2005
Thomas J. Smith, of Grand Rapids, Michigan, President of Trade Partners, Inc. pled guilty on April 22, 2005 in the United States District Court, Western District of Michigan, Cause Numbers 1:04-CR-174-01; and 1:04-CR-181-01, to Securities Fraud, Mail Fraud, and Interstate Transportation in Aid of Racketeering Enterprises. He was sentenced to 48 months as to each count of Mail Fraud and Interstate Transportation, to be served concurrently; and 48 months for Securities Fraud, to be served consecutively. Smith was ordered to pay a total of $100 million in restitution. The securities fraud case was prosecuted in the Dallas Division of the Northern District of Texas for the sale of viatical interests to Texas investors. After pleading guilty to securities fraud, Mr. Smith requested that the matter be transferred to Michigan for sentencing.