December 10, 2009
BESTBANK PROSECUTION TEAM RECOGNIZED AT ANNUAL U.S. ATTORNEY AWARDS CEREMONY
WASHINGTON -- The Department of Justice held its 26th annual Executive Office for United States Attorneys (EOUSA) Director’s Awards Ceremony last Friday, December 4, 2009, during which 146 award recipients from more than 30 districts were recognized for their dedication to carrying out the Department of Justice’s mission. Among the award recipients were District of Colorado Assistant U.S. Attorneys John Haried, Michael Carey, and James Murphy, for their outstanding work on the prosecution of executives responsible for the failure of BestBank from Boulder, Colorado.
The award, “Superior Performance as an Assistant United States Attorney – Criminal” was awarded to Michael P. Carey and John M. Haried for their outstanding professional achievement in the successful prosecution of the owner and officers of BestBank, and two businessmen. This group of defendants’ fraudulent scheme cost American taxpayers more than $200,000,000. After a lengthy investigation, a grand jury returned a 95-count indictment, charging the owner and chief executive officer of the bank, Edward Mattar; the bank president, Thomas Boyd; and the chief financial officer, Jack Grace. Also charged were two Florida businessmen, Douglas Baetz and Glenn Gallant. The charges were based on the defendants’ efforts to fraudulently conceal from the bank’s board and the FDIC the delinquencies in the bank’s subprime credit portfolio. This portfolio, which mostly was managed by Baetz and Gallant’s companies, constituted 70 percent of BestBank’s assets. Ultimately, after months of protracted motions practice, two trials, a dismissal of the jury and resuming the trial as a trial to the court, all defendants were found guilty. Sentences ranged from six to ten years incarceration.
Assistant U.S. Attorney James C. Murphy, received an award for Superior Performance as an Assistant United States Attorney – Appellate” for his work on BestBank. Murphy was recognized for his outstanding work during the appellate phase in the criminal litigation that arose out of the failure of BestBank. Defendants Baetz and Gallant appealed their convictions and sentences, defendants Boyd and Grace appealed only their sentences, and the government cross-appealed all of the sentences. The defendants challenged the sufficiency of the evidence with respect to the bank fraud, aiding and abetting the filing of false call reports, wire fraud, and participating in a continuing financial crimes enterprise. With the assistance of Assistant U.S. Attorneys Haried and Carey, Murphy briefed the case, and at a special half-day session argued the cases with Haried before the Tenth Circuit. On August 20, 2008, in a 58-page opinion, the Court of Appeals upheld all of the convictions except for two wire fraud counts.
At the ceremony, recipients included Assistant United States Attorneys, law enforcement agents, litigation teams and others who have made outstanding contributions in federal, state and local law enforcement.
“These three outstanding Assistant U.S. Attorneys worked hard on behalf of the citizens of the United States to prosecute those responsible for one of the largest Colorado bank failures in recent history,” said U.S. Attorney David Gaouette. “The recognition they received during Friday’s award ceremony was well deserved.”
“These award recipients have been honored for their service and commitment to our country, as well as to their local communities,” said Attorney General Eric Holder. “Each of these dedicated servants has carried out the important mission of the Department of Justice. Their accomplishments have advanced the interests of justice on behalf of the American people.”
Haried, Carey and Murphy’s extraordinary work has helped the Department of Justice to continue its mission to enforce all of our nation’s laws, including prosecuting civil rights violations, gang violence and drug crimes, as well as representing our client agencies, conducting civil enforcement, and assisting victims of crime.
The Executive Office for United States Attorneys provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.usdoj.gov/usao.
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