Federal Grand Jury Returns Indictments

Madison, Wisconsin—A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

Arizona Man Charged With Fraud

David D. Nutter, 58, of Phoenix, Arizona, is charged in a five-count indictment with devising a scheme to defraud investors. The indictment includes four wire fraud counts and a charge of structuring financial transactions to evade federal reporting requirements. The indictment alleges that between December 1997 and September 2005, he contacted investors in Wisconsin and elsewhere in person and by phone, and sold them personal promissory notes in amounts between $2,500 and $114,500, guaranteeing a specific rate of return and/or a lump sum payment by a certain date. The indictment alleges that in each case, Nutter failed to make the lump sum payment to the investors under the terms of the promissory notes.

The indictment further alleges that Nutter failed to disclosed to any investor that the State of Arizona had instituted a securities fraud investigation against him and that he had defaulted on a Consent Order he entered into with the Arizona Corporation Commission in 2002, in which he had agreed to pay $613,000 in restitution and interest to investors to whom he had sold promissory notes between 1997 and 2000. The indictment alleges that Nutter used money obtained from investors for his personal living expenses, paying personal expenses for his mother and child, and repaying earlier investors.

If convicted, Nutter faces a maximum penalty of 20 years in federal prison on each of the four wire fraud charges and 10 years on the structuring financial transactions charge. The charges against him are the result of an investigation by the Wisconsin Department of Financial Institutions, Division of Securities - Bureau of Enforcement and Registration; the U.S. Postal Inspection Service; and the Federal Bureau of Investigation. The prosecution of this case has been assigned to Assistant U.S. Paul W. Connell.

New Richmond Man Charged With Bank Fraud

Andrew M. Cheaney, 39, of New Richmond, Wisconsin, is charged with executing a scheme to defraud two banks. The indictment alleges that from November 29, 2001 through December 21, 2001, Cheaney maintained a checking account at Mutual Savings Bank in Hudson, Wisconsin, and a second checking account at the Washington County Bank in Oakdale, Minn., and that he repeatedly caused checks to be deposited into these two accounts and drawn against one of the two accounts in such a manner as to create the appearance of positive balances in the two accounts. The indictment alleges that by December 21, 2001, these two accounts appeared to have combined positive balances totaling more than $41,000, when in truth, the accounts had combined negative balances exceeding $26,000.

If convicted, Cheaney faces a maximum penalty of 30 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation. The prosecution of this case has been assigned to Assistant U.S. Attorney Laura Przybylinski Finn.

Watertown Man Charged With Illegal Possession of Firearms

Korey Stark, 21, of Watertown, Wisconsin, is charged with unlawful possession of two firearms. The indictment alleges that on January 23, 2008, Stark possessed a sawed-off 12gauge shotgun and a 5.56 caliber machine gun.

If convicted, Stark faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dane County Sheriff’s Department. The prosecution of this case has been assigned to Assistant U.S. Attorney Rita M. Rumbelow.

Beloit Man Charged With Gun Crime

Darryl Patterson, 35, of Beloit, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on August 20, 2007, Patterson possessed a .22 caliber semi-automatic handgun.

If convicted, Patterson faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Beloit Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been assigned to Assistant U.S. Attorney Elizabeth Altman.

Federal Inmate Charged With Possession of Heroin

Paul Mitchell, 29, an inmate of the Federal Correctional Institution at Oxford, Wisconsin, is charged with possessing a prohibited object, specifically, heroin. The indictment alleges that he possessed the heroin on November 28, 2007.

If convicted, Mitchell faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Bureau of Prisons and Federal Bureau of Identification. The prosecution of this case has been assigned to Assistant U.S. Attorney Elizabeth Altman.

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