Opinion ID: 4024287
Heading Depth: 4
Heading Rank: 2

Heading: Russellʹs Involvement in HFGI

Text: Russell joined HFGI in 2006, working primarily as a loan processor. As a member of the Board, Russell attended a number of Board meetings and 2 Kristofor was not charged in Count One for his participation in the HFGI scheme, but his involvement serves as background for his knowledge and participation in the BSMI scheme. ‐6‐ general staff meetings where HFGIʹs strategy to secure funding for Gulf‐ Opportunity Zone development projects was discussed. As a loan processor, Russell was responsible for preparing and keeping custody of the loan documents for HFGIʹs clients. In this role, he was copied on emails with attachments from HFGIʹs escrow attorney reflecting the transfer of escrow funds to HFGI. Two land developers, whose clients were defrauded in the HFGI scheme, testified to Russellʹs participation in the scheme. One testified that when she met with the Board to discuss potential loans, Russell was present and spoke about the logistics of processing loans. She testified further that Russell was her primary contact, sending her accountings of her clientsʹ escrow deposits, wiring instructions, and LOIs promising financing. Another testified to similar communications with and receipt of loan documents from Russell. Both testified that they repeatedly asked Russell about the delays in funding, and that he responded by claiming ignorance and directing them to Bill. Russell never told them that HFGI did not have the funds or a lender to finance projects, and did not reveal that their clientsʹ deposits had been withdrawn from escrow. By late 2009, when HFGI could no longer maintain the ‐7‐ scheme and was over $9 million in debt, Russell, at Billʹs direction, changed the office phone number.