Attorneys representing Battle Creek's “crooked chiropractor”, Robert Buckhannon, have requested a delay in their client's previously-scheduled “Change of Plea” hearing.
Originally set for 10:30 a.m. on July 17, the request for a stay was filed July 3 by attorney Michael Cristalli. According to that document, Cristalli had notified Assistant United States Attorney on June 30 that he would be out of the Las Vegas jurisdiction beginning July 13 and returning July 24. (Buckhannon's jury trial is scheduled to begin at 9:00 a.m. on July 24 in a United States District Court in Las Vegas; at his arraignment on October 1, 2014, Buckhannon plead not guilty.)
Buckhannon, along with co-defendant Terry Rawstern, were charged on October 1, 2014 with conspiracy and fraud for engaging in a scheme to misappropriate $34 million from two Florida-based hedge funds during 2008 to 2010.
Buckhannon, who was arrested by FBI agents September 30, 2014 in Henderson, Nevada, plead not guilty at an arraignment before U.S. Magistrate Judge George Foley, and was released on a personal recognizance bond pending trial. If convicted at trial, Buckhannon faced up to 30 years in prison on the conspiracy charge, up to 20 years in prison on the wire fraud charge, and fines of up to $1 million on each count.
According to the indictment, from April 2008 through April 2010, Buckhannon and Rawstern and co-conspirators were managing members of two Bradenton, Florida-based hedge funds, Arcanum Equity Fund, LLC and Vestium Equity Fund, LLC. The defendants allegedly engaged in a fraudulent scheme to misappropriate $34 million they raised from investors by misrepresenting how they would use the investors’ funds and misrepresenting that there were safeguards over the investors’ money, such as an independent trustee and independent fund administrator. The defendants then looted and bankrupted the hedge funds by taking payments on false and fictitious profits and taking improper and undisclosed loans.
The indictment stated that as a result of the defendants’ conduct, investors lost approximately $13.1 million. In April 2010, the hedge funds voluntarily filed for Chapter 7 bankruptcy.
The hearing change request has yet to be approved by United States District Judge James C. Mahan.
Expect further updates as they become available.