Edward Lincoln Forehand, Securities Fraud Scheme, AL, 2009

Montgomery, Alabama – In a relentless pursuit of justice, 68-year-old Edward Lincoln Forehand of Dothan, Alabama, was sentenced today to 90 months in prison for his involvement in a colossal securities fraud scheme, announced the U.S. Attorney’s Office for the Middle District of Alabama and the Alabama Securities Commission (ASC).

Between 2006 and November 2009, Forehand operated under the guise of ‘USA Marketing,’ duping investors primarily in South Alabama and the Florida Panhandle. He claimed to have a lucrative business relationship with Vicky Yeager, owner of Elite Marketing (‘Elite’), which he said had agreements with colleges to sell cookware. Forehand solicited investments into Elite, vowing extraordinary returns as high as 700%.

However, instead of funneling investors’ funds to Elite, Forehand siphoned off a significant portion to pay old investors and purchase personal property. He received $6.2 million from his victims but only directed $1,605,790 to Elite while promising payouts of over $19 million.

Forehand also concealed critical information: checks totaling $600,000 from Elite to USA Marketing bounced in August 2009, and he never sent money to Elite afterward. He hid Yeager’s identity and her two previous fraudulent convictions.

Upon Yeager’s death on November 10, 2009, Forehand ceased paying investors. As a result, 87 investors lost approximately $2,991,654 of their investments in Elite.

Louis V. Franklin, Criminal Chief at the U.S. Attorney’s Office, emphasized, ‘The sentence today vindicates the victims who lost money due to Edward Forehand’s fraud.’ Alabama Securities Commission Director Borg echoed, ‘We believe this sends a clear message that such behavior will not be tolerated.’

The investigation was led by Special Agents of the Alabama Securities Commission, the FBI, and the Dothan Police Department with support from the United States Marshal Service. The prosecution was handled by Special Assistant United States Attorneys Steve P. Feaga, Gregory M. Biggs, Jared Morris, and Tommie B. Hardwick.