October 17, 2003

Two Memphians Indicted in $3.5 million investment scheme along with North Carolina Financial Consultant

Memphis, TN - Terrell L. Harris, United States Attorney for the Western District of Tennessee, announced the indictment today of RICARDO A. GANT and ANITA M. GANT doing business as Capital Plus Worldwide Investment Services, Inc. in Memphis, Tennessee, and KEITH N. SMITH doing business as Smith Financial Services in Kinston, North Carolina. The Gants and Smith were charged by a federal grand jury with a nationwide scheme that defrauded private investors, and churches of approximately $3.5 million.
The 51-count indictment charges all three defendants with securities fraud, mail fraud, wire fraud, and conspiracy. RICARDO GANT and ANITA GANT are also charged with money laundering and tax evasion. If convicted on the charges, RICARDO GANT faces a maximum sentence of 470 years and criminal fines up to approximately $15 million. ANITA GANT faces a maximum sentence of 450 years and criminal fines up to approximately $14 million. KEITH SMITH faces a maximum sentence of 40 years and a criminal fine of approximately $2 million.

According to the indictment, RICARDO GANT and ANITA GANT operated the scheme from 1997 through 2001 from an office at 3865 Viscount, Suite 800, in Memphis, Tennessee. RICARDO GANT solicited individuals and churches to invest in "Joint Venture Partnerships" that guaranteed the safety and security of the investment, and promised gains of 60% to 200% annually. Subcontractors were trained by the Gants to sell the contracts in their hometowns. Many subcontractors used churches in their communities as the site of the sales seminars. Investment monies were mailed or wired to Capital Plus in Memphis. KEITH SMITH was a subcontractor operating in the North Carolina area.

The indictment charges the defendants with making false and misleading statements to investors telling them that their investment money would be pooled in offshore accounts for greater gains, that interest payments would be made on a quarterly basis, and that their initial investment would be returned at the end of the contract. The investigation showed that investor's funds were placed in Capital Plus accounts and used by RICARDO GANT and ANITA GANT to build a new home, invest in horses, travel within and outside the United States, purchase antiques, and convert the investors' money for their own investment portfolios.
The indictment also charges RICARDO GANT and ANITA GANT with tax evasion for failing to report in excess of $600,000 of income on his federal income tax returns for 1998 and 1999.

This indictment is the result of a three-and-a-half-year joint investigation by the U.S. Attorney's Office, the Federal Bureau of Investigation, and the Internal Revenue Service. Terrell Harris thanked Special Agent Kris Hanson of the Federal Bureau of Investigation, and Kimberly Rankin of the Internal Revenue Service-Criminal Investigation for their extensive efforts in obtaining the indictment.

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Note: Charges brought against a person through an indictment are accusations only. That person is presumed innocent until and unless proven guilty.