Two Memphians charged in $3.5 million fraud case ( defrauded churches also )

[MORTARDUDE]

Two Memphians charged in $3.5 million fraud case
THE COMMERICAL APPEAL
Memphis, TN

October 18, 2003

Two Memphians charged in $3.5 million fraud case

Two Memphians and a financial consultant from North Carolina who are accused of taking $3.5 million from private investors and churches over five years were indicted Friday by a grand jury on federal securities fraud, mail fraud, wire fraud and conspiracy charges.

According to the U.S. Attorney's Office in Memphis, Ricardo A. and Anita M. Gant did business as Capital Plus Worldwide Financial Services Inc. of 3865 Viscount Suite 5. The company sold contracts in joint venture partnerships through subcontractors including Keith N. Smith of Kinston, N.C.

Investors were promised their money would be pooled in offshore accounts for greater gains with interest payments quarterly, according to the charges. The subcontractors, who were trained by the Gants, also promised annual gains of 60 to 200 percent with the original investment returned at the end of the contract term, federal authorities said.

The money was mailed or wired from the subcontractors in other cities to Capital Plus in Memphis. The Gants used it to build a new home, invest in horses, travel abroad and build their investment portfolio, the indictment alleges.

The Gants also are charged with money laundering and tax evasion for failing to report more than $600,000 in income on their 1998 and 1999 federal tax returns.

Smith faces a maximum of 40 years in prison and a $2 million fine if convicted on all charges. The Gants each face a maximum of more than 400 years in prison and up to $15 million in fines if convicted on all charges.

It was not known late Friday whether any of the suspects were in custody.