Conservative Federal Appeals Court Overturns $1.9B Fraud Case

In a surprising move today, a federal appeals court overturned a defendant's money laundering conviction in a $1.9 billion fraud case. The 6th U.S. Circuit Court of Appeals in Cincinnati delivered its opinion in the cases of Donald Ayers and Roger Faulkenberry, two former officers and directors of the National Century Financial Enterprises (NCFE), convicted on March 13, 2008 on multiple counts of wire fraud, securities fraud, money laundering and conspiracy. At the time of conviction, this was considered the nation's largest case of private securities fraud. "This decision significantly impacts the manner in which the government must prove a money laundering charge in a securities fraud case, as it highlights the government's obligation to prove adequately that these individuals were concealing the laundering or in this case the co-conspirators were concealing the laundering of proceeds," says Brian E. Dickerson, a partner and member of the National White Collar and Criminal Defense Practice at Roetzel & Andress LPA (Naples, Fla.), who represented Mr. Ayers in the trial and appeal. "This opinion reverses the conviction on the 15-year sentence applied to the money laundering statute convictions that currently exist. Given this particular court's conservative reputation, we are particularly pleased with the victory and anticipate that this will have a significant impact on pending money laundering fraud matters." Mr. Ayers, one of NCFE's founders and the former chairman, along with four other former executives, were convicted to 15-plus years in prison on multiple counts of fraud, which for Mr. Ayers, who was 72 years old at the time of conviction, essentially meant life in prison. Mr. Dickerson is available for interviews. [07/28/2010]