Feds look to former CyberNET executive for help

[seemslikeadream]

Wednesday, December 29, 2004
By Ed White
The Grand Rapids Press
GRAND RAPIDS -- Federal authorities have made an offer to a key CyberNET Group executive: Tell us what you know and we won't use the information against you.

It is not an offer of immunity for James Horton. But it's a sign that agents want his help as they investigate fraud at the Grand Rapids high-tech company.

...

Horton was president of a business that imploded in November. Agents seized equipment, Chairman Barton Watson committed suicide and creditors pushed CyberNET into bankruptcy court.

Authorities suspect fraud, money laundering and tax crimes. Lenders provided millions of dollars for high-tech equipment, but the money instead paid for a lavish lifestyle for Watson and his wife, Krista Kotlarz-Watson, the FBI alleges.

Horton's name appears repeatedly in a 54-page document that describes the investigation. He discouraged lenders from visiting CyberNET to inspect equipment that supposedly was being leased, and scratched deals when financiers became too nosy, the FBI said.

Agents seized $700,000 that was wired to Horton's bank from a CyberNET-affiliated account the same day as the federal raid at the company's headquarters on South Division Avenue.


more
http://www.mlive.com/news/grpress/index.ssf?/base/news-19/1104335165210990.xml

Ex-partner: CyberNET books long were cooked
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1085320
CyberNET Group CEO killed during standoff
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1018969
CyberNET widow was 'enforcer'
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1046663
Creditors fight over CyberNET Group toys
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1056993

[pinerow]

1. Shades of Amway and Quixar...!!

nt

[bin.dare]

2. help for what? bigger fish? ...

... from a similar case prosecuted by Tim VerHey (same attorney as Cyber case) a couple of months ago:

http://www.woodtv.com/global/story.asp?s=2498083&ClientType=Printable
Swindler must repay $50,000,000 and do seven years in prison

"Part of Broucek's cooperation is aimed at some of his investors who actually made substantial sums of money from the scheme, and who allegedly failed to tell that to the IRS."


hmmm ....

[KingChicken]

3. This case is so dirty, what more evidence do they need?

For the size of this fraud I’m surprised that Barton and Horton didn’t use a more elaborate scheme, the evidence is plentiful and the case has finger prints all over it. The feds are obviously still looking for something big, otherwise they would be making some arrests.