Disney Park Scam Being Tried in Federal Court UPDATE - Verdict Reached 09/01/15

[5thGenTexan]

I was born and grew up in the Dallas / Fort Worth area and have always heard about Disney coming to the area. However this is the first I have heard about a scam based on those rumors.

SHERMAN, Texas -- A fraud trial started Monday in Sherman's Federal Court for a North Texas man accused of scamming investors out of millions of dollars.

During jury selection, several potential jurors remembered hearing rumors of a Disney Theme Park coming to North Texas in the early 2000s.

Thomas Lucas Junior allegedly capitalized on those rumors by tricking more than 50 people into investing in property around the area where the theme park would be built. But prosecutors say Disney never bought land in North Texas.

According to federal court records, more than 50 investors believed the "Happiest Place on Earth" was coming to North Texas. Prosecutors say starting in 2006, Lucas scammed those investors out of more than $14 million dollars, forging letters, site plans, maps, and even artist renditions of what would be called "Frontier Disney Dallas-Forth Worth."

Lucas is standing trial on wire fraud charges, and for allegedly lying to the FBI.

When asked if he had anything to say, Lucas responded, "Talk to my lawyers."

Prosecutors say Lucas conducted meetings where no cameras or phones were allowed and showed investors the forged materials, claiming he had a secret source giving him the information.

The alleged theme park would be built on land spanning Grayson, Collin, and Denton Counties, and include attractions like an airport with Southwest Airlines as a partner. It would also have "The Shops at Disney," where high-end retailers like Neiman Marcus and Gucci would invest.

Lucas reportedly claimed Disney would announce the park during the 2008 Beijing Summer Olympics, then when no announcement came, said it would be later, during the super bowl.

Prosecutors say he when he finally named his secret source to FBI investigators in 2013, it turned out to be a man he met in a drug rehab facility who died in 2012.

In opening statements, Lucas' defense claimed that Lucas never intended to defraud anyone. In fact, his own family invested in property near the alleged theme park. They also suggested he's a scapegoat in a failed business deal.

But prosecutors are confident that "unlike every true Disney story, this one does not end happily every after."

The trial is expected to last five days, and Disney executives will be coming to Sherman to testify.

http://www.kxii.com/home/headlines/...h-Texas-Disney-Theme-Park-scam-291337451.html

 

[Tom]

Can I get a list of names and numbers of the land buyers....because I have some beachfront property here in Indiana to sell them. Heck of a deal too!

 

[5thGenTexan]

Jay Rasulo testified today in the case.

Jay Rasulo, chief financial officer of Walt Disney Co., told jurors Wednesday there never was a plan to build theme parks in North Texas.Prosecution witnesses have repeatedly said they got their information about Disney’s supposed plan to come to North Texas from Lucas, and Lucas alone. They said he was very protective of the information and documents that he used to explain that plan to them. Those documents included letters that purported to be from Rasulo or that referenced him and decisions he was supposed to be making about the plans to open a group of theme parks near Celina.Rasulo said the documents that witnesses have testified they were shown by Lucas had nothing to do with Disney parks and did not come from the Disney or any of its employees.Disney’s CFO took the stand after two Disney administrative assistants, including his own, testified that the letterhead used for the documents Lucas is alleged to have produced didn’t match what is used by either Rasulo or Disney Chairman Bob Iger. The two women said the letters were poorly written.Stephanie Volts said she keeps Disney Chairman Bob Iger’s calendar and makes his travel arrangements. She testified he was never in Dallas to hold a meeting of Disney’s Board of Directors, a story that investors said Lucas told them. She also said the letters that were part of the evidence in the case were not letters that were produced by her for Iger.Some of those documents refer to supposed Disney employees by their last name. Under questions from Assistant U.S. Attorney Chris Eason, Volts said Disney has a first-name culture and people are not referred to by their last names. In fact, she said, their name tags don’t even have last names, they just have first names and the name of their hometowns.Rasulo was asked why there has never been a plan to build a Disney park in Texas and he said it wouldn’t make sense for the company to do so. He said market research has shown the company that the population of the country, when it comes to visiting Disney theme parks, is broken into two sections. Those people east of the Mississippi go to Florida and those west of the Mississippi go to Disneyland in California. He said while they might be able to draw visitors to a park in Texas, it would just be taking visitors from the other two parks, and, given the billions of dollars it cost to open such a park, that would not make sense. - See more at: http://heralddemocrat.com/news/cour...exas-wouldn-t-make-sense#sthash.wgeniVxy.dpuf

 

[5thGenTexan]

He was sentenced to 17 1/2 years in federal prison and has to pay $8,456,360 in restitution to victims that invested.

http://www.kxii.com/home/headlines/Disney-Duper-sentenced-to-210-months-in-prison-323778701.html

 

[Admiral01]

Can I get a list of names and numbers of the land buyers....because I have some beachfront property here in Indiana to sell them. Heck of a deal too!

I grew up on the beach in Indiana! My parents still have their house a block from Lake Michigan.

Time for a new example.

 

[Frankie The Beer]

Did I read the news story right, he conned people out of $14 million but only has to pay back $8.5? So 17 year sentence, realistically he serves 6 or seven so almost a million dollars a year in jail?

 

[s8film40]

I don't know the details but on the surface I don't agree with the verdict. Investing is a risk and I believe the investor is ultimately responsible for verifying information. It would not have taken very much effort to discover this was a very unlikely rumor.

 

[Nick Wilde]

He seems very intelligent and calculated to have done all that and pulled it off. Too bad he used that intelligence the wrong way and it went to waste.

 

[DisneyDebRob]

I don't know the details but on the surface I don't agree with the verdict. Investing is a risk and I believe the investor is ultimately responsible for verifying information. It would not have taken very much effort to discover this was a very unlikely rumor.

