The United States Attorney's Office

Eastern District of Virginia

Alexandria - Richmond - Newport News - Norfolk USAO

FOR IMMEDIATE RELEASE: July 13, 2007

Jim Rybicki Further Information Contact:

Public Information Officer Deanna Warren

Phone (703) 842-4050 Fax: (703) 549-5202 Phone: (757) 441-6331

Email: usavae.press@usdoj.gov

Web Address: www.usdoj.gov/usao/vae

Sentencing for Two Individuals Running 30 Million Dollar Ponzi Scheme

(Norfolk, VA) – Howard Welsh, age 63, of the United Kingdom, and Lee Hope Thrasher, age 53, of Virginia Beach, Virginia, were sentenced today on conspiracy, mail fraud, and wire fraud offenses. Chuck Rosenberg, United States Attorney for the Eastern District of Virginia; Cassandra Chandler, Special Agent in Charge, Federal Bureau of Investigation, Norfolk Division; and, Charles R. Pine, Special Agent in Charge, Internal Revenue Service Criminal Investigation, made the announcement after Welsh and Thrasher were sentenced by United States District Judge Rebecca Beach Smith.

Welsh was sentenced to 20 years in prison, ordered to pay $33,543,153 in restitution, and ordered to forfeit $33,543,153 in criminal proceeds. Thrasher was sentenced to 15 years in prison, ordered to pay $33,543,153 in restitution, and ordered to forfeit $33,543,153 in criminal proceeds. Both will also be under supervised release for 3 years following their prison terms.

According to court documents, Welsh and Thrasher formed corporation soles and induced approximately 1,000 investors to invest approximately 33 million dollars. The funds were wired to bank accounts controlled by Welsh in the United States, and then wired to other accounts in 13 foreign countries and the United States. In the summer of 2002, Welsh and Thrasher fled the United States. Welsh and Thrasher were arrested by the Metropolitan Police Service in the United Kingdom in November of 2004, and extradited to the United States in July of 2006. The United States has recovered approximately 2 million dollars of the proceeds of the ponzi scheme.

The investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation, with the assistance of the Metropolitan Police Service, New Scotland Yard, London, England. Assistant United States Attorneys Robert J. Seidel, Jr., Blair Smith Perez, Joseph DePadilla and Kevin M. Comstock prosecuted the case on behalf of the United States.