Two Securities Fraudsters Face the Scales of Justice After Defrauding Four CUs

DALLAS-U.S. Attorney Jane J. Boyle announced in late August that additional charges are being brought against four fraudsters who roped four credit unions, a bank, and others in with their alleged scheme, which the prosecution claims targeted the elderly. Cooke B. Christopher, Thomas H. Sunderland, Nils Griffin, and Jeffrey Vann have been indicted by a federal grand jury on 80 counts of conspiracy to committee securities fraud, securities fraud investment advisor fraud, making false statement to financial institutions, wire fraud, mail fraud, and bank fraud. If convicted on all charges, the quartet faces hundreds of years in prison and millions in fines and restitution each. Amarillo Federal Credit Union, Department of Public Safety Federal Credit Union, Chemcel Employee Federal Credit Union, and Laredo Teachers Federal Credit Union were persuaded to enter into investment contracts for CDs, which did not have as high a yield as SCS knowingly promised. SCS also charged the credit union undisclosed high fees, premiums, and commission from the principal. NCUA had issued prohibition orders against Christopher and Sunderland and their firm, San Clemente Securities in 1997, which the men failed to tell their investors. NCUA did so again in 2000. According to NCUA Attorney John Ianno, NCUA “does not prosecute criminal cases but we’re helping in any way we can.” According to a release from the Department of Justice, Cooke served as president and CEO and owner of the company. Sunderland was executive vice president, while Griffin and Vann were licensed broker-dealers. Sunderland was also an owner and officer of United Custodial Corporation, a licensed investment advisor. In June, DoJ filed charges for conspiracy, which this indictment expands. In 1997, Amarillo FCU gave the firm $74,063.55 for a CD, out of which they subtracted and misapplied $2,344.00. Department of Public Safety FCU purchased a CD for the stated amount of $55,542.63, from which a $4,386.81 fee was subtracted and misapplied. Chemcel EFCU was hit 11 times with CDs ranging from $55,381.36 to more than $1.3 million and undisclosed premiums of $1,039.71 to $21,477.36. The fraudsters also duped Laredo Teachers 10 times for CDs ranging from $75,604.26 to $302,420.44 and charges from $497.38 to $2,547.14. [email protected]