Con-Man Bolt Sentenced In Federal Fraud Case

FAYETTEVILLE -- A Rogers con man was sentenced to more than eight years in federal prison, fined $50,000 and ordered to pay more than $2.5 million in restitution to the victims of at least five scams that used forged documents to obtain unclaimed property and cash under the guise of a purported cancer treatment center.

Jim Bolt, 61, of Rogers pleaded guilty in January to one count of wire fraud, one count of mail fraud and one count of money laundering in a plea bargain with prosecutors. The other charges in the 14-count indictment were dismissed as part of the plea bargain.

Legal Lingo: Upward Sentencing Departure

The Federal Sentencing Guidelines shift the focus in sentencing from the offender to the offense. The guidelines categorize offenses and identify the sentence required upon conviction. Judges are allowed to increase or decrease sentences or depart from the guidelines, but only if they have a very good explanation and clearly state the reasons on the record. Sentencing judges may consider all “relevant conduct,” including the circumstances surrounding the conviction, offenses that were committed at the same time as the charged offense but were not charged, prior convictions, and acts for which the defendant was previously tried but acquitted when considering an upward departure, or increase in sentencing.

Source: West’s Encyclopedia of American Law

U.S. District Judge Tim Brooks made a rare upward departure from federal sentencing guidelines that suggested about six years for the charges because of Bolt's criminal record and propensity to re-offend. Brooks said Bolt does not appear to have learned anything from his 30-year criminal career.

"You stole, through fraudulent means, 2 1/2 million dollars and you have not been deterred by three very serious prior convictions," Brooks said. "There's no indication your prior sentences have taught you anything. If anything, they've taught you how to do it better."

Brooks cited a mid-1980s case in which Bolt was convicted in Tulsa, Okla., of a scam almost identical to the latest.

"There were layers upon layers of falsified documents," Brooks said of Bolt's methods. "It was all designed to give the illusion of legitimacy."

Brooks said Bolt pretended to have a doctorate degree, invented fictitious people and employees, forged signatures and led the victims to believe he was treating cancer patients at his clinic, which Brooks said appeared to be a front for the scams.

"Mr. Bolt preyed on the altrusive nature of everyone," Brooks said. "They wanted to help people."

Robert Cessario, an FBI agent who investigated the case, said Bolt had five or six larger scams and 20 to 30 smaller ones going when he was arrested. About $100,000 was never accounted for.

The FBI launched an investigation in August 2012 into suspicious activity involving Situs Cancer Research Center, Bolt's purported alternative cancer treatment clinic in Rogers. Prosecutors accused Bolt of committing mail and wire fraud by preparing and sending fraudulent documents containing forged signatures and false authentication features to various entities and individuals to persuade them to send him unclaimed property, money and other assets from defunct companies and individuals with no next of kin.

The government contends Bolt took more than $2.5 million from Community Medical Group in California and at least four other companies.

In his plea, Bolt agreed to forfeit three properties prosecutors said were bought with money derived from mail fraud, wire fraud and money laundering. The properties are 1222 W. Poplar St., 1204 W. Poplar and 303 S. Rife St., all in Rogers. Bolt also agreed to help identify assets transferred to third parties.

There's also a civil forfeiture action against two mobile medical units, a box truck, an Airstream recreational vehicle, three SUVs, a Toyota pickup, four airplanes, $8,900 cash, $111,971 from a bank account and other items. Proceeds from the sale of those items will be applied to Bolt's restitution.

Deputy U.S. Attorney Glen Hines prosecuted the case.

NW News on 06/24/2014

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