Published: Saturday, March 26, 2011

http://www.thenewsherald.com/articles/2011/03/26/news/doc4d8d09c0032ab309920584.txt

DETROIT — An Allen Park resident pleaded guilty Thursday to charges of wire fraud and money laundering.

Barry Sparks, 53, and his nephew, Stephen Sparks, 37, of Monroe took part in a scheme that solicited more than $1 million from investors.

Barry Sparks is scheduled to be sentenced at 2 p.m. July 14 before U.S. District Judge Denise Page Hood.

Stephen Sparks pleaded guilty Jan. 25 to wire fraud and money laundering charges. He is expected to be sentenced at 2 p.m. May 5.

The maximum sentence for wire fraud is 20 years in prison and a $250,000fine. The maximum sentence for money laundering is 10 years in prison and a$250,000 fine.

Stephen Sparks represented to investors that his business, Global Points, had the opportunity to purchase a warehouse full of Chinese electronics to sell in the United States for a substantial profit.

Stephen Sparks also told investors that he could return more than five times the amount invested.

Barry Sparks set up email accounts and sent messages to himself to make it appear as if he were negotiating overseas deals.

“Investment fraudsters prey on trusting investors by enticing them with a can’t-miss deal and then steal their hard-earned money,” Erick Martinez, Internal Revenue Service special agent in charge, said in a press release. “IRS criminal investigation is committed to investigating investment schemes in an effort to protect the financial well-being of the American investor.”