Ex-FBI Agent, Wife Plead Not Guilty in U.S. District Court in Richmond on an Alleged Federal Fraud Case

October 14, 2011

Canadian Business on October 13, 2011 released the following:

“By AP

RICHMOND, Va. (AP) — A former FBI agent and his wife pleaded not guilty on Thursday to charges related to a $1.3 million investment-fraud scheme.

John Robert Graves and Sara Turberville Graves of Fredericksburg appeared in U.S. District Court in Richmond. The two are charged with conspiracy to commit wire and mail fraud, and other fraud counts. John Graves also is charged with lying to federal investigators.

U.S. District Judge James R. Spencer set a three-day jury trial that will begin Feb. 7 for the couple, who declined to comment after the hearing.

John Graves, 52, founded the Brook Point Management investment and insurance company in 2003. He and Sara Graves, 44, used Brook Point to sell insurance, perform estate- and tax-planning services, and recruit and advise investment clients, the indictment said.

“In many instances, during the initial meeting with potential clients, John Graves told them he was formerly with the FBI, which reassured the potential clients about investing with him,” prosecutors said in the indictment.

Prosecutors allege that roughly between June 2008 and this past July, the couple misrepresented to about 11 clients the safety of their investments, and how the money would be used. According to the indictment, they used investor funds to purchase real estate in Spotsylvania County, pay credit card bills and dues for their timeshare, along with repaying earlier investors who requested access to their money.

Graves, a former FBI special agent, left the agency in 1999, prosecutors said. The two are free on personal recognizance bond.

The Virginia Financial Securities Fraud Task Force coordinated the investigation. The group is a partnership between criminal investigators and civil regulators to pursue complex financial fraud cases.”

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Former FBI agent indicted

October 13, 2011

Fredericksburg on October 13, 2011 released the following:

“Former FBI agent, wife accused of defrauding customers of their financial management company.

BY KEITH EPPS

The operators of a Spotsylvania County-based business have been indicted on charges that they bilked at least 11 unsuspecting investors out of $1.3 million.

John Robert Graves, 52, and Sara Turberville Graves, 44, are charged with conspiracy to commit mail and wire fraud, mail fraud and four counts of wire fraud. John Graves, a former FBI special agent, is also charged with three counts of Investment Adviser Act fraud and making false statements, according to a Department of Justice news release.

According to the indictment in federal court in Richmond, John Graves founded Brooke Point Management in 2003. Graves, a certified financial planner, served as president of the company, through which he sold insurance, provided estate and tax planning, and recruited and advised investment clients.

The indictment charges that the Graveses raised funds by misrepresenting the safety and security of investments and by misrepresenting how they were using investor funds.

Among other things, the release states, they used investor funds to purchase real estate in Partlow, pay personal credit cards and time share dues and pay back investors who requested access to their money.

The indictment alleges that John Graves, who resigned from the FBI in 1999, continued to make false statements to investors and investigators after the scheme was uncovered.

The couple faces a maximum penalty of 20 years in prison on each of the mail and wire fraud counts, and a fine of up to $250,000 or twice the victims’ losses.

John Graves also faces up to five years on each of the Investment Adviser Act fraud charges and the false statement count.

The FBI and the U.S. Postal Inspection Service investigated the case.”

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.