Jury awards $2.45 million to victims of securities fraud

By Erik Ricasa

Published on July 22, 2005

George W. Hood, 47, was convicted on 22 counts of securities fraud, mail fraud, conspiracy, and money laundering charges.

Hood promised his investors he would import blue crab and other seafood into the United States, bringing high financial returns. However, no blue crabs were imported and the seafood company, Karbo Inc., never made a profit.

Assistant U.S. Attorney Cindy Eldridge said Hood used the money from investors to pay off personal debt. Hood had borrowed millions of dollars and had a previous $1 million civil judgment against him. Investors in his company were not aware of his financial situation.

The majority of investors have received restitution through civil claims or settlements with insurance companies.

Panama native Robert Picou, Hood's partner in the scam, was sentenced to 37 months in prison after being found guilty of four counts of money laundering.

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