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Hampton OKs business owner to set up indoor shooting range in a trailer - Daily Press

Hampton OKs business owner to set up indoor shooting range in a trailer - Daily Press


Hampton OKs business owner to set up indoor shooting range in a trailer - Daily Press

Posted: 17 Oct 2020 06:43 AM PDT

Threat Tec President and CEO Jim Crawford and company weapons specialist Gethyn D. Jones (right) shows a simulation, or fake, Russian mine. Highgate Systems supplies the equipment for use by Threat Tec in military training. (Joe Fudge / Daily Press file photo)

Former Aurora Business Owner Sentenced to Eight Years in Federal Prison - Ozarks Independent

Posted: 17 Oct 2020 07:20 AM PDT

by Don Ledford

A former Aurora, Missouri, business owner was sentenced in federal court today for a series of fraud schemes totaling more than $30 million.

"This white-collar thief maintained his lavish lifestyle by stealing millions of dollars from his clients, partners, and lenders to build expensive homes, buy luxurious cars, and take numerous vacations," said U.S. Attorney Tim Garrison. "This theft occurred not once or twice, but repeatedly over several years through a series of fraud schemes. Even after being indicted, while free on bond awaiting trial, he brazenly continued to engage in criminal fraud. Today he is being held accountable for the extensive financial damage his greed wreaked upon his victims."

Russell Grundy, 51, of Hilton Head Island, South Carolina, formerly of Aurora, was sentenced by U.S. District Judge Stephen R. Bough to eight years in federal prison without parole. The court also ordered Grundy to pay $14,847,451 in restitution to his victims.

"The elaborate multi-million dollar fraud schemes and false information provided on numerous documents by Mr. Grundy resulted in significant harm to his business partner, a significant client and multiple financial institutions, all of which violate the public trust," said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. "Today's sentence demonstrates the government's determination to restore and ensure that trust. Moreover, IRS Criminal Investigation, along with law enforcement partners and the U.S. Attorney's Office, will continue to identify, investigate, and prosecute individuals like Mr. Grundy."

On Jan. 30, 2020, Grundy pleaded guilty to two counts of wire fraud, one count of making a false statement on a loan application, and one count of money laundering. According to court documents, Grundy's multiple schemes to defraud financial institutions, a Native American Tribe, and his former clients, potentially totaled more than $30 million and resulted in nearly $15 million in actual losses.

Grundy was the owner of several companies that focused on advanced technologies, ranging from software development to computer security to addressing the software and hardware technological needs of its clientele. Grundy's companies included Innovative Objects, LLC, PILR Technology, LLC, Choice Technologies, LLC, Wyerless, LLC, and Audio Input, LLC.

Land O'Lakes/Nutra Blend Fraud Scheme

Grundy (through his company Innovative Objects) was contracted by Land O'Lakes, Inc., and its subsidiary, Nutra Blend, LLC, from January 2004 to Sept. 27, 2015, to create propriety software to inventory, track, and coordinate the shipping of products. Grundy also contracted with Land O'Lakes and Nutra Blend to provide equipment and technical support for the use, upkeep, and maintenance of the software.

Grundy falsely told Land O'Lakes and Nutra Blend that third party software programs were built into that proprietary software and were essential to the successful operation of the software. Grundy claimed that some of the payments made to Innovative Objects were remitted to third party license holders. In reality, there were no third party licensee fees; instead, Grundy kept those payments for his personal or unrelated expenses.

Land O'Lakes and Nutra Blend paid more than $1.8 million in fraudulent license fees between 2012 and 2015.

Miami Nations Enterprise Fraud Scheme

Grundy engaged Miami Nations Enterprise, a subsidiary company of the Miami Nations Tribe, in negotiations to provide loans and to purchase a controlling interest in all of Grundy's technology-based companies.

Grundy falsely told Miami Nations Enterprise that his companies had been awarded a $3.5 million contract from Wal-Mart Stores, Inc., to develop and provide information technology services. Grundy presented numerous e-mails, invoices, conditional award letters, and other documents to support his false claims. Miami Nations Enterprise loaned Grundy the money to cover the costs associated with software and hardware purchases and training necessary to obtain the $3.5 million Wal-Mart contract. Grundy admitted today that he instead used those funds for his own personal expenses, including building a new home in Charleston, South Carolina. 

On Aug. 24, 2014, Miami Nations Enterprise paid an additional $2 million to purchase a 70 percent interest in Grundy's companies.

