The Edmond Sun

Local News

July 18, 2012

Feds seek $688,049 from Edmond man

Indictment: Victim of alleged scheme invested $10M-plus

EDMOND — A federal grand jury in Oklahoma City accuses an Edmond man of wire fraud, money laundering and mail fraud in an alleged investment scheme, according to court records.

According to the indictment a notice was to be issued to the defendant, Gregory Scot Conrady, 52, of Edmond. Bond in the amount of $10,000 was recommended.

The defendant was a principal member of Coltate Properties, Onyx Financial Group and Silverstreak, according to the seven-count indictment released Wednesday by the U.S. District Court, Western District of Oklahoma.

In April 2007, the defendant solicited the financial backing of the victim in a purported investment opportunity, according to the indictment. Upon the victim’s agreement to do so he and the defendant formed Coltate Capital to buy portfolios of distressed debt for pennies on the dollar and then attempt to collect on the debt, the indictment states.

The debt portfolios consisted primarily of promissory notes secured by second mortgages on residential properties, according to the indictment. The victim invested more than $10 million in Coltate Capital, which the defendant directly managed, the indictment states.

Acting for Coltate Capital, the defendant hired a separate company, Onyx Financial, to collect the debts in Coltate Capital’s portfolio; Onyx Financial was owned and operated by the defendant, according to the indictment.

By contrast, all gross receipts from Coltate Capital-owned assets were to be deposited into Coltate Capital’s bank account on a monthly basis, according to the indictment. Any collection fee due to Onyx Financial was to be paid out of Coltate Capital’s bank account to Onyx Financial’s bank account, the indictment stated.

The defendant used debt brokers to locate debt portfolios for Coltate Capital to buy, according to the indictment.

In Counts 1-4 the grand jury alleges that from November 2007 to April 2010 the defendant knowingly devised, intended to devise and executed a scheme to defraud the victim.

When the defendant requested money from the victim to fund Coltate Capital’s purchase of certain debt portfolios he reported the broker’s fee as being substantially higher than what he had actually negotiated with the broker, the grand jury alleges.

Once the funds were received by Coltate Capital via wire from the victim, the defendant would buy the debt portfolio and pay the broker the actual negotiated fee, but then divert the excess funds to bank accounts held by the defendant’s personal companies (Coltate Properties and Silverstreak), the grand jury alleges.

As a result of the scheme to defraud, the defendant defrauded the victim of about $77,302.98, the grand jury alleges.

In Count 5, after receiving the wire funds from the victim, the defendant wired $60,000 to the debt package broker, according to the indictment. However, the actual broker’s fee was $50,000, the grand jury alleges. The defendant then contacted the broker and claimed that the $60,000 wire had been a mistake, and he gave the broker instructions to wire back the extra $10,000, the grand jury alleges. He then instructed the victim to wire the funds to Coltate Properties, his personal company, rather than Coltate Capital, the company owned by both the defendant and the victim, the grand jury alleges.

In Count 6, in February 2008 the defendant caused a withdrawal in the amount of $27,176.35 from Silverstreak’s bank account at a bank in Oklahoma City by writing a check for that amount to RCD Holdings after these funds had been derived from wire fraud, the grand jury alleges.

In Count 7, certain mortgage payments received through the mail by Onyx Financial were intercepted by the defendant, deposited directly into Onyx Financial’s bank account rather than Coltate Capital’s bank account and subsequently withdrawn by the defendant for his own personal benefit, the grand jury alleges.

In Count 8, the grand jury alleges the defendant bought a cashier’s check for $20,000 made out to Scott Trade after these funds had been derived from mail fraud.

The defendant did not have defense counsel. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial during which the government must prove guilt beyond a reasonable doubt.

If convicted in Counts 1-4 and Count 7 of the indictment, the government seeks forfeiture of $688,049.81, representing the amount of proceeds allegedly obtained from the offenses.

If convicted, the defendant potentially faces both prison time and fines. | 341-2121, ext. 108


Text Only
Local News
  • Boston 1 Arcadia man, 80, prepares for 111th marathon

    A year ago, Arcadia resident Tom Briggs was well into the Boston Marathon course when he heard runners nearby talking about an incident up ahead.

    April 19, 2014 3 Photos

  • Anne Josette Hill Police seek teen last seen in Edmond-north OKC area

    The family of a missing teenage girl made a plea to the public Friday to help them find the Casady honors student.

    April 19, 2014 2 Photos

  • 4-19 Calendar

    For information about Edmond senior programs, stop by and pick up a monthly calendar, check out the website at or call 216-7600. Lunch is served at 11:30 a.m. and reservations are needed a day in advance by 11 a.m. For lunch reservations, call 330-6293 from 9 a.m. to 1 p.m.

