Cox: Atlanta Man Convicted of Money Laundering, Wire Fraud; Bilked $414 Million from Mostly Elderly Investors
 

ATLANTA …Secretary of State Cathy Cox today applauded federal prosecutors for yesterday’s conviction of a Duluth man on charges of money laundering, wire fraud and conspiracy for a “Ponzi scheme” that bilked $414 million from thousands of investors, many of them elderly.

            Charles Edwards, 66, of Duluth was convicted yesterday in Atlanta federal district court on 83 counts of money laundering, wire fraud and conspiracy related to pay phone investments. Edwards’ company, ETS Payphones, sold pay phones to more than 12,000 investors nationwide, and leased them back with the false promise of high returns and profits for investors. 

            In July 2001 the Secretary of State’s Securities Division opened a multi-year investigation into ETS Payphones when cases were opened targeting 42 individuals selling ETS Payphone investments in Georgia. These salespeople, who earned high commissions, were not registered to sell securities in Georgia, nor were the pay phone investments properly registered with the Secretary of State’s office as required by law.

             While the United States Securities and Exchange Commission (SEC) and the U.S. Attorneys Office in Atlanta were pursuing charges against ETS founder Charles Edwards, the Secretary of State’s Securities Division continued its own investigation into the 42 salespeople soliciting in Georgia.  Attorneys and investigators in Georgia’s Securities Division worked closely with federal prosecutors and shared investigative information with the U. S. Attorney’s office.  The state’s investigation has resulted in civil penalties and restitution of their commissions to many of the injured investors.       

            “I applaud Assistant U.S. Attorneys Randy Chartash and Russell Phillips for their efforts in securing justice for the thousands of victims, many of whom were elderly retirees, who have suffered because of the actions of Charles Edwards” Secretary Cox said. “The fact that he continued to solicit new investors -- to the tune of $22 million -- in the weeks before filing for bankruptcy shows just how unscrupulous and uncaring he was about the financial plight of those who trusted him,” Cox added.