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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 > Entry
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.
Permalink | Comments (15) | Post your comment | Categories: Butler County, Dynus
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By Matt Hurley
June 28, 2011 8:42 AM | Link to this
How ‘bout we get an updated timeline on that Democrat scandal at the Board of Elections? Or is that too much for an “objective” news outfit?
By Ted
June 28, 2011 11:11 AM | Link to this
I agree with Matt, this is old news. I’d rather you raise the curtian on the board of elections. Clearly there is a cover up going on.
By Millie
June 28, 2011 11:19 AM | Link to this
The HJN, Spotlight Jones, the county commissioners and the Board of Elections isn’t saying anything about the problems at the BOE because they’d have to report that Betty McGary-Dixon was the one who hired and recommended this criminal as director. No one wants to upset Don Dixon.
By Iamaswitchin
June 28, 2011 1:04 PM | Link to this
Hey Millie..is this the third of Dixon’s daiseys to get in trouble??…Kay Rawnika and now the BOE Gal?
By James
June 29, 2011 9:38 AM | Link to this
Get your facts straight “Millie” before making a fool of yourself - Only four Board Members by law can hire and fire anyone at the BOE and that would be - Tom Ellis, Judy Shelton - John Holcomb and Frank Cloud!
By Bored
June 29, 2011 9:54 AM | Link to this
Yawning.bored with these comments. The topic of discussion here is about Dynus. Just the biggest scandal to hit our County in my lifetime. Save your comments for a Board of Elections blog.
By Larry
June 29, 2011 10:00 AM | Link to this
I agree with bored. Stick to the subject matter. Could the Journal News please write a blog about the County Commissioners so the Dixon haters can comment until their hearts content AND JUST MAYBE they can expel some of their hate. Will make them live longer.
By JJ
June 29, 2011 11:39 AM | Link to this
Ouch!! Those Dixon supporters seem to be getting worried. Maybe they are afraid where this all is going to lead, maybe back to the little emperor who like everything was involved in the BOE Director hiring. You can bet the Journal News is never going to open a blog where Little Emperor Dixon or King Richard can receive negative comments.
By Jamie
June 29, 2011 1:31 PM | Link to this
Commissioner Don Dixon and Rick Jones ARE GREAT AMERICANS!! Bill Cunningham says so on his radio show and I think so too. Keep at’em boys you obviously have some people scared.
By Susie
June 29, 2011 1:34 PM | Link to this
Hey Millie I would love to “upset” Don Dixon, I think he’s cute!
By Sean
June 30, 2011 8:26 AM | Link to this
What a load a crap, Kay is a crook, bully, loudmouth, has never accepted any blame…it was everyone else fault. She is guilty and needs to go to jail with the other felons, she is using her daughetr as woe is me, Kay is SCUM!
By Steve
July 1, 2011 8:24 PM | Link to this
Regarding Kay… hang her high! Give Orlando another 10 years and add Anthony Buford to the list!
By Dorothy
July 8, 2011 12:53 AM | Link to this
In every level of government there is sooo much corruption. From the president down. No wonder our country is such a mess.
By John
July 8, 2011 3:06 PM | Link to this
Someone needs to call Sheriff Jones and report Pitman missing. Last time he was heard from here was on June 27th, 2011 11:59 PM. Surely don’t want to wait 31 days to report him missing.
By ben
July 11, 2011 10:11 AM | Link to this
I think Kay should go to jail, tax evasion, 10 years or more. I voted for her. Get a life.