YET ANOTHER BAZAAR TWIST REGARDING AN INSIDETRUTH STORY STOCK OPTIMUM SOURCE INTERNATIONAL LTD (osin) . One of OSIN largest shareholders David Simonini indicted for fraud
March 14, 2001
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Builder indicted on fraud charges
David Simonini accused of scheming to get loans
GARY L. WRIGHT AND SARAH JANE TRIBBLE
Staff Writers
Posted on Thu, May. 01, 2003 Charlotte developer David Simonini, known for building some of the city's most exclusive homes, has been indicted, accused of scheming to obtain millions of dollars in loans to support speculative stock investments and casino gambling.
Simonini, nationally known for building houses that sell for between $1 million and $4 million, filed for personal bankruptcy last year, blaming an addiction to risk-taking, gambling and a bad economy for plunging him into a personal and business crisis.
Now the 43-year-old businessman could spend the rest of his life in prison.
The federal grand jury indictment, made public Wednesday, accuses Simonini and former luxury car dealer David Charles Smith, with help from others, of devising schemes to obtain more than $9 million from banks to finance their failing businesses as well as their investments and lifestyles.
In the bankruptcy filing, Simonini disclosed that he lost millions in the stock market and at casinos. He was living well beyond his means: a new luxury car every six months, a $1.65 million home, trips to Europe, and casinos, country clubs and private schools.
His living expenses reached $75,000 a month, he said in an interview last year.
Simonini, who has not been arrested, couldn't be reached for comment. The former owner of David Simonini Custom Homes will be allowed to turn himself in for his first court appearance -- likely in the next few days or weeks.
Simonini is charged with one count of conspiracy, eight counts of bank fraud, four counts of making false loan statements, one count of money laundering conspiracy and 18 counts of money laundering.
The charges Simonini faces carry maximum punishments totaling 645 years in prison and millions of dollars in fines and restitution.
David Simonini's brother, Alan, declined comment. Alan Simonini, who operates an entirely separate business called Simonini Builders, said his brother has not talked with him about the indictment.
Defense attorney Claire Rauscher said Tuesday she hadn't seen the indictment.
"It's a very complex case," she said. "I can't comment on it. We knew the government was intending on indicting Mr. Simonini."
Smith, 29, the former owner of Southern Imports in Charlotte, wasn't charged in Tuesday's indictment. He has already pleaded guilty to gun, drug, bank fraud, mail fraud and money laundering charges and is awaiting sentencing.
Also indicted Tuesday were Peggy Alexander and John Weston. The indictment identified Alexander as an employee of David Simonini Custom Homes and Weston as a Charlotte stockbroker.
Alexander, 52, and Weston, 33, are each charged with conspiracy, bank fraud, making a false loan statement and money laundering. The charges against Alexander are punishable by up to 115 years in prison. Weston's charges carry maximum punishments totaling 95 years in prison.
The indictment alleges that Simonini and Smith spent some of the proceeds from their fraudulent activity gambling at casinos in the United States and elsewhere. By May 2001, according to the indictment, Simonini had gambling debts at casinos in excess of $1.3 million.
Simonini is accused of diverting funds from construction loans to pay his gambling debts and other purposes unrelated to the construction of homes.
Prosecutors allege that Simonini lied about income and assets to take out mortgages for luxury homes.
Simonini, Smith, Alexander and Weston obtained loans secured by boats and cars that were either previously pledged as collateral to other loans or that Southern Imports did not own, the indictment alleges.
Simonini and Smith signed the names of individuals on loans, as borrowers, sometimes without the individuals' knowledge. The true borrowers, according to the indictment, were Simonini and Smith.
Among the banks Simonini and Smith are accused of defrauding, according to the indictment, are Bank of America Corp., First Union National Bank, Wachovia Corp., SouthTrust Bank and BB&T Corp.
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Gary L. Wright: (704) 358-5052; gwright@charlotteobserver.com |
