CINCINNATI - A federal grand jury here today returned a 79-count indictment against George J. Fiorini II, age 53, of Cleves, charging him with mail fraud, wire fraud, money laundering, interstate transportation of stolen property, and filing false tax returns.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, announced the indictment in conjunction with Kevin R. Brock, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Division; Robin Dalgleish, Inspector in Charge, United States Postal Inspection Service; and Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigation. The Ohio Department of Commerce Division of Securities and the Ohio Department of Insurance also participated in the investigation.

The indictment charges that Fiorini owned and operated The Fiorini Agency in Cincinnati, an insurance company that did business in Cincinnati. Through this agency, he advertised and promoted the 10% Income Plus Plan as a risk-free investment that featured a guaranteed principal, no fee for withdrawals, no administration fees, no tax on accumulated interest, and a guaranteed rate of interest.

The indictment alleges that, from January 1995 until January 2002, Fiorini took the money from investors and used it for his personal use.

Fiorini, the indictment alleges, knowingly misled investors and potential investors by falsely stating the existence of the investment offering; misrepresenting the intended use of investors' money; falsely promising and assuring his ability to pay the guaranteed return on investments and his ability to make a full refund on demand; failing to disclose to new investors that he had never invested prior investors' money in legitimate investments but, instead, used the money for personal expenditures and asset purchases for himself, his family members and his friends; providing promissory notes with forged witness signatures; lulling investors with account statements containing non-existent earnings, values, and balances; and making interest payments and allowing account withdrawals for current investors with new investor funds and issuing promissory notes.

The indictment charges Fiorini with 37 counts of transporting money taken by fraud in interstate commerce - one count for each transaction between May 1998 and August 1999. The amount involved, according to the indictment, is $1,403,682.73. Each count has a maximum statutory penalty of ten years imprisonment and a fine of up to $250,000.

The grand jury charges Fiorini with 15 counts of mail fraud for knowingly mailing letters, checks, promissory notes, promotional pamphlets, business cards and account statements he knew to be fraudulent. Each count has a maximum five-year sentence and $250,000 fine.

Fiorini is charged with four counts of wire fraud, also with a maximum five-year sentence, five counts of money laundering - each with a maximum 20-year sentence - for attempting to conceal the proceeds of unlawful activity, and 16 counts of engaging in monetary transactions involving criminally derived property (money laundering). Those charges carry a maximum ten-year sentence and fine of up to $250,000.

The grand jury also charged Fiorini with two counts of filing false tax returns. He is accused of filing an income tax return for 1998 reporting a taxable income of $50,515 when he knew his actual taxable income for the year was $1,885,367 greater than he reported. He is charged with filing a false income tax return for 1999, reporting a taxable income of zero when he knew that $548,009 in income should have been reported. Filing a false income tax return carries a maximum three-year sentence and fine of up to $250,000.

The indictment also calls for Fiorini to forfeit nine vehicles, a boat, four condominiums and four pieces of property in Ohio.

Lockhart commended the joint investigative efforts of the FBI, Postal Inspection Service, IRS Criminal Investigation and the state agencies involved - the Ohio Department of Insurance and the Ohio Division of Securities.

Lockhart also said that the investigation is continuing and charges against other people involved in the scheme are possible.

Fiorini will be summoned to an initial appearance and arraignment before U.S. Magistrate Judge Timothy S. Hogan at 1 p.m. on Thursday, May 15, 2003.

An indictment is merely an accusation. A defendant is presumed innocent until and unless proven guilty in a court of law.