Omega Trust
Encyclopedia
Omega Trust was a fraud
ulent US
investment scheme in Illinois.
Clyde D. Hood is a former electrician from Mattoon, Illinois
. In 1994 Hood formed Omega Trust and Trading Limited and began to lecture to church groups. He said that the Lord had given him a mission. He claimed that he was one of the international traders who could make secret multimillion-dollar deals to benefit humanitarian programs through debenture
s and "prime bank notes" in foreign banks. Hood asked for an investment of $100 and promised a payout of $5,100 within 275 days. He wanted the money delivered wrapped in aluminum foil and via Federal Express because U.S. federal government was trying to block the trades through the United States Postal Service. Therefore the scheme should remain secret. Thousands of people from USA and overseas sent money.
The program stopped accepting new investors in 1995. By that time, Hood had received more than $10 million. He began to present number of excuses as to why investors had not been paid, blaming administrative costs, problems with foreign banks and international financial conflicts. When some people still wanted to join, Hood and accomplices claimed that they could sell share units of people who had wanted to leave the program. The estimated total amount of money was $20 million.
In addition, Hood began new investment schemes named Alpha and Destiny and obtained more money from those who had invested to Omega. With the money Hood and his associates bought land and businesses in Mattoon, gave no-interest loans and made trips to Europe. Some of the money also went to finance businesses of other Hood associates like construction contractor Chris Engel.
Engel later cooperated with the police and let them tape a phone conversation with Hood. Hood lawyer Steve Ryan was also later removed from the case when he was subpoena
ed as a witness
and for possible collusion.
Clyde Hood and his 18 associates were indicted in 2000. Some of them pled guilty or were convicted of multiple counts of fraud
, mail fraud, money laundering
and filing a false tax return (see ).
On April 10, 2001, Hood pled guilty to mail or wire fraud conspiracy, money laundering conspiracy, and filing a false tax return.http://www.usdoj.gov/usao/ilc/press/041001hood.html
On January 24, 2002 Hood was sentenced to prison for 14 years and was fined $5,000. Five of his associates were convicted of active participation of the scheme and were ordered to make restitution. Thirteen associates were convicted of money laundering. Three hundred fifty-five victims received restitution from forfeited Omega Trust funds to the total of $1,697,310.00.
The Omega Trust still lives on in the Internet as a supposed global poverty relief program (see NESARA
).
Hood is imprisoned at the "Federal Medical Center Devens," north of Worcester, Massachusetts, and is scheduled for release in November of the year 2012.
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
ulent US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
investment scheme in Illinois.
Clyde D. Hood is a former electrician from Mattoon, Illinois
Mattoon, Illinois
Mattoon is a city in Coles County, Illinois, United States. The population was 18,555 as of the 2010 census. It is a principal city of the Charleston–Mattoon Micropolitan Statistical Area.Mattoon was the site of the "Mad Gasser" attacks of the 1940s....
. In 1994 Hood formed Omega Trust and Trading Limited and began to lecture to church groups. He said that the Lord had given him a mission. He claimed that he was one of the international traders who could make secret multimillion-dollar deals to benefit humanitarian programs through debenture
Debenture
A debenture is a document that either creates a debt or acknowledges it. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note...
s and "prime bank notes" in foreign banks. Hood asked for an investment of $100 and promised a payout of $5,100 within 275 days. He wanted the money delivered wrapped in aluminum foil and via Federal Express because U.S. federal government was trying to block the trades through the United States Postal Service. Therefore the scheme should remain secret. Thousands of people from USA and overseas sent money.
The program stopped accepting new investors in 1995. By that time, Hood had received more than $10 million. He began to present number of excuses as to why investors had not been paid, blaming administrative costs, problems with foreign banks and international financial conflicts. When some people still wanted to join, Hood and accomplices claimed that they could sell share units of people who had wanted to leave the program. The estimated total amount of money was $20 million.
In addition, Hood began new investment schemes named Alpha and Destiny and obtained more money from those who had invested to Omega. With the money Hood and his associates bought land and businesses in Mattoon, gave no-interest loans and made trips to Europe. Some of the money also went to finance businesses of other Hood associates like construction contractor Chris Engel.
Engel later cooperated with the police and let them tape a phone conversation with Hood. Hood lawyer Steve Ryan was also later removed from the case when he was subpoena
Subpoena
A subpoena is a writ by a government agency, most often a court, that has authority to compel testimony by a witness or production of evidence under a penalty for failure. There are two common types of subpoena:...
ed as a witness
Witness
A witness is someone who has firsthand knowledge about an event, or in the criminal justice systems usually a crime, through his or her senses and can help certify important considerations about the crime or event. A witness who has seen the event first hand is known as an eyewitness...
and for possible collusion.
Clyde Hood and his 18 associates were indicted in 2000. Some of them pled guilty or were convicted of multiple counts of fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
, mail fraud, money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and filing a false tax return (see ).
On April 10, 2001, Hood pled guilty to mail or wire fraud conspiracy, money laundering conspiracy, and filing a false tax return.http://www.usdoj.gov/usao/ilc/press/041001hood.html
On January 24, 2002 Hood was sentenced to prison for 14 years and was fined $5,000. Five of his associates were convicted of active participation of the scheme and were ordered to make restitution. Thirteen associates were convicted of money laundering. Three hundred fifty-five victims received restitution from forfeited Omega Trust funds to the total of $1,697,310.00.
The Omega Trust still lives on in the Internet as a supposed global poverty relief program (see NESARA
NESARA conspiracy theory
NESARA is an acronym for the proposed National Economic Security and Reformation Act, a set of economic reforms suggested during the 1990s by Harvey Francis Barnard...
).
Hood is imprisoned at the "Federal Medical Center Devens," north of Worcester, Massachusetts, and is scheduled for release in November of the year 2012.