Officials with Miami Nations Enterprise later discovered that neither Grundy nor any of his companies had been awarded any contract with Wal-Mart, and determined that the e-mails, conditional contract award, invoices, and bank deposits Grundy had used to support his claims were fraudulently created. Miami Nations Enterprise officials advised that had they been aware of Grundy's misrepresentations, they would never have purchased any portion of Grundy's companies or leant him millions of dollars as requested to meet the specifications for an information security program that never existed. Based on records from the financial institution, as well as the numerous misrepresentations made by the defendant, Miami Nations Enterprise transferred a total of $8,010,000 to Grundy.

False Information on Loan Application

Grundy applied for three loans from UMB Bank on Oct. 17, 2014. Grundy specifically admitted that he fraudulently obtained a $5,440,800 loan by providing false information in the loan application. Grundy also submitted a "Change in Terms Agreement" that effectively allowed him to refinance an existing loan based on the information he provided to the bank. The total amount of the loans and "change in terms agreement" fraudulently obtained by Grundy was more than $12 million. After the sale of the seized land and warehouses built with the fraudulently obtained loans, UMB officials have reported a remaining final loss of $4,214,126 after the sale of those assets.

Grundy falsely claimed that Land O'Lakes had agreed to a 20-year lease for warehouse space that he wanted to build using the loans he sought from the bank. Based on lease agreements provided to UMB Bank officials, Grundy claimed he would receive $18 million in future income.

Grundy admitted that he grossly exaggerated the amount of money to be paid by Land O'Lakes in order to obtain the loans from UMB. Rather than one lease agreement between Grundy and Land O'Lakes to rent the warehouses, there were two lease agreements. One lease agreement was for three years at an amount far less than claimed by Grundy. The second lease agreement was a "month-to-month" lease agreement at an even smaller amount. In reality, the true and accurate leases signed and approved by Land O'Lakes only guaranteed Grundy $540,000 in income.

Additional Financial Frauds

After being indicted by a federal grand jury, Grundy was granted bond over the objections of the government. During his pretrial release, according to court documents, Grundy committed two additional known financial frauds.

Grundy contracted with an individual for the creation of a mobile app, for which he was paid $13,230 up front. The app was never completed but Grundy refused the victim's request for a refund. As a result of this incident, the government moved to have his bond revoked. The court chose not to revoke his bond but did specifically state that Grundy defrauded the victim.

A few months later, Grundy again made false statements on loan documents to Palmetto State Bank in South Carolina in an attempt to fraudulently obtain yet another loan. Grundy vastly overstated his assets and income in order to obtain a loan. But for the diligent efforts of bank officials, Grundy's fraud and false documents would have resulted in losses that would have amounted to $75,000. Grundy surrendered his bond and was taken into federal custody.

7 Personality Traits Every Business Owner Needs to Succeed - Fife Free Press

Posted: 16 Oct 2020 06:08 PM PDT

In 2017, a survey of 65 countries all over the world revealed over 580 million people were running their own businesses. Entrepreneurship is a great way to become financially independent or leave a legacy for your loved ones. It can also represent an interesting challenge for people who want to try their hand in something new.

But starting and managing your own company is a serious decision that requires a lot of preparation and planning. Aside from the practical considerations of opening a business, you should also make sure you have the personality to become an effective leader.

The following are 7 personality traits successful business owners nourish. If you are an aspiring entrepreneur, follow their lead and work on developing these attitudes.

1. Daring

The saying "no risks, no rewards" is more true when you're running a business. Even when the very act of starting an enterprise is a daring move and you can't let doubt or lack of confidence undermine you as a business owner. Just take a look at the business decisions of billionaire Richard Branson. The founder of the Virgin Group of companies, Branson is known for his daring business ventures, which includes private space travel.

But temper your daring with research and carefulness. If you think a plan of action for your business is too bold or risky, don't shut it down immediately. Do you research and see if there's a reasonable chance of success. Once you're confident your decision has a solid foundation, implement it.

2. Know-How

Although there are plenty of self-taught successes, you'll have an easier time achieving your business goals if you have the know-how. For example, Seah Moon Ming, chairman of the SMRT corporation, is an electronics engineer with a masters of science in the same field.

If you're opening a business that's especially technical, such as a company concerned with electronics or technology, it pays to be intimately knowledgeable on these subjects. Expertise can help you make profitable and sensible decisions about your operations. By cultivating your know-how, you involve yourself much deeper into your business processes.

