Witness says he was ‘threatened’ with 10-year sentence before plea deal

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One of two witnesses for the state testified Monday he was “threatened” with a 10-year sentence before agreeing to a plea deal that including testifying against a former Warren County politician.

To end the questioning of Vernon “Chip” DeMois, Senior Assistant Attorney General Dan Kasaris asked the state’s witness to clarify what he meant when he said, “They were all liars” while being cross-examined.

"I was referring to Tom Lysaght and Pete Beck," said DeMois, a man who was found guilty of a securities violation at the end of March for his role in what the Ohio Attorney General's Office has called a scheme that cost investors millions of dollars.

DeMois was charged for his role in the $500,000 investment in March 2010 by Scott Michael, the principle owner of Urbana-based Michael Farms. He was found guilty as part of a plea bargain with the state of Ohio, which Beck’s defense attorney Ralph Kohnen addressed at the end of his cross-examination of DeMois.

Kohnen questioned why DeMois agreed to take the plea deal, and if the state “threatened” him with a corruption charge, known as RICO, which comes with a 10-year jail term, “if you didn’t plead guilty and cooperate.”

“I was threatened,” DeMois said, “I remember 10 years, I don’t remember RICO.”

Beck was indicted twice, once in July 2013 and the second in February 2014, on dozens of criminal counts for his involvement in Christopher Technologies. In the second indictment, DeMois was named as a participant in the so-called “continual criminal enterprise,” which was led by the late Tom Lysaght, the man that state claims was the “rainmaker” for the alleged investment scheme.

“An unknowing participant, I believe, would be an accurate statement,” said DeMois when asked about that accusation listed in court documents.

DeMois was involved in Lysaght securing the Michael Farms investment in 2010, a $1 million commitment where only half was actually paid, to TML Consulting, Lysaght’s company. The purpose was to re-boot the failed tech firm of Christopher Technologies and help out other TML-supported companies.

That money went everywhere — including to Lysaght’s pocket, the Friends of Peter Beck and a dry cleaning bill — except for the targeted companies, according to court records and previous testimony.

DeMois testified that he attempted to contact Tom Walter, the lead plaintiff in the civil suit against Beck, which DeMois was named, as well as Walter’s attorney. He said he wasn’t involved, and he was “shocked” to his “core” when he was charged criminally.

To end the cross-examination, Kohnen said Lysaght lied to people, which several witnessed have said, “And now he’s dead and his investors are looking for a scapegoat and the state is looking for a scapegoat and they’re looking to you. They’ve sued you, they’ve prosecuted you, and they’re doing the same to Mr. Beck, isn’t that true?”

Before Kasaris could get out his objection, Kohnen withdrew the question, finishing with his cross-examination.

During his re-direct, Kasaris questioned DeMois on the answers he believes Kohnen cut off. He testified that $374,000 “was misappropriated,” as was the remaining $126,000 was spent after he resigned from his role with TML Consulting on March 31, 2010.

“Things didn’t stop the way they should have. That money was run down to zero,” he said, though he later testified he didn’t know how much money was spent after he quit.

Early in his testimony, DeMois said he would “find that hard to believe” that Beck was not involved in the Carnival Cruise Lines negotiations — and previous testimony supported the claim he was not involved — and said he “presumed he was involved.” DeMois didn’t believe he was just relaying information gained from others when talking about a signed letter of intent with Carnival Cruise Lines.

DeMois testified last week that having a signed letter of intent “was a game-changer for the company,” and to help “make introductions” to raise money for Christopher Technologies was the only reason he was involved.