Ga. CEO fled trial, nabbed by Marshals in Utah
3:54 PM, May 29, 2011
Written by Ben Mayer
11alive.com
ATLANTA -- Rufus Paul Harris was convicted this week in federal court even though he wasn't there. The former CEO from Adairsville was arrested in Utah after a five-day nationwide manhunt.
Harris was on trial for securities fraud, wire fraud and falsifying financial documents.
He was arrested Sunday morning at a home in Provo.
In a statement issued Sunday, United States Attorney Sally Quillian Yates said, "I am happy to announce that this Defendant was arrested without incident less than a week after he fled. In that short time, the Defendant was able to travel nearly 2,000 miles."
Harris was convicted on all eight counts for his involvement in what federal authorities call a "pump-and-dump scheme".
Harris was CEO and founder of Conversion Solutions Holdings Corporation. The U.S. Attorney's office presented evidence showing the company issued a series of press releases greatly exaggerating their assets.
In 2006 the company claimed $800 million in assets, including $500 million in foreign sovereign bonds earning nearly $20 million in interest, according to the U.S. Attorney.
CSHC stock soared on the back of those press releases, form a penny stock to more than $1 a share.
But federal authorities say, in reality, the three defendants had "little if any assets", and were transferring shares to family members at a price of between $2 and $3 a share.
On Monday, Harris waived his right to an attorney and, according to a statement from the U.S. Attorney, checked out of a motel and took off in a minivan headed west.
He was convicted on all counts, and now faces 25 years in jail and $250,000 fine.
One of his co-defendants pleaded guilty, the other was convicted, while the former CEO was on the run.
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