McCorkle Case ‘Troubling,’ Judge Says Before Sentence

By Jim Leusner
The Orlando Sentinel

McCorkle, 32, and his wife 30, can expect to serve about 85 percent of their sentences, or 20 ½ years. Both also must serve two years probation after their releases and collectively pay $14,700 in court costs.

Because the jury that convicted the couple last November on 151 fraud, money-laundering and false-statement charges already allowed the government to seize nearly $10.6 million in cash, real estate and vehicles, Fawsett waived any fine. Instead she ordered both to serve 50 hours of community service.

Defense attorneys say the McCorkle's are broke.

Throughout the day, prosecutors Paul Bryron and Marie DeMarco resisted arguments by defense attorneys trying to minimize the crimes and sentences of their clients. The government contended the McCorkle's bilked at least 1,124 customers and grossed $36 million while marketing their real-estate program on television form 1992 to 1997.

In their infomercials, the couple offered to teach customers secrets of making money through real estate and government auctions. McCorkle offered to help bankroll students real-estate deals, but prosecutors alleged he rarely followed through.

Defense attorneys Mark Horwitz and F. Lee Bailey argued that the couple paid $3 million in refunds and sold a product that satisfied many customers, enabling some to make money amount of the losses, their managerial roles in the marketing program and their attempts to obstruct investigations by the Internal Revenue Service, FBI, Postal Inspection Service and Florida Attorney General’s Office.

Although the McCorkle's faced up to 30½ years each, Byron sought the lowest sentence under federal guidelines.

Fawsett, known as a tough sentencer, said she was bothered by the severity of the federal guidelines but that she forced to follow the law.

Ten McCorkle companies – most of them no longer in operation – were placed on probation. One was fined $5,000.

Corporate lawyer Robert Eagan said customers are continuing to receive refunds from a $1 million escrow fund the couple agreed to set up at the request of the state prosecutors.

Asked whether he wanted to make a statement before being sentence, McCorkle appeared to reach for a piece of paper in his shirt pocket. Bailey shook his head and McCorkle said 'No'.

Chantal McCorkel also decline to comment.

At Horwitz’s request, Fawsett said she would not oppose having Chantal McCorkle, a former British nanny, finish out her prison term in an English prison after her U.S. appeals run out.

Two other former McCorkle sales executives, Brian Higgins, 39, of Winter Springs and Herman Venske, 38 of Oviedo, each received five-year prison terms for conspiring with the McCorkle in a wire and mail fraud scheme.

Both men were ordered to serve two years’ probation and 50 hours of community service. Both must report to prison by Feb. 26. Venske also was fined $2,000.

Fawsett said she would consider bail for McCorkles and their associates during their appeals. Byron said he would oppose release of any of the defendants.

Higgins’ voice choked with emotion as he read a statement in which he apologized for his loyalty to the McCorkles and not watching out for his customers.

He said he was unaware of misrepresentations made by McCorkle about his business or that McCorkle secretly moved $7.1 million to the Cayman Islands after a state probe began.

In their heyday, surrounded on TV by yachts, jets and mansions, the McCorkles offered viewers an easy way to pay their debts and retire rich.

They may end up, however, as poster children ….