Posted on 06/08/2005 6:01:02 AM PDT by Born Conservative
A former Carbon County man who allegedly bilked 30 investors out of $3.6 million made an appearance Tuesday in federal court to seek bail.
Richard H. Hinkle, 39, formerly of Weatherly, is facing 59 counts of wire fraud and money laundering related to an alleged "Ponzi" scheme between January 1999 and February 2004. His purported victims include residents of Lackawanna and Luzerne counties.
A grand jury indictment issued Feb. 16, 2004, says Mr, Hinkle, who operated Cornerstone International Savings Bank and Investment Bank out of Grenada, induced people from Pennsylvania and Illinois to invest in overseas financial ventures. He pledged a 2 percent to 3 percent monthly return on the investments, the indictment says.
During the scheme, authorities allege, Mr. Hinkle repayed $636,525 to investors as "interest" on their investments to keep the scheme afloat. Actually, authorities allege, he was using the money of new investors to make payments to earlier investors. Between October 1999 and October 2001, court documents allege, Mr. Hinkle transferred $75,000 to $100,000 monthly to his own accounts in Grenada and Costa Rica.
However, court documents indicate the "interest" payments ceased by the fall of 2001, Cornerstone was $2 million in debt and the scheme began to unravel. Mr. Hinkle allegedly fled to Costa Rica.
The grand jury indictment charges Mr. Hinkle with 19 counts of bank fraud and 40 counts of money laundering. Days after his indictment, Mr. Hinkle was arrested by authorities in Costa Rica.
A court in Costa Rica ruled he should return to the United States and he was extradited in early April.
During a hearing Tuesday before U.S. District Judge Edwin M. Kosik, Assistant U.S. Attorney George Rocktashel said Mr. Hinkle's alleged scheme actually involved up to $8 million.
A number of Mr. Hinkle's alleged victims attended the hearing and reacted with disbelief when his attorney, Ernie Preate Jr., said Mr. Hinkle is a pastor.
Judge Kosik said he would rule soon on the bail matter.
Mr. Rocktashel said bail for Mr. Hinkle should be denied because he is a flight risk, fought extradition and could face up to 121 months in prison and millions of dollars in restitution and fines.
Mr. Preate said Mr. Hinkle is a businessman with no prior convictions would reside with his wife and six children at his father's Weatherly residence if bail is allowed.
Man, when that pastor meets up with God, God's gonna be REALLY torqued off...
I doubt he meets with God. Blasphemy is the unforgiven sin.
We ALL meet with God--kind of an "exit interview." God's going to ask us if we've done what He asked of us.
This guy's answer will be: "Uh...er...um...well...no."
Poor guy, trying to set up your own social security system will always land you in jail. Unless you are the government, that is.
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