Executive at center of Dynus scandal to be released from federal prison early

Former Dynus executive Orlando Carter was released from federal prison to a halfway house Thursday.

Butler County Prosecutor Mike Gmoser received notification from the Federal Bureau of Prisons last week that Carter would be let out of the prison in Ashland, Ky..

The notice states that Carter is not on or eligible for parole but was approved for placement in a halfway house.

“After the transfer, the inmate will be located at his/her home and monitored by Talbert House,” the notice reads.

The letter indicates Carter will be released from his prison sentence April 22, 2023. A spokesman from the prison told the Journal-News he could not give the reason for the release.

RELATED: Judge sentences Dynus Corp. owner to 15 years, says he’s ‘fundamentally dishonest’

Gmoser said he is speculating, but he thinks the coronavirus pandemic might be the reason.

“I know that’s going on in state institutions right now,” Gmoser said. “They are calculating that paradigm that somebody that’s got another year, or half year or two years on sentence shouldn’t be exposed to a potential death sentence from the virus if the institution has this virus working there,”

Carter was found guilty on 11 felony charges in 2009 in a scheme that cost two banks more than $10 million, caused Dynus’ 2005 collapse and ignited political scandal. He was sent to federal prison for 15 years and ordered to pay $4.8 million in restitution. Carter’s fellow conspirators were former company president Jim Smith, former Butler County Auditor Kay Rogers and former company employee Karin Verbruggen.

Those three pleaded guilty to their roles in the deal, which included Dynus taking out $6.5 million in illicit loans from National City Bank in Butler County’s name, then using that fake deal to secure a line of credit with Fifth Third Bank.

The Dynus scandal rocked the county, especially since an elected official was involved. Dynus Corp. was contracted by the county to operate the county’s fiber-optics system, which was built to help spur economic development. Rogers falsified documents that secured loans for Dynus while in the name of the county.

Gmoser said while at the halfway house, Carter might be able to leave to go to work and other limited liberties.

Neither the federal prosecutor who handled his case nor Carter’s attorney could be reached for comment.

Carter has filed multiple court actions in federal court while he has been in prison, including a $500 million lawsuit against the county commissioners, former House Speaker John Boehner, State Sen. Bill Coley, former county commissioner Chuck Furmon, Fifth Third Bank, a couple of FBI special agents and others in 2018.

He claimed Boehner, Furmon and others falsely accused him with statements they made about the case. He named Coley because he said he was an attorney for National City Bank.

When the case was only 35 days old, United States Magistrate Judge Stephanie K. Bowman halted further briefings and recommended all claims be dismissed as frivolous. District Court Judge Susan Dlott ended the proceeding saying, “Plaintiff has failed to state a claim upon which relief may be granted” a year ago.

About the Author