    April 19, 2014

  • UCO plans Earth Day Fair

    The University of Central Oklahoma invites the community to celebrate sustainability with its Earth Day Fair from 10 a.m. to 6 p.m. April 22 in locations throughout Central’s campus.
    The fair kicks off at 10 a.m. around Broncho Lake with exhibitions from local businesses, state agencies and student organizations. Visitors will have the opportunity to learn about its environmental mission and message.

    April 19, 2014

  • UCO School of Music closes semester with concert series

    The University of Central Oklahoma School of Music will wrap up its instrumental performance season with three concerts featuring Central students April 29 through May 1 at Mitchell Hall Theater located on the UCO campus.    

    April 19, 2014

  • Fine Arts 1 Auction benefits Fine Arts Institute

    The Spring Sampler dinner and auction event April 12 at Oak Tree Country Club benefitted the Fine Arts Institute of Edmond.

    April 18, 2014 4 Photos

  • Kaiser joins Thunder ownership group

    Tulsa businessman George B. Kaiser has been approved by the NBA Board of Governors as a new partner in The Professional Basketball Club LLC, which owns the Oklahoma City Thunder. Thunder Chairman and CEO Clayton I. Bennett made the announcement Friday. Kaiser is purchasing the ownership interest of Tom L. Ward.
    “We are honored to welcome George Kaiser as a member of the ownership group of the Oklahoma City Thunder,” Bennett said. “George is a well-respected and important Oklahoma business leader, as well as one of the state and nation’s top philanthropists. His commitment to successful business and community leadership is in true alignment with that of the Thunder.
    “I also appreciate the commitment and leadership provided by Tom Ward as a member of our ownership group from the beginning,” Bennett added.

    April 18, 2014

  • Literally, books come to life for club

    When some of the women at Touchmark at Coffee Creek got together to form a book club, they didn’t know it would be so much fun and become such an important part of their lives.
    The group of about a dozen residents gets together monthly to not only discuss the assigned novel, memoir or classic, but also to immerse themselves in the setting and culture of the book. There is no limit to their creativity.

    April 18, 2014

  • pink.jpg Local children win Edmond Sun Easter coloring contest

    Two local children were named winners of The Edmond Sun’s Easter coloring contest. At left, Madsion Porter, 4, daughter of Tracy Porter, won a princess Easter basket, which included a tiara, tea set, stuffed bunny rabbit and chocolate rabbit. At right, BriAnna Harbaugh, 9, daughter of Leslie Haubaugh, won a Hello Kitty Easter basket, containing art supplies, a Hello Kitty stuffed animal and a chocolate bunny.  The families also received a three-month subscription to The Edmond Sun. For your own subscription to The Edmond Sun, visit, call 341-2121, or visit 123 S. Broadway.

    April 18, 2014 2 Photos

  • jc_HarveySparks.jpg Pastor seeks congressional seat

    Working in the Congressional 1st District office of Congressman Jim Bridenstine was an eye opener for Harvey Sparks, he said. His analytical exposure to Congress has sparked his drive to run for the Congressional 5th District of Oklahoma, said Sparks, R-Oklahoma City.
    Sparks has been a pastor for the majority of his professional life. Sixteen months ago, he was asked by 1st District Congressman Jim Bridenstine to come work in his Washington, D.C., office. He and his wife, Jennifer, have three daughters and a son, ages 10-3.

    April 18, 2014 1 Photo

Featured Ads
NDN Video
Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Space X Launches to Space Station My name is Cocaine Lohan Gets Candid About Her Sex List The 2014 New York Auto Show Meet Johnny Manziel's New Girlfriend Chelsea Clinton Announces Pregnancy Funny: Celebrating Easter with Martha Stewart and Friends Man Accuses 'X-Men' Director Bryan Singer of Sexually Abusing Him As a Teenager Man hit with $525 federal fine after he doesn't pay for soda refill Lea Michele & Naya Rivera Feuding? Jabari Parker declares for the NBA draft Singing Nun Belts Out Cyndi Lauper New West, Texas Explosion Video Swim Daily, Throwback Thursday Don't Be A Tattletale: Bad Bullying Tips For Students The trillest thoughts on marijuana "RHOA" Star Charged With Battery Grizzly Bears Get Snowy Birthday Party Weatherman draws forecast when another technical glitch strikes WGN

Do you agree with a state budget proposal that takes some funds away from road and bridge projects to ramp up education funding by $29.85 million per year until schools are receiving $600 million more a year than they are now? In years in which 1 percent revenue growth does not occur in the general fund, the transfer would not take place.

     View Results