Houston lawyer will likely defend Hood

BY CARL WALWORTH

City Editor

URBANA - A Houston lawyer whose sole practice is criminal defense in federal courts across the country likely will be the new lawyer for Clyde D. Hood, the Mattoon man accused of heading what prosecutors describe as a phony international investment program.

"When the FBI comes calling ... Douglas C. McNabb, federal criminal defense attorney," says the heading on the Web site of Hood's choice for a new defense lawyer.

http://dmcnabb.wld.com

Hood didn't have an attorney Thursday afternoon at a status hearing before Judge Mike McCuskey for all 19 defendants in the Omega Trust and Trading case. Hood's wife, Patricia, told McCuskey that McNabb is the choice to replace Steve Ryan as Clyde Hood's attorney. Clyde Hood told the judge he expects his new attorney to formally enter his appearance in the case on Feb. 9 or Feb. 12.

Contacted at his home in Texas Thursday evening, McNabb confirmed that he's been contacted about representing Hood. "There's a possibility that may be," McNabb said.

He didn't say what could occur that would keep him from taking the case.

Ryan, who was disqualified because prosecutors allege he has a conflict of interest, has a hearing set for Feb. 28 asking the court to allow Hood to use money in trust accounts at Ryan's law firm to pay Hood's legal bills.

McNabb said in the last several years he's had cases in 39 cities in 21 states, including a case in the central district of Illinois. He had a case in Memphis, Tenn., earlier this week, for example.

McNabb's Web site lists a variety of types of criminal cases he defends, including bank fraud crime. He said he's been involved in numerous high-profile cases. McNabb's never been a prosecutor, and he said he wouldn't know how to file a civil case.

He said it would be improper to answer questions about Hood's case, saying the first step would be to enter an appearance with the court and begin reviewing the hundreds of thousands of documents compiled by the government. McNabb wouldn't speculate on whether he would seek a continuance of the May trial date, which now is on the calendar of several defense attorneys.

Hood is accused of creating and then operating a phony offshore investment scheme known as Omega. Prosecutors allege more than 10,000 people worldwide were bilked of at least $20 million in a program that projected a $100 investment would become $5,100 in about nine months. The co-defendants are accused of various roles. Some are accused of soliciting money from investors, others with using the illegally obtained money to finance businesses and homes.

Billie Wilson, the last of the 19 accused in the Omega case to be arrested, is expected to be transferred from North Carolina to central Illinois sometime in the next two weeks. McCuskey suggested that when Wilson makes a first appearance that Hood could also appear if he hasn't yet hired a lawyer. The next hearing for all defendants is at 9:30 a.m. Feb. 28 with the final pre-trial hearing scheduled for April 11.

McCuskey ruled on all pending motions in the criminal case at the hearing Thursday. He said he will rule soon on motions by Community Bank & Trust in the related civil case. A lawyer for Ford Motor Credit Co. appeared Thursday and said Ford credit has a first lien on eight vehicles that the bank recently moved to storage. The bank so far has not been allowed to sell or dispose of the vehicles.

McCuskey said a status conference with lawyers from the government, Ford and Community bank should be set after he rules on the bank's motions.

McCuskey denied motions to dismiss criminal charges against some defendants, denied a motion to dissolve a preliminary injunction dealing with some of the forfeitable property and denied a motion to dissolve a protective order involving some of the property.

The government this week published a new legal notice regarding property subject to forfeiture. The property listed involves the same addresses cited earlier in the case.

McCuskey also denied a motion from defendant James Turner that said the court could have to declare a mistrial because Turner could be denied his right to face his accusers. Turner's motion said he plans to testify in his own defense, but some of the co-defendants may choose not to testify.

McCuskey also rejected an effort by Turner to split the case into multiple trials. As it stands, all 19 defendants are to be tried simultaneously. McCuskey set some deadlines for prosecutors to file documents related to evidence to be presented at trial.

Among the other developments, Andrew McGowan, the lawyer for defendant Arlene Diamond, withdrew because of a conflict of interest. McGowan has another client who may be called to testify against Diamond. Diana Lenik of Urbana was appointed as Diamond's new defense attorney.

Defendants Clyde Hood, Diamond, Chris Engel and Wilson remain in federal custody. The other 15 are out on bond pending trial.

Keeping with his practice for most motions filed in the case, McCuskey allowed no time for oral arguments. He made rulings based on written motions and responses by prosecutors.

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