The trial begins on a $23 million dollar Iraqi Dinars fraud scheme involving 3 persons accused of luring investors into bad investments in two fictional hedge funds. Appearing before Judge Jack Zouhary in a U.S. District Court are Bradford L. Huebner, 66, of Ottawa Hills; Charles N. Emmenecker, 66, of Sylvania, and Michael L. Teadt, 67, of Maumee.
The trial is set for the next few weeks to determine whether the three are businessmen or merely crooks out for a conspiracy. Assistant U.S. Attorney Gene Crawford said in his opening statement that the exchange of dinars for dollars or selling it for free is not a crime. However, lying to sell $23 million in bad investments is what the defendants are guilty of, added Mr. Crawford as he held 25,000 dinars which is equivalent to US$25.
In his statement, Mr. Crawford explained how the trio lied to make the investors believe in the potential “revaluation” of the currency once the Iraqi government increases its value. An investment of $25 could apparently grow to $50,000.
The trio were said to entice investors through a regularly held conference calls in the office of BH Group, a company founded by Mr. Huebner located along Fifth Third Field in Toledo. The company and an “expert” named Rudolph M. Coenen of Jacksonville, a co-defendant who pleaded guilty in 2013 to wire fraud and 5 counts of money laundering, promoted dinar investments in two related hedge funds using deceptive statements.
The defendants’ legal counsels stated that it was Coenen who sold the hedge funds idea to the trio but that the proceeds all went to Coenen. Huebner counsel Rick Kerger told the jury that Coenen is the biggest liar there is who conned the trio into the whole scheme. The three were said to have invested even their own money.
Conspiracy to commit wire fraud and wire fraud are the charges being slapped to the trio. Mr. Huebner is faced with additional charges of mail fraud, multiple counts of money laundering and reporting requirements evasions through structured transactions. Mr. Teadt also faces mail fraud, structuring (3 counts) and submission of false statement to an IRS agent claiming he sold no dinars.
More case details published by the US Attorney’s Office of the Northern District of Ohio from: http://www.justice.gov/usao/ohn/programs/vw/Huebner/MVCU_Huebner.html