Business Crimes Hotline

Hoechst will be the third company to plead guilty to participating in this alleged conspiracy. In June 2001, the Dutch chemical giant Akzo Nobel Chemicals BV pleaded guilty and was sentenced to pay a $12 million fine for its involvement in the conspiracy. In March 2002, Elf Atochem of France pleaded guilty to participating in the conspiracy and was fined $5 million. In Hoechst's plea agreement, which requires court approval, the company has agreed to pay a $12 million fine and to cooperate fully with the ongoing federal investigation of anticompetitive behavior in the MCAA market.

The charge against Hoechst was brought under Section 1 of the Sherman Act, which carries a maximum fine of $10 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum.

FLORIDA

Internet CEO Incarcerated and Ordered to Pay Over $4 Million

Mark Cecil Thurman, founder and CEO of the Internet filtering company Families On Line (FOL), was sentenced to 8 years' imprisonment, restitution of $4,193,599.85 payable to the victims of his schemes, and 3 years' supervised release after completion of the period of incarceration on charges of conspiracy to commit securities fraud, money laundering, counterfeit securities violations, and wire fraud. The United States District Court for the Southern District of Florida imposed this sentence to begin running upon the completion of sentences imposed previously against Thurman in a tax fraud case in which he was sentenced to 30 months' imprisonment, and another case in which Thurman was convicted of being a felon in possession of firearms where he was sentenced to 18 months' imprisonment.

Thurman allegedly raised approximately $4.2 million from investors under false pretenses that the money would be used in furtherance of FOL's business, when, in fact, he and his co-conspirators used a portion of the monies raised for their own personal benefit. Thurman also allegedly used fraudulent letters purportedly written by Trinity Broadcasting Network (TBN), falsely showing that TBN was a joint participant in FOL and that TBN was providing FOL with hundreds of thousands of subscribers to its Internet filtering service. In fact, TBN never had any type of relationship with Thurman or FOL. In addition, Thurman allegedly orchestrated a multi-million-dollar fraud in which FOL sold approximately 119,000 Sony PlayStation2 units that it never had.

TEXAS

Houston Fund Owner Imprisoned and Ordered to Pay $20 Million

Christopher Anthony Slaga was sentenced to 4 years in federal prison, without parole, to be followed by 3 years of supervision following his release in connection with an alleged scheme to defraud investors of funds that he managed through an investment company that he owned. In addition to the prison term, the court ordered Slaga to pay a total of $20,355,400.00 in restitution, which represents the total loss suffered by a number of investors in a number of 'investment' funds operated by Slaga. In October 2002, Slaga had pleaded guilty to wire fraud, and further agreed to forfeit whatever interest he may have in personal property that the United States sought from him.

From mid-1998 to May 2001, Slaga operated three entities: The Slaga Fund Ltd, SFM Growth Partners, Ltd (SFM), and Slaga Fund Management, LLC for the purpose of managing and growing funds of investors. Slaga recruited approximately 15 investors, who invested approximately $21 million and allegedly were told that their money would be invested in stocks, bonds, and other investment instruments. Slaga allegedly created false account statements misleading investors into believing that their investments were growing in value. In fact, he allegedly utilized some of the investors' funds for his personal use, and invested some funds in companies and entities owned by relatives and close family friends. Of the $21 million collected from the investors, Slaga returned approximately $3 million.

The Business Crimes Hotline and In the Courts were compiled by Bradley J. Bondi, Esq., an associate with Williams & Connolly LLP, Washington, D.C., and Associate Editor of this newsletter.

