U.S. Track Star Timothy Montgomery Arrested In Bank Fraud Investigation
April 28, 2006
NEW YORK -- MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, and MARTIN D. FICKE, Special Agent-in-Charge of the New York office of U.S. Immigration and Customs Enforcement (ICE), announced the arrest today of TIMOTHY MONTGOMERY, the former Olympic gold medalist and world-record holding sprinter, in connection with a multi-million dollar bank fraud and money laundering scheme.
The arrest today arose out of a long-term ICE investigation, in which a grand jury already has charged at least ten other defendants, including MONTGOMERY’s track coach, 1976 Olympic gold medalist, STEVEN RIDDICK. Three other individuals, CHRISTINE RICHARDSON, CYNTHIA MONTGOMERY, and EVANS POINDEXTER, already have pleaded guilty in connection with the bank fraud and money laundering scheme.
TIMOTHY MONTGOMERY is added as a defendant to an the Indictment unsealed today, joining previously charged defendants DOUGLAS SHYNE, NATASHA SINGH, a/k/a "Beatris Rodrigues," NATHANIEL SHYNE, TOYBE BENNETT, a/k/a "Dmitriy Makarevich," a/k/a "Dmitriy Makervish," a/k/a "Eduardo Rodrigues," a/k/a "Cecilio Pena," ROBERTO MONTGOMERY, EPHRAIM RICHARDSON, NARESH PITAMBAR, JASON WATLER, STEVEN RIDDICK, and NATHANIEL ALEXANDER. All the defendants are charged with participating in a conspiracy to defraud numerous banks by depositing into accounts at those banks stolen, altered and counterfeit checks, as well as proceeds from such checks, and to then launder the proceeds from these checks through their various accounts.
The Indictment charges that DOUGLAS SHYNE and NATASHA SINGH resided together as common-law husband and wife, and jointly owned at least two businesses, Douglas New York Five Star Coffee, 2 and New York Café Lounge, through which they laundered fraudulently obtained checks and proceeds of same.
According to the Indictment, the defendants procured fraudulent checks in at least the following ways: First, DOUGLAS SHYNE, NATASHA SINGH, and their co-conspirators received stolen checks and arranged for such checks to be cashed. Second, DOUGLAS SHYNE, NATASHA SINGH, and their co-conspirators altered checks that they had legitimately received, either made out to them personally or to their businesses, by listing a different payee’s name and a different payment amount, and then arranged for such altered checks to be deposited into an account bearing the new payee’s name.
Third, DOUGLAS SHYNE, NATASHA SINGH, and their co-conspirators received copies of checks that had been processed by associates employed at certain banks, including Wachovia Bank, and used those check copies to create counterfeit checks, retaining the bank account information and signature on the check copies, but altering the payee's name, payment amount, and/or check number, and then arranged for such counterfeit checks to be deposited into an account bearing the new payee’s name.
The defendants cashed or attempted to cash the stolen, altered and counterfeit checks in at least the following ways: (1) DOUGLAS SHYNE and NATASHA SINGH deposited the checks into their business bank accounts or into NATASHA SINGH’s personal bank accounts; (2) DOUGLAS SHYNE and NATASHA SINGH and their coconspirators unlawfully obtained the identification information of other individuals, without the consent or authorization of those individuals, used that information to open accounts at various banks, and then deposited the checks into such accounts; and (3) DOUGLAS SHYNE and NATASHA SINGH arranged for fraudulently obtained checks to be deposited into the bank accounts of their coconspirators, who would then, in turn, funnel proceeds of such checks back to DOUGLAS SHYNE and NATASHA SINGH, minus a commission.
The Indictment charges that DOUGLAS SHYNE, NATASHA SINGH, and their co-conspirators stole, altered and/or counterfeited at least approximately twenty checks, in the total aggregate amount of well over $5 million. Included amongst those checks are at least seven fraudulently obtained checks, in the total aggregate amount of approximately $2,485,000, which were sent by DOUGLAS SHYNE, NATASHA SINGH, and TOYBE BENNETT in the New York area to TIMOTHY MONTGOMERY, STEVEN RIDDICK, and NATHANIEL ALEXANDER in the Norfolk, Virginia area, to be deposited into accounts associated with them.
