In the following press release R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Betty N. Stewart, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, announced that a federal grand jury in Fort Lauderdale, FL, indicted defendant Donald Platten on 17 charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud and impeding the internal revenue laws.

According to the indictment, which was returned on December 11, 2008, Platten, of Boca Raton, FL, was the president of Harvard Learning Centers, Inc., a Florida corporation also located in Boca Raton. Harvard Learning changed its name several times and claimed to be involved in several different business ventures.

From 2004 to 2007, Platten caused Harvard Learning to issue stock to his wife, his sister, his ex-sister-in-law and his limousine driver, supposedly as repayment of promissory notes, even though Platten knew that the promissory notes were fraudulent and the company did not owe these individuals the money reflected on the promissory notes. In this manner, Platten caused Harvard Learning to issue stock to repay his own obligations and to enrich himself, his relatives, and others. Platten also caused a subsidiary of Harvard Learning to pay the personal expenses of himself, his wife, his mother, his sister, and his teenage son.

Platten failed to file corporate federal tax returns for Harvard Learning for the years 2004 through 2007 and failed to file his personal federal tax returns for the years 2004, 2005 and 2007. For the year 2006, Platten failed to report on his personal tax return the income that he received as a result of Harvard Learning’s stock issuances and payment of his personal expenses.

Finally, to conceal his ownership of a house in Boca Raton, Florida, Platten caused his limousine driver to purchase the house and obtain a mortgage by providing false information about his income and assets. The day after he purchased the house, Platten caused his limousine driver to execute a quit claim deed transferring his interest in the property to Platten’s wife.

If convicted, Platten faces a maximum of 10 years imprisonment on the conspiracy charges, 280 years imprisonment on the securities fraud, and 3 years imprisonment on the tax charges.

Mr. Acosta commended the efforts of the Internal Revenue Service Criminal Investigation and the Food and Drug Administration Office of Criminal Investigations. The case is being prosecuted by Trial Attorneys Kenneth C. Vert and Steven D. Grimberg, Department of Justice, Tax Division.

An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty.

Update on Thursday, February 11, 2010 at 9:45PM by The Editor - Ian Shuter - ACFE, DMS

Donald Platten, of Boca Raton, Fla., was sentenced today by Judge Donald Middlebrooks in West Palm Beach, Florida to 262 months in prison, to be followed by 3 years’ of supervised release for securities fraud, mortgage fraud, and tax fraud, the Justice Department and Internal Revenue Service (IRS) announced. The Court will schedule a hearing within the next 90 days to determine the amount of restitution owed to the victims.

In August 2009, Platten was convicted of conspiracy to commit securities fraud, six counts of securities fraud, conspiracy to commit wire fraud, and impeding the internal revenue laws. Platten was acquitted of eight additional counts of securities fraud.

Full Press Release