Virginia Attorney Charged in South African Ponzi Scheme

Brian Ray Dinning, 47, of Toronto, Canada, has been indicted by a federal grand jury on wire fraud charges.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the indictment was returned by the grand jury. Dinning has been charged with 25 counts of wire fraud, which each carry a maximum penalty of 20 years in prison, if convicted.

According to the indictment, Dinning was a graduate of Regent University Law School and also obtained an LL.M in tax from the Georgetown University Law Center. From early 2005 until the present, Dinning allegedly recruited approximately 23 individuals to invest in his numerous “for-profit” corporations that he had established. He did this by falsely advising investors that they would accrue significant financial gains from South African projects, such as a luxury Oceanside housing development, a luxury Oceanside hotel and private residence club, as well as diamond and gold mining operations. The indictment alleges that Dinning also used “not-for-profit” corporations to obtain donations purportedly for charitable, environmental, agricultural, medical, and community projects for the tribal people of South Africa, as well as developing wildlife habitats for native African species.

Regardless of whether his investors made investments for profit or donations for charitable causes to Dinning’s various corporations, upon receipt of these funds from his investors, Dinning is alleged to have immediately used their money for personal and family gain, for payment of his and his family’s expenses, for payment of alimony and child support to his ex-wife, for payment of private school tuition for his children, and to make the down payment and subsequent mortgage payments on his new $975,000 home in Suffolk. As a result, Dinning allegedly obtained more than $2.9 million from his investors, of which he retained more than $2 million for his and his family’s benefit.

This case was investigated by the Norfolk Division of the FBI. Assistant United States Attorney Steve Haynie is prosecuting the case on behalf of the United States.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.

Anchorage Woman Sentenced to Seven Years in Prison for Running Ponzi Scheme

Acting U.S. Attorney Kevin Feldis announced today that Samantha Delay-Wilson of Anchorage was sentenced in federal court in Anchorage to 84 months in prison on her conviction of defrauding investors and lenders of over $5 million during the course of her more than decade-long Ponzi scheme. The 84-month sentence is to be served in addition to the more than five years Delay-Wilson was sentenced to serve on her separate state fraud convictions.

On June 15, 2012, Samantha Dorothy Delay-Wilson, 65, of Anchorage was sentenced by United States District Court Judge Russell Holland.

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, the following facts provided the basis for Delay-Wilson’s guilty plea:

Delay-Wilson carried out a Ponzi scheme for over a decade, defrauding 14 individuals by making false representations and promises and by providing false documents to victims regarding investments she would make on their behalf and regarding her assets and credentials. Delay-Wilson guaranteed investors a high-rate of return and made false claims regarding how she was going to invest the victims’ money, making different claims to different victims. She told victims she would invest their money in a global investment fund, European sub-prime loans, and an investment banking service company, when, in fact, she used the victims’ money for her personal expenses, to fund her lavish lifestyle, and to pay out earlier investors.

Acting U.S. Attorney Kevin Feldis stated, “The Department of Justice takes fraudulent investment schemes very seriously and works to deter this type of conduct through prosecution. Today’s prison sentence demonstrates that those who prey on the trust of others and defrauds investors will be caught and punished.” Investment schemes happen, even in Alaska, and we all need to be alert to such fraud.”

Mary Rook, Special Agent in Charge of the FBI in Alaska, stated, “Part of the FBI’s mission is to identify, deter, and disrupt significant financial crime targeting individuals, businesses, and industries within the United States. Financial crimes often leave the victims in financial ruin from which it may take years to recover.”

“It can be devastating when the financial well-being of an individual falls into the wrong hands through trickery and deceit,” said Kenneth J. Hines, the IRS Special Agent in Charge of Alaska. “Victims of financial fraud schemes like this suffer emotional pain as well as a devastating financial loss.”

Judge Holland commented that the scheme lasted “an amazing length of time” because of Delay-Wilson’s ability to manipulate people. Judge Holland also noted that the offense was aggravated by the fact that the money defrauded from several of the victims was their retirement money.

Mr. Feldis commended the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, and the Anchorage Police Department for the investigation that led to the successful prosecution of Delay-Wilson.