According to the Indictment, STEVEN RIDDICK caused at least three checks totaling $905,000 to be deposited into accounts associated with him; NATHANIEL ALEXANDER caused at least two checks totaling $1,000,000 to be deposited into accounts associated with him; and TIMOTHY MONTGOMERY caused at least three checks totaling $775,000 to be deposited into accounts associated with him. Of these checks, only a $375,000 check deposited into STEVEN RIDDICK’s business account cleared. Following the deposit of that check, RIDDICK issued checks to certain co-conspirators, including ROBERTO MONTGOMERY, EPHRAIM RICHARDSON, NARESH PITAMBAR, JASON WATLER, who in turn, funneled proceeds back to DOUGLAS SHYNE and NATASHA SINGH. In addition, the Indictment charges that TIMOTHY MONTGOMERY received a $20,000 check from RIDDICK as a fee for brokering the transaction.
The Indictment charges one count of bank fraud conspiracy against all of the defendants, nine counts of substantive bank fraud, each naming certain of the defendants, and three counts of money laundering conspiracy, each naming certain of the defendants.
The Indictment further charges TOYBE BENNETT and ROBERTO MONTGOMERY with one count of conspiracy to transport stolen goods in interstate commerce based upon their purchase of at least three vehicles in Florida with a counterfeit check. In addition, the Indictment charges NATASHA SINGH with a count of naturalization fraud, based upon false statements she made in her application for U.S. citizenship. Finally, the Indictment contains a forfeiture allegation against DOUGLAS SHYNE and NATASHA SINGH for the forfeiture of property or proceeds derived from the fraudulent activity charged in the Indictment.
TIMOTHY MONTGOMERY will appear for presentment today in the Eastern District of Virginia, Norfolk Division, at a time to be set by the Court. TIMOTHY MONTGOMERY is scheduled to make his initial appearance before Judge KARAS on Wednesday, May 3, 2006, at a time to be set by the Court.
Mr. GARCIA praised the investigative efforts of U.S. Immigration and Customs Enforcement. Mr. GARCIA also stated that the investigation is continuing.
Assistant United States Attorney E. DANYA PERRY is in charge of the prosecution.
The charges contained in the Indictment filed against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tim Montgomery Pleads Guilty To Bank Fraud
April 9, 2007
Olympic gold medalist Tim Montgomery pleaded guilty Monday to conspiracy in a multimillion-dollar bank fraud and money-laundering scheme, the former track star's lawyers said.
"I sincerely regret the role I played in this unfortunate episode," Montgomery said in a statement following the plea. "I have disappointed many people, and for that I am truly sorry."
Montgomery's plea deal "reflects his minor role" in an alleged conspiracy and does not require him to testify at the trial of his former coach, Steven Riddick, and other co-defendants, according to a statement from his lawyers. That trial is scheduled to begin Tuesday.
It was not clear if Montgomery would have to serve any prison time because of the guilty plea. The U.S. attorney's office had no comment.
Montgomery, 32, was charged last year along with Riddick, and 11 others in an alleged conspiracy to deposit $5 million in stolen, altered or counterfeit checks at several banks over three years.
An alleged coconspirator, Ephraim Richardson, previously pleaded guilty to a single charge of conspiracy to commit bank fraud.
The government had accused Montgomery of participating in a plot created by two other defendants who set up sham businesses to take checks stolen from banks and alter them or make counterfeits.
Montgomery allegedly deposited three bogus checks worth a total of $775,000. He also was accused of helping Riddick deposit others worth at least $905,000 and accepting a $20,000 fee for his role. Riddick, a 1976 Olympic medalist, has maintained his innocence.
Montgomery was a 2000 Olympic gold medalist and a former 100-meter world record holder. He retired in 2005 after he was banned from track and field for two years by the Court of Arbitration for Sport for doping linked to the investigation of BALCO, the lab at the center of a steroid scandal in sports.
Montgomery never tested positive for drugs, and has said he never knowingly took any banned substances.
All of Montgomery's performances after March 31, 2001, were wiped off the books, including his world record dash of 9.78 seconds in 2002. Montgomery won his gold medal in the 400-meter relay at the 2000 Olympics.
By Tom Hays, Associated Press Writer
(Copyright 2007 by The Associated Press. All Rights Reserved.)