Tags: carlucci | fraud | case | millions

Former US Defense Secretary Carlucci Seeks to Collect $37M in Fraud Case

Wednesday, 05 Jun 2013 11:19 PM

By Paul Scicchitano

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Frank Carlucci, who served as secretary of defense under President Ronald Reagan, is seeking to enforce a $37 million judgment against a man who induced him to invest in his company by falsely claiming he had a patent for turning plastic back into crude oil.

The 82-year-old Carlucci sued Michael Han and his company, Envion, in federal court to recover his $32 million investment in the company, which is based in West Palm Beach, Fla., reports Courthouse News Service.

Carlucci claimed in an April 2012 lawsuit that Han closed the company's Washington D.C. headquarters and moved it to Florida after Carlucci invested more than $32 million in Envion — money that Carlucci claimed was spent on a lavish $3.5 million home in Palm Beach, Fla. and on Han’s $5 million annual salary.

Carlucci became suspicious of Envion in 2012 and learned that Envion did not own any patent, and that the company did not have deals with major companies, or an "all-star list" of investors, according to the publication.

The U.K.’s Daily Mail reports that Han further enticed Carlucci by dropping names such as Warren Buffett, Bill Gates, and Morgan Stanley as potential investors in the company while he said that Brazil’s Petrobras and Russia’s Gazprom were set to buy the oil that would be produced by Envion from plastic.

“During these same meetings, Mr. Han also falsely represented that former President Bill Clinton had agreed to become affiliated with Envion, possibly as a member of its board of directors, and that he had communicated with former President George W. Bush, who was interested in investing in Envion as well,” according to Carlucci’s complaint, the Mail reported.

A federal judge in Alexandria, Va. awarded Carlucci the $37 million judgment in April for violations of the Virginia Securities Act, breach of contract, interest and attorneys’ fees, said Courthouse News Service.

Carlucci, who has not spoken publicly on the ruling, also served as President Reagan’s national security adviser and as deputy director of the CIA under President Jimmy Carter. Before that he served as director of the Office of Economic Opportunity under President Richard Nixon.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Purdue Professor: Ebola 'Unlikely to Spread Here' in US

Friday, 19 Sep 2014 20:25 PM

The Ebola virus is unlikely to cause a deadly epidemic in the United States, according to David Sanders, an associate pr . . .

Polly Bergen, 'Cape Fear' Actress, Dies at 84

Saturday, 20 Sep 2014 20:04 PM

Actress and singer Polly Bergen, who's best known for her role in the original Cape Fear opposite Gregory Peck, died a . . .

Feds Mum on Prosecution of Illegal Border Crossers

Saturday, 20 Sep 2014 17:33 PM

The federal government refuses to say whether prosecutors in Yuma, Arizona, have scaled back a years-old program that gu . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved