Top Executive of Global Power Global Wealth Enterprises, LLC, Pleads Guilty
to Federal Charge Involving Investment Pyramid Scheme

St. Louis, Missouri: Andre Mitchell, former President & Chief Executive Officer of Global Power Global Wealth Enterprises, pled guilty to mail fraud and money laundering charges involving a fraudulent investment scheme, United States Attorney Catherine L. Hanaway announced today.

“Mitchell and Allen defrauded more than 400 victims around the counrty who trusted them. Many investors lost their life's savings. These victims thought they were investing with a legitimate financial service firm,” said Hanaway. "This office will continue to vigorously pursue and prosecute fraudulent investment schemes that often prey on vulnerable and unsophisticated victims who only want to provide better for their families."

"Innocent people invested significant dollars with Mitchell and Global Power Global Wealth based on promises which were nothing more than untruths" stated Bonnie MacLeod, IRS Criminal Investigation Public Information Officer. IRS is focused on prosecuting individuals who engage in monetary transactions with funds derived from illegal activity."

Between July 2004 and December 2005, Andre Mitchell, former President & Chief Executive Officer, and Allen operated a pyramid scheme through their company, Global Power Global Wealth Enterprises (GPGW). Mitchell and Allen solicited investors through private offerings that falsely represented how investors' funds were going to be used and the security of those funds. Investors who were paid, were routinely paid with funds from other investors, rather than from legitimate investments. This approach created a false appearance of a valid investment strategy, which had the effect of luring investors to make additional investments in the scheme. Many of the people who "invested" in GPGW were never paid any return on their investment and were never repaid their principal investment.

Mitchell and Allen's sales pitch was generally that GPGW and its related companies were investing in real estate and were using investor funds to purchase real estate in and around the area of St. Louis. In some cases, Mitchell and Allen falsely represented that GPGW was making large profits by buying, rehabilitating and selling properties in the St. Louis area and elsewhere, and represented to some investors that they would receive 600% returns on their investments within six months. Often investors were falsely advised that their principal investment was secure.

In one instance, an investor from California came to St. Louis to tour a real estate project undertaken by GPGW. Allen arranged for the investor to see Allen's home, which was not one of their projects. Allen admitted with his plea that this tour was a sham. This investor ended up losing $200,000.

After Mitchell's investment scheme broke down, he robbed several banks and was caught in Kentucky in August 2006.

ANDRE MITCHELL, formerly of Belleville, Illinois, agreed to have the fraud charges pending against him in Missouri resolved in Kentucky, where he is being held on the bank robbery charges. Mitchell pled guilty to one felony count of mail fraud and one felony count of money laundering Thursday, February 14, in Kentucky. Sentencing is set for May 5, 2008. Mitchell faces up to 30 years of imprisonment on the fraud charges alone.

Mitchell also pled guilty to three counts of bank robbery in Kentucky. According to the plea agreement, in July and August 2006, Mitchell robbed two banks in Louisville and one bank in Hopkinsville, Kentucky. The maximum term of imprisonment on the bank robbery charges is 75 years of imprisonment.

Co-defendant Henry Allen, St. Louis, pled guilty to one felony count of conspiracy to commit mail fraud and money laundering and was sentenced to 60 months in prison last September.

Hanaway commended the work performed on the case by the Missouri Secretary of State's Office, Internal Revenue Service-Criminal Investigation, the Postal Inspection Service, the Federal Bureau of Investigation, and the Missouri Attorney General’s Office. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.

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