Thursday, Nov. 19, 2009

3 Hebrew Boys trial winding down

Jury deliberations in the federal trial of three Columbia-area men accused of running the $82 million "3 Hebrew Boys" investment scheme could start this afternoon.

The defense rested its case this morning. Closing arguments are scheduled to begin at 2 p.m.

The men are accused of luring at least 7,000 investors from two dozen states, including many from military bases and churches, with promises of daily returns up to 500 percent, authorities said.

Despite having no formal financial training, prosecutors say the men told investors the money would go into foreign currency exchange markets. Instead, the group’s leaders are accused of in-vesting less than $40,000 and going on shopping sprees, authorities said.

Their purchases included a $5 million jet, motorcoaches, homes, condos and luxury stadium boxes, authorities said.

Last year, the 3 Hebrew Boys had promised to pay investors $1.1 billion through 2008 but had just $17 million in bank accounts when they were seized in 2007, prosecutors said.

Accused of 58 charges of federal mail fraud, check fraud and money laundering charges are: Joseph Brunson of Hopkins; Timothy McQueen of Blythe-wood; and Tony Pough of Columbia.

The trio has denied any wrongdoing, saying their work is faith-based and does not fall under securities laws. Defense attorneys told jurors the trio just were trying to help people out of debt.

The trio’s programs offered to pay off $200,000 mortgages and $30,000 car loans with investments of as little as $2,500, prosecutors have said. Company representatives also offered lifetime annuities of 10 percent a month for investments ranging from $500 to $200,000, prosecutors said.

Testifying for the defense today, Adam Culp, pastor of a Charlotte church, said he invested after meeting face-to-face with the 3 Hebrew Boys in 2006. "I wanted to know how sincere they were about helping people," he said.

Culp said he invested about $90,000 to settle debts, but got back just $6,400. Despite losing nearly $83,000, Culp said he was not upset with the trio.

The 3 Hebrew Boys took their name from a story in the Book of Daniel that tells of three Israelites who are saved by God after being thrown into a furnace for their refusal to bow before a golden idol.

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