3. Innovativeness

One of the secrets of starting a successful business is to provide a unique solution to a common problem. It takes an innovative and creative mind not only to provide an answer, but also to determine a problem. Innovativeness is such an important part of a profitable company, Salesforce CEO Marc Benioff established "mindfulness zones." These areas were meant to provide employees with a calm and quiet space to tackle problems and find new possibilities. Seeing as Salesforce reports an annual revenue of $13 billion, cultivating innovativeness is certainly paying off.

4. Retrospection

A business succeeds when it doesn't fall for the same mistake twice. When you make a bad decision regarding your business, don't ignore it because you're ashamed. You should instead analyze what led to your bad decision. Did you fail to prepare adequately for your decision? Did you lack the resources to follow through with your plan? You can only determine the answers to these vital questions if you have the courage and intelligence to look back on your decisions.

5. Compassion

team scrum at the office

It's crucial that you never lose sight of your employees on your pursuit of excellence. Too many business owners and CEOs think of their numbers and sales projections first before considering what their employees are going through.

According to Jeff Weiner, CEO of LinkedIn, compassionate management is one of the most sought-after leadership traits. Being a compassionate employer is more important now than ever, with current events making it crucial for you to empathize with your employees. A little compassion can go a long way in securing the loyalty of your employees and preventing your business from losing talented people.

6. Respect

Just because you sit at the top of your company's ladder doesn't mean you should treat those below you with disrespect. Employees are human beings and they deserve just as much dignity as you do. Being rude or dismissive to your employees can manifest in small behaviors such as not letting them finish what they're saying or making dismissive comments about them. A disrespectful workplace can affect the productivity and profitability of your company. One study revealed that 66 percent of employees felt their job performance suffered because of disrespect.

7. Optimism

Finally, you can't have a defeatist attitude when you're running a business. Whenever you face a challenging decision about your company, you should always approach it with a positive mindset. Try to think up of solutions instead of obsessing over problems. Highlight the positive sides of experiences rather than focusing on the negatives. A little optimism will go a long way in keeping your employee's morale afloat during tough times.

Starting a business isn't easy and managing one effectively is even more difficult. But when you're equipped with the right personality traits and mindsets, you'll find that it's easier to find a path to success.

Former Aurora, Mo. business owner sentenced for $30 million fraud schemes - KYTV

Posted: 16 Oct 2020 02:50 PM PDT

AURORA, Mo. (Edited News Release) - A former Aurora, Missouri, business owner was sentenced in federal court Friday for a series of fraud schemes totaling more than $30 million.

Russell Grundy, 51, of Hilton Head Island, South Carolina, formerly of Aurora, was sentenced by U.S. District Judge Stephen R. Bough to eight years in federal prison without parole. The court also ordered Grundy to pay $14,847,451 in restitution to his victims.

On Jan. 30, 2020, Grundy pleaded guilty to two counts of wire fraud, one count of making a false statement on a loan application, and one count of money laundering. According to court documents, Grundy's multiple schemes to defraud financial institutions, a Native American Tribe, and his former clients, potentially totaled more than $30 million and resulted in nearly $15 million in actual losses.

"This white-collar thief maintained his lavish lifestyle by stealing millions of dollars from his clients, partners, and lenders to build expensive homes, buy luxurious cars, and take numerous vacations," said U.S. Attorney Tim Garrison. "This theft occurred not once or twice, but repeatedly over several years through a series of fraud schemes. Even after being indicted, while free on bond awaiting trial, he brazenly continued to engage in criminal fraud. Today he is being held accountable for the extensive financial damage his greed wreaked upon his victims."

"The elaborate multi-million dollar fraud schemes and false information provided on numerous documents by Mr. Grundy resulted in significant harm to his business partner, a significant client and multiple financial institutions, all of which violate the public trust," said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. "Today's sentence demonstrates the government's determination to restore and ensure that trust. Moreover, IRS Criminal Investigation, along with law enforcement partners and the U.S. Attorney's Office, will continue to identify, investigate, and prosecute individuals like Mr. Grundy."

Grundy was the owner of several companies that focused on advanced technologies, ranging from software development to computer security to addressing the software and hardware technological needs of its clientele. Grundy's companies included Innovative Objects, LLC, PILR Technology, LLC, Choice Technologies, LLC, Wyerless, LLC, and Audio Input, LLC.

Land O'Lakes/Nutra Blend Fraud Scheme

Grundy (through his company Innovative Objects) was contracted by Land O'Lakes, Inc., and its subsidiary, Nutra Blend, LLC, from January 2004 to Sept. 27, 2015, to create propriety software to inventory, track, and coordinate the shipping of products. Grundy also contracted with Land O'Lakes and Nutra Blend to provide equipment and technical support for the use, upkeep, and maintenance of the software.

