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Defendant Knew $100 Million Reserve Note Was Bogus

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By THOMAS W.  KRAUSE | The Tampa Tribune

Published: December 20, 2007

TAMPA - A man accused of trying to secure business deals using a phony $100 million Federal Reserve note pleaded guilty today in federal court to a charge of attempting to broker a false document.

Timothy W. Cartwright faces up to 25 years in prison and a $250,000 fine. A sentencing date has not been set.

According to his plea agreement, Cartwright owned the counterfeit note between April and August 2002. In July 2002, he approached three businessmen and tried to use the note as collateral so they could secure a $50 million business loan. In exchange, Cartwright would acquire a percentage of the business.

One of the men became suspicious and called authorities, the plea agreement states.

On Aug. 1, 2002, an undercover agent with the U.S. Secret Service met with Cartwright in a Tampa hotel. The agent asked several questions about the note, and Cartwright told several lies about the note to persuade the agent to use the note as an investment tool, the plea agreement states.

When the undercover agent revealed himself as a law enforcement officer, Cartwright allowed him to search the hotel room. The agent found the counterfeit note and letters from a Minnesota bank that explained to Cartwright the note was bogus, the plea agreement states.

After a federal grand jury indicted Cartwright, he was arrested in Birmingham, Ala.

In court today, U.S. Magistrate Elizabeth Jenkins asked Cartwright whether he agreed with the facts in the plea agreement.

"At the time, I didn't know the thing was bad," Cartwright said.

Jenkins balked.

She said she could not accept a guilty plea if Cartwright contends he had no criminal intent. She took another case while Cartwright spoke with his attorney.

When Cartwright's case resumed, Assistant U.S. Attorney Cheri Krigsman told the judge that Cartwright was being charged only with acts that occurred after the bank wrote him letters explaining to him the note was fake.

Cartwright, however, told the magistrate that he got notice from the bank, but not from the government.

Ultimately, Jenkins asked him directly: "Did you know it was bogus?"

"Yes, ma'am," Cartwright answered.

Jenkins accepted the guilty plea and sent the case to U.S. District Judge Susan Bucklew, who will pronounce sentence.

Reporter Thomas W. Krause can be reached at (813) 259-7698 or tkrause@tampatrib.com.

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