BECKLEY, W.Va. - A Greenbrier County man who swindled multiple farmers out of hundreds of thousands of dollars in a phantom cattle scheme was sentenced to more than eight years in prison in federal court today.
BECKLEY, W.Va. - A Greenbrier County man who swindled multiple farmers out of hundreds of thousands of dollars in a phantom cattle scheme was sentenced to more than eight years in prison in federal court today.
Kevin Scott O'Brien must also pay $3.43 million in restitution to the farmers and banks involved in the scheme.
Two former First National Bank of Ronceverte officials who were involved in a bribe from O'Brien also received short prison terms.
U.S. District Judge Thomas E. Johnston sentenced Charles Henthorn, the bank's former president, to nine months in prison and G. Thomas Garten, a former bank board member, to five months in prison. Johnston also fined Garten $50,000 and Henthorn $75,000.
O'Brien pleaded guilty to mail fraud in February, admitting that he sold the same group of cattle to multiple buyers in a kind of livestock-based ponzi scheme.
During O'Brien's sentencing hearing, Karin Nelson, owner of a 155-acre farm in Monroe County, described how she met O'Brien in 2003 when he inquired about renting one of her pastures.
"He also offered me the opportunity to enter into a cattle contract for much more profit," she said. "I unknowingly became involved in Mr. O'Brien's criminal scheme."
Nelson estimated that she has lost more than $500,000 through her association with O'Brien.
Nelson, a single mother of three, said her sons have been humiliated and she has had trouble sleeping because of her shame, anger, pain and anguish over being duped by O'Brien.
Assistant U.S. Attorney Anna Forbes said another victim couldn't make the six-hour drive from Indiana to attend the hearing. A third victim was unable to attend because he was meeting with a real estate agent to make arrangements to sell his farm, she said.
O'Brien did not make a statement during his sentencing hearing. His attorney, Rodney Smith, said that O'Brien made some foolish mistakes that harmed others.
"He's remorseful for that, and he wanted me to extend his apologies," Smith said.
Forbes emphasized the financial impact of O'Brien's schemes.
BECKLEY, W.Va. - A Greenbrier County man who swindled multiple farmers out of hundreds of thousands of dollars in a phantom cattle scheme was sentenced to more than eight years in prison in federal court today.
Kevin Scott O'Brien must also pay $3.43 million in restitution to the farmers and banks involved in the scheme.
Two former First National Bank of Ronceverte officials who were involved in a bribe from O'Brien also received short prison terms.
U.S. District Judge Thomas E. Johnston sentenced Charles Henthorn, the bank's former president, to nine months in prison and G. Thomas Garten, a former bank board member, to five months in prison. Johnston also fined Garten $50,000 and Henthorn $75,000.
O'Brien pleaded guilty to mail fraud in February, admitting that he sold the same group of cattle to multiple buyers in a kind of livestock-based ponzi scheme.
During O'Brien's sentencing hearing, Karin Nelson, owner of a 155-acre farm in Monroe County, described how she met O'Brien in 2003 when he inquired about renting one of her pastures.
"He also offered me the opportunity to enter into a cattle contract for much more profit," she said. "I unknowingly became involved in Mr. O'Brien's criminal scheme."
Nelson estimated that she has lost more than $500,000 through her association with O'Brien.
Nelson, a single mother of three, said her sons have been humiliated and she has had trouble sleeping because of her shame, anger, pain and anguish over being duped by O'Brien.
Assistant U.S. Attorney Anna Forbes said another victim couldn't make the six-hour drive from Indiana to attend the hearing. A third victim was unable to attend because he was meeting with a real estate agent to make arrangements to sell his farm, she said.
O'Brien did not make a statement during his sentencing hearing. His attorney, Rodney Smith, said that O'Brien made some foolish mistakes that harmed others.
"He's remorseful for that, and he wanted me to extend his apologies," Smith said.
Forbes emphasized the financial impact of O'Brien's schemes.
"Within one year's time, Mr. O'Brien caused losses of over $5 million," she said.
Johnston said he had given a lot of thought to O'Brien's sentence.
"The facts of this case suggest that you are a sophisticated con man," he said. But O'Brien also could been seen as a young man with just enough business sense, compounded with bad decisions, to get in over his head, he said.
Nevertheless, his criminal conduct had resulted in "staggering financial losses," the judge said. "Further, you resorted to bribery to keep your scheme going."
Lawyers for Garten and Henthorn asked Johnston to consider home confinement for their clients instead of prison.
Forbes asked the judge to impose a prison term for Henthorn, the bank president who had accepted roughly $9,700 in bribes from O'Brien, and Garten, the bank board member who facilitated the bribe.
"This is an offense of corruption," she said. "It is stunning to me that in this day and age someone can take an envelope stuffed with cash and slide it across a table to a bank president."
Johnston said the case made him wonder whether there were other instances of bribery, since it puzzled him that both men would commit crimes that cost them their reputations and careers in banking when Garten didn't take any money, and Henthorn accepted a relatively small bribe.
"You enjoyed professional success and community status, and you threw it all away for less than $10,000," Johnston told Henthorn.
Johnston said he was surprised that that the bank had not participated in the case against the defendants.
"Your crime struck at the heart of your institution," he said. "I suspect the whole story of the situation has yet to be told."
Reach Andrew Clevenger at acleven...@wvgazette.com or 348-1723.
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