proceeds from the fraudulent sale of CCIC common stock in the amount of $308,500 into an account at U.S. Bank of Nevada in Las Vegas. The loss attributed to the defendant's conduct was determined to be at least $2.5 million.
In order to arrive at the 30-month sentence of imprisonment, the Court also made findings under the United States Sentencing Guidelines that the criminal activity involved more than minimal planning; that DAVIS was a leader in the criminal activity; and that DAVIS had obstructed justice by planning to have a witness injured to prevent the witness from testifying against him.
The defendant was also ordered to forfeit $308,500 in U.S. currency, must serve a three-year period of supervised release following his term of imprisonment, and must perform 200 hours of community work service. In connection with a civil proceeding filed by the SEC in the U.S. District Court for the District of Columbia, DAVIS also agreed to an entry of an order prohibiting him permanently and unconditionally from acting as an officer and director of any publicly-held company, and agreed to forfeit to the SEC all amounts wrongfully obtained from investors, minus any amounts forfeited to the IRS.
DAVIS must surrender to the federal prison facility to which he is designated by November 8, 2002.
The prosecution was the result of a lengthy investigation by Special Agents of the IRS. The case was prosecuted by Assistant U.S. Attorney Matthew Parrella.