Iowa Man to Back out of Investment Fraud Plea Agreement
An Iowa man charged in relation to an alleged investment scam, who had previously been expected to plead guilty as part of a plea agreement, has now said he will not appear in court. Instead, Donald K. Washburn, of Cedar Rapids, has stated that "I'll take my chances in court." Although he stated he would be missing the court date due to medical treatment, it is said that he does, in fact, plan to reject the plea agreement. His attorney was not immediately available for comment.
According to prosecutors, Washburn allegedly ran an investment scam that took at least $800,000 from investors. In the indictment, it is said that Washburn lured investors in with opportunities to invest in mining ventures and gambling games. He allegedly told at least one investor that he was developing a dice game that would be sold to casinos and would bring in big profits. The investor was also allegedly told by Washburn's son that a segment on the new game would air on "60 Minutes."
Washburn said he intended to back out of the plea deal, stating that "99.9 percent of the stuff he says is not true, and I'm fighting it all the way." According to a recent court filing, he had apparently already agreed to give up cash and luxury items. He would have been looking at 25 years in prison with the plea agreement, but he would also see 47 counts dismissed. Washburn would also likely have to agree to pay restitution to investors in the amount of $821,000.
The investment fraud lawyers with Meyer Wilson represent investors nationwide in stockbroker mediation, arbitration, and litigation. We take pride in helping harmed investors recover their losses, and we encourage you to speak with us today if you believe you have been the victim of investment fraud, stock scams, or Ponzi schemes.