Broker Faces Charges In Alleged Scam

Sun., July 16, 2000

From Staff

A Yakima man faces federal wire fraud charges in an alleged $23 million bank note scam.

Larry Cates, an investment broker since 1987, helped line up about $10 million worth of fraudulent investments for two Arizona men, Gerald Trussell and Peter Macari, prosecutors allege.

Cates was charged with two counts of wire fraud Wednesday in U.S. District Court in Yakima. He was released on a $10,000 bond Thursday evening.

He faces a grand jury hearing. If he is indicted, the case will be prosecuted by the U.S. Attorney’s Office in Arizona.

Investors were told they could buy bank notes at a discount and sell them to another bank for a large profit, but they actually received nothing, prosecutors allege.

Cates maintains he did nothing wrong. He said he has known Trussell and Macari since 1991 and trusted their investing knowledge. He said he knew the pair was under investigation by the FBI, but he believed them when they said there was no problem with the investments.

The maximum penalty for wire fraud is five years imprisonment, a $250,000 fine, or both.

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