Edward Lincoln Forehand, of Dothan, AL, has been convicted on charges of securities fraud, mail fraud, wire fraud, and money laundering. According to the United States Attorney’s Office, he used the business name of “USA Marketing” to solicit investments from people mainly in South America and the panhandle of Florida between 2006 to November of 2009. He told investors that he had a relationship with Vicky Yeager, who owned a company by the name of Elite Marketing and solicited investments from victims with the promise of extremely high return rates. He provided most investors with a document promising an annual rate of return ranging from 175 percent to 325 percent.
Instead of sending all of the investor’s money to Elite, Forehand used large amounts to pay prior investors and for his own personal expenses including cash, purchase of real estate, improvements to houses, repayment of personal loans, and other personal needs. According to the U.S. Attorney’s Office release, between 2006 and 2009, he received $6.2 million from investors and only sent $1,605,790 to Elite. He had also promised to pay out to investors over $19 million. After Yeager’s death on November 10, 2009, Forehand stopped making payments to investors causing 87 individuals to lose $2,991,654 of the monies they had given to him to invest in Elite.
Under the federal statutes in this case, each of the eight wire and mail fraud counts carries a statutory maximum sentence of 20 years imprisonment. Money laundering carries a maximum 10-year sentence on each count, while the two securities fraud counts carry a maximum five year sentence. The indictment also seeks the forfeiture of real estate in Sevierville, Tennessee, that was allegedly obtained as a result of the fraud. Sentencing has been scheduled for August 2, 2013.
The case was investigated by Special Agents of the Alabama Securities Commission, the Federal Bureau of Investigation, and by the Dothan Police Department with special help from the United States Marshal Service.
If you find yourself facing federal fraud charges, it is important to find an experienced mail fraud attorney to represent you. The white collar criminal attorneys of Parkman & White, LLC have a history of success in the court room and are ready to represent clients nationwide.