Charity Fraud Case Starts in Ohio

charity fraudFugitive Who Created $100 Million Charity Fraud Scheme Goes to Trial

A man who reportedly masterminded a $100 million multi-state charity fraud scheme is going on trial in Ohio on Monday, October 7th.

The 67-year-old defendant reportedly created a charity for Navy veterans, but used the charity for his own purposes. In court, the defendant refers to himself as Bobby Thompson, but authorities have identified him as John Donald Cody, a Harvard-trained lawyer and former military intelligence officer.

Assistant Ohio Attorney Brad Tammaro says that the defendant fraudulently took $3 million from Ohio donors alone, and accused the defendant of being a thief and a liar. However, defense attorney Joseph Patituce has defended his client’s charity work as legal.

The defendant is charged with charity fraud for defrauding donors who believed they gave to a reputed charity, the United States Navy Veterans Association, based in Tampa, FL. If convicted, the defendant faces 40 years in prison for charity fraud.

The defendant has also given large, legal donations to GOP leaders, including Speaker of the House John Boehner. A request to subpoena Speaker Boehner as a witness in the charity fraud case was denied.

Both prosecution and defense have rejected the judge’s offer of a plea deal.

Financial Fraud, Charity Fraud, and Other Federal Charges

The law broadly defines wire fraud as devising or intending to devise a scheme to defraud others of money or property under false or fraudulent pretenses, representations or promises by means of electronic communications, or “wires.” Because they typically involve interstate matters, most wire fraud cases are considered federal crimes with convictions carrying heavy fines, prison sentences of up to 20 years, or both.

The Strom Law Firm, LLC, has handled numerous fraud charges involving all types of fraud both in Federal and State Court. Common fraud allegations include:

  • making a false statement to a loan officer or bank official
  • mail fraud, defined as using the US Postal System to commit fraud
  • deceiving a bank
  • falsifying loan documents
  • check fraud
  • forging check signatures
  • ATM fraud
  • Embezzlement
  • Fraudulent insurance claims
  • Bond issuances and investment schemes
  • Falsifying loan applications
  • Check fraud schemes
  • Bribes or kickback

Common fraud charges in South Carolina are Medicaid fraud, Financial Identity fraud, and Unemployment Insurance fraud. However, any kind of fraud involves deceiving the injured party in order to receive benefits of some kind, like money or services.

The Strom Law Firm Defends Against Federal Financial and Charity Fraud Charges

As a former U.S. Attorney, Pete Strom handled these types of criminal fraud cases, from RICO violations to financial fraud and wire fraud. If you have been charged with financial, bank, mail, wire, or charity fraud, or making false statements, contact the Strom Law Firm, LLC today for a free consultation to discuss the most effective defense to your case and how to avoid further personal and professional damage. We handle your case with utmost discretion, exploring every viable strategy to secure a most favorable outlook. 803.252.4800.