Owners and CFO of currency exchange business convicted of fraud

A Decatur man and two co-owners of Sterling Currency Group convicted of conspiracy to commit mail and wire fraud and multiple mail and wire fraud counts on Oct. 10.

Frank Bell, 55, Sterling’s chief operating officer and a Decatur resident; and co-owners Tyson Rhame, 53, and James Shaw, 55, both of Atlanta, were also convicted of making false statements to federal agents regarding the operations of their company Sterling Currency Group. 

The jury acquitted the men of money laundering charges.  A fourth defendant, Terrence Keller, was acquitted of all charges at trial. 

The co-owners and chief operating officer of one of the largest Iraqi dinar exchangers in the United States were convicted by a federal jury on Oct. 10  following a five-week trial. 

Rhame, Shaw, and Bell were each convicted of mail and wire fraud conspiracy, as well as multiple counts of mail and wire fraud. 

Rhame and Bell were also convicted of making false statements to federal law enforcement agents. 

Acting U.S. Attorney Kurt R. Erskine said that the executives engaged in a lengthy campaign to defraud investors by spreading lies about the investment potential of the Iraqi dinar.”

 “These convictions resulted from years of investigation, which included dozens of electronic and physical search warrants, hundreds of witness interviews, and extensive financial analysis,” Erskine said.

Chris Hacker, Special Agent in Charge of FBI Atlanta said the convictions of the

is the result of an extensive effort by the government to protect investors from those who make unsubstantiated claims about the potential revaluation of a foreign currency.

“Their greed led them to steal the hopes of unsuspecting investors and ultimately led them to their demise,” Hacker said. The FBI and its partners make it a priority to root out and punish anyone who preys on investors for their own selfish desires.”

Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation, said Rhame, Shaw, and Bell saw an opportunity to build their personal net worth and business position in the currency market by seizing on investors’ desire for high returns on their investments.

“At the end of the trial, the jury agreed with the government and found the Sterling Currency Group co-owners and chief operating officer guilty of the conspiracy and the underlying frauds.”   

According to Erskine, the charges, and other information presented in court: Rhame and Shaw owned and operated the Sterling Currency Group, which was once one of the country’s largest sellers of the Iraqi dinar.  Bell was Sterling’s chief operating officer.  Between 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies, while Rhame and Shaw received over $180 million in distributions. 

The evidence at trial established that the defendants took steps to make investors believe they would get rich by investing in the Iraqi dinar.  At one point, Rhame posted information on Sterling’s website falsely suggesting that the dinar was about to revalue.  At other times, Rhame and Bell falsely claimed that Sterling would cash out investors at airports around the country following a dinar “revaluation.” 

The defendants also paid substantial sums of money to third parties who in turn spread false information about the dinar on conference calls and Internet chat rooms. 

This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.

 

Assistant U.S. Attorneys Thomas J. Krepp, Alison B. Prout, and Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime Section are prosecuting the case.  Assistant U.S. Attorneys Kelly K. Connors and Dahil D. Goss are handling the parallel civil forfeiture actions related to this case. 

The date for sentencing has not yet been set.

For further information, visit is http://www.justice.gov/usao-ndga, or contact USAGAN.PressEmails@usdoj.gov or 404- 581-6016.