Opinion ID: 180347
Heading Depth: 3
Heading Rank: 3

Heading: Cornerstone Institute

Text: In July 2000, Bush signed an installment contract that formalized his commitment to provide $800 million in financing for Cabo San Quintin. Thereafter, Bush began operating the Cornerstone Institute and recruited new investors for another mid-term notes scheme, purportedly secured by Bush's interest in Cabo San Quintin. Bush did not inform investors that his interest was subject to his satisfaction of the $800 million financing obligation. Bush provided prospective investors an application packet that included wire-transfer instructions and an escrow agreement. Investors received monthly account statements, which again reflected frequent and substantial dividend returns (sometimes 150 percent of the principal). Despite the good news communicated to investors, Bush was still not generating returns from Cabo San Quintin, Mintus, or Wilcoxson. By the end of 2001, he had paid less than $2 million out of the $300 million due under his obligation to the resort. Since Bush was unable to find any new investors by 2002 to permit him to fund his Cabo San Quintin obligations, his partners in Cabo San Quintin forced him out of the project. In June 2002, View Park was repossessed by its former owner after Bush and March stopped making payments on the mortgage. In July 2002, Bush moved to Paris. In total, between 1998 and 2002, Hulaman, Global Dominion, and Cornerstone received more than $35.6 million from investors. As noted earlier, Bush placed $12.3 million in the Ponzi schemes run by Wilcoxson and Mintus. He also placed $233,500 with Wilcoxson personally and $6.1 million with Mintus personally. He paid $8.7 million back to investors who requested payments of dividends. He paid more than $3.7 million in expenses and salaries. Finally, he diverted $8.4 million to his own accounts, including $1.4 million in cash withdrawals, and funds used to purchase and make improvements to View Park, and to purchase artwork and make gifts to friends and family. On August 9, 2006, a federal grand jury returned a thirty-two count Indictment against Bush. After being extradited from Poland in January 2008, Bush was arraigned in the Western District of Washington.