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The scheme was initiated by Clyde Hood, a former electrician from s and "prime bank notes" in foreign banks. He asked for an investment of $100 and promised a payout of $5100 within 275 days. He required the money to be delivered wrapped in aluminum foil and via Federal Express , because the US Federal Government was supposedly trying to block such trades through the Postal Service ; therefore, the scheme should remain secret. Thousands of people from USA and overseas sent money. The program stopped accepting new investors in 1995. By that time, Hood had received more than $10 million. He began to present a number of excuses for investors not being paid, blaming Administrative Cost s, problems with foreign banks and international financial conflicts. When some people still wanted to join, Hood and accomplices claimed that they could sell share units of people who had wanted to leave the program. The estimated total amount of money was $20 million. In addition, Hood begun new investment schemes named ''Alpha'' and ''Destiny'', through which he obtained more money from those who had invested in Omega. With the money, Hood and his associates bought land and businesses in Mattoon, gave no-interest loans and made trips to Europe. Some of the money also went to finance businesses of other Hood associates like construction contractor Chris Engel. Engel later cooperated with the police and allowed them to tape a phone conversation with Hood. Hood's lawyer, Steve Ryan, was also later removed from the case when he was Subpoena ed as a Witness and for possible collusion. Clyde Hood and his 18 associates were indicted in 2000. Some of them pleaded guilty or were convicted of multiple counts of Fraud , Mail Fraud , Money Laundering and Filing A False Tax Return . Hyde pleaded guilty in April 2001. On January 24 2002 Hood was sentenced to prison for 14 years and fined $5000. Five of his associates were convicted of active participation in the scheme and required to make restitution. 13 associates were convicted for money laundering. 355 victims were restituted from forfeited Omega Trust funds to the total of $1,697,310.00. The Omega Trust continues to survive on the Internet as a supposed global poverty relief program NESARA . EXTERNAL LINK |
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