VANCOUVER MAN PLEADS GUILTY TO MULTI-MILLION DOLLAR WIRE FRAUD SCHEME – POSED AS FORMER NFL PLAYER
DAVID K. BUCHANAN, 37, of Vancouver, Washington pleaded guilty to wire fraud today in U.S. District Court in Tacoma. BUCHANAN admits that from December, 1999, through November, 2004, he obtained millions of dollars from investors who were told they were investing in domestic and overseas investment programs that would yield extraordinary returns. In fact, there were no investments. BUCHANAN used the money for his own expenses including purchasing a Jaguar automobile, buying expensive jewelry, paying for his lavish wedding reception, buying real estate for himself and his family, and making a down payment on a golf course in Camas, Washington.
BUCHANAN misled investors about his background and the nature of the alleged investments. He told numerous people he had become wealthy playing football for the NFL's Dallas Cowboys, that he was or had been affiliated with the Federal Reserve Bank, that he had earned substantial returns for investors through "trading programs" affiliated with the Federal Reserve Bank and private banks, and that he had substantial real estate holdings. BUCHANAN told investors they would enjoy very high returns within a very short time frame. The investments were fictitious. BUCHANAN never played for the Dallas Cowboys or any other NFL team.
Although BUCHANAN admitted to one specific instance of wire fraud – inducing an investor in Dallas, Texas to wire him $250,000 in March, 2002 – in the plea agreement BUCHANAN admitted that he defrauded multiple investors out of between $2.5 and $5.7 million. The Court will determine the specific amount at a sentencing hearing, scheduled for April 22, 2005 at 10:00 AM before United States District Court Judge Ronald B. Leighton. BUCHANAN was originally arrested on a Criminal Complaint on September 28, 2004, and was released on bond. However, on December 21, 2004, United States Magistrate Judge Karen L. Strombom revoked BUCHANAN's bond and ordered him into detention based on her finding that he continued to solicit investors and accept money for alleged investments after his arrest. BUCHANAN remains in custody pending sentencing.
If the Court accepts the plea agreement, BUCHANAN will be sentenced to prison within the range of 41 to 57 months.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Washington State Department of Financial Institutions, Securities Division. The case was prosecuted by Assistant United States Attorney Jeffrey B. Coopersmith.
For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney's Office, Western District of Washington at (206)553-4110.