2002-10-03 -- Jackson, Kevin -- Sentencing -- News Release

Auto Mechanic Sentenced in Connection with Attempt to Redeem a Fraudulent Bond Purportedly Worth $200 Million

NEWARK - Kevin Jackson, a self-employed auto mechanic, was sentenced today to fifty-one months after his conviction in a fraud conspiracy involving his attempt to redeem a fraudulent bond purportedly worth more than $200 million, U.S. Attorney Christopher J. Christie announced.

In May of last year, the defendant was convicted by a jury in Newark of three counts: one count of conspiracy to commit mail fraud and two counts of mail fraud, according to Assistant U.S. Attorney Robert Kirsch, who handled the sentencing.

Jackson, 51, of Hyde Park, Utah, was convicted of employing a scheme to redeem a fraudulent $100 million Federal Reserve Note, which, with accrued interest, had a supposed value of more than $200 million, in June 2001. According to testimony and evidence at trial, in late May 2000, the United States Secret Service seized 25 identical bonds belonging to Jackson as contraband, and advised him that the financial instruments were fraudulent, Kirsch said. Nonetheless, a few weeks later, in mid June 2000, Jackson attempted to redeem another bond, with a listed principal value of $100,000, through an account opened at Advantage Capital Corporation, in White Plains, New York and the transaction's clearinghouse, Pershing Corporation, in Jersey City, then a division of Donaldson, Lufkin and Jenrette Securities, which is now Credit Suisse of First Boston.

Jackson submitted a supposed certification, and curriculum vitae, of a Ph.D. in archeology and social anthropology from the Utah State University attesting to the bond's authenticity to Advantage Capital. The evidence at trial demonstrated that there was no such individual, and the certification was bogus. In addition, Jackson represented to what he believed were representatives of Pershing but who, in fact, were Postal Inspectors, that he was going to use the proceeds to fund projects in underdeveloped nations. At sentencing, Kirsch told the federal judge, the Honorable Harold A. Ackerman: "There is no evidence whatsoever indicating that this Defendant intended to honor any of his professed charitable projects in underdeveloped nations, or anywhere else." Ultimately, according to the evidence presented, Jackson directed Pershing to extend a $20 million "advance" from the redemption. He was arrested in Utah, while working in an automotive garage.

Christie credited the Postal Inspectors, under the direction of Acting Postal Inspector in-charge Ronald Walker, who conducted the investigation.

The Government is represented by Assistant U.S. Attorney Robert Kirsch, of the U.S. Attorney's Office, in Newark.

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Defense Attorney: Anthony Thomas, Assistant Federal Public Defender, Newark.