Federal Case Against Fred Rosetti

May 24, 2012

WNEP on May 23, 2012 released the following:

by Dave Bohman

“We know more details today about the fraud case federal prosecutors have against the former head of the Northeast Intermediate Unit #19 Fred Rosetti.

The information is in response to Rosetti’s request to get back property and assets the government seized when he was charged with using the NEIU’s public money and manpower for his own personal use.

Rosetti was supposed to run an agency to help school districts in Lackawanna, Susquehanna and Wayne counties educate students with special needs.

In court papers, prosecutors accuse Fred Rosetti of exploiting NEIU #19 for his own needs.

While Rosetti is asking a federal judge to return money and property seized in February, federal investigators counter that for 12 years, Rosetti ran, “A scheme in which he fraudulently converted funds and property of (NEIU) for his own personal benefit and the benefit of his family.”

Among the details in the filings:

Prosecutors claim Rosetti ordered NEIU staffers to work on his Archbald home on taxpayer time.

According to court papers that work included snow removal, landscaping, swimming pool maintenance, building decks, sheds and sidewalks, lighting and plumbing, moving Rosetti’s daughter’s furniture.

In one instance, prosecutors claim an employee, “…spent the better part of an NEIU work day waiting at his (Rosetti’s) residence for a cable television man to arrive while he (Rosetti) and his wife kept an important date, on the golf course.”

Prosecutors also said Rosetti used NEIU to pay for UPS packages for wedding, birthday and holiday gifts, vacation, personal and sick leave that he never documented and false travel vouchers.

In the paperwork, prosecutors claim “…NEIU employees did what the defendant (Rosetti) ordered them to do,” and “were threatened with….the loss of their job if they offered resistance.

Fred Rosetti’s attorney’s claimed all his money and property was earned from his work. He pleaded not guilty and his trial is scheduled to start in November.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

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To find additional federal criminal news, please read Federal Criminal Defense 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 Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


Ronald W. Shepard Indicted by a Federal Grand Jury for Allegedly Operating a $3 Million Ponzi Scheme

February 2, 2012

The Federal Bureau of Investigation (FBI) on February 1, 2012 released the following:

“Former Lee’s Summit Man Indicted for $3 Million Ponzi Scheme

KANSAS CITY, MO— Beth Phillips, United States Attorney for the Western District of Missouri, announced today that a former Lee’s Summit, Mo., man has been indicted by a federal grand jury for defrauding 39 investors in a $3 million Ponzi scheme.

Ronald W. Shepard, 72, formerly of Lee’s Summit, was charged in a 15-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, Jan. 31, 2012.

According to the indictment, Shepard’s company, Safety Solutions USA, LLC, in Lee’s Summit, developed and marketed a trailer hitch called Tow-Safe. A patent request for the trailer hitch safety device was filed, but rejected by the U.S. Patent Office. Shepard also operated a company called The Real Estate in Lee’s Summit.

Shepard received approximately $3,188,765 from approximately 39 investors from January 2006 through December 2009. Shepard returned approximately $1,235,853 to the investors, and lost or spent the rest, resulting in a minimum loss to investors of $1,825,883. Shephard is charged with 13 counts of mail fraud and two counts of money laundering related to the scheme.

Shepard, who prepared tax returns for individuals, discussed their investments and pitched his own companies as investments. Shepard allegedly claimed that investors would make anywhere from a 15 percent to 100 percent annual return on their investment. He allegedly failed to inform potential investors that the state had issued a cease and desist order that barred him from offering or selling any unregistered security.

Shepard allegedly told investors that their money was used to purchase property in Kansas City, the Lake of the Ozarks and Hawaii. Except for purchasing his own personal residence at the Lake of the Ozarks, the indictment says, Shepard did not purchase any real estate. Instead, the indictment alleges that Shepard used investor funds for personal living expenses, to pay other investors, to pay relatives, in disbursements of cash to himself and in real estate ventures.

According to the indictment, many investors liquidated their Individual Retirement accounts or 401(k) accounts and transferred the proceeds to Shepard for investment. Shepard allegedly told investors that if they liquidated retirement funds, thereby incurring penalties, he would refund their initial investment, plus the amount of penalty, plus interest.

The indictment also contains a forfeiture allegation, which would require Shepard to forfeit to the government any property derived from the proceeds of the alleged offenses, including $1,825,883.

Phillips cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the FBI and the Missouri Division of Securities.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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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.