Darrell Smith, Fraud, Aggravated Identity Theft, and Money Laundering, Iowa 2023

Darrell Smith, a 61-year-old Forest City, Iowa resident, has been charged with mail fraud, wire fraud, money laundering, and aggravated identity theft.

According to a Complaint filed in the United States District Court in Cedar Rapids on an undisclosed date, Smith was a broker and adviser for several investment firms. After one of the firms allowed Smith to resign in March 2012, a number of customer disputes were filed against Smith alleging misrepresentation, conversion, and purchase of investments without authorization.

The Complaint specifically alleges that Smith solicited funds from many of his investment clients to be invested in Permeate Refining, LLC, which operated a now-defunct ethanol plant in Hopkinton, Iowa, by having funds transferred to what is now known as Energae, LP. Smith was one of the original general partners of Energae, which was formed in 2008 to invest in different bio-energy companies.

Smith faces a mandatory minimum sentence of two years‘ imprisonment, a possible maximum sentence of 72 years‘ imprisonment, a $1.25 million fine, $500 in special assessments, and 15 years of supervised release following imprisonment.

Smith appeared on May 1, 2017 in federal court in Cedar Rapids and was held without bond. On May 3, 2017, United States District Judge Linda R. Reade ordered Smith detained pending further proceedings.

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.

The case is being prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the United States Postal Service Inspection Service.

Related Federal Cases