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Michael D. Pitman reports about Butler County, Ohio, politics, county government, countywide issues and Butler County people just like you for Cox Ohio Publishing (including the Hamilton JournalNews, Middletown Journal and several weekly papers in Butler County). He wants your suggestions and questions for more news stories. Leave a comment for him here or e-mail Michael at Home > Blogs > Butler County News and Issues > Archives > 2011 > June > 27
Monday, June 27, 2011
An updated Dynus Timline
The following is a timeline of events in the Dynus fiber optics scandal in Butler County. The investigation started in 2005 when Butler County Commissioner Charles Furmon asked the FBI to look into whether fiber optics firm Dynus Corp. took out a multimillion dollar loan in the county’s name without approval.
Aug. 9, 2004: County Auditor Kay Rogers signs a mutual confidentiality agreement with Jim Smith, chief marketing officer of CBS Technologies, which later became Dynus Corp.
Sept. 15, 2004: Rogers signs a declaration that Smith is a representative of the county.
Dec. 31, 2004: Rogers signs a resolution at her home saying the county would borrow roughly $5.3 million from National City Bank for a fiber-optics deal with Dynus Global Communications. The resolution listed Rogers and Smith as representatives of the county.
Dec. 31, 2004: Rogers and County Commissioner Michael Fox have phone conversation with National City.
Jan. 12, 2005: A Dynus representative identified by the FBI as “JS” paid $9,500 to “HRH, a third-party intermediary company,” according to the FBI.
Jan. 19, 2005: HRH pays $9,500 to Rogers.
Feb. 28, 2005: Smith meets with commissioners about planned project.
July 28, 2005: Commissioners approved an agreement with Dynus Corp., allowing the company to use four of the county’s fibers in exchange for the company luring new jobs and investment into the county.
Aug. 26, 2005: Dynus’ line of credit with Fifth Third increased from $3 million to $7 million as a result of the Butler County contract.
Late August 2005: County receives invoice for lease agreements and discovers debt with National City.
Sept. 6, 2005: Commissioner Chuck Furmon and National City Bank officials contact the FBI.
Sept. 14, 2005: County administration meets with Dynus and National City officials, seeking a way to settle the dispute.
Sept. 16, 2005: Commissioners unanimously sever the economic development agreement.
Sept. 22, 2005: FBI begins investigation of potential bank fraud, other crimes.
Sept. 26, 2005: Rogers returns the $9,500 to HRH “in an effort to conceal the receipt of (the money),” according to the FBI. The money then went back to J.S.
Oct. 6, 2005: Commissioner Charles Furmon says Rogers, Smith, West Chester Twp. Trustee and Dynus Financial President George Lang, County GOP Executive Director and Dynus Technologies Government Relations Director Scott Owens, Dynus CEO Orlando Carter, and officials from Fifth Third Bank met March 8, 2005 to discuss the debt.
Oct. 11, 2005: Fifth Third gives Dynus three days to pay back $6 million because the Butler County contract is in question.
Oct. 14, 2005: Fifth Third halts Dynus’ payroll, locks doors, and files suit for default in Hamilton County.
Nov. 10, 2005: Butler County files lawsuit against Dynus, National City to absolve debt. National City forgives debt.
Feb. 2006: Dynus sues the county for $12 million, the value of the disputed contract with the county plus punitive damages.
March 29, 2006: Rogers does not disclose the receipt of $9,500 from J.S. or Dynus in her financial disclosure statement, according to federal officials.
Sept. 2006: Dynus officials drop their lawsuit, saying they want to give the FBI investigation time to pan out.
Sept. 2007: Dynus’ deadline to refile comes and goes as the FBI investigation trudges on.
Feb. 25, 2008: Court records are unsealed that includes County Auditor Kay Rogers’ guilty plea to bank and mail fraud, and tax evasion.
March 4, 2008: County Auditor Kay Rogers resigns amid pressure from state and local officials.
May 7, 2008: Federal officials release 11-charge indictment of Carter for charges including bank fraud, and release guilty pleas to bank fraud from Smith and Dynus projects manager Karin Verbruggen.
Aug. 2009: Carter found guilty on 11 felony charges for his part in a scheme that cost two banks more than $10 million, caused his company’s 2005 collapse and ignited political scandal in Butler County. Rogers, Smith and Verbruggen all pleaded guilty in the case.
Oct. 29, 2009: U.S. District Court unseals an eight-count indictment on former Butler County Commissioner Michael Fox. The indictment also names Robert Schuler, the son of a late state legislator and friend of Fox dating back to their days at Miami University. The U.S. Attorney’s Office said Fox and Schuler “conspired to improperly benefit from Butler County contracts involving a (fiber optics) company doing business with the county,” and that the men failed to report income from the deals on their federal income tax returns. Fox is also charged with mail fraud for allegedly failing to disclose conflicts of interest in Ohio ethics disclosure statements he mailed annually from 2004 through 2007. Schuler is charged with perjury for alleged false testimony he gave to a federal grand jury on Oct. 1, 2008.
June 9, 2010: Carter is sentenced to 15 years in prison.
