Daniel R. Goodwin, an attorney from McLean, Virginia, was convicted Thursday on five federal counts tied to a multimillion-dollar fraud scheme that ripped off a Laurel County construction company of $1.32 million. Goodwin, 58, was found guilty by a federal jury in Frankfort, Kentucky, on four counts of wire fraud and one count of conspiracy to commit wire fraud, following a week-long trial and a day-and-a-half of deliberation.
The fraud centered on a phantom project to build a “green recycling center” in Manchester, Kentucky, that never materialized. Between 2008 and 2011, Goodwin partnered with David Bennett, CEO of Waste Not Technologies—also known as Global Green Holdings—to lure contractors with promises of a state-of-the-art facility that would convert municipal waste into railroad ties and insulation. Bennett claimed the project would generate 1,400 jobs and millions in revenue, selling city officials and contractors on a future that never arrived.
Instead of building anything, the conspirators demanded upfront payments from contractors like Elza Construction, LLC, under the guise of funding an escrow account in place of a traditional performance bond. Written agreements promised the money would be returned within three to four months once financing was secured. But Goodwin, who controlled the escrow account, funneled the funds to co-conspirators and kept portions for himself. Elza Construction lost the full $1.32 million it wired and spent several million more on excavation and site preparation—efforts rendered meaningless by the fraud.
Federal prosecutors proved that no financing was ever in place, no permits were secured, and no construction began. The promises were hollow, the plans nonexistent. Goodwin’s role as a licensed attorney lent false legitimacy to the scam, allowing him to exploit trust and manipulate contracts to siphon money from victims expecting a legitimate job.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and FBI Special Agent in Charge Amy Hess announced the verdict. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Gregory Rosenberg and Andrew Trimble. Authorities emphasized that the conviction sends a message: even those in positions of legal authority will face consequences for weaponizing their credentials to commit fraud.
Daniel Goodwin is scheduled for sentencing on June 14, 2017. He faces up to 20 years in prison on each wire fraud count and up to five years for conspiracy, with any sentence to be determined after consideration of the U.S. Sentencing Guidelines and applicable statutes. The court has yet to rule on restitution for Elza Construction and other defrauded parties.
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Key Facts
- State: Kentucky
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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