Harold Carmichael Jr., 62, who has recently lived in Somerset, KY, was arrested may 5 in California on federal charges filed January 27 Kentucky charged with three counts of fraud, two counts of mail fraud and one count of interstate transportation of stolen property.
After his arrest in California, Carmichael was sent to Reno, Nevada, where he was detained until authorities him extradited in Lexington. Carmichael has pleaded not guilty to the charges. His trial is set for August 8 in London, KY. A detention hearing is set for June 21 to determine if Carmichael will be detained before trial. It will remain in custody until the hearing.
The indictment alleges that from November, 2006 and continuing in early 2008, represented Carmichael himself be an elite investment broker who had previously conducted business with Charles Schwab. In reality, Carmichael was not an elite investment broker and only considered an individual placement of Charles Schwab, which was essentially his personal bank account.
According to the indictment, Carmichael never invested money it receives people; Instead, he used the money for his own personal benefit. The Act of indictment alleges that Carmichael obtained approximately $900,000 of several investors located in Somerset, KY. ; Loveland, Ohio. and Chicago, Illinois, using several different tactics such as:
Guaranteeing the million dollar returns on their investments and specific dates that they would receive these returns.Promising to pay the medical expenses of an investor.Participation in religious services with potential investors.Sent an investor to a spa of health in Puerto RicoOffering jobs to some potential investors.Promising to pay the living expenses for some investors investorsPromising two one CadillacFabricating credentials of investor with phony investment informationopportunities.
An investor would have cashed in his retirement fund and gave money to Carmichael to invest; but, according to the indictment, Carmichael just deposit the money to his own personal investment account. In early 2008, the investor, now retired, moved from Kentucky to Florida the encouragement of Carmichael.
Carmichael said the investor he will buy a new Cadillac for him as an investment bonus and pay her rent and utilities. Carmichael never provided the Cadillac and stopped paying for living expenses of the investor in Florida after a short period.
Carmichael would have expressed interest to buy the home of another investor and promised her half of all profits, that he has received from its investments if she would keep available for him and step put on the market. Carmichael or bought the House, nor profits shared half of his placement with the investor.
Carmichael also obtained funds from other investors to invest in the oil and gas stocks. Once again, according to the indictment, the money was never invested and simply filed in its rather personal investment account.
In 1974, Carmichael incorporated into the Tennessee Fried Rabbit, Inc., ostensibly to engage in the catering sector.
If convicted, Carmichael faces a maximum penalty of imprisonment of 20 years.
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