Florida Man Pleaded Guilty To Conspiracy Involving Iraqi Currency

A Florida man pleaded guilty today in the U.S. District Court to crimes related to a scheme to defraud investors in the sale of Iraqi dinar currency and two non-existent hedge funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office.

Rudolph M. Coenen, age 47, of Jacksonville, Florida, pleaded to one count of conspiracy to commit wire fraud, one count of wire fraud and five counts of money laundering before U.S. District Court Judge Jack Zouhary. 

Coenen admitted to entering into a conspiracy with Bradford L. Huebner, Charles N. Emmenecker and Michael L. Teadt to defraud investors through the promotion and sale of Iraqi dinar currency and “placements” in two non-existent hedge funds.  Coenen operated a business known as Bayshore Capital Investments to collect funds related to the non-existent hedge funds for himself, Huebner, Emmenecker and Teadt, according to court documents.

Huebner developed and provided prospective investors with professional literature and information regarding the non-existent hedge funds in order to make them appear legitimate.  The marketing strategy developed by Huebner and Coenen included requiring prospective members in the non-existent hedge funds to join the BH Group and purchase a certain quantity of Iraqi dinar from Huebner, according to court documents.

Approximately $722,415.00 was solicited from prospective investors, according to court documents. 

Coenen also admitted he was not a former Marine who served in the first Gulf War, he had not been wounded in combat and he was never awarded a Purple Heart.  Coenen also admitted the defendants knowingly and intentionally made other false and misleading claims to investors in furtherance of the scheme to defraud, according to court documents.

Coenen and three others were indicted in September 2012.  Charges against the other co-defendants are pending.

Assistant United States Attorneys Joseph R. Wilson and Gene Crawford are representing the United States in this case, which was investigated by special agents of IRS, Criminal Investigation.