By Brett Milam
Editor
A local taxman pleaded guilty in an extensive securities fraud and money laundering case on Jan. 27.
Robert White, 73, was charged with six felony counts of securities fraud, six felony counts of making false representation in sale of securities, one felony count of engaging in a pattern of corrupt activity, and 12 felony counts of money laundering.
White was originally slated for a trial on Jan. 28, but instead, pleaded guilty to counts seven, eight, nine, 10, 11 and 12 of misrepresentation in the sale of securities. All four counts carry with them a prison term of nine months to 36 months, and a possible fine of $10,000, respectively.
In total, White faces 18 years in prison, and a $60,000 fine, of which 0 prison time and $0 is mandatory.
While counts one through six, and 13 through 25 were dismissed, all 25 counts can be considered in determining restitution.
Appearing before Judge Victor Haddad, White said he was “very difficultly” giving up his right to a trial in order to plead guilty. White also had one contention when going over the plea agreement. He said the one thing he wanted to be sure of, regarding the counts against him for restitution, is that he and his lawyer have an opportunity to reconcile items in the paperwork that “isn’t necessarily 100 percent accurate.”
The way restitution will work is that the probation officer will talk to the victims, and to White, to make a determination, Haddad explained.
Haddad added that if that determination is disagreeable to the prosecutor or the defense, they have a right to argue it.
White runs a business out of the CMC Office Space Building on 4030 Mt. Carmel Tobasco Road that claims to offer “tax accounting and payroll services.”
One of the other places White was operating was at Platinum Tax and Business Services at 671 Ohio Pike.
His certified public accountant license was revoked by the Accountancy Board of Ohio in 2015. According to the board, White held a license since 1974.
The fact of his CPA revocation was hidden from his victims, Darren Miller, chief felony prosecutor, said.
Specific to what he pleaded guilty to, in August 2015, White made statements to a victim E.H. about how he intended to use their investor funds, and he created a marketing brochure and paperwork for investors showing anticipated revenues for each year. He did not repay the investors as promised, and did not use the funds as promised.
This similarly happened to K.H. in June 2016, B.D. also in June 2016, R.K. in November 2016, R.A. in June 2017, and CH and TH in June 2017.
In all cases, the loss of money was between $7,500 and $37,000, Miller said.
To the matter of restitution, Jeffrey Corcoran, White’s attorney, said White believes he will be able to raise $100,000 to put into an escrow account by June 30.
An additional $100,000 would be raised by the following year, Corcoran said.
That’s why sentencing has been set for July 1 to allow time for the funds to be raised.
Miller said if White isn’t able to make the payment, then they can consider that as it relates to the sentencing. Miller re-iterated that the State is asking for prison time in the case.
Jean Needles, a victim, spoke to the court, saying this has gone on way too long — for years.
“I mean, I wanted to see prison time,” she said.
Haddad took some exception to that, asking Needles if that means she wants to be put at the bottom of the list for restitution.
“Look, this is the court system. I’m not gonna solve all your problems that you’ve all gotten yourself into with Mr. White. That’s not my job. My job is to be fair and seek the truth, and I’m gonna do that,” he said. “And so, if you’re a little wishy-washy about what you want every time you come up here, you’re entitled to do that, and I’m going to respect anything you all say, but I’m making the decision.”
Haddad said he would hear them all out all day to say whatever they want, but he’s going to make that decision.
Needles did make clear she doesn’t want payment, just prison time.
“Whatever the court does, I’m going to do it with a lot of thought, and a lot of consideration,” Haddad said.
Haddad said he views victims like family; victims have always carried a soft spot.
White wanted to make a statement to the court, which Corcoran advised again. Corcoran told the court he suspects White is concerned about an effort to “hurt him with existing clients.”
To which Haddad said, people have free will, and if they know what’s going on, it’s their choice as to whether they want to see White or not.
A pre-sentence investigation has been ordered, and the sentencing July 1 is set for 1:15 p.m. before Haddad.
In the meantime, White posted his $300,000 bond.