Feb. 17, 2001

Hood brings up possibility of plea bargain

BY CARL WALWORTH

City Editor

URBANA - The lead defendant in the Omega Trust and Trading case publicly asked about a plea bargain the same day a magistrate judge appointed for him a new lawyer that may be paid from government funds.

Clyde D. Hood, 66, the Mattoon man accused of creating and operating what prosecutors describe as a multimillion dollar phony international investment scheme, stood up and said in court Friday he's ready for a change of address.

"I'm tired of being incarcerated where I am now," Hood told federal Magistrate Judge David Bernthal. Hood asked about a plea bargain to "get it all over with." He also asked if his former attorney, Steve Ryan of Mattoon, could handle the plea bargain negotiations.

Bernthal said Ryan, who has been disqualified because of a possible conflict of interest, couldn't bargain in Hood's behalf. Bernthal appointed a Springfield lawyer to represent Hood, but told Hood he still could hire his own attorney. A Texas lawyer who specializes in federal criminal defense cases said later Friday he still wants to represent Hood.

Defendants in federal custody awaiting trial typically are housed at county jails, which have arrangements to house prisoners for the U.S. marshal service. Those found guilty and sentenced to prison are assigned to a facility in the federal prison system.

Omega was an investment program that authorities say told investors a $100 investment could yield $5,100 in about nine months. But no one profited from the program except those involved in Omega, prosecutors contend. Documents filed in court suggest at least 10,000 people worldwide were defrauded of at least $20 million.

Most of what remains of those assets have been frozen and aren't accessible to Hood or the 18 others accused of various roles in the case.

After Hood completed an affidavit on his financial status Friday, Bernthal ruled that Hood qualified for a court-appointed lawyer, and named Springfield lawyer Jeff Page to represent Hood. Bernthal told Hood that a privately hired defense lawyer hired by Hood or his friends or family could enter an appearance to replace the appointed counsel. Bernthal said Hood also could be required to reimburse the government for his appointed lawyer if, after the case, it's determined Hood has the resources to pay a lawyer.

Assistant U.S. Attorney Steve Sanchez told Bernthal that there's an effort by Hood's friends and associates to raise money for Hood's defense. Sanchez said George Queener, who he later described as a longtime friend of Hood's, deposited at least $19,000 in an account at Community Bank and Trust of Olney. Much of the money was collected through solicitation on the Internet, Sanchez said.

Sanchez said he understands the money is being raised to hire Houston lawyer Doug McNabb.

McNabb specializes in criminal defense cases in federal courts across the country.

Contacted after the hearing, McNabb said he's interested in representing Hood but hasn't yet entered his appearance.

"I certainly respect the decision of the judge to appoint counsel at this stage of the proceeding," McNabb said.

Hood has been without a lawyer since Ryan was disqualified in January. Payment of Ryan's fee is pending because of the frozen assets, with a hearing set for Feb. 28.

The Omega trial is scheduled to begin in May. The next status hearing for all 19 defendants is at 9:30 a.m. Feb. 28.

Earlier in the hearing, Hood suggested that he report at the Feb. 28 hearing on the status of his search for a lawyer. After Bernthal raised the issue of an appointed lawyer, Hood agreed to fill out the financial affidavit.

"I don't want to slow this thing down," Hood told Bernthal. "I don't want to delay it. If it will make the court happy, I'll go ahead and do it (seek an appointed lawyer)."

Outside of court, Sanchez said prosecutors always are open to discuss a guilty plea. Sanchez said there likely will be some defendants pleading before the trial, "but I'm not saying who or when."

Earlier Friday, Billie Wilson, another of the 19 defendants and one who is accused of playing a major role in the Omega program, made his first court appearance in Illinois after being apprehended by U.S. marshals in North Carolina in mid-January.

Wilson also sought a court-appointed lawyer. His affidavit listed Social Security as his only income. Bernthal ruled Wilson qualifies for an appointed lawyer and appointed James Elmore of Springfield.

Wilson is to return to court next Thursday to be arraigned and for a detention hearing. Sanchez said prosecutors will ask that Wilson remain in custody pending trial. Wilson remains in custody at least until the hearing.

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