Monroe Chat

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By Josh Sweigart, Staff Writer Updated 2:15 PM Tuesday, August 18, 2009

CINCINNATI — Former Dynus Corp. owner Orlando Carter was found guilty of all charges against him in federal court this afternoon, Aug. 18, including charges of bank fraud.

After a three week trial chock full of financial jargon and boxes of complicated evidence — pouring over 11 felony charges against Carter — it took a jury only a few hours to return the verdict this morning.

This ties Carter to a scheme that cost two banks and a prominent Cincinnati businessman millions of dollars along with fellow conspirators former company president Jim Smith, former Butler County Auditor Kay Rogers and former company employee Karin Verbruggen.

The three others have pleaded guilty for their role in the deal, which included Dynus taking out $6.5 million in illicit loans from National City Bank in Butler County’s name. All three are still awaiting sentencing more than a year after their guilty pleas.

Other charges against Carter included having company employees make a fake W-2 inflating his income more than $300,000 to get a loan for a $1.2 million Maineville mansion. And he is guilty of lying during bankruptcy proceedings to wipe out millions of dollars in debt owed to Fifth Third Bank...

The three week trial included testimony that Smith, with Verbruggen’s help, forged documents, bribed Rogers and took a “kickback” from West Chester Twp. Trustee George Lang — which Lang denies was a kickback.

Smith also testified that former county commissioner Michael Fox helped put pressure on National City to unhand the money, which Fox denies. And Smith said he worked with Lang and former GOP Executive Director Scott Owens to try to save the ill-fated deal.

Lang and Owens deny any wrong-doing, saying they were each paid more than $100,000 as legitimate professional lobbyists.

Fifth Third ultimately lost $4.3 million after the company collapsed in October 2005, bank executive testified. National City officials testified that bank lost another $6 million. Prominent Cincinnati businessman and civic leader Ross Love testified he lost $1 million he invested in Dynus and is on the hook for another $1.25 million company loan he guaranteed.

Contact this reporter at (513) 820-2175 or jsweigart@coxohio.com.