United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

DALLAS MAN SENTENCED TO MORE THAN NINE YEARS
IN FEDERAL PRISON, WITHOUT PAROLE,
FOR RUNNING BOGUS INVESTMENT SCHEME

Scheme Caused More than $2.6 Million in Losses to Investors

United States Attorney Richard B. Roper announced that John Wannamaker was sentenced today by the Honorable Ed Kinkeade, United States District Judge, to 110 months imprisonment and ordered to pay $2,224,490 in restitution. Judge Kinkeade ordered that Wannamaker be remanded immediately to the custody of the U.S. Marshal to begin serving his sentence.

John Wannamaker, age 31, of Dallas, pled guilty in August 2005 to an indictment that charged him with one count of conspiracy to commit wire fraud and securities fraud; five counts of wire fraud; one count of securities fraud; five counts of money laundering; and four counts of engaging in illegal monetary transactions. Two co-defendants, Patrick Price of High Ridge, Missouri and Nancy Harlan Saporta of Denver, Colorado, pled guilty in July 2006 to their role in the scheme. Price pled guilty to one count of aiding and abetting securities fraud and Saporta pled guilty to conspiracy to commit wire fraud and securities fraud. They are scheduled to be sentenced by Judge Kinkeade on November 8, 2006.

Wannamaker acted as the Administrator of 3KTrade, a bogus investment program with a mailing address in Carrollton, Texas, and Price acted as Membership Director of 3KTrade and Saporta was a Senior Agent for 3K Trade. From at least January 2001, Wannamaker, along with Price and Saporta, ran this bogus investment scheme to defraud investors by misrepresenting that 3KTrade (3KTrade.com) was a large and highly successful business investing in real estate, business acquisitions and international banking funds. They also represented that it had made of 2loans to the Federal Reserve Bank of the U.S. and the return rate on investments was 100 - 150%. They further represented that investors’ money would be used as collateral only, the invested funds would never leave the bank account, and that the invested funds were guaranteed.

Wannamaker admitted however that the investments were not made; some funds were used as lulling payments to other investors; and that funds were spent for their personal use and not maintained as collateral or otherwise guaranteed. In fact, Wannamaker admitted purchasing vehicles ---- a 1999 and a 2001 Lincoln Navigator, a 1995 Mercedes Benz, and a 1980 Rolls Royce using funds that had been invested in programs with 3KTrade.

The fraudulent scheme has resulted in an approximate $2.6 million loss to investors.

U.S. Attorney Roper praised the investigative efforts of the Federal Bureau of Investigation and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Lynn Hastings.

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