The Plain Dealer
Court overturns convictions of 3 securities executives
Associated Press
COLUMBUS - The convictions of three executives of a defunct securities firm accused of defrauding thousands of investors of millions of dollars have been overturned.
The 10th District Court of Appeals ruled Tuesday the Dublin Securities executives were denied a fair trial and were convicted on insufficient evidence. It said the judge had not instructed the jury properly.
Dwight Hurd, Dublin's legal counsel; General Manager Robert Hodge; and President Beth Eyerman were convicted four years ago of 154 felony counts that accused them in a complicated stock scheme of selling nonexistent shares of stock in companies.
The trial in Franklin County Common Pleas Court lasted about five months and cost more than $5 million to prosecute.
"There was a David vs. Goliath aspect to this case that makes the ruling today rather satisfying," said Mary Jane McFadden, Eyerman's attorney.
Chris Davey, a spokesman for the Ohio attorney general, said yesterday that the ruling is being reviewed. "It is a very complex decision."
He said the exact number of investors and how much they lost can't be determined, but one estimate of 6,600 investors and $14 million is believed to be just a fraction.
The decision can be appealed to the Ohio Supreme Court, the defendants can be retried or prosecutors can drop the case.
Eyerman, the daughter of Dublin founder Clarence "Red" Eyerman, has been on probation since February 1996. Her 5 ½- to 25-year prison sentence was suspended for five years' probation.
The court acquitted her of one charge of false statements in the registration of securities, but said she could be retried on 43 counts of theft, sale of unregistered securities and racketeering.
Hurd and Hodge have been free pending appeals of their convictions. Both had been sentenced to 5 ½- to 25-years in prison.
The appellate court acquitted Hurd of three counts of false statements, but said he could be retried for racketeering.
Hodge was acquitted of aggravated theft, six counts of grand theft and 41 counts of theft. He may be retried on eight counts of grand theft and 50 counts of theft.
Hodge was fined $10,000 and Hurd was fined $17,500.
Eyerman's father pleaded guilty to six charges in December 1994, a month before he died of a heart attack.
Dublin Securities and an affiliate, Dublin Management, filed for bankruptcy protection in 1993.
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