Friday, April 19, 2013

Rudy Pleads Guity

Rudolph M. Coenen, 47, pleaded to one count of conspiracy to commit wire fraud, one count of wire fraud and five counts of money laundering. His sentencing is scheduled for Aug. 12.

Coenen and three other men promoted Iraqi dinar as having the potential to rocket in value once a reevaluation of the currency took place. They said the investments were protected by the U.S. government.

In addition to the sale of dinar, the conspiracy marketed seats on two non-existent hedge funds that were going to control dinar investments after the currency was revalued.

Coenen was presented to investors as a wounded Iraqi veteran who had deep knowledge of dinar trading and was a former vice president at JP Morgan Chase.

In the plea, Coenen admitted he was not a former Marine who served in the first Gulf War, he had not been wounded in combat and he was never awarded a Purple Heart.

He operated a business known as Bayshore Capital Investments to collect funds related to the non-existent hedge funds.
Approximately $722,000 was solicited from prospective investors, according to court documents.

Three Ohio men, Bradford Huebner, Charles Emmenecker, and Michael Teadt, are awaiting trial in the U.S. District Court in Ohio.

A Florida man who was indicted with three Toledo-area men in a scheme to defraud investors in the sale of Iraqi currency and phony hedge funds pleaded guilty Thursday in U.S. District Court, Toledo.
Rudolph M. Coenen, 47, of Jacksonville pleaded guilty to conspiracy to commit wire fraud, wire fraud, and five counts of money laundering before Judge Jack Zouhary. A sentencing date was not scheduled.
Coenen, owner of Bayshore Capital Investments LLC in Jacksonville, admitted to a conspiracy with Bradford L. Huebner, owner of BH Group, 17 N. St. Clair St., and two BH employees to defraud investors through the sale of Iraqi dinar currency and “placements” in two nonexistent hedge funds.
Prosecutors said about $722,415 was solicited from prospective investors.
Charges are pending in federal court against Mr. Huebner, 65, of Ottawa Hills; Charles N. Emmenecker, 65, of Sylvania, and Michael L. Teadt, 66, of Maumee.


I think this would be as good a time as any to remind people of what the indictment says.  On page 3 we read:

7. The term "revaluation" (casually shortened to "RV" in dinar-sales parlance), refers to the contention that at some point in the near future, the dinar will rise against the U.S. dollar, a circumstance which will enrich earlier purchasers of the dinar.  BRADFORD HUEBNER, CHARLES EMMENECKER, RUDOLPH COENEN and MICHAEL TEADT repeatedly advanced claims to potential investors over the telephone, through web pages, and through a weekly internet conference call that even relatively small investors in the dinar would, following the "revaluation" or "RV", become wealthy overnight.

8. A "redenomination" of the dinar refers to an actual proposal by the Central Bank of Iraq, announced as recently as June 21, 2011, to re-print the currency to remove three zeroes from the physical dinar banknotes as a matter of convenience.  A redenomination of the Iraqi currency would not lead to a revaluation by the same amount, and may have no effect on the currency's value.  Under a redenomination, a new currency replaces an old currency, but the value remains the same.  Under the proposed redenomination, the Iraqi government would issue a new dinar note that will be equivalent to 1000 current dinars.  The exchange rate would be 1.17 new dinars to the dollar, equivalent to 1,170 current dinars to the dollar.

And then on page 5 we read:

15. "... the U.S. Department of the Treasury does not hold any Iraq dinar for investment purposes and holds only a nominal amount for use in daily transactions."  

16. "... the U.S. Department of the Treasury is not involved in any aspect of dinar exchange nor is it planned for the Department of the Treasury to be involved in redeeming or exchanging dinar following a redenomination, should a redenomination occur."

Dinar speculators have been told for years that the currency reform plan (the "Delete the Zeros" project) is an RV and that the U.S. Treasury holds trillions of dinar that will be used to pay down the debt following "The RV".  Here we have a federal document that exposes these lies for what they are.



  1. Replies
    1. None of these guys used guru names. They all went by their given names. Brad Huebner was the head of the BH Group. Rudy (Rudolph) used to do commentary on their conference calls which really boosted their dinar sales. Then he started a hedge fund and they helped him market it. Then they were raided by the IRS in 2011 and their dinar sales were shut down. Finally they were indicted in September 2012.

  2. Looks like Rudy is willing to sing like a canary. Guilty pleas for Huebner and Emmenecker will likely follow. It's a good start. Let's hope some of the more subtle scammers in this mania can do the perp walk soon.

  3. i know rudy personally and he has always seemed shady to me!


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