GRAND RAPIDS ? CyberNet Group developed an elaborate scheme to bilk millions of dollars from lenders who believed they were financing high-tech equipment and services, alleges a 54-page document filed in federal court.
Much of the money was used to pay for a lavish lifestyle for Barton and Krista Watson, which included a condo off Chicago?s Michigan Avenue, a $350,000 Rolls Royce, $20,000 worth of fine wines, a Cessna airplane and more than $1 million in purchases charged to credit cards.
Krista Watson remains at large. But Barton Watson took his own life on Thanksgiving eve rather than return to prison, where he had severed several years previously for fraud.
The charges were contained in an affidavit filed last week by FBI agent Roberta Gilligan, who is trying to persuade a federal judge to order the seizure of a $1 million CyberNet bank account in Hong Kong and a $25,000 account in Chicago.
Gilligan said the government earlier received permission to seize $5 million from the accounts controlled by the Watsons, Barton Watson?s mother, CyberNet President James Horton, defense lawyers and others.
Authorities said the ponzi scheme worked by the Watsons would involve telling banks they needed money to buy servers from a provider called Teleservices Group, a sham company controlled by the Watsons and Horton, the FBI alleges.
From May 2002 to March 2004, lenders provided Teleservices with more than $22 million, which was then transferred to other shell companies controlled by the Watsons.
