Convictions in $600m Dinar Fraud

The co-owners and chief operating officer of one of the largest Iraqi dinar exchangers in the United States were convicted last month by a federal jury following a five-week trial.

Tyson Rhame, James Shaw, and Frank Bell were each convicted of mail and wire fraud conspiracy, as well as multiple counts of mail and wire fraud. Rhame and Bell were also convicted of making false statements to federal law enforcement agents.

“These executives engaged in a lengthy campaign to defraud investors by spreading lies about the investment potential of the Iraqi dinar,” said Acting U.S. Attorney Kurt R. Erskine. “These convictions resulted from years of investigation, which included dozens of electronic and physical search warrants, hundreds of witness interviews, and extensive financial analysis.”

“The conviction of these three defendants is the result of an extensive effort by the government to protect investors from those who make unsubstantiated claims about the potential revaluation of a foreign currency,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their greed led them to steal the hopes of unsuspecting investors and ultimately led them to their demise. The FBI and its partners make it a priority to root out and punish anyone who preys on investors for their own selfish desires.”

“This was a trial about fraudulent inducements, conspiracy, investment fraud and outright greed,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “Rhame, Shaw, and Bell saw an opportunity to build their personal net worth and business position in the currency market by seizing on investors’ desire for high returns on their investments. At the end of the trial, the jury agreed with the government and found the Sterling Currency Group co-owners and chief operating officer guilty of the conspiracy and the underlying frauds. Despite the challenges these complex cases present, IRS-CI is committed to working with our partners at the FBI, and the U.S. Attorney’s Office to show white-collar fraud is still an investigative priority.”

According to Acting U.S Attorney Erskine, the charges, and other information presented in court: Rhame and Shaw owned and operated the Sterling Currency Group, which was once one of the country’s largest sellers of the Iraqi dinar. Bell was Sterling’s chief operating officer. Between 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies, while Rhame and Shaw received over $180 million in distributions.

The evidence at trial established that the defendants took steps to make investors believe they would get rich by investing in the Iraqi dinar. At one point, Rhame posted information on Sterling’s website falsely suggesting that the dinar was about to revalue. At other times, Rhame and Bell falsely claimed that Sterling would cash out investors at airports around the country following a dinar “revaluation.” The defendants also paid substantial sums of money to third parties who in turn spread false information about the dinar on conference calls and Internet chat rooms.

Tyson Rhame, 53, and James Shaw, 55, both of Atlanta, Georgia, and Frank Bell, 55, of Decatur, Georgia, were convicted of conspiracy to commit mail and wire fraud and multiple mail and wire fraud counts. Rhame and Bell were also convicted of making false statements to federal agents regarding Sterling’s operations. The jury acquitted the defendants of money laundering charges. A fourth defendant, Terrence Keller, was acquitted of all charges at trial.

(Source: US Dept of Justice)

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12 Responses to Convictions in $600m Dinar Fraud

  1. George T Horvat 22nd November 2018 at 15:57 #

    Why is there no mention as to weather or not the so-called RV of the Dinar is in itself never going to happen?
    I bought mine in 2004 and as of yet there has been no official statement pertaining to this issue.
    There are many, many more people out there selling these Dinars so why haven’t they “all” been arrested?

  2. Curtis Linderer 22nd November 2018 at 18:39 #

    What recourse do we as investors have. I personally had two million dinar on reserve. With a two dollar deposit.?

  3. nestor 22nd November 2018 at 19:21 #

    En Colombia también están vendiendo Dinares, indicando que la RV pronto se verá reflejada una vez sean levantadas las sanciones a ese país, esta agencia se hace llamar DINAR EXPRESS y está ubicada en un sector estratificado del parque del poblado en la ciudad de Medellín, sería bueno que las autoridades verificaran la legalidad de esta empresa… uno nunca sabe…

  4. Jimmy 22nd November 2018 at 19:37 #

    I agree with you George!!! The answer to your question is a simple one-the other ones aren’t black owned or grossed 600 mil in revenue.

  5. Steve Hockings 22nd November 2018 at 19:49 #

    That’s a very good question. But the Dinar is going to be re-instated. This is different to a revaulation.

