Two Men Charged with Operating Multi-Million-
Dollar Fraud Scheme
|U.S. Attorney’s Office December 23, 2014|
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an 11-count indictment charging
DAVID C. JACKSON,
also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” 53, and
also known as “Alex Dante,” 45, with various offenses related to an advance fee fraud scheme that defrauded individuals out of several million dollars.
The indictment was returned yesterday. JACKSON, who has resided in Maryland, Ohio and Pennsylvania, has been detained since his arrest on a criminal complaint on August 26, 2014. HURT, recently of Dover, Massachusetts, has been ordered to report to the District of Connecticut for his arraignment.
As alleged in the indictment and in previously-filed court documents, in approximately September 2009, JACKSON, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, JACKSON changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, JACKSON began introducing himself to victim clients as “Charles Jackson.”
HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas.
The indictment alleges that JACKSON, HURT and others defrauded individuals, including Connecticut residents, who wired funds to them in anticipation of receiving large business loans. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised a refund of the upfront fees if their loan transactions were not completed. In order to convince victim-borrowers that the loans were legitimate and Jalin and ACH had successfully secured loans in the past, JACKSON provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact his co-conspirator for a reference. After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from JACKSON for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin.
Through this alleged scheme, more than 20 individuals provided JACKSON and HURT with millions of dollars in advance fees for business loans that were never provided. Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims.
The indictment charges JACKSON and HURT with one count of conspiracy to commit wire fraud and multiple counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges HURT with one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.