ROGERS — Jim Bolt and Situs Cancer Research Center received nearly $2 million as a result of wire fraud, mail fraud and money laundering, according to court documents filed Tuesday.
An affidavit filed in U. S. District Court, Western District of Arkansas, requests forfeiture of two Poplar Street buildings owned by Situs Cancer Research Center and a home listed in Benton County records to the David James Bolt Irrevocable Trust, Jimm Bolt and Annette Gore, trustees.
All three buildings were searched last week by Federal Bureau of Investigation agents. Agents took control of several vehicles, office equipment, computers and four airplanes, authorities said.
At A Glance
Timeline
• Jan. 24, 2011: A list of unclaimed property is posted to the California State Controller’s Office, Unclaimed Property Division.
• December 2012 — James Bolt mailed documents to the Shareowner Services office of Computershares, a firm holding the assets, claiming property Pacific Financial Research Inc.
• January: Computershares releases 162,745 Interpublic Group of Companies shares to J. W. Bolt/Situs Cancer Research Center.
• Jan. 18, Jan. 24: Sell orders are issued to on transferred shares. Three wire transfers totaling $1,892,170 are sent to a Rogers bank account for Situs.
• Jan. 22: Situs Cancer Research Center purchases 1204 W. Poplar St. for $99,764.67.
• Jan. 25: Situs Cancer Research Center purchases 303 S. Rife Drive for $208,393.42.
• Jan. 28: Situs Cancer Research Center purchases 1222 W. Poplar for $660,626.11.
• Jan. 31: Situs account balance for January ends at $10.50.
• April 5: FBI advised of fraud.
Source: U.S. District Court Forfeiture Affidavit
Situs Oncology, a part of Situs Cancer Research, is a nonprofit organization serving cancer, hematology or chronic viral disease patients in Northwest Arkansas who have been denied medical treatment as a result of inability to pay, according to the organization’s website.
Bolt hadn't been charged in connection with fraud or money laundering as of 3 p.m. Wednesday, according to a spokeswoman with U.S. Attorney Conner Eldredge’s office.
The investigation is ongoing, said Special Agent Kim Brunell of the FBI’s Little Rock office.
The filings make it a civil case, said Herb Southern, an attorney who represents Jim Bolt, 60, of Rogers, executive director of Situs Cancer Research Center.
Procedures in a criminal case are designed to prevent self-incrimination, Southern said, but in a civil case, his client may be forced to testify without knowing what charges prosecutors are contemplating.
“In this particular instance, we do not have a criminal case,” Southern said.
The investigation documented in Tuesday’s filing started in April when an investment fund manager contacted federal agents reporting Bolt fraudulently received unclaimed property owned by Pacific Financial Research through the California State Controller’s Office.
California has $6.1 billion in unclaimed property that belongs to 17.6 million people and organizations, according to the website of the state controller’s office. The state requires banks, corporations and insurance companies to turn property over to the state if there has been no customer contact in three years.
J. W. Bolt, executive director of Situs, in December 2012, claimed 162,745 of Interpublic Group of Companies shares which were Pacific Financial Research assets, according to the court affidavit. Pacific Financial Research ceased operation in early 2006.
Bolt provided a power of attorney form dated Dec. 31, 2001, and a Sept. 29, 2006, letter of donation to back up his claims, according to the affidavit.
Signatures from two employees with Pacific Financial Research showed on the paperwork, but both told an FBI agent the handwriting was not theirs, according to the affidavit. The California notary who signed the documents had a number that had been issued, but not used, and the signature name was incorrect.
The shares were sold at Bolt’s direction for $1,892,170, and the money used to purchase property at 1204 W. Poplar St., 303 S. Rife Drive and 1222 W. Poplar St. in January, according to the affidavit.
Bolt was notified of a donation of abandoned stock in several companies, Southern said. Bolt reported the transfer to the Securities and Exchange Commission, Southern said.
“He was doing nothing illegal,” Southern said.
Neither Bolt nor Situs had been served with papers as of Wednesday afternoon, Southern said. He said he is still researching the case.
Bolt was unavailable for comment Wednesday, Southern said.
His client was previously charged with wire and money fraud, but acquitted in 2007, Southern said. Bolt was looking for investors to develop a new cancer treatment, Southern said, when an undercover FBI agent offered funding.
The jury did not deliberate long before clearing Bolt, Southern said.
“They were out about long enough to have lunch and came back,” he said.