Tulsa World: 3rd conspirator sentenced in railroad-bond scheme

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3rd conspirator sentenced in railroad-bond scheme
Described as the scam's "banker," the Tennessean is given a four-year prison term.

By DAVID HARPER World Staff Writer
Published: 11/25/2009 2:20 AM
Last Modified: 11/25/2009 6:30 AM

A third man was sentenced to prison Tuesday for his part in an international conspiracy involving 19th-century railroad bonds and 100-year-old Chinese bonds.

Federal prosecutors in Tulsa said the plot defrauded hundreds of investors of millions of dollars.

In addition to the four-year, nine-month prison term handed to Robert William Searles, 71, of Tennessee, U.S. Chief District Judge Claire Eagan ordered him to contribute toward more than $3.6 million in restitution.

Assistant U.S. Attorney Charles McLoughlin said more than 400 victims of the scheme are scattered around the globe, primarily in Australia and New Zealand.

Searles was one of four people who were charged in a Nov. 30, 2007, indictment that wasn't made public until August 2008.

A federal grand jury alleged that Searles, Joseph L. Thornburgh of Mounds, Steven Fishman of Corona, Calif., and Wayne Leslie Davidson of Wanganui, New Zealand, conspired to promote fraudulent investments involving bonds, including those issued in the 1850s by the GH&H Railroad and some issued in China in the early 1900s.

Prosecutors alleged that the defendants acquired these "historical bonds" and falsely represented their value to investors as part of a "Ponzi"-type scheme, saying hundreds of millions of dollars in interest had accrued and that payment was still due.

But the prosecution said the railroad bonds held only minimal value for those who are interested in scripophily, the collecting of canceled old stocks and bonds.

Thornburgh, 61, and Fishman, 59, were found guilty June 26 of taking part in a money-laundering, mail-fraud and wire-fraud conspiracy.

Eagan sentenced Thornburgh on Oct. 23 to 24 years and four months in prison and ordered Fishman to serve 21 years and 10 months behind bars.

Both also were ordered to contribute toward the restitution.

Searles, whose prison sentence will begin by Jan. 12, pleaded guilty April 3 to a money-laundering conspiracy charge. McLoughlin described Searles as the "banker" in the money-laundering scheme.

Davidson, who is in his 60s, is a fugitive and is believed to be in the United Arab Emirates, McLoughlin said.

David Harper 581-8359
david.harper@tulsaworld.com By DAVID HARPER World Staff Writer

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Some reader comments for this story were copied from "Tennessee man sentenced in Tulsa for money-laundering conspiracy," which was published on 11/24/2009.

	Report Comment okierose, Tulsa County (11/24/2009 11:52:52 AM) a plot that prosecutors say defrauded hundreds of investors of millions of dollars. And all Searles got was a little over 4 years? But at 71 hopefully it will be a life sentence. Hope they have to make at least some restitution.
	Report Comment Few Clothes, America (11/24/2009 12:03:11 PM) Maybe the Arabs will cut Davidson's head off.
	Report Comment im4osu, Broken Arrow (11/24/2009 12:11:54 PM) These guys were probably OU fans, or grads......
	Report Comment sjt, tulsa (11/24/2009 12:33:27 PM) does this make sense to you? is this a time warp or what? they steal millions, a 3 million fine. they are from oklahoma, california and new zealand. it is money laundering. this man gets 4 years and nine months. sounds like some of the other rulings this judge has made.
	Report Comment fld11, (11/24/2009 1:37:24 PM) Anyone stupid enough to invest without question deserves what they gets. Ever heard of "buyer beware"? Hmm.
	Report Comment Ignatz, A nice place where Democrats hold every office in the County. (11/24/2009 1:53:34 PM) fld..obviously there are more than "one born every minute." If I could get away with swindling morons out of millions and millions, live like a Republican fat cat for years and know the most I'd be facing was 3 years (tops) in a federal country club it might be worth considering.
	Report Comment forkandknife, Tulsa (11/24/2009 2:06:17 PM) Wonder where they are going to come up with that kind of money to pay back after the government seized all of their funds?
	Report Comment ajohnb, Jenks (11/24/2009 3:15:09 PM) Ignatz, where does it say that he was a Republican? And why are the Republican "fat cats" any different from the likes of the fat cat demoncrats like Pelosi, Kerry, Kennedy's, Edwards, Clintons, etc.......? Gee, you would swindle the money instead of taking it like the Kennedy's did, or like Edwards does, and how Pelosi makes it off illegal labor in California? Same difference, they all lack integrity when it comes to money.
	Report Comment FUTURE WORLD, Tulsa (11/24/2009 7:48:40 PM) There is always one who gets away.
	Report Comment wk, (11/24/2009 7:58:25 PM) sjt - The judge has no authority to change the sentence. Your congress sets all the sentencing guidelines and the judge has to stay within ranges which are pre-set whether she likes it or not.
	Report Comment mayor_maynot, Tulsa (11/24/2009 8:05:44 PM) Reads almost like a harlequin novel. Not only the story but the posts. Ooooeeseeeefew .....$ounds p3r$/ann£ fld Glad to hear you've got a few million to spare. Forknknife I've seen bilkers after they get out. They squeeze by on SSA it just barely pays their rent sold their food stamps for tp and ciggarettes stood in the soup line all the time had restitution payments still coming from ssa pay creates angst they don't change much it's still like a life sentence. More or less they are career scammers running dinky scamms after that it's still a thrill for them to get a cup of sugar from their neighbours. Floatsaloan in J3nK$ the Kennedys worked hard for their money boot leggin not swindling. They got a new king in their ranks and he's been a pretty good producer so far. Right upthur with opie. TULSA happy hollidays drive safe Remember the evil one is out there Waiting to ruin your holiday Don't let him do it He'll make it £00K like it's your fault

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