Major FRAUD artist busted in the Beaches!

October 12, 2012

A U.S. attorney who allegedly ran a South African Ponzi scheme bilking investors in Canada and south of the border out of     millions of dollars to support his lavish  lifestyle was busted in the Beaches after     being on the run for several months.

Brian Ray Dinning was arrested at a home near Queen St. E. and                   Hammersmith Ave. by the Toronto Police fugitive squad, and Canada Border Services Agency officers.

The 47-year-old lawyer was wanted on a warrant issued by the state of Virginia since June 6 when he was indicted by a grand jury on 25 counts of wire fraud.

“From early 2005 until the present, Dinning allegedly recruited approximately 23 individuals to invest in his numerous for-profit corporations that he had     established,” United States Attorney for the Eastern District of Virginia Neil H. MacBride said in the indictment, which is posted on the FBI’s website.

“He did this by falsely advising investors that they would accrue significant  financial gains from South African projects, such as a luxury Oceanside      housing development, a luxury Oceanside hotel and private residence club, as well as diamond and gold mining operations,” MacBride said.

Dinning also allegedly used not-for-profit corporations “to obtain donations purportedly for charitable, environmental, agricultural medical and             community projects for the tribal people of South Africa, as well as developing wildlife habitats for native African species.”

Dinning’s schemes allegedly began soon after he left WexTrust Capital, where he worked for about eight months.

That investment company scammed $100 million from clients for a scheme called Pure Africa.

WexTrust chief principals Joseph Shereshevsky and Steven Byers were          convicted of fraud last year and are serving lengthy prison terms.

It’s alleged Dinning held investment seminars to lure people into his various South African schemes.

Most of the investors are fellow lawyers and physicians, but there are also  families who were allegedly convinced to put up their life savings with       promises their money would be doubled.

Dinning allegedly promised to build a church in the name of one investor’s    16-year-old daughter, who died of an unexpected heart attack, but the church was never built.

Most of the investors’ money, just over $2 million, was allegedly used for “personal and family gain.”

It’s alleged Dinning paid off some of his earlier investors, forked over $11,000 a month to his ex-wife for alimony and child support and put his kids through   private school.

He also allegedly bought a 4,600-square-foot home in Suffolk for $975,000, which he apparently sold for $665,000 before fleeing the U.S.

Under U.S. law, each count of wire fraud carry a maximum penalty of 20 years in prison. And unlike Canada, where sentences are served concurrently,       Dinning could serve his time consecutively if he’s convicted.

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