07/19/2006
Two Plead Guilty in a Huge International Investment Fraud Case
The Total Amount of the Scam Could Exceed $125 Million
PORTLAND, OREGON—The United States Attorney for the District of Oregon, Karin J. Immergut, announced today guilty pleas by two defendants in an international investment fraud scam. Last week, ROBERT J. SKIRVING and today, RITA L. REGALE, each pled guilty to one count of Conspiracy to Commit Money Laundering relative to the fraud scheme.
“It is my sincere hope that someday those who commit white-collar fraud will realize that the IRS-CI, the FBI, the U. S. Attorney’s Office and others will always be there to hold them accountable for their actions,” said Sherree W. Preston, IRS special agent in charge for Oregon.
Both defendants and three others were charged in a fraud scheme involving the First International Bank of Grenada (FIBG), and various subsidiaries of FIBG. The indictment alleged that defendants persuaded individuals to deposit money and otherwise invest in the “banks” by promising annual returns of up to 300%. The defendants claimed the “banks” had assets worth up to $74 billion, and that their deposits were 100% guaranteed against loss by the International Depositors’ Insurance Corporation (IDIC). In fact, the indictment alleges, the bank had no investment income and simply used new depositors money to make purported interest” payments to earlier investors. In August, 2000, the First International Bank of Grenada was taken over by the Government of Grenada, resulting in losses to depositors in excess of $100 million.
In their guilty pleas, defendants SKIRVING and REGALE admitted to money laundering charges, because they engaged in financial transactions in Oregon with the proceeds of the fraud scheme. Both defendants agreed that the total funds laundered throughout the scheme exceeded $100 million, and that restitution owed to the depositors of FIBG could exceed $125 million.
Both SKIRVING and REGALE face maximum sentences of up to 10 years in prison, a fine of $250,000, and a 3 year term of supervised release. The plea agreement for SKIRVING, if accepted by the court, will result in a sentence of 97 months imprisonment. SKIRVING’s sentencing is set for October 2, 2006, before the Honorable Garr M. King in Portland. REGALE’s plea calls for her to cooperate against other defendants and anticipates a sentencing recommendation in the range of 57 – 71 months. REGALE’s sentencing was postponed pending trial of the remaining codefendants.
Gilbert Ziegler, also known as Van A. Brink, the alleged leader of the scheme, passed away in December 2005, resulting in the case against him being dismissed. Douglas Ferguson and Laurent Barnabe are currently scheduled for trial on this matter in February of 2007 and are presumed innocent until proven guilty.
The Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation joined forces to investigate this case. It is being prosecuted by Assistant United States Attorney Claire M. Fay. For further information, you can contact AUSA Fay at 503-727-l022.
