$48 Million Tied in Knots and Goes Missing
ALEXANDRIA, Va. (CN) - A director of the Fountain Group of Companies swiped a $48 million loan intended to finance a commercial real estate project, three plaintiffs claim in Federal Court.
Plaintiffs Emory Hackman Jr., the Mary Cook Hackman Arlington Trust and Gainesville Commercial Center LLC sued Edmund Wilson, the Fountain Group of Companies, and a long string of banks and alleged co-conspirators-including the Church of Jesus Christ of Latter-day Saints.
According to the lawsuit, the investors and Wilson, on behalf of the Fountain Group, arranged the loan in 2008, with Wilson agreeing to use the money to finance a commercial real estate project for the Gainesville Commercial Center or to return the money.
Wilson got the money from Hackman, but didn't finance the project or return the money, according to the complaint.
"A fair and just summary of only a cursory glance at Ed Wilson's banking account records, and affirmed by a more thorough examination, is that his banking activities were chaotic," the complaint states. "Funds were transferred between accounts multiple times nearly every weekday, and there were transfers both ways between the same two accounts on a single day. He mixed illegally obtained funds with any legitimately obtained funds. No reasonable person expecting to file tax returns would keep such chaotic records, and no legitimate business would undertake the accounting expense of such behavior."
The investors claim in the lawsuit that Wilson stung them for $47,506,157.98.
They claim that Bank of America, Wells Fargo and HSBC contributed to Wilson's actions by letting him transfer funds from his overseas accounts and avoiding reporting requirements.
The complaint accuses defendants Church of Jesus Christ of Latter-day Saints, Simply Me, and five individuals of illegally receiving funds from Wilson, and 10 people of helping Wilson launder the money.
After the sentence, "No reasonable person expecting to file tax returns would keep such chaotic records, and no legitimate business would undertake the accounting expense of such behavior," the lawsuit backs up the allegations with a dizzying welter of allegations: "The Utah State Tax Commission's objection filed on April 30, 2012, to Ed Wilson's Chapter 13 Bankruptcy (Utah Bankruptcy 12-24683) filed on April 13, 2012, was that he had not paid his Utah income taxes for the years 2000 through 2011 (12-24683; Doc 5). Records of his Bank of America accounts with the
last four identifying digits of 0265, 8689, 9065, and 9078, demonstrate the chaotic quality. They reveal more accounts at Bank of America with the last four digits of 3284, 4509, 5062, and 7242, and accounts at Ally Bank, Chase, HSBC, Mellon, TD Bank, and U.S. Bank. The existence of twenty-two (22) of his accounts have been discovered at Wells Fargo. These known records are incomplete as shown by the
additional account numbers, and by Counsel to the Trustee in the Wilson Bankruptcy case (Utah 12-30318) making a recent demand on Jesus Martinez Cardona reciting more funds received by him than are shown on the accounts known to the plaintiff. The incomplete records strongly suggest there are more transactions to more people and in greater amounts of money than those stated herein. Reports received stated he created dozens of other corporations and LLCs (Exhibit 2). The conclusion is justly
and fairly made that his chaotic banking practices and multiplicity of organizations and accounts were all for the purposes of money laundering, structuring, and concealment.
"As part of Ed Wilson's money laundering, structuring, and concealment he is reported to have, is believed to have, and is therefore alleged to have incorporated Fountain Group in at least four different jurisdictions of Utah, Hong Kong, Virgin Islands, and the West Indies."
Finally, according to the lawsuit: "There are sixty similar claimants in his Bankruptcy case in Utah (12-30318), and a list of the known interested parties is attached (Exhibit1). ... On the same series of improper transactions the United States Securities and Exchange Commission obtained a Final Judgment for civil Securities Fraud against Ed Wilson on September 6, 2013, in the Salt Lake City Federal District Court (2:13-cv-00188). On the same series of improper transactions the Federal Bureau of Investigation obtained a criminal indictment against Ed Wilson that is currently pending in the Salt Lake City Federal District Court (2:13-cr-00624) with a trial scheduled for April 21, 2014."
The plaintiffs seek $47.5 million with interest from Wilson, the Fountain Group and the banks.
Hackman, an attorney, is representing himself; the Gainesville Commerce Center and the Mary Cook Hackman Arlington Trust are represented by Mark Werblood of Tesler Werblood in Falls Church, Va.