The Belleair Beach man and 11 others are accused of being part of an offshore money laundering scheme.
By ERIC STIRGUS and JEFF TESTERMAN
© St. Petersburg Times, published May 13, 1999
Federal prosecutors have indicted 12 people, including Belleair Beach Mayor William Atteberry, on charges they operated a sophisticated money laundering scheme in which millions of dollars were being wired to a bank in Antigua.
Atteberry, 59, who was re-elected to a fifth term as mayor three months ago, was arrested Wednesday. Also arrested were Judy Giglio, who prosecutors say lives in Clearwater, and Frank Vincent Dzwonkowski of Gainesville.
Atteberry of 421 Belle Isle Drive pleaded not guilty and was released on $50,000 bail, secured by his $290,000 Belleair Beach home. He could not be reached Wednesday for comment. His attorneys did not return calls.
The defendants are accused of posing as venture capitalists and raking in fees from would-be investors.
"And Mr. Atteberry held himself out as a broker where there was advance payment but no real prospect for available capital" for investors, prosecutor Ron Tenpas told federal Magistrate Elizabeth A. Jenkins.
Two men named in the indictment were charged last year with being involved in a scheme that mirrors this case in several ways.
In last year's case, prosecutors alleged that the group placed ads in publications that cater to wealthy readers, offering large venture capital loans to people with bad credit.
Those involved collected loan "processing fees" ranging from $10,000 to $2-million, used a loophole to get out of the contract and whisked the fees offshore.
Three people named in that indictment pleaded guilty and cooperated with investigators.
Prosecutors said Atteberry, who was not named last year, "continues to have contact with" Robert Ian Newman, a Clearwater man named in the 1998 indictment. Officials say Newman is a fugitive in Thailand. The current indictment alleges Newman transferred $902,500 from accounts in several banks to accounts in other banks.
The indictment says Atteberry faxed a letter to Ron Spence, vice president of a company called Young Living Essential Oils, in late January 1997 outlining what Spence would need to do to secure funding from Sterling International Guarantee Ltd. The indictment gave no further details of what was in the letter or any details on Sterling International.
A telephone call to Young Living Essential Oils was not immediately returned.
The indictment did not detail what led investigators to seek the indictment, how the defendants are connected to each other and how prosecutors say the scheme worked.
Prosecutors from the U.S. Attorney's Office in Tallahassee, where the indictment was filed April 27, did not return calls for comment.
A key to the case appears to be the Caribbean American Bank in St. John's, Antigua, which is involved in most of the transactions. The indictment says the bank was created by William W. Cooper in September 1994 on behalf of Donald J. Gamble and Larry Sangaree.
Gamble was not indicted. Sangaree, who was convicted of murdering a high school teacher in Leon County when he was 20, was arrested in last year's case. Prosecutors said he cooperated with them.
Between September 1994 and February 1997, slightly more than $2.5-million was wired through other banks to the Caribbean American Bank.
There was no answer at the bank Wednesday.
In March of this year, the U.S. Treasury Department warned banks and other financial institutions to treat transactions with Antigua with extra caution because of concerns it was softening its laws against money laundering. Last month, the island nation agreed to cooperate with the United States to ease concerns about laundering money through offshore banks.
Prosecutors said more arrests are expected.
Atteberry is a real estate broker at Atlantic International Mortgage Co. in Tampa. Company officials said they had no comment on his arrest.
According to the city charter, Atteberry, who receives no salary as mayor, does not have to resign unless he is convicted of a felony.
"Nothing is going to change," said Vice Mayor Roy Cougle, who was in Tallahassee at a conference for representatives of small cities when he heard the news. "He is still the mayor." Cougle said he expects Atteberry to attend Monday night's council meeting.
Atteberry was arrested about 7:30 a.m. Wednesday at a Sertoma meeting at Robby's Pancake House on Gulf-to-Bay Boulevard in Clearwater.
The arrest surprised many in the affluent north Pinellas beach city of about 2,070 people.
"I'm in shock," said Cherie Parker, who ran for vice mayor in February on a ticket opposing Atteberry. "I had no idea."
-- Times staff writer Amelia Davis and researcher Cathy Wos contributed to this report. Information from Times files was also used.
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