Russell Cline
Encyclopedia
Russell Warren Brent Cline (born about 1965) founded Orion International in 1998, a foreign currency trading firm based in Portland, Oregon
. In 2003 he was charged in federal court with running a classic Ponzi scheme
. Cline pleaded guilty and is currently serving an 8 year sentence at USP Lompoc
. He is scheduled for release in March 2012.
. In 1998 he founded Orion International, specializing in trading foreign currency through a brokerage based in London
. They promised returns anywhere from 60% to 200% with very little risk, because of their sophisticated trading techniques.
In August, 2002 Cline notified his customers that he had lost 97% of their money, blaming poor trades and typographical errors, and asked for additional funds to make the money back. In reality the money had been spent on luxury cars, private jets, real estate
, boats and $12,000 for pornography
. It is estimated that over 600 people invested $27 million in Orion.
On May 8, 2003 a federal court froze all Cline's assets and prevented any document destruction at Orion. He was indicted along with other Orion employees, including Samantha Vorachith, April Duffy and Nancy Hoyt. In May, 2004 Cline was charged in federal court with 39 counts of money laundering and fraud. Violating his pretrial release he was arrested for possession of methamphetamine
s in December and placed in the Multnomah County
jail.
Duffy, Hoyt and Vorachith were ordered to pay over $1.3 million in restitution to defrauded customers and fines on September 7, 2004. The three defendants consented to the order without admitting or denying guilt, and were additionally barred permanently from trading futures contract
s.
In July, 2005 Cline pled guilty in federal court to two counts of mail and wire fraud and one count of money laundering, admitting to defrauding investors out of at least $16 million. On February 6, 2006 Cline was sentenced to 8 years and 1 month in the La Tuna Federal Correctional Institution in Anthony, Texas
. The sentence was the maximum agreed upon wherein Cline would not appeal his case. U.S. District Judge Garr King said he would have given a longer sentence, having felt Cline had lied to the court and was generally uncooperative, if it wasn't for his guilty plea. Cline was also ordered to pay over $33 million in restitution.
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
. In 2003 he was charged in federal court with running a classic Ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
. Cline pleaded guilty and is currently serving an 8 year sentence at USP Lompoc
Federal Correctional Institution, Lompoc
The Lompoc Federal Correctional Complex is a complex with four United States federal prisons located near Lompoc, Santa Barbara County, California...
. He is scheduled for release in March 2012.
History
Cline was a former house painter from Baker City, OregonBaker City, Oregon
Baker City is a city in and the county seat of Baker County, Oregon, United States. It was named after Edward D. Baker. The population was 9,828 at the 2010 census.-History:...
. In 1998 he founded Orion International, specializing in trading foreign currency through a brokerage based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. They promised returns anywhere from 60% to 200% with very little risk, because of their sophisticated trading techniques.
In August, 2002 Cline notified his customers that he had lost 97% of their money, blaming poor trades and typographical errors, and asked for additional funds to make the money back. In reality the money had been spent on luxury cars, private jets, real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, boats and $12,000 for pornography
Pornography
Pornography or porn is the explicit portrayal of sexual subject matter for the purposes of sexual arousal and erotic satisfaction.Pornography may use any of a variety of media, ranging from books, magazines, postcards, photos, sculpture, drawing, painting, animation, sound recording, film, video,...
. It is estimated that over 600 people invested $27 million in Orion.
On May 8, 2003 a federal court froze all Cline's assets and prevented any document destruction at Orion. He was indicted along with other Orion employees, including Samantha Vorachith, April Duffy and Nancy Hoyt. In May, 2004 Cline was charged in federal court with 39 counts of money laundering and fraud. Violating his pretrial release he was arrested for possession of methamphetamine
Methamphetamine
Methamphetamine is a psychostimulant of the phenethylamine and amphetamine class of psychoactive drugs...
s in December and placed in the Multnomah County
Multnomah County, Oregon
Multnomah County is one of 36 counties in the U.S. state of Oregon. Though smallest in area, it is the most populous as its county seat, Portland, is the state's largest city...
jail.
Duffy, Hoyt and Vorachith were ordered to pay over $1.3 million in restitution to defrauded customers and fines on September 7, 2004. The three defendants consented to the order without admitting or denying guilt, and were additionally barred permanently from trading futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s.
In July, 2005 Cline pled guilty in federal court to two counts of mail and wire fraud and one count of money laundering, admitting to defrauding investors out of at least $16 million. On February 6, 2006 Cline was sentenced to 8 years and 1 month in the La Tuna Federal Correctional Institution in Anthony, Texas
Anthony, Texas
Anthony is an incorporated town in El Paso County, Texas, United States. The population was 3,850 at the 2000 census.-Geography:Anthony is located at ....
. The sentence was the maximum agreed upon wherein Cline would not appeal his case. U.S. District Judge Garr King said he would have given a longer sentence, having felt Cline had lied to the court and was generally uncooperative, if it wasn't for his guilty plea. Cline was also ordered to pay over $33 million in restitution.