Aug. 4, 2010: The federal government files a superseding indictment against Michael Fox adding the term “kickback and bribery scheme” to the original indictment. In subsequent filings, Fox’s defense attorneys claimed this was a new indictment but it was allowed. Also, Fox’s attorney’s attempted to have all charges dismissed, which they were not.
Aug. 25, 2010: After the Oct. 4 trial was delayed, Michael Fox’s trial was set for April 11, 2011. A preconference trial was set for March 9, 2011.
Dec. 15, 2010: George Lang is indicted on a federal perjury charge. The U.S. government said the West Chester Twp. trustee lied under oath during the Carter trial. Lang claimed he did not know Jim Smith was an employee of Dynus.
Jan. 25, 2011: The federal government lays out its case, showing its evidence Lang knew Jim Smith was an employee of Dynus. That evidence included sworn statements from Smith and former Butler County GOP Chair Scott Owens, documents from Lang’s companies, and e-mails from Lang identifying Orlando Carter and Smith as the “leadership” of Dynus.
Jan. 30, 2011: George Lang’s federal perjury trial begins.
Feb. 9, 2011: George Lang acquitted on federal perjury charge.
March 7, 2011: Michael Fox’s attorneys file a change of plea motion. Fox had pleaded not guilty to several federal charges, including mail fraud and conspiracy.
March 9, 2011: Michael Fox pleads guilty in federal court to conspiracy to commit mail and wire fraud and filing a false tax return. He faces up to four years in prison. A sentencing date has not been set.
June 24, 2011: The attorney for Kay Rogers files a sentencing memorandum asking U.S. District Court Judge Sandra Beckwith to incarcerate the former county auditor for one day. Rogers’ attorney said the reason it took four years for the federal government to sentence Rogers due to her cooperation with the FBI in its investigations of Dynus officials Orlando Carter, Jim Smith and Karin Verbrugeen; West Chester Twp. George Lang, who was acquitted on a perjury charge; former county GOP finance director and nightclub owner Joe Ruscigno, who pled guilty to obstruction; and former Butler County politician and Children Services director Michael Fox, who pled guilty to conspiracy to commit wire fraud, mail fraud and filing a false tax return and agreed to a four-year sentence so long the federal government dropped any corruption charges.
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TweetLetters of support for Rogers; why sentencing was delayed
Former Butler County Auditor Kay Rogers will be sentenced at 9:30 a.m. July 26 in U.S. District Court in Cincinnati. It will be four years since charges were levied against the former Butler County auditor. She pled guilty to bank fraud in December 2007.
On Friday, Rogers’ Mason-based attorney, Konrad Kircher, filed a sentencing memorandum asking U.S. District Court Judge Sandra Beckwith to consider sentencing his client for one day.
In addition to the sentencing memorandum, 50 letters of support from people that have known Rogers over the years were written to Beckwith.
The lion’s share of the letters express concern for her children if she’s sentenced to prison. Many of them were hand-written letters.
Of those who have drafted letters of support, her children, Liberty Twp. Trustee Pat Hiltman, former West Chester Twp. Trustee Jose Alverez, West Chester Twp. Fiscal Officer Patricia Williams and Lakota Family YMCA Executive Director John Schaller.
Delay in sentencing
The four-year delay in sentencing for Rogers is directly due to her cooperation, said her attorney. He also said any comments about why the delay in sentencing prior to the sentencing date would have “compromised her assistance” with the FBI.
Kircher said: “She has been cooperating all along with these other investigations. She’s provided key assistance to the government in investigating not just the Dynus stuff, but other things. She did that at significant loss of friendships and relationships.”
A spokesman for the U.S. Attorney’s office could not be reached for comment.
Editor’s note: We had indicated one of the letter writers was the wife of Speaker of the House John Boehner. The letter writer spelled her name as Debra Boehner, and the Speaker’s wife’s name is spelled Deborah Boehner.
Thoughts?
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TweetSpringfield Road closing for culvert work
The Butler County Engineer’s Office reports that Springfield Road in Reily Twp. will close for a series of four culvert replacements beginning Thursday.
Crews will work west from east and the length of time for each culvert will vary so dates to begin are only estimates:
• First culvert - Located five feet east of State Line Center Road and 1.1 miles west of Gray Road. Closing date: June 30. Approximate opening date: July 5.
• Second culvert - Located 0.8 mile east of State Line Center Road and 0.3 mile west of Gray Road. Approximate closing date: July 5. Approximate opening date: July 12.
• Third culvert - Located 0.4 mile east of Gray Road and 0.4 mile west of North Weaver Road. Approximate closing date: July 12. Approximate opening date: July 19.
• Fourth culvert - Located 0.8 mile east of Indian Creek Road and five feet west of the Main Street / Peoria Reily Road intersection. Approximate closing date: July 19. Approximate opening date: July 22.
The detour for all four culvert replacements are: Eastbound traffic on Springfield Road will travel south on State Line Center Road and then east on Peoria Reily Road. Westbound traffic will reverse the route.
View Springfield Road culvert work in a larger map
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