U.S. Attorney Luger Announces Guilty Plea of Plymouth Attorney Who Stole $500,000 from Investors
United States Attorney Andrew M. Luger today announced the guilty plea of TIMOTHY JON OLIVER, 60, for stealing $500,000 from ARS Tectonica, a Mexican construction company, in connection with an alleged real estate project in Libya. OLIVER entered his guilty plea today before Chief Judge Davis in U.S. District Court in Minneapolis.
“Lawyers committing fraud is simply unacceptable,” said Assistant U.S. Attorney David J. MacLaughlin. “Lawyers who commit fraud also conduct professional misconduct which reflects poorly on people who are trained to know better. Lawyers, investment advisors, and other licensed professionals are expected to live up to a higher standard.”
According the defendant’s guilty plea and documents filed in court, from May 2009 to May 2010, he controlled two companies, American Diversified Industries, LLC (ADI), which was used to receive proceeds of the scheme, and GVA International Limited, which was purported to be developing a real estate project in Bani Walid, Libya. OLIVER pressured, and ultimately convinced, ARS Tectonica to send $500,000 to ADI to secure a letter of credit from a Minnesota credit union.
According to his guilty plea, OLIVER told ARS Tectonica that the letter of credit would be presented to the Organization for Development of Administrative Centers (ODAC), an arm of the Libyan government, as a performance bond for the real estate project in Libya. He also told ARS Tectonica that, once ODAC approved the letter of credit, it would be awarded the opportunity to become the construction manager for the Bani Walid project.
According to documents filed in court, on May 21, 2009, ARS Tectonica wired $500,000 to OLIVER, which was received through ADI’s account that was maintained by the defendant. Instead of using the money to secure a letter of credit, OLIVER spent the money on unrelated debts. For almost a year thereafter, OLIVER lulled ARS Tectonica into believing that the $500,000 remained at the credit union and was being utilized by the credit union to secure the letter of credit.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
U.S. Attorney Luger thanked the Federal Bureau of Investigation for conducting the investigation.
- TIMOTHY JON OLIVER
- Plymouth, MN
- Wire Fraud, 1 count