Home Knoxville Press Releases 2009 Dennis R. Bolze Charged with Wire Fraud and Money Laundering
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Dennis R. Bolze Charged with Wire Fraud and Money Laundering

U.S. Attorney’s Office March 12, 2009
  • Eastern District of Tennessee (865) 545-4167

KNOXVILLE—United States Attorney James R. “Russ” Dedrick, Special Agent in Charge Christopher Pikelis, Internal Revenue Service, Criminal Investigation Division and Special Agent in Charge Richard Lambert, Federal Bureau of Investigation, Knoxville Division, announce the arrest of Dennis R. Bolze, 60, formerly of Sevierville, Tennessee, this afternoon in State College, Pennsylvania, on federal wire fraud and money laundering charges. Following Bolze's arrest, a criminal complaint filed on March 3, 2009, in the United States District Court for the Eastern District of Tennessee was unsealed.

The criminal complaint charges Bolze with wire fraud in violation of Title 18, United States Code, Section 1343, and money laundering in violation of Title 18, United States Code, Section 1957. The affidavit of Special Agent Kevin McCord, Internal Revenue Service-Criminal Investigation (“SA McCord”), supporting the criminal complaint states that there is probable cause to believe that Bolze executed a scheme to defraud through fraudulently representing to prospective investors that he would invest all of the funds that they entrusted to him in Centurion Asset Management, Inc. (“CAM”)’s and Advanced Trading Services, Inc (“ATS”)’s day-trading of E-mini NASDAQ futures contracts and E-mini S&P 500 futures contracts. The affidavit states that there is probable cause to believe that rather than investing all of his clients’ funds in those kinds of futures contracts, Bolze’s Ponzi-like scheme diverted new investor funds to existing investors, thereby lulling the existing investors into believing that they were in fact receiving a return on their investment through Bolze's day-trading activities. SA McCord's affidavit further states that there is probable cause to believe that Bolze fraudulently diverted investor funds to his personal benefit rather than investing those funds in futures contracts as promised.

SA McCord’s affidavit states that while the investigation is expected to identify more victims, the two potential victims referenced in his affidavit thus far have sustained collective losses of approximately $700,000 as a result of Bolze’s scheme.

Bolze is scheduled to appear in Williamsport, Pennsylvania before a Magistrate Judge of the United States District Court for the Middle District of Pennsylvania at which time arrangements will be made for his return to the Eastern District of Tennessee. If convicted, Bolze faces a maximum term of imprisonment of twenty (20) years and a $250,000 fine.

Members of the public are reminded that criminal complaints contain only charges. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

This investigation is being conducted jointly by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation. For further information please contact James R. Dedrick, United States Attorney, Trey Hamilton, Assistant United States Attorney, or Sharry Dedman-Beard, Public Information Officer at 865-545-4167.

 

 

 

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