In fact, there was no high-tech system, and Hevell used the investors' money to pay large brokerage commissions to the telemarketers and to pay monthly interest promised to previous investors. The money laundering charges in the indictment stem from Hevell moving money between his three companies. Hevell made his frist court appearance Thursday afternoon in United States District Court in Santa Ana, at which time Magistrate Judge Arthur Nakazato ordered him detained without bond. Hevell is scheduled to be arraigned on the indictment on April 30. An indictment contains allegations that a defendant has committed a crime.
Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an extensive investigation by the Federal Bureau of Investigation. After filing a civil complaint, the Securities and Exchange Commission in 1999 obtained a permanent injunction against Hevell and the companies involved in this scheme. 01-072 Return to the 2001 Press Release Index.