Federal grand jury indicts Hilton Head man in $26-million fraud scheme
A Hilton Head man has been indicted by a federal grand jury in Missouri for allegedly stealing more than $26 million through fraud schemes. He also faces money laundering and other charges, according to the U.S. Attorney’s Office for the western district of Missouri.
Russell Grundy, 48, of Hilton Head, was charged in a 30-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday. Grundy was arrested Thursday, according to a news release issued by Tom Larson, acting U.S. attorney for the western district of Missouri.
Grundy was the owner of several companies that focused on advanced technologies, including Innovative Objects, LLC, PILR Technology, LLC, Choice Technologies, LLC, Wyerless, LLC, and Audio Input, LLC.
The indictment charges Grundy with six counts of wire fraud related to a series of payments from August 2013 to April 2015, totaling $862,856 through his company Innovative Objects and 10 counts of wire fraud related to a series of payments from May 19, 2014, to April 12, 2015, totaling $5,990,000.
In addition to the wire fraud schemes, the indictment charges Grundy with four counts of making a false statement on a loan application. Grundy applied for three loans from UMB Bank on Oct. 17, 2014, totaling $11,390,800. Grundy applied for a $1,850,000 loan from the People’s Bank of Seneca on Aug. 27, 2015. Grundy allegedly made material false statements on each of those loan applications.
Grundy is also charged with 10 counts of money laundering.
The indictment also contains a forfeiture allegation, which would require Grundy to forfeit to the government any property obtained as a result of the alleged wire fraud violations, including a money judgment of at least $26,060,000.
The case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI and IRS-Criminal Investigation.
Gundy was a former Hilton Head-Bluffton Chamber of Commerce member in 2014 with his company Innovative Objects, which was located in Wexford, according to a previous chamber newsletter.
This story was originally published July 14, 2017 at 9:36 AM with the headline "Federal grand jury indicts Hilton Head man in $26-million fraud scheme."