International con-man Eric Resteiner would have to wait a little longer to know his jail sentence by a judge in Boston in the United States on a multi million fraud case.
Monday was scheduled for the sentence hearing but the judge was forced to put back the date due to the unavailability of one of the attorneys representing the State.
A new date would be announced sometime soon by the court.
The american-born Resteiner was once tipped to land a top diplomatic post with the Keith Mitchell government in Grenada.
He is also a pivotal figure in an inquiry ordered by Governor-General, Sir Daniel Williams into allegations made in a U.S publication that in June 2000, Resteiner paid Prime Minister Mitchell US$500, 000 in the form of a bribe to land a diplomatic posting.
The Grenadian leader admitted visiting Resteiner in St. Moritz, Switzerland on the date in question but denied the bribery allegation. Dr. Mitchell said he received ³approximately US15, 000.00² from the con man to help cover the cost of a delegation that he was heading on an investment promotion trip to several European cities and Kuwait.
The St. Moritz villa owned by Resteiner and visited by the Grenadian leader is featured prominently in the wire fraud case brought against the controversial conman.
In the indictment filed against Resteiner in the Boston court, it is stated that RESTEINER used much of the money that he schemed from people ³to support a lavish lifestyle which included maintaining a significant home in Lyford Cay, Bahamas, a villa in St. Moritz, Switzerland, a yacht named Apocalypse, an airplane, a helicopter, two rolls Royce motor cars, two Hummer vehicles, a Porsche Carerra sports car, and other assorted vehicles².
GRENADA TODAY was able to obtain a copy of the indictment against Resteiner who was a diplomat in waiting under Mitchell's New National Party (NNP) government in St. George's.
Defendant, ERIC E. RESTEINER (hereinafter, RESTEINER) was an individual who, at times relative to the matters herein, lived principally in Lyford Cay, Nassau, Bahamas and St. Moritz, Switzerland.
At all times relative to this Indictment, defendant RESTEINER offered a high yield investment program promising high returns with no risks to investors.
Miles M. Harbur (Harbur) was an individual who lived in Weston, Massachusetts and Lyford Cay, Nassau, Bahamas.
Harbur was introduced to the high-yield investment program offered by defendant RESTEINER and became an early investor. Thereafter, Harbur functioned as an agent or intermediary for defendant RESTEINER by referring new investors, providing wire transfer instructions, and making periodic payments to investors for what he was told was a return on their investment.
Donald Chamberlin (Chamberlin) was an individual who lived in Gross Point, Michigan. Chamberlin (Chamberlin) was an investment advisor who conducted his business under the name Shore Harbour Capital management.
Like Harbur, Chamberlin acted as an intermediary for defendant RESTEINER by referring investors, many of them his clients, to the high-yield investment program offered by defendant RESTEINER.
Chamberlins clients invested funds with defendant RESTEINER through bank accounts maintained at Barclays Bank, PLC, in Nassau, Bahamas, in the names of European Growth Fund, International Growth Ltd, and Badefisa, S. A.
Voldemar VonStrasdas (VonStrasdas) was an individual who lived in Palm Beach, Florida, and Lyford Cay, Nassau, Bahamas.
VonStrasdas, like Harbur and Chamberlin, functioned as an agent for defendant RESTEINER by recruiting new investors, providing investors with information about the purported investment, accepting applications for investment subscriptions, accepting payments from investors and forwarding these to defendant RESTEINER, calculating monthly returns due to investors, and distributing the purported monthly investment returns to investors.
Charles Dyer was an individual who lived in Manchester, Massachusetts.
Dyer was introduced to defendant RESTEINER by VonStrasdas and also functioned as an agent for defendant RESTEINER by recruiting new investors, accepting investment funds, transferring funds to defendant RESTEINER, preparing periodic account statements for investors, and distributing the purported investment returns to investors.
Dyer, in conjunction with VonStrasdas, used the name Resource F in conjunction with the investment with defendant RESTEINER.
Defendant RESTEINER, with the assistance of Harbur, Chamberlin, VonStrasdas, and Dyer, created and executed a scheme by which he defrauded approximately 50 investors out of more than $30 million, through his operation of a purported high-yield, international bank trading investment program.
In the scheme, prospective investors were told that they would receive very high rates of return on an investment where defendant RESTEINER, a trader who have a special license, could go to top international banks and buy high yield, high-quality debt instruments issued by banks at a discount and resell them to another bank at a premium.
These representations, and others made by defendant RESTEINER, were false and fraudulent.
