Dothan Man Pleads Guilty to Federal Crime Stemming from Involvement in Fraudulent Sales of Iraqi Currency

Montgomery, Ala. – Theodore Stanley Hudson, II, 52, a Dothan, Alabama resident, pleaded guilty Tuesday to a misdemeanor offense resulting from his involvement in a fraudulent scheme to sell Iraqi currency, announced United States Attorney George L. Beck, Jr. and Joseph P. Borg, Director of the Alabama Securities Commission.

According to court documents, an Illinois man, Husam Usama Tayeh, operated a website to fraudulently sell dinar, the official currency of Iraq.  Hudson assisted Tayeh in the operation of the fraudulent dinar business.  To carry out the scheme, the business’s website misused the seal of the United States Treasury.  Hudson pleaded guilty to the specific offense of aiding and abetting the unauthorized use of a government seal.  In total, the fraudulent dinar business received over $50 million dollars from purchasers all over the country in return for Iraqi currency.

Hudson is scheduled to be sentenced in January of 2017 where he faces a maximum sentence of one year in prison, as well as a fine.

“The perpetrators of this scheme induced individuals from all of the country to give up their hard earned American dollars for nearly worthless Iraqi currency,” stated United States Attorney Beck.  “This case demonstrates that my office is committed to prosecuting each and every person responsible for carrying out this fraud.”

“We are proud of the work of the FBI and the United States Attorney for the Middle District of Alabama and honored to once again partner with them to help stop deceptive practices by persons determined to harm capital markets using misleading tactics to lure investors into no- win schemes,” stated Alabama Securities Commission Director Borg.

The case was investigated by the FBI and the Alabama Securities Commission.  Assistant U.S. Attorneys Jonathan S. Ross and Kevin P. Davidson are prosecuting the case, along with Steven P. Feaga, Deputy Director of the Alabama Securities Commission for Enforcement and Prosecution, and Amanda W. Senn, General Counsel of the Alabama Securities Commission.