October 10, 2002
Paula Moore
Business Journal
On Oct. 10, federal agents in metro Denver broke up a sting operation to sell bogus bearer bonds represented as worth $250 billion.
A deal to sell 250 bonds, supposedly with a face value of $1 billion each, was to have been concluded in Denver on Oct. 9, according to a U.S. District Court filing in Denver.
Officials at the U.S. Attorney's Office in Denver were unavailable for comment.
The dealers arranged to sell the bonds via a California company called Concord Capital Ltd. to a Greenwood Village-based company called NCO/Capstone Consulting, a fake company created by federal agents. NCO agreed to pay $100 million for the 250 bonds, according an agreement between the parties.
At Wednesday's meeting to consummate the deal, U.S. Customs and Secret Service agents arrested the brokers. They are: Johnny Tal of Agoura Hills, Calif., also called Yoni; Stephen M. Feldman of Encino, Calif.; Nathan A. Bickley of Dallas, Texas; and Jerry J. Tidmore, address unknown.
The four are charged with one count each of attempting to sell fraudulent securities. If convicted, each faces 25 years in prison and $250,000 in fines.
The government learned of the dealers in June of this year, when the U.S. Customs Service got a tip that Feldman was trying to broker the sale of fake Federal Reserve bearer bonds.
Bearer bonds are a type of bond not registered on the books of the issuer. Their owner holds them and gets interest payments by detaching coupons from the bond certificate, and delivering them to the paying agent.
A customs agent then went undercover as a representative of NCO/Capstone, and Feldman allegedly tried to sell him bogus bonds supposedly valued at more than $1 trillion. In July, the undercover agent offered Feldman $100 million for the fake bonds and was turned down.
Tal, saying he was client of Feldman's named Yoni, then allegedly contacted the agent in September, and said he would sell $25 billion worth of bonds for $100 million, according to the court filing. "Yoni" supposedly told the agent he had a company called Concord Capital and that he formerly was with the Israeli Secret Service.
© 2002 American City Business Journals Inc.
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