Nine Individuals Indicted in Conspiracy to Commit Mail Fraud, Wire Fraud, and Money Laundering
GREENEVILLE, TN—On June 10, 2014, a federal grand jury in Greeneville returned a 49-count indictment against Brian C. Rose, a.k.a. John Hankins, 34, of Johnson City, Tenn.; Robert S. McGregor, a.k.a. Jim Robinson III, 36, of Bowling Green, Ky.; Dallas P. McRae, 44, of Orlando, Fla.; Hugh F. Sackett, 83, of Anderson, S.C.; James M. Robinson, 55, of Perkin, Ind.; Brent Loveall, 30, of Johnson City, Tenn.; Jason Smith, 39, of Bowling Green, Ky.; Ray C. Spears, a.k.a. Brock Hamilton, 44, of Johnson City, Tenn.; and Jennifer L. Key, 36, of Louisville, Ky., for a conspiracy to commit mail fraud and wire fraud and money laundering. In addition Rose, McGregor, McRae, Sackett, Robinson, Loveall, Spears, and Key were all charged with substantive mail and/or wire fraud charges.
Five of these individuals appeared in court for initial appearance and arraignment during June 16-19, 2014, before U.S. Magistrate Judge Dennis H. Inman and pleaded not guilty to the charges in the indictment. Three of these individuals will appear in Court on June 30, 2014, for initial appearance and arraignment before Magistrate Judge Inman.
Brian C. Rose appeared in court on June 23, 2014, for a detention hearing before U.S. Magistrate Judge C. Clifford Shirley. Rose was detained pending trial.
The details of the charges are outlined in the indictment, which is filed as public record in the U.S. District Court for the Eastern District of Tennessee at Greeneville. The investigation showed that Rose established an office for New Century Coal in Johnson City, Tenn., and staffed the office with McGregor, McCrae, Sackett, Robinson, Loveall, Smith, Spears, and Key who all targeted potential investor victims, using false and fraudulent representations to solicit sales of shares in New Century Coal and received funds exceeding $15 million from more than 160 investors who reside in multiple locations in the United States.
If convicted, all face a maximum term of 20 years in prison and a maximum fine of $250,000.00, a term of supervised release of at least three years. All also face mandatory court assessments and restitution as ordered by the court.
This indictment is the result of investigation by the United States Secret Service, Internal Revenue Service Criminal Investigations Division, and Federal Bureau of Investigation. Assistant U.S. Attorney Helen C.T. Smith will represent the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.