Grundy falsely told Land O'Lakes and Nutra Blend that third party software programs were built into that proprietary software and were essential to the successful operation of the software. Grundy claimed that some of the payments made to Innovative Objects were remitted to third party license holders. In reality, there were no third party licensee fees; instead, Grundy kept those payments for his personal or unrelated expenses.

Land O'Lakes and Nutra Blend paid more than $1.8 million in fraudulent license fees between 2012 and 2015.

Miami Nations Enterprise Fraud Scheme

Grundy engaged Miami Nations Enterprise, a subsidiary company of the Miami Nations Tribe, in negotiations to provide loans and to purchase a controlling interest in all of Grundy's technology-based companies.

Grundy falsely told Miami Nations Enterprise that his companies had been awarded a $3.5 million contract from Wal-Mart Stores, Inc., to develop and provide information technology services. Grundy presented numerous e-mails, invoices, conditional award letters, and other documents to support his false claims. Miami Nations Enterprise loaned Grundy the money to cover the costs associated with software and hardware purchases and training necessary to obtain the $3.5 million Wal-Mart contract. Grundy admitted today that he instead used those funds for his own personal expenses, including building a new home in Charleston, South Carolina.

On Aug. 24, 2014, Miami Nations Enterprise paid an additional $2 million to purchase a 70 percent interest in Grundy's companies.

Officials with Miami Nations Enterprise later discovered that neither Grundy nor any of his companies had been awarded any contract with Wal-Mart, and determined that the e-mails, conditional contract award, invoices, and bank deposits Grundy had used to support his claims were fraudulently created. Miami Nations Enterprise officials advised that had they been aware of Grundy's misrepresentations, they would never have purchased any portion of Grundy's companies or leant him millions of dollars as requested to meet the specifications for an information security program that never existed. Based on records from the financial institution, as well as the numerous misrepresentations made by the defendant, Miami Nations Enterprise transferred a total of $8,010,000 to Grundy.

False Information on Loan Application

Grundy applied for three loans from UMB Bank on Oct. 17, 2014. Grundy specifically admitted that he fraudulently obtained a $5,440,800 loan by providing false information in the loan application. Grundy also submitted a "Change in Terms Agreement" that effectively allowed him to refinance an existing loan based on the information he provided to the bank. The total amount of the loans and "change in terms agreement" fraudulently obtained by Grundy was more than $12 million. After the sale of the seized land and warehouses built with the fraudulently obtained loans, UMB officials have reported a remaining final loss of $4,214,126 after the sale of those assets.

Grundy falsely claimed that Land O'Lakes had agreed to a 20-year lease for warehouse space that he wanted to build using the loans he sought from the bank. Based on lease agreements provided to UMB Bank officials, Grundy claimed he would receive $18 million in future income.

Grundy admitted that he grossly exaggerated the amount of money to be paid by Land O'Lakes in order to obtain the loans from UMB. Rather than one lease agreement between Grundy and Land O'Lakes to rent the warehouses, there were two lease agreements. One lease agreement was for three years at an amount far less than claimed by Grundy. The second lease agreement was a "month-to-month" lease agreement at an even smaller amount. In reality, the true and accurate leases signed and approved by Land O'Lakes only guaranteed Grundy $540,000 in income.

Additional Financial Frauds

After being indicted by a federal grand jury, Grundy was granted bond over the objections of the government. During his pretrial release, according to court documents, Grundy committed two additional known financial frauds.

Grundy contracted with an individual for the creation of a mobile app, for which he was paid $13,230 up front. The app was never completed but Grundy refused the victim's request for a refund. As a result of this incident, the government moved to have his bond revoked. The court chose not to revoke his bond but did specifically state that Grundy defrauded the victim.

A few months later, Grundy again made false statements on loan documents to Palmetto State Bank in South Carolina in an attempt to fraudulently obtain yet another loan. Grundy vastly overstated his assets and income in order to obtain a loan. But for the diligent efforts of bank officials, Grundy's fraud and false documents would have resulted in losses that would have amounted to $75,000. Grundy surrendered his bond and was taken into federal custody.

This case was prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI, IRS-Criminal Investigation, FDIC-Office of Inspector General, and the Small Business Administration – Office of Inspector General.

Copyright 2020 KY3. All rights reserved.

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