The State | 11/28/2004 | Morris conviction not end of fraud probe
The State | 11/28/2004 | Morris conviction not end of fraud probeMorris conviction not end of fraud probe
McMaster won’t say if HomeGold a target
By BEN WERNER
Staff Writer
With Earle E. Morris Jr.’s conviction this month on 22 counts of securities fraud, Attorney General Henry McMaster has reached the top of Carolina Investors’ management.
“The investigation continues,” McMaster said immediately after Morris’ trial. But the state’s top prosecutor wouldn’t say whether that means he’s looking further up the chain of command to Carolina Investors’ parent company, HomeGold Financial Inc.
McMaster’s criminal investigation to date has yielded indictments against Morris, former chairman of Carolina Investors; Larry Owen, the former president; and Owen’s wife, Anne, a company vice president. Morris and Larry Owen will serve jail time. A trial date has not been set for Anne Owen.
Repeatedly during Morris’ trial, witnesses pointed to HomeGold officials as the source of faulty financial information given to investors.
More than 8,000 people lost more than $277 million in early 2003 when HomeGold was unable to repay hundreds of millions of dollars in loans made by Carolina Investors, its subsidiary. The collapse is one of the biggest securities scandals in state history.
Former employees, board members and investors testified during Morris’ trial about the relationship between the two companies.
Morris’ attorneys repeatedly tried to shift blame to HomeGold officials.
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