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Jones-Deeter-Perry Arraignment

Three Charged with a multi-object conspiracy to commit mail fraud,
wire fraud, money laundering, and the making of false statements related
to a scheme to promote and sell high yield investments

UNITED STATES ATTORNEY'S OFFICE
WESTERN DISTRICT OF VIRGINIA

[On December 27, 2002, Mr. John Daniel Deeter sent us a demand to remove his name from our website, claiming that his name has been copyrighted. We assert that, notwithstanding any copyright to his name (if any), the use of Mr. Deeter's name below constitutes a "Fair Use" per 17 U.S.C. § 107, see http://www.quatloos.com/copyrights.htm]

John L. Brownlee
United States Attorney
Thomas B. Mason Building
105 Franklin Rd., S.W.
Roanoke, Virginia 24011
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October 1, 2002

United States Attorney John L. Brownlee announced today that RUSSELL W. JONES, 55, of Logan Utah, JOHN DANIEL DEETER, 59, of Gardnerville, Nevada, and ROBERT N. PERRY, 63, of Tuscon, Arizona, were arraigned in United States District Court in Harrisonburg following their indictment on September 12, 2002, by a federal grand jury sitting in Abingdon.

All three defendants were charged with a multi-object conspiracy to commit mail fraud, wire fraud, money laundering, and the making of false statements related to a scheme to promote and sell false and fraudulent investments, referred to as "high yield investments" or "high yield trading programs," to victims in Virginia and elsewhere. The same indictment also charged JONES and DEETER with one count of securities fraud and charged JONES with one count of witness tampering. A separate indictment charged JONES with one count of wire fraud.

If convicted of all counts, JONES faces a statutory maximum penalty of 30 years in prison and a fine of $1,750,000; DEETER faces 15 years in prison and a fine of $1,250,000; and PERRY faces five years in prison and a $250,000 fine. A trial date in Harrisonburg has not yet been scheduled. All three defendants were released on a $5,000 secured bond.

The case was investigated by the Merrifield office of the United States Postal Inspection Service, the Roanoke office of the Internal Revenue Service's Criminal Investigation Division, and the Winchester office of the Federal Bureau of Investigation. The Securities and Exchange Commission's Office of Enforcement also provided assistance. Assistant United States Attorney Rick Mountcastle will prosecute the case. For further information, please contact AUSA Mountcastle at 276-628-4161.

A Grand Jury indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.