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A 75-year-old North Platte dentist pleaded guilty to two counts of fraud and false tax returns in U.S. District Court Sept. 4. Thomas E. Miller, 1821 West C, now faces maximum sentences of 3 years imprisonment for each count, fines of $100,000 or both when sentenced. No sentencing date has yet been set. Miller was under federal indictment for nine counts of tax fraud. The indictment said Miller claimed losses of $1.6 million on his 1998 tax return when there should have been none. In 1999, according to the indictment, Miller reported he had no pension or annuity income and a loss of $22,730 when he should have claimed $369,981 in pension or annuity income. Miller also claimed losses in 2001 and 2002 when there should have been none, according to the indictment. Miller told the Bulletin after the indictments were handed down that the losses were legitimate and he would fight all charges. Surprisingly, Miller pleaded guilty to two counts of tax fraud in a plea agreement with federal prosecutors Sept. 4. No sentencing date has yet been set.
More charges Miller is also under indictment for money laundering, swindling and wire and mail fraud. Those charges have not been set for trial but a status hearing is scheduled in U.S. District Court Oct. 4. The indictment said Miller engaged in a scheme to defraud investors of money by making false representations of high interest certificates of deposit and then converting investments to his own use. Miller pleaded not guilty to the charges. Between Oct. 15, 1999 and July 31, 2003, Miller deposited more than $2.4 million worth of investors money in the Lincoln Investment Bank, Ltd., in the country of Grenada, as an International Business Corporation. Miller was the director and controlled the activities of the bank including deposits and disbursements according to the indictment. Miller converted at least $1.3 million to his personal use, the indictment said. The indictment said Miller received a Class-I banking license from the government of Grenada. According to the indictment, Miller solicited investors for purported high yield investment programs through the offshore bank, conducted seminars and mailed solicitations to potential investors promoting offshore banking and investing. He requested investments of $100,000. Miller told potential investors that all monies invested with him would be placed in certificates of deposit, that their investment was risk free and that the principal was guaranteed, according to the indictment. The indictment said Miller also charged each investor a $1,900 fee to become an agent of another offshore company, the International Business Corporation. Miller promised interest rates on the CDs from 6 to 12 percent per month or 72 to 240 percent per year and stated there was a one-year maturity date. The certificates also stated that they were guaranteed by U.S. Treasury Bills, the indictment said. According to the indictment, Miller prepared the CDs in Nebraska and signed them as the Authorized Fiduciary Officer of Lincoln Investment Bank, Ltd. Miller allegedly only communicated with his investors through an electronic mail site with secure e-mail accounts with ziplip.com. In 2003, Miller stopped using ziplip.com and switched to SAFe-mail.net. The indictment said Miller provided false account statements showing earnings from $700 to $4,000 per certificate per month. Investments from some investors plus credit and debit cards were used as lulling payments to forestall investors and trick them into believing their investment was viable and earning interest. When investors began complaining, Miller stalled, according to the indictment, and provided numerous reasons for the delays. Those letters were sent from Miller in North Platte to investors throughout the U.S. The indictment said that as the scheme fell apart, Miller began to wire money overseas to accounts he had set up.
The transactions were: March 10, 2000 $40,000 wire transfer from Gothenburg State Bank to Grenada Cooperative Bank, St. Georges, Grenada. March 10, 2000 - $12,150 wire transfer from Gothenburg State Bank to Grenada Cooperative Bank, St. Georges, Grenada. March 13, 2000 - $18,650 wire transfer from United Nebraska Bank in North Platte to Grenada Cooperative Bank, St. Georges, Grenada. March 17, 2000 - $20,000 wire transfer from United Nebraska Bank in North Platte to Grenada Cooperative Bank, St. Georges, Grenada. July 18, 2000 - $17,170 wire transfer from Wells Fargo Bank, Omaha, to Grenada Cooperative Bank, St. Georges, Grenada. Sept. 1, 2000 - $10,000 wire transfer from First Omaha Bank to Grenada Cooperative Bank, St. Georges, Grenada. Sept. 14, 2000 - $10,000 wire transfer from First Omaha Bank to Grenada Cooperative Bank, St. Georges, Grenada. Oct. 3, 2000 - $30,000 wire transfer from Wells Fargo Bank, Omaha, to Grenada Cooperative Bank, St. Georges, Grenada. Oct. 6, 2000 - $10,020 wire transfer from First Omaha Bank to Grenada Cooperative Bank, St. Georges, Grenada. Oct. 17, 2000 - $54,170 wire transfer from Wells Fargo Bank, Omaha, to Grenada Cooperative Bank, St. Georges, Grenada. Oct. 17, 2000 - $16,170 wire transfer from Wells Fargo Bank, Omaha, to Grenada Cooperative Bank, St. Georges, Grenada.
Fraud alleged The indictment said Miller also transferred money from the West Indies to Nebraska, knowing that the money was gained through fraudulent, illegal activity. Those wire transactions were listed as: July 3, 2000 - $170,000 wire transfer from Grenada Cooperative Bank, St. Georges, Grenada to National Bank of Commerce in Lincoln for credit to the First State Bank in Gothenburg. July 5, 2000 - $165,000 wire transfer from Grenada Cooperative Bank, St. Georges, Grenada, to the National Bank of Commerce in Lincoln for credit to the First State Bank in Gothenburg. July 7, 2000 - $165,000 wire transfer from Grenada Cooperative Bank, St. Georges, Grenada, to the National Bank of Commerce in Lincoln for credit to the First State Bank in Gothenburg. Nov. 29, 2000 - $95,000 wire transfer from Grenada Cooperative Bank, St. Georges, Grenada to the First National Bank in North Platte. For most of the charges, Miller faces up to 20 years in prison and fines of up to $250,000 or $500,000. Miller, a dentist, is a 1962 graduate of the University of Nebraska and practiced dentistry in North Platte for roughly 40 years.
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