  6. Paul Maynard 22nd November 2018 at 21:35 #

    What about Dinar Trade ? Are they Legit ???

  7. New York Kevin 23rd November 2018 at 05:41 #

    Didn’t Sterling get raided in 2015, give or take a year? Their scammng was not in the fact they traded in Iraqi Dinar. Rather in the fact they were short selling their dinar to people with lots of false hype. Fake news probably started with them and the multiple fake sources they had as “experts” . Each fake expert verifying the other fake expert “with contacts” that the IQD was going to RV/RI in days. So if you wanted to get in on the RV/RI now send them (I forget) 30% now, they would send you your money minus the $ owed when it RV/RI in days. Their twist was that if it didn’t RV you would loose your deposit. Boom … the scam because they knew it wasn’t going to happen then. Dinar Trader and Safedinar are legit.

  8. Kevin 23rd November 2018 at 08:13 #

    Curtis, don’t believe those crooks – get your dinars in your hands. There’s no such thing as dinar insurance or any hold/ layaway in the world like that so stop paying them and buy your dinars outright – maaajor scam! If you can’t afford enough to get a million Dinars then get $100 worth or if you can’t afford that then buy one IQD25,000 note for $30 or whatever it is at your local Forex currency exchange, and then buy another one next month and so on. Better to be safe than sorry.

  9. Kevin 23rd November 2018 at 08:42 #

    Curtis don’t believe those crooks – there’s no such thing as Dinar or any other currency insurance/layaway plan! Get your Dinars in your hands. If you can’t afford to buy a million then by $100 worth if you can’t afford that then by at least 25,000 Dinar note for $30 or whatever and then gradually buy more. The Iraqi Dinar is not a scam – it will be worth more money whether it’s $0.10, $0.25, $1 or $3 or whatever but there are many unscrupulous dealers who are scamming people with false information, layaway plans etc.

  10. Bubba Vina 23rd November 2018 at 14:35 #

    Glad to see this news out – may help more victims that are still wishing for the moon. My mom was victimized – and let so many elderly folks that believed what was told to her over and over again. So sad that there are people out there doing this – and then sleeping at night

  11. Wendy Gilliam 24th November 2018 at 20:26 #

    I too want to know how us investors can get our money back that we paid to Sterling? I have copies of everything.

  12. Shane 25th November 2018 at 05:42 #

    I do not see any news that would suggest the currency won’t ever Float again, 1 bought over 40 ml and plenty more for friends and relatives ,at no stage was is ever suggested that it would never Revalue/ reinstate / Float.
    What is interesting is a News Site called Currency News Hound telling everyone everyday that RV was 99.9% going to happen and it was imminent .
    I think this news site was responsible for thousands of people wanting Dinars.
    As for Dinar Trade well they were shut down 2 to 3 years Prior.
    To suggest they were squeeky clean is an insult.
    I would be concerned if the Dinar Float or RV call it what you want was a scam ,then why is the Central Bank of Iraq still selling them ,
    Why do we still see chat forums ie: Dinar Guru ,Adam Montana etc etc.
    And I wonder if the US treasury will pay people back.
    I also wonder if this currency will now Float ,considering they had to make a case against Sterling before it ever did ,if not then You could argue Sterling were correct.
    I’m very surprised Rhame and Shaw were involved in promoting this as a short term gain
    Many people who invested in this did so hoping for a quick return.
    I invested the same way believing as you do if it’s iminent ,then maybe a year or two is not long to wait 12 years later and still no floating of this currency,
    Who holds the key who determines when it will Float ,my opinion it can only appreciate when it floats on the International money Market.
    Also is it not the Del a Rue people who print the currency ,and are they not part of the IMF also the site promoting a soon to be RV currency news hound owned by Tomas Reuter also connected with the IMF.
    Has the FBI looked at those people or organisations ,it seems very sus that Billions of Dinar Notes were imported into the USA and then because of a chat site called the GETS team, they then find out. People are being told all these near term buys would create millions in wealth .
    I would have thought Customs would have seen what was coming in and out of the Country and bank wire transfers world wide into the USA. In particular to Sterling or Dinar Banker.

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