Defendant RESTEINER never invested the money that he, and others working as his agents, took into the purported trading program.
Instead, most of the so-called investment proceeds were transferred, at the instruction of defendant RESTEINER, into bank accounts which he controlled.
In fact, defendant RESTEINER used the investors own money, and that of subsequent new investments, to pay investors the purported return on their investments and for his own benefit, as further set forth below.
THE SCHEME TO DEFRAUD
The Grand Jury further charges:
It was part of the scheme and artifice to defraud that between May 1997 and June 2000, defendant RESTEINER, assisted by others, made the following false representations to prospective investors:
(1) that he was a licensed trader, one of only a handful of people in the world permitted to do so-called off-balance sheet trading,
(2) that his trading program would pay an annual return of no less than 50 percent,
(3) that he would obtain such a return through trading a series of instruments, a European investment technique known as forfeiting,
(4) that these instruments were backed by Double A rated banks, and
(5) that the investors principal would never be at risk because these instruments could be cashed in at the banks at any time.
In fact, as defendant RESTEINER well knew, he was not a trader and had no way to generate income to provide the promised returns, the victims principal was not safe and, in fact, was being used for his own personal use and to pay purported interest payments to victims in order to lure more investors and more money into the scheme.
It was further part of the scheme and artifice to defraud, that defendant RESTEINER, and others working as his agents, told potential investors that they would be committing their principal for a twelve-month period, could elect to receive monthly payments throughout that time, and that at the end of the year, could either keep their money in the program or take it out.
It was further part of the scheme and artifice to defraud that defendant RESTEINER, a journal-listed practitioner in the Church of Christ Scientist (CCS), told potential investors that becoming a trader was a God-given gift that he wanted to share with fellow Christian Scientists.
It was further part of the scheme and artifice to defraud that defendant RESTEINER recruited a select group of intermediaries or agents, individuals of some wealth, frequently affiliated with the CCS, who had access to other wealthy potential investors.
These individuals included Harbur, Chamberlin, VonStrasdas, and Dyer.
It was further part of the scheme and artifice to defraud that defendant RESTEINER opened, established, and operated bank accounts at Barclays Bank, PLC, Nassau, Bahamas, in the names of Osaka International S.A. (Osaka), Wall Street South Corporation (WSSC), and Swiss Asset Management (SAM), for which he was the sole authorised signor.
It was further part of the scheme and artifice to defraud that defendant RESTEINER directed investors, either directly or indirectly through Harbur, Chamberlin, VonStrasdas, and Dyer, to transfer funds for investment to the Osaka, WCCS, and SAM bank accounts he controlled.
It was further part of the scheme and artifice to defraud that defendant RESTEINER, directly and through his agents, paid investors what they believed were the promised returns on their investment when, in actuality, the money they received back was taken from their own invested principal and from funds obtained from others who invested in the scheme.
The purpose of such payments was to lead investors into believing that their money was invested as promised, lulling them into believing that their money was safe, and causing them to induce others to invest.
It was further part of the scheme and artifice to defraud that defendant RESTEINER used much of the money invested with him to support a lavish lifestyle which included maintaining a significant home in Lyford Cay, Bahamas, a villa in St. Moritz, Switzerland, a yacht named Apocalypse, an airplane, a helicopter, two rolls Royce motor cars, two Hummer vehicles, a Porsche Carerra sports car, and other assorted vehicles.
It was further part f the scheme and artifice to defraud that between May 1997 and June 2000, defendant RESTEINER made the misrepresentations described in paragraphs 8 through 10, and provided other false information to Harbur, to induce Harbur invest his own money and to entice Harbur to recruit other investors.
It was further part of the scheme and artifice to defraud that defendant RESTEINER told Harbur that there was an investing deadline and that Harbur needed to act promptly to get into the program.
Following defendant RESTEINERs instruction, on various dates between May and October 1007, Harbur wire transferred at least $928,633 from his bank accounts in Boston, Massachusetts to the Osaka account controlled by defendant RESTEINER.
It was further part of the scheme and artifice to defraud that, commencing in October 1997, defendant RESTEINER periodically transferred money from the Osaka bank account to Harbur claiming it was a return on Harburs investment.
This money was transferred to an account in the name of New England Holdings at Barclays Bank, Nassau, Bahamas, which was controlled by Harbur.
It was further part of the scheme and artifice to defraud that defendant RESTIENER provided Harbur with wiring instructions in the event that Harburs friends and family were interested in putting money into his trading program.
(To be continued next issue)