}

Friday, September 1, 2017

JOIN THE CRIMINAL CLUB: Terry Rawstern, “Crooked Chiropractor” Robert Buckhannon's Federal Fraud Co-Defendant, Scheduled To Cop A Plea; Hearing Set For September 27

BREAKING NEWS: TERRY RAWSTERN, OF ABERDEEN, SOUTH DAKOTA, EXPECTED TO PLEAD GUILTY AT SEPTEMBER 27, 2017 LAS VEGAS HEARING; RAWSTERN AVOIDS TRIAL, JOINS CO-DEFENDANT ROBERT BUCKHANNON IN SETTLING 2014 FEDERAL HEDGE FUND FRAUD CASE WITH PLEA BARGAIN

Terry Rawstern, Robert Buckhannon's co-defendant in a federal hedge fund fraud trial, opted to join Buckhannon and cop a plea.

Rawstern's trial was set to begin on September 11, 2017, but court documents recently filed in the case revealed Rawstern, represented by Federal Public Defender Rene L. Valladares, Federal Public Defender, and Assistant Federal Public Defender Nisha Brooks-Whittington, has accepted a plea deal and is scheduled to withdraw his not guilty plea during a September 27, 2017 hearing in Las Vegas, Nevada.

According to the October 1, 2014 indictment, from April 2008 through April 2010, Buckhannon and Rawstern and co-conspirators were managing members of two Bradenton, Florida-based hedge funds, Arcanum Equity Fund, LLC and Vestium Equity Fund, LLC. 

The duo allegedly engaged in a fraudulent scheme to misappropriate $34 million they raised from investors by misrepresenting how they would use the investors’ funds and misrepresenting that there were safeguards over the investors’ money, such as an independent trustee and independent fund administrator. 

Buckhannon and Rawstern then looted and bankrupted the hedge funds by taking payments on false and fictitious profits and taking improper and undisclosed loans. The indictment stated that as a result of the defendants’ conduct, investors lost approximately $13.1 million. 

In April 2010, the hedge funds voluntarily filed for Chapter 7 bankruptcy and are now under the control of court-appointed trustees.

Buckhannon, who's currently peddling (along with Chris Paganes, a Michigan-based hedge fund associate) an unlicensed fertilizer in Michigan aimed at the micro grow marijuana market, is busy trolling dating sites while he awaits his October 31, 2017 sentencing. 

According to his August 1, 2017 plea memorandum, Buckhannon is likely to receive a 12 month sentence and an as yet undetermined restitution. If he'd gone to trial and been convicted on one count of conspiracy to commit wire fraud, Buckhannon could have faced up to 20 years in federal prison.

But Buckhannon's troubles may not be over just yet: according to the terms of his plea deal, if Buckhannon “commits or attempts to commit any crime”, he could screw up the two-level downward sentencing adjustment recommended by federal prosecutors.

Stay tuned.

Tick-tock, tick-tock.


2 comments:

  1. Twelve months in prison would be nothing. Hope he's forced to liquidate and pay back the investors with everything /anything he has left of his assets.

    ReplyDelete
    Replies
    1. Doubtful Buckhannon would pay any of his investors or other creditors. See this story: http://glisteningquiveringunderbelly.blogspot.com/2014/08/schlitz-giggles-throwback-thursday-with.html

      Delete