TWO IOWA COMPANIES WERE SENTENCED IN FEDERAL COURT AFTER THEIR OFFICIALS PLEADED GUILTY TO ONE COUNT OF WIRE FRAUD BACK ON DECEMBER 1ST OF 2020.
DARRELL SMITH WAS A CORPORATE OFFICER OF BOTH ENERGAE, LP, AND I-LENDERS, LLC, THER TWO COMPANIES CHARGED IN THE CASE.
PROSECUTORS SAY SMITH PERPETUATED A FRAUD SCHEME FROM 2010 TO 2015 IN WHICH HE MADE WITHDRAWALS OF OVER $2.4 MILLION IN FUNDS FROM TEN OF HIS INVESTMENT CLIENT’S ACCOUNTS WITHOUT THOSE CLIENTS KNOWLEDGE OR AUTHORIZATION.
SMITH USED THE STOLEN FUNDS TO PAY EXPENSES RELATED TO THE OPERATION OF PERMEATE REFINING, LLC, WHICH OPERATED A NOW-DEFUNCT ETHANOL PLANT IN HOPKINTON, IOWA.
IN ORDER TO TRANSFER FUNDS FROM CLIENT ACCOUNTS, SMITH USED AUTHORIZATIONS PURPORTEDLY SIGNED BY THE CLIENT AUTHORIZING THE WITHDRAWAL OF FUNDS FROM THE INVESTMENT ACCOUNT.
HE EITHER FORGED HIS CLIENT’S SIGNATURES ON THE AUTHORIZATIONS OR USED PRE-SIGNED, BLANK AUTHORIZATION FORMS WITHOUT CLIENT APPROVAL.
EACH COMPANY WAS SENTENCED TO ONE YEAR OF PROBATION AND ORDERED TO MAKE $1,056,909.68 IN RESTITUTION TO TEN VICTIMS.
THE COURT ALSO IMPOSED A $2,405,409.68 FORFEITURE MONEY JUDGMENT UPON EACH CORPORATION.
THE CORPORATIONS SURRENDERED OVER 57 MILLION SHARES OF STOCK IN ANOTHER COMPANY AND ABANDONED CERTAIN TAX CREDITS THE COMPANIES CLAIMED TO POSSESS.
THE SENTENCING OF THE COMPANIES FOLLOWS THE SENTENCING OF DARRELL SMITH AND HIS BROTHER, DAVID SMITH.
IN 2018, DARRELL SMITH, OF FOREST CITY, IOWA, WAS SENTENCED TO MORE THAN 14 YEARS IN FEDERAL PRISON UPON HIS CONVICTION OF ONE COUNT OF WIRE FRAUD AND ONE COUNT OF AGGRAVATED IDENTITY THEFT.
IN 2019, DAVID SMITH, OF POCATELLO, IDAHO, WAS SENTENCED TO TWO MONTHS IN FEDERAL PRISON AFTER PLEADING GUILTY TO ONE COUNT OF CONSPIRACY TO OBSTRUCT, INFLUENCE, AND IMPEDE AN OFFICIAL PROCEEDING.
