FOR IMMEDIATE RELEASE
TUESDAY, MAY 04, 2007
(202) 514-2008
TDD (202) 514-1888
JURY CONVICTS GRANDVIEW MAN FOR $1.5 MILLION FRAUD AGAINST CHURCH, INDIVIDUALS
KANSAS CITY, Mo. - John F. Wood, United States Attorney for the Western
District of Missouri, announced that a Grandview, Mo., was convicted by
a federal jury today for a series of fraud schemes that resulted in a
total loss of $1.5 million by a Las Vegas, Nev., church and several individual
victims.
Jason E. Branch, Sr., 42, of Grandview, was found guilty of conspiracy
to commit mail fraud and wire fraud from Jan. 1, 2003, to March 30, 2005,
along with additional counts of mail fraud and money laundering.
Many of the victims withdrew money from their retirement plans and savings
accounts in order to invest in one of Branch's fraudulent schemes, but
received no return on their investments. "He stole their money and he
stole their dreams," Wood said.
Branch solicited investors through sales seminars in Kansas City, Florida
and Georgia, as well as through the Internet and by using independent
mortgage or financial brokers to assist in the sale of loan products.
Branch solicited potential investors to one or more loan or investment
products he offered, depending upon the investor's willingness and ability
to pay. In some instances, large investors were offered the opportunity
to obtain sizeable loans after paying advance fees that ranged from $20,000
to $200,000, or were offered investment opportunities with high rates
of return. In other instances, smaller investors were offered programs
such as Poverty Breakers International, a multi-level marketing program
in which each investor paid $100 to $200 to fund an account with INT Gold,
an Internet entity.
In reality, Branch had no source of funding for the promised loans or
lines of credit and never intended to provide such loans or lines of credit;
in every case, the investment opportunities did not actually exist. Instead,
Branch converted the funds provided by investors to his own use.
Following the presentation of evidence, the jury in U.S. District Court
in Kansas City deliberated three hours before returning the guilty verdict
to U.S. District Judge Gary A. Fenner, ending a trial that began April
30, 2007.
Branch transacted business using the name J.E. Capital Group, a business
owned by Branch but never formally incorporated.
Among the victims of the alleged fraud scheme is Greater St. Paul Church
of God in Christ in Las Vegas. The church was seeking a $3.75 million
loan for new construction when it was referred to Branch and J.E. Capital
Group by a real estate broker. Branch agreed to provide the loan and requested
a payment of advance loan fees in the amount of $150,000. The church paid
the fees, but no loan was ever forthcoming and Branch converted the advance
fees to his own use.
There were also several instances in which individuals in Illinois, Overland
Park, Kan., New Jersey and Pennsylvania paid advance loan fees ranging
from $20,000 to $200,000 to Branch in order to receive a loan or line
of credit. No loan was ever forthcoming, and Branch converted the advance
fees to his own use. One of those victims also provided Branch with $200,000
to fund an investment opportunity, but no return on the investment has
ever been provided and Branch converted the money to his own use.
In a previous administrative forfeiture action, the government forfeited
a 2005 Chrysler and a 2000 Landrover as proceeds of the scheme.
This case is being prosecuted by Assistant U.S. Attorney Curt Bohling.
It was investigated by the Federal Bureau of Investigation.