Tag Archives: fraud

Still no arrests in 2010 Capitol Hill credit card fraud wave as multi-state investigation continues

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8444830362_93234fea9e 9145552114_c73fd445c3_b (1)Federal agents say they are still searching for suspects in a wave of credit card fraud that swept across Capitol Hill in 2010, an attack that likely affected hundreds of people and dozens of businesses, and involved untold thousands of dollars in fraud — and helped bring about the end of a longtime Broadway restaurant.

One place where no direct fraud took place was the now shuttered Broadway Grill, which had been a point of interest in the investigation. Secret Service agent Bob Kierstead tells CHS the data breach was a sophisticated virtual attack and no skimming device was used at any point of sale on Capitol Hill or elsewhere.

“There was no illegal activity from within (Broadway Grill) whatsoever,” Kierstead said. “It was an external breach, which are becoming more and more prevalent.”

Four years ago, Kierstead explained to CHS how the fraud worked — without revealing his hand on all of the specifics: Continue reading →

Former Capitol Hill-based investment adviser guilty in $46 million fraud case

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The New York Times wrote about Spangler -- and visited the neighborhood -- in 2011. (Image: King County Records)

The New York Times wrote about Spangler — and visited the neighborhood — in 2011. (Image: King County Records)

The FBI announced the conviction of a former Capitol Hill-based money manager onĀ 32 criminal counts including wire fraud, money laundering, and investment adviser fraud.

Mark Spangler ran The Spangler Group out of his 10th Ave E home in the Roanoke Park area from 1995 until 2012 when he sold the home:

At trial, prosecutors presented evidence that federal law enforcement officials executed a search warrant at SPANGLERā€™s residence on September 23, 2011, disrupting SPANGLERā€™s plans to flee the jurisdiction. SPANGLER had purchased airline tickets for Ecuador with his wife, Luanne Renfrow, and they were planning to leave on September 25, 2011. The couple had also placed their million-dollar Capitol Hill home and his $890,000 yacht up for sale when the search warrant was executed.

The Seattle Times reportsĀ Spangler raised more than $56 million from his clients beginning in 1998 but rather than invest the funds in publicly traded securities, he diverted more than $46 million into two risky startups, TeraHop and Tamarac. The Times also reports that a civil case against Spangler was on hold to allow the criminal proceedings to play out.

Spangler, who now lives in Oregon, is slated to be sentenced in February 2014.