Former Michigan Man Sentenced For Involvement In Buried Gold Fraud Scheme

GRAND RAPIDS – On Friday, according to the federal prosecutors, 45-year-old Freeman Carl Reed has been sentenced to jail for failing to file income tax returns and a scheme in which the fake recovery of gold bars supposedly buried by Japanese soldiers during World War II was involved. The U.S. attorney’s office in Grand Rapids said that he was sentenced to 7 years and 3 months in jail. He said he created the gold fraud scheme after his direct-marketing business didn’t succeed.

Money was requested to recover Yamashita’s gold, reportedly hidden in the Philippines at end of the war. Investors said that their money was required to get the gold out and they were also told that Reed had access to gold certificates worth millions of dollars. Internal Revenue Service Acting Special Agent in Charge Jarod Koopman, “Mr. Reed was not selling an investment; instead, he developed an elaborate hoax meant to enrich himself. The prosecution and sentencing of Mr. Reed, who diverted investor’s funds for his benefit and then intentionally failed to file income tax returns, is a fundamental element in maintaining public confidence in our tax system”. In February, a federal jury convicted Reed of failing to file tax returns. Proofs showed he had not paid taxes for almost 10 years, despite earning more than $1 million in a time period of 3 years, according to the authorities. His extravagant lifestyle included 5 luxury vehicles and an expensive home, stated by the U.S. Attorney’s office in a release.

Reed pleaded guilty to the gold fraud after the tax trial. The news released showed, “Reed was able to obtain $1.3 million in connection with the two schemes. Instead of using the investors’ money as promised, Reed admitted that he spent it on himself so that he could maintain his fa├žade of wealth”. He was ordered to pay the amount of $1.3 million in restitution to victims of the fraud.

News Source: www.Freep.com