United States Attorney Richard B. Roper
Northern District of Texas

JURY CONVICTS LOCAL MAN FOR RUNNING INVESTMENT FRAUD SCHEME

More than 100 Victims Defrauded of Approximately $15 Million

DALLAS — Following a little more than two hours of deliberation in a trial that began last week before U.S. Senior District Judge A. Joe Fish, a jury convicted Argyle, Texas, resident, Stanley Leitner, 69, on all 27 counts of an indictment that charged him with various offenses related to an investment fraud scheme he ran, announced U.S. Attorney Richard B. Roper of the Northern District of Texas.

Specifically, Leitner was convicted on six counts of wire fraud, one count of securities fraud, one count of failing to disclose compensation for promoting a security, 13 counts of money laundering, and six counts of engaging in illegal monetary transactions. Each wire fraud count carries a maximum statutory sentence of 20 years in prison and a $250,000 fine. The securities fraud conviction carries a maximum statutory sentence of five years in prison and a $250,000 fine and the failure to disclose compensation for promoting a security count carries a maximum statutory sentence of five years in prison and a $250,000 fine. Each money laundering count carries a maximum statutory sentence of 20 years in prison and a $500,000 fine. Each count of engaging in illegal monetary transactions carries a maximum statutory sentence of 10 years in prison and a $250,000 fine. Leitner is scheduled to be sentenced by Judge Fish on April 22, 2008.

The government presented evidence at trial that from April 2004 to July 2005, Leitner was President and CEO of Megafund Corp., an entity he created to solicit investors to participate in a high yield investment program. Leitner raised funds from investors, which he aggregated or “pooled” and sent to another individual’s overseas bank account located in the Antilles. During the year or so Megafund was operating, Leitner raised more than $15 million from investors, many of whom were pastors, their friends and their families.

Leitner was found guilty of devising and executing a scheme to defraud his investors by making representations about the trading program he knew were not true, and not telling them material information he knew to be true, which led the investors into believing that there was little or no risk of losing the invested funds. In addition, Leitner failed to inform investors that he was not transferring to the program some of the funds investors sent to him, but instead was using those monies to fund several personal ventures and projects, including, among other things, a movie.

U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Paul Yanowitch and Chris Stokes.

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