Thurman allegedly raised approximately $4.2 million from investors under false pretenses that the money would be used in furtherance of FOL's business, when, in fact, he and his co-conspirators used a portion of the monies raised for their own personal benefit. Thurman also allegedly used fraudulent letters purportedly written by Trinity Broadcasting Network (TBN), falsely showing that TBN was a joint participant in FOL and that TBN was providing FOL with hundreds of thousands of subscribers to its Internet filtering service. In fact, TBN never had any type of relationship with Thurman or FOL. In addition, Thurman allegedly orchestrated a multi-million-dollar fraud in which FOL sold approximately 119,000 Sony PlayStation2 units that it never had.Christopher Anthony Slaga was sentenced to 4 years in federal prison, without parole, to be followed by 3 years of supervision following his release in connection with an alleged scheme to defraud investors of funds that he managed through an investment company that he owned. In addition to the prison term, the court ordered Slaga to pay a total of $20,355,400.00 in restitution, which represents the total loss suffered by a number of investors in a number of 'investment' funds operated by Slaga. In October 2002, Slaga had pleaded guilty to wire fraud, and further agreed to forfeit whatever interest he may have in personal property that the United States sought from him.

From mid-1998 to May 2001, Slaga operated three entities: The Slaga Fund Ltd, SFM Growth Partners, Ltd (SFM), and Slaga Fund Management, LLC for the purpose of managing and growing funds of investors. Slaga recruited approximately 15 investors, who invested approximately $21 million and allegedly were told that their money would be invested in stocks, bonds, and other investment instruments. Slaga allegedly created false account statements misleading investors into believing that their investments were growing in value. In fact, he allegedly utilized some of the investors' funds for his personal use, and invested some funds in companies and entities owned by relatives and close family friends. Of the $21 million collected from the investors, Slaga returned approximately $3 million.

The Business Crimes Hotline and In the Courts were compiled by Bradley J. Bondi, Esq., an associate with Williams & Connolly LLP, Washington, D.C., and Associate Editor of this newsletter.

CALIFORNIA

Criminal Antitrust Conspiracy

In a one-count felony case filed in the United States District Court in San Francisco, HoechstAktiengesellschaft,an international chemical conglomerate based in Germany, has agreed to plead guilty and pay a $12 million fine for its participation in a conspiracy that allegedly suppressed competition in the world markets for monochloroacetic acid (MCAA), an industrial chemical used in the production of commercial and consumer products, including pharmaceuticals, herbicides, and plastic additives. Hoechst was charged with fixing prices and allocating market shares of MCAA sold in the United States and abroad from September 1995 until June 1997.

Hoechst will be the third company to plead guilty to participating in this alleged conspiracy. In June 2001, the Dutch chemical giant Akzo Nobel Chemicals BV pleaded guilty and was sentenced to pay a $12 million fine for its involvement in the conspiracy. In March 2002, Elf Atochem of France pleaded guilty to participating in the conspiracy and was fined $5 million. In Hoechst's plea agreement, which requires court approval, the company has agreed to pay a $12 million fine and to cooperate fully with the ongoing federal investigation of anticompetitive behavior in the MCAA market.

The charge against Hoechst was brought under Section 1 of the Sherman Act, which carries a maximum fine of $10 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum.

FLORIDA

Internet CEO Incarcerated and Ordered to Pay Over $4 Million

Mark Cecil Thurman, founder and CEO of the Internet filtering company Families On Line (FOL), was sentenced to 8 years' imprisonment, restitution of $4,193,599.85 payable to the victims of his schemes, and 3 years' supervised release after completion of the period of incarceration on charges of conspiracy to commit securities fraud, money laundering, counterfeit securities violations, and wire fraud. The United States District Court for the Southern District of Florida imposed this sentence to begin running upon the completion of sentences imposed previously against Thurman in a tax fraud case in which he was sentenced to 30 months' imprisonment, and another case in which Thurman was convicted of being a felon in possession of firearms where he was sentenced to 18 months' imprisonment.

