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II. Mr. Ford’s Background
Mr. Ford was convicted of securities fraud in 1968, and he
was convicted of mail fraud in 1978. He served 3 years in prison
for the second conviction and was released from Allenwood Federal
Prison in September 1981. Approximately 8 months before his
release, on February 21, 1981, Mr. Ford was ordered to disgorge
$250,000 to the Securities and Exchange Commission (SEC). The
court directed that the $250,000 be paid in installments as Mr.
Ford was financially able.
In 1986, while trying to renegotiate his payments to the
SEC, Mr. Ford concealed assets and income from the SEC by placing
assets in the names of his wife and son. Mr. Ford represented to
the SEC that he owned no stocks or bonds, that he had gross
income of $16,000 in 1985, that he had a net worth of negative
$560,000 throughout 1985 and 1986, and that he was unemployed and
trying to avoid filing for bankruptcy. Each of these statements
was false.
Subsequently, Mr. Ford was charged with two felonies.
First, Mr. Ford was charged under 18 U.S.C. section 1001 (2000)
with making false statements to the SEC. Second, Mr. Ford was
charged under section 7206(1) with filing a false tax return for
1986. He pled guilty on November 15, 1990, to both of these
felonies. In an allocution incident to this plea that he made
under oath and while represented by counsel, Mr. Ford stated:
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