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Financial Fraud Law

Ex-NY Giant To Prison For Financial Fraud

 Clyde “Peter” Hall, who played football for the N.Y. Giants in the NFL in the 1960s, is going to prison for 20 years for defrauding investors of millions of dollars by promising them access to high-yield investment programs and bank instruments with purported high rates of return. Hall also was sentenced on separate charges of bankruptcy fraud. 

According to the indictment to which Hall pleaded guilty, documents filed in this case, and statements made in court:
 
Hall held himself out as the "representative" or "attorney-in-fact" of two purported business trusts and told his victims that in exchange for upfront or advance fees he could obtain various bank instruments worth hundreds of millions of dollars which could be used as collateral for loans or to fund trading in high yield investment programs.
 
Despite Hall’s promises to victims that the advance fees were completely refundable, and that he had over a decade of success promoting these investments, Hall used the advance fees to pay personal and family expenses and for the benefit of his co-conspirators. At the time of his arrest, Hall possessed fake bank letters of credit or bank guarantees on paper bearing the logos of well-known international banks, including UBS AG, ABNAMRO, Citibank, J.P. Morgan Chase Bank, Bank of America, and Sumitomo Mitsui Banking Corporation.
 
In addition to the advance-fee scheme, Hall also committed bankruptcy fraud. Specifically, In April 2003, Hall and his wife signed a $5,800 per month, one-year lease for an apartment occupying the top three floors of a five-story brownstone building on Manhattan's Upper West Side. In November 2003, the Halls stopped paying rent to the owner of the apartment and refused to move out when the lease expired in May 2004. Between August 2004 and December 2004, and after the owner successfully obtained an order for the Halls' eviction, Hall filed or caused to be filed a series of last-minute bankruptcy petitions in U.S. Bankruptcy Court for the Southern District of New York, which contained false representations, for the purpose of halting the eviction proceeding and allowing him to remain in the apartment without paying rent.
 
The Halls eventually moved out of the apartment in early January 2004, and into a new, $9,500 per month apartment on the Upper West Side. By that time, the Halls owed the owner approximately $81,200 in rent, which they never paid. At the same time, Hall caused a total of approximately $78,000 to be paid to his new landlord for alterations to the new apartment and to pre-pay a significant amount of the rent.
 
Hall pleaded guilty to one count of conspiring to commit wire fraud and five counts of substantive wire fraud on April 20, 2009, in connection with the advance-fee scheme. On November 4, 2009, Hall pled guilty to one count of conspiracy to commit bankruptcy fraud. Hall's wife pleaded guilty on November 3, 2009, to a charge related to Hall's bankruptcy fraud scheme and is scheduled to be sentenced on November 3, 2010.
 
In addition to the prison term, the judge sentenced Hall to three years of supervised release and ordered Hall to forfeit $4.275 million and to pay over to $1.9 million in restitution.
 
During the sentencing proceeding, the judge said that Hall left a "wake of wreckage" and that he crafted the sentence to "send a message about what will be tolerated and what will not be tolerated."