Thurman allegedly raised approximately $4.2 million from investors under false pretenses that the money would be used in furtherance of FOL's business, when, in fact, he and his co-conspirators used a portion of the monies raised for their own personal benefit. Thurman also allegedly used fraudulent letters purportedly written by Trinity Broadcasting Network (TBN), falsely showing that TBN was a joint participant in FOL and that TBN was providing FOL with hundreds of thousands of subscribers to its Internet filtering service. In fact, TBN never had any type of relationship with Thurman or FOL. In addition, Thurman allegedly orchestrated a multi-million-dollar fraud in which FOL sold approximately 119,000 Sony PlayStation2 units that it never had.

TEXAS

Houston Fund Owner Imprisoned and Ordered to Pay $20 Million

Christopher Anthony Slaga was sentenced to 4 years in federal prison, without parole, to be followed by 3 years of supervision following his release in connection with an alleged scheme to defraud investors of funds that he managed through an investment company that he owned. In addition to the prison term, the court ordered Slaga to pay a total of $20,355,400.00 in restitution, which represents the total loss suffered by a number of investors in a number of 'investment' funds operated by Slaga. In October 2002, Slaga had pleaded guilty to wire fraud, and further agreed to forfeit whatever interest he may have in personal property that the United States sought from him.

From mid-1998 to May 2001, Slaga operated three entities: The Slaga Fund Ltd, SFM Growth Partners, Ltd (SFM), and Slaga Fund Management, LLC for the purpose of managing and growing funds of investors. Slaga recruited approximately 15 investors, who invested approximately $21 million and allegedly were told that their money would be invested in stocks, bonds, and other investment instruments. Slaga allegedly created false account statements misleading investors into believing that their investments were growing in value. In fact, he allegedly utilized some of the investors' funds for his personal use, and invested some funds in companies and entities owned by relatives and close family friends. Of the $21 million collected from the investors, Slaga returned approximately $3 million.

The Business Crimes Hotline and In the Courts were compiled by Bradley J. Bondi, Esq., an associate with Williams & Connolly LLP, Washington, D.C., and Associate Editor of this newsletter.

Thurman allegedly raised approximately $4.2 million from investors under false pretenses that the money would be used in furtherance of FOL's business, when, in fact, he and his co-conspirators used a portion of the monies raised for their own personal benefit. Thurman also allegedly used fraudulent letters purportedly written by Trinity Broadcasting Network (TBN), falsely showing that TBN was a joint participant in FOL and that TBN was providing FOL with hundreds of thousands of subscribers to its Internet filtering service. In fact, TBN never had any type of relationship with Thurman or FOL. In addition, Thurman allegedly orchestrated a multi-million-dollar fraud in which FOL sold approximately 119,000 Sony PlayStation2 units that it never had.Christopher Anthony Slaga was sentenced to 4 years in federal prison, without parole, to be followed by 3 years of supervision following his release in connection with an alleged scheme to defraud investors of funds that he managed through an investment company that he owned. In addition to the prison term, the court ordered Slaga to pay a total of $20,355,400.00 in restitution, which represents the total loss suffered by a number of investors in a number of 'investment' funds operated by Slaga. In October 2002, Slaga had pleaded guilty to wire fraud, and further agreed to forfeit whatever interest he may have in personal property that the United States sought from him.

From mid-1998 to May 2001, Slaga operated three entities: The Slaga Fund Ltd, SFM Growth Partners, Ltd (SFM), and Slaga Fund Management, LLC for the purpose of managing and growing funds of investors. Slaga recruited approximately 15 investors, who invested approximately $21 million and allegedly were told that their money would be invested in stocks, bonds, and other investment instruments. Slaga allegedly created false account statements misleading investors into believing that their investments were growing in value. In fact, he allegedly utilized some of the investors' funds for his personal use, and invested some funds in companies and entities owned by relatives and close family friends. Of the $21 million collected from the investors, Slaga returned approximately $3 million.

The Business Crimes Hotline and In the Courts were compiled by Bradley J. Bondi, Esq., an associate with Williams & Connolly LLP, Washington, D.C., and Associate Editor of this newsletter.