Attorney Convicted of Defrauding Local Company

FRANKFORT, Ky. (WTVQ) – According to the Acting United States Attorney Carlton S. Shier, IV, Daniel R. Goodwin, an attorney from McLean, Virginia, has been

convicted of defrauding a Laurel County construction company, in connection with a purported project to build a “green recycling center” in Manchester, Ky.

 

Prosecutors report that the company, Elza Construction,LLC, lost $1.32 million upfront and incurred several million dollars more in excavation and site

preparation costs, but nothing was ever built at the site.

 

Late Thursday, a federal jury in Frankfort delivered a guilty verdict on four counts of

wire fraud and one count of conspiracy to commit wire fraud. The verdict came after a week of

trial and a day-and-a-half of deliberation.

 

The Eastern District of Kentucky’s offices stated that the evidence at trial established that from 2008 until at least 2011, a company called

“Waste Not Technologies,” which also went by the name “Global Green Holdings,” made false

promises to the city of Manchester and several would-be contractors who wanted to work on

building a green recycling center that would turn municipal waste into useful products like

railroad ties and insulation. David Bennett, the chief executive officer of Global Green

Holdings, promised the project would create 1,400 jobs and bring in millions in revenue.

 

Shier’s office claims part of this scheme was to require contractors like Elza Construction to send money to an

escrow account in lieu of a traditional construction performance bond, with the promise that the

money would be used to release financing for the project and that the money would be returned

on a set schedule, typically within 3 to 4 months. Daniel Goodwin controlled the escrow account

that received money from Elza Construction and others. Instead of following the terms of

written agreements, he distributed the money among his co-conspirators and kept some of it for

himself.  According to prosecutors, the money was never returned to Elza Construction or any of the other contractors.

 

Goodwin is scheduled to be sentenced on June 14, 2017. He faces a maximum sentence

of 20 years on each count of wire fraud, and a maximum of five years on the count of conspiracy

to commit wire fraud. However, any sentence would be imposed only after the Court has

considered the U.S. Sentencing Guidelines and the applicable statutes.

 

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