Posted on 03/06/2020 10:19:20 AM PST by ransomnote
Two former executives of EarthWater Limited (EarthWater), a Dallas-based company, were charged in a superseding indictment with conspiracy to commit wire fraud and bank fraud and obstruction of justice.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group in Washington, D.C., made the announcement.
Beth Ellen DeGroot, 60, and Harley E. “Buddy” Barnes III, 61, both of Plano, Texas, were charged with one count of conspiracy to commit wire fraud and bank fraud and one count of obstruction.
Barnes and nine other individuals had been previously indicted by a Dallas grand jury for their alleged roles in a high-yield investment fraud scheme involving EarthWater. To induce victims to purchase EarthWater stock, the defendants allegedly falsely promised victims the opportunity to earn a high-rate of return in a short period of time by offering them stock at a low price on what they falsely claimed was the eve of EarthWater’s initial public offering (IPO). In truth, EarthWater had no ability or actual plans to go public.
The defendants also allegedly lied to victims about how their money would be used, telling victims that nearly all of their money would be reinvested in EarthWater’s business (including to launch the IPO). In truth, the defendants allegedly stole most of the victims’ money and treated EarthWater’s accounts like their own personal piggybank. Barnes and his co-conspirators allegedly targeted elderly victims, defrauding them of millions of dollars. A trial date is currently scheduled for March 30, 2020.
The superseding indictment alleges that, following Barnes’ arrest for the alleged EarthWater fraud, DeGroot, who was EarthWater’s vice president, partnered with Barnes, who was EarthWater’s chief financial officer, to continue to use EarthWater to raise money, including by selling stock. In addition, Barnes and DeGroot conspired to use EarthWater to fraudulently obtain large paychecks from EarthWater’s payroll processor and to fraudulently obtain a substantial mortgage from an FDIC-insured financial institution. Specifically, Barnes and DeGroot allegedly misrepresented that EarthWater continued to operate and employ them as its top executives when, in reality, EarthWater had shut down and they were unemployed.
The superseding indictment further alleges that, after Barnes was arrested in connection with the EarthWater fraud, Barnes and DeGroot attempted to hide Barnes’s assets to prevent his money from being subject to forfeiture and fine in the event he were to be convicted.
The superseding indictment includes two counts of obstruction for which DeGroot was originally charged in October 2019. Among other things, DeGroot was charged with providing falsified records to a Dallas-based grand jury in order to conceal evidence relating to the conspiracy described above.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
USPIS investigated the case. Trial Attorneys Christopher Fenton and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
More warrants and arrests by the DOJ!
I have been noticing a lot of Federal indictments and cases going forward on different financial improprieties involving government offices.
Is this a new trend or does somebody now have time to do other things than fight their own case?
My uncle was in the Navy back in the late 60’s. He was in New Jersey on shore leave with buddies from Texas. They got picked up by the local cops for being drunken sailors. Where are you from, asked the cop?
Plano, replied one of the drunks.
Plain O where, ask the officer?
Plano Texas!
Then the beatings started!!
My uncle told that story many times! Probably better remembered than experienced!
I believe these are crimes uncovered as the gov goes after swamp creatures. The gov collected the evidence so it goes after the case and then places convictions won on these lower level cases before judges presiding on cases of upper level swamp dwellers. Common tactic - roll up from the bottom, as you work your way up, place larger and larger numbers of convictions before the judge - very compelling in getting convictions against top levels.
They are starting with the small fry. This is eventually going to lead to indictments of Comey, Clapper, Clinton, Brennan and finally Obama. They always start small like this before getting to the Big Cheese.
You actually see that phrase in a lot of write ups on Ponzi Schemes and other forms of investment fraud.
LOL
And Hillary is still walking free
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>I know some panic when they see the DOJ posting a press release. They think if press events don't mention Hillary or Obam, the DOJ is not working on anything else and some even post their demands Barr be removed here. But that's like watching a fire truck drive by as it returns to the station and shrieking, "That's it! I've had it! We need to replace all our firefighters and hire some that will actually fight fires. All these ones do is drive around in a fire truck!"
I also see a lot of posts that say Barr and his DOJ is "letting the swamp have it's way" etc. if he's at an event or if the DOJ posts about tax crimes or mergers, and doesn't bring Comey et. al. in orange jumpsuits to press events. I want to encourage you. Barr leads a legion of people draining the swamp from the bottom up.
Barr's DOJ doesn't list classified activities on their website or release it to the news. Watching the DOJ website as I do, I've seen countless cases about medical fraud, tax evasion and two re Panama Papers that confirm Barr's drying up their resources and getting lower level convictions from those who serve the elites; these lower level cases are put before the judge when elites are tried. For example, revelations in the Panama Papers (international off shore accounts of the rich and famous) lead to convictions of their tax preparers and those convictions are taken to tax trials of the elites. Of course the elites will also face other charges too, but tax trials are a start and could hold them in place while the deep state's financial and thug resources are dried up so the elites can't retaliate (won't have funds and with it, power) when bigger cases are brought.
During the Obama years, Sotero depleted our military to the point that when Trump took office, the country was in no condition to fend off domestic and international aggression meant to thwart prosecution of our DS. But Trump fought hard and long to get money for the wall and to rebuild the military (I think he spent 1.5 Trillion rebuilding our military) while the tentacles of the DS were being cut, and the other half of the country is being educated (often against their will) about what the Dems/Deep State/ Media really have in mind for us.
It's been hard waiting to see prosecutions turn the spotlight on the highest profile villians in D.C., but the groundwork is there and is beginning to surface. (Also, those in high places providing depositions and engaged in prosecution won't tell us about it, and the optics require that we not be told.) For details re some of the "groundwork", watch Rudy Guiliaini's video series called "Common Sense" on Youtube for all the evidence re the Ukraine.
https://www.youtube.com/channel/UC-9J07yyuXQTx_uZQchtwsg
Without educating the public, and in the face of MSM propaganda, civil unrest would be cultivated by the DS and efforts would be made to provoke bloodshed. It's likely Pelosi et. al. would demand UN intervention to "save us" from President Trump, by falsely reporting that he is behind the civil unrest in a coup attemp (i.e., claim he wants to become dictator).
President Trump's strategy matches the winning strategy employed in a famous chess game 100 years ago (Capablanca vs Marshall), The President does love his chess games; he has used this strategy to keep the economy stable enough to impress many with economic wins across the board (win hearts, minds, re-election). That's what the DS is hammering on now, fanning the flames of fear re coronavirus to destabilize the econimy; it's about all the DS has left.
Don't worry if you see Barr at a press event or having lunch; or the DOJ posting about tax crimes or anti-trust! The deep state is still being dismantled even while Barr has coffee, WE'RE STILL WINNING!
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