Man indicted in flipping scheme charged with money laundering

Mead had been indicted on arson, fraud charges

September 27, 2001|By John B. O'Donnell | John B. O'Donnell,SUN STAFF

A man under federal indictment for arson and mail fraud in an alleged property flipping scheme in Baltimore was charged yesterday with money laundering, and prosecutors say they expect him to plead guilty.

Scott Dunning Mead, who moved to Montana from Maryland months before his indictment in June, laundered more than $300,000 from his flipping activities through a Cayman Islands bank, prosecutors alleged in a criminal information filed yesterday in U.S. District Court. Some money was sent back to the United States to finance Mead's real estate activities and to purchase a Montana condominium, the information said.

Last year, Mead, 31, transferred most of the money remaining in the Cayman Islands to Liechtenstein "in order to further shield the proceeds from detection," the information said.

A document filed with the money-laundering charge and signed by Assistant U.S. Attorney Joseph L. Evans says, "Guilty plea expected." Evans would not say if a hearing has been scheduled for the anticipated plea or whether he expects Mead to plead guilty to any counts in the June indictment.

Mead's co-defendant, Paul Anthony Greene, 31, pleaded guilty Friday to one count of conspiracy to commit arson for his role in the fire in a Southwest Baltimore rowhouse in 1999. Mead had allegedly acquired the property in the name of an employee for $2,500 and planned to flip it for $50,000 when he discovered court judgments that would have wiped out his profit, according to court records. He is charged with arson and conspiracy to commit arson in connection with the fire.

Mead is accused of filing a fraudulent insurance claim after the fire for $60,000, according to court papers.

The criminal information filed yesterday seeks forfeiture of $130,000 held in escrow by Mead's lawyers as well as vehicles he owns and property in Big Sky, Mont. His attorney, Joshua Treem, did not return a reporter's phone call.

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