Although I agree with the majority of what you say, when it comes to older people or senior citizens it's not the case.Seems most scams, and I'm not sure about this case because they haven't listed the victims or ages,prey on the elderly because they know it's easy money. We here it every day and it's a shame. In my opinion he didn't get enough time or even close on what he needs to pay back.

 

[s8film40]

Although I agree with the majority of what you say, when it comes to older people or senior citizens it's not the case.Seems most scams, and I'm not sure about this case because they haven't listed the victims or ages,prey on the elderly because they know it's easy money. We here it every day and it's a shame. In my opinion he didn't get enough time or even close on what he needs to pay back.

Yeah, I agree he deserves what he is getting, I just don't know that that is the right way to address these type of things. Making a real estate purchase is a big deal and should be treated as such. What he did here is definitely wrong but to me the bigger crime is what these people did to themselves by not investigating their investment properly.

 

[Polydweller]

I don't know the details but on the surface I don't agree with the verdict. Investing is a risk and I believe the investor is ultimately responsible for verifying information. It would not have taken very much effort to discover this was a very unlikely rumor.

True to a point but he was essentially telling them that he had information that wasn't generally known. Thus, he led them to believe that they would just have to trust him. Sure, they shouldn't have gone with that but nevertheless he committed out and out fraud and legally the defrauded person has the right to expect their money back.

 

[Minthorne]

Did I read the news story right, he conned people out of $14 million but only has to pay back $8.5? So 17 year sentence, realistically he serves 6 or seven so almost a million dollars a year in jail?

That's $2740 a day or $114/hour - but is it worth it? I saw OZ on HBO...

and that isn't including what the lawyers took from him. I say they got a few million.

 

[s8film40]

True to a point but he was essentially telling them that he had information that wasn't generally known. Thus, he led them to believe that they would just have to trust him. Sure, they shouldn't have gone with that but nevertheless he committed out and out fraud and legally the defrauded person has the right to expect their money back.

Yeah I agree to a point. These people went into this however thinking they were getting an inside tip and that they would then be able to take advantage of other people by charging a higher rate for the property. They weren't exactly going into this with completely innocent intentions, they were trying to make a quick buck off of a situation they had nothing to do with. This was a gamble and they knew it.

 

[Buried20KLeague]

That's $2740 a day or $114/hour - but is it worth it? I saw OZ on HBO...

and that isn't including what the lawyers took from him. I say they got a few million.

I'm quite sure he'll be going to Martha Stewart prison, not double homicide prison. A bit different.

 

[Minthorne]

I'm quite sure he'll be going to Martha Stewart prison, not double homicide prison. A bit different.

Where is the fun in that? Still I saw the Bieber roast - Martha knows how to make a shank!

 

[Arthur Wellesley]

So the Disney theme park in Texas may not happen after all?

 

[Cosmic Commando]

Although I agree with the majority of what you say, when it comes to older people or senior citizens it's not the case.Seems most scams, and I'm not sure about this case because they haven't listed the victims or ages,prey on the elderly because they know it's easy money. We here it every day and it's a shame. In my opinion he didn't get enough time or even close on what he needs to pay back.

Unfortunately, the elderly do seem to be easy prey. I remember one story from a local police blotter... the police were alerted because the old lady was telling the bank teller about what a great investment/deal she was about to make with the money she was withdrawing. When people are desperate for money, they're willing to believe a lot.

 

[5thGenTexan]

He fooled more people than just the elderly. He was forging letters, creating fake artist renderings, etc.

Lucas worked for Carrollton-based Harry B. Lucas Co., which relied on his Disney information to form partnerships to buy land that was supposedly close to the park.

One partnership bought 105 acres near Celina and later claimed a $2 million loss in a lawsuit. It included doctors, lawyers and a Hong Kong man who has invested in North Texas shopping centers.

Former SMU basketball star Jon Koncak, who went on to play in the NBA, also got involved, investing $2.6 million. Most of his money was spent on even riskier option contracts. He testified against Lucas during the trial, telling jurors that some of the money he lost came from his daughters’ college fund.

During his presentations to investors, Lucas showed off maps, memos, site plans and other documents he said he got from his Disney source. But prosecutors said he forged and altered the material to trick investors.

http://www.dallasnews.com/news/crim...d-in-disney-theme-park-scheme-were-greedy.ece

 

[5thGenTexan]

The guy was even creating his own Disney letterhead and passing letters that appeared to be from Jay Rasulo.

Jay Rasulo, chief financial officer of Walt Disney Co., told jurors Wednesday there never was a plan to build theme parks in North Texas.Prosecution witnesses have repeatedly said they got their information about Disney’s supposed plan to come to North Texas from Lucas, and Lucas alone. They said he was very protective of the information and documents that he used to explain that plan to them. Those documents included letters that purported to be from Rasulo or that referenced him and decisions he was supposed to be making about the plans to open a group of theme parks near Celina.Rasulo said the documents that witnesses have testified they were shown by Lucas had nothing to do with Disney parks and did not come from the Disney or any of its employees.Disney’s CFO took the stand after two Disney administrative assistants, including his own, testified that the letterhead used for the documents Lucas is alleged to have produced didn’t match what is used by either Rasulo or Disney Chairman Bob Iger. The two women said the letters were poorly written - See more at: http://heralddemocrat.com/news/cour...dn-t-make-sense#sthash.wgeniVxy.RMkJY8th.dpuf

 

[MichWolv]

I don't know the details but on the surface I don't agree with the verdict. Investing is a risk and I believe the investor is ultimately responsible for verifying information. It would not have taken very much effort to discover this was a very unlikely rumor.

He produced fake documents and told bald-faced lies. That's not "buyer beware". It's fraud, and he should go to jail.