Date: 10-13-2015

Case Style: United States of America v. Philip Barnard, Jr.

Case Number: 1:15-cr-60

Judge: Leonie M. Brinkema

Court: United States District Court for the Eastern District of Virginia (Fairfax County)

Plaintiff's Attorney: Uzo Asonye and Christopher Catizone

Defendant's Attorney: Kenneth P. Troccoli - FPD

Description: Alexandria, VA - McLean Man Sentenced to Prison for Gold Investment Fraud Scheme

Philip Barnard, Jr., 54, of McLean, was sentenced to 63 months in prison, followed by three years of supervised release for one count of wire fraud and three counts of money laundering for his role in a gold investment fraud scheme involving multiple investors and up to $1 million in investor deposits. Barnard was also ordered by the court to pay $816,612 in restitution to victims.

Barnard pleaded guilty on July 22, 2015; three days into trial and after prosecutors had presented 10 witnesses and entered over 200 exhibits into evidence. According to court documents, Barnard owned and operated various companies that purportedly were in the business of coordinating gold transactions. Barnard claimed to have a global clientele including foreign governments, the world’s richest private investors, foreign private banks, and major purchasers of precious metals. Barnard solicited funds from investors through false and misleading representations regarding the use of funds, the amount of return on the investments, and the risk associated with investment of the funds. He also misrepresented that investors would receive minimum and/or guaranteed profits. For example, Barnard told one victim, “This opportunity involves no risk of losing your investment due to the nature of how we take possession of the bullion we work with ... And, remember, I would never allow you to lose one dime.” Barnard guaranteed short term returns as high as 1,500 percent.

According to court documents, Barnard sent charts, graphs, and certificates related to the purported investment designed to lull investors into a false sense of profitability. Unknown to investors, Barnard spent investment funds on personal expenses including private school tuition, personal vehicles, jewelry, and travel. After the investments failed to yield any profit, Barnard lied to investors about the security of their funds. For example, although he had already spent their funds on personal use, Barnard told one investor, “Your investment is in good hands. All of the assurances that I made to you are real. You can rely on my statements.” When some investors contemplated contacting law enforcement authorities, Barnard coerced them into signing agreements that claimed to immunize him from any civil or criminal liability. Ultimately, investors suffered losses up to $1 million.

Outcome: See above

Plaintiff's Experts:

Defendant's Experts:

Comments: