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Home > Blogs > Butler County News and Issues > Archives > 2008 > May > 07 > Entry
Three charged in Dynus investigation
The FBI’s investigation into the now-defunct Dynus Corp. — accused of fraudulently taking out a multi-million dollar loan in Butler County’s name for unapproved fiber optics contracts — has resulted in charges against three more people.
A federal grand jury returned an 11-count indictment of former Dynus owner Orlando Carter today, May 7.
Carter, 42, of Mason, is charged with making false statements to secure more than $10 million in loans and lines of credit for personal real estate and the operation of his business.
The court also unsealed guilty pleas against former Dynus President James Smith and project manager Karin Verbruggen. Both pleaded guilty to bank fraud in late 2006 and Smith pleaded guilty to an unrelated count of failing to file a tax return.
Investigators say the company took out a $4 million loan in 2005 in the county’s name without county commissioners’ approval.
County Auditor Kay Rogers resigned in March after pleading guilty to bank fraud for falsely represented to National City Bank that Smith was authorized to do business with the county and had completed work that she knew was not done.
Court documents say Rogers received $9,500 from Smith in January 2005, and paid the money back in September 2005 after learning of the FBI investigation “in an effort to conceal the receipt of the $9,500.”
Carter’s list of charges includes several not related to Dynus, such as bankruptcy fraud. Senior United States District Judge S. Arthur Spiegel will preside over the case and set a date for Carter’s initial appearance.
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By Matt Hurley
May 7, 2008 4:52 PM | Link to this
Are we done yet?