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Former U.S. Attorney Sam Currin agreed Wednesday to plead guilty to federal charges that he conspired to launder $1.3 million that a computer spam artist made by inundating e-mail inboxes with stock-picking schemes.Currin, 57, of Raleigh, used to be the one prosecuting federal crimes in Eastern North Carolina. Now he faces almost nine years in prison for his role in a scheme that prosecutors say netted him more than $240,000. Currin also plans to plead guilty to two counts of obstruction for failing to report $6,000 in income to the IRS and for lying to and failing to surrender documents to a federal grand jury, which was investigating another client's business merger.Currin, who is well-known in conservative Republican circles, is a former protege of U.S. Sen. Jesse Helms. In 1981, he became Raleigh's top federal prosecutor, a post for which Helms nominated him. Currin held the job until 1987 and then went on to be a state Superior Court judge. In 1990, he left to run a law practice and become a state GOP leader."At the end of the day, I hope the public will recognize that Sam has had a long and distinguished career as an attorney and public servant," said his defense lawyer, Mark Calloway, himself a former U.S. attorney in Charlotte. "Sam recognizes that he has made a serious mistake, and he is doing what he can to make it right."How Currin came to represent the spammer, launder money for him and be in business with him was unclear in court documents Wednesday. He could not be reached for comment.Those who knew Currin were shocked to hear the news."Wow," said Bill Peaslee, chief of staff for the N.C. Republican Party, who said the turn of events was "disappointing.""These events have been a tragedy for Sam, his family and for the legal profession," said David Long, a Raleigh lawyer who fought Currin's nomination to the federal bench in the 1980s.Doug McCullough, now a state appeals court judge and Currin's former chief deputy prosecutor, said, "It's always a sad event when someone who has public service as part of his life is found to have made such a serious misstep."No sentencing date for Currin has been set.In a 16-page document attached to his plea agreement, Currin details his role in the spammer's scheme to manipulate stocks and launder the proceeds. The documents lend a cloak-and-dagger feel to the case by listing co-conspirators by aliases -- Mr. J, Mr. R and Mr. H.Currin identifies Mr. J as an e-mail spammer and director of Sterling Bank; prosecutors say Currin also served as a director and was a shareholder in the bank.Currin wrote that Mr. J, who also was a legal client, was arrested in December 2003 in Virginia on charges of distributing unsolicited spam, some of which promoted penny stocks. Currin's affidavit mentioned two companies, Absolute Health & Fitness Inc., once listed as being based in Cary, and Concorde America Inc., which Currin knew the SEC was investigating on suspicion of stock manipulation. Currin also said that he knew Mr. J was involved with the Absolute Health stock.In December 2003, Jeremy Jaynes of Raleigh and Richard Rutkowski of Cary were charged in Virginia under a new anti-spam law for running what authorities described as one of the most prolific spamming operations in the world, peddling everything from mortgages to stock picks. They were the first people in the United States charged with felonies for sending unsolicited bulk e-mail.Currin represented them, according to a Dec. 13, 2003, Associated Press report about Rutkowski turning himself in to authorities at the Wake County jail.Neither prosecutors nor defense lawyers in Currin's case could be reached to comment on whether Mr. J is Jaynes. But Currin wrote in his affidavit that Mr. J was convicted on Nov. 3, 2004 -- the same day news reports said Jaynes was convicted.Jaynes was sentenced to nine years in prison for the spamming charges. Trial and appellate lawyers for Jaynes could not be reached for comment.Rutkowski was acquitted in the case.Currin wrote that six days after Mr. J was convicted, $689,000 of Mr. J's money was wired to Currin's law firm's bank account. Currin then admits distributing $649,000 back to Mr. J and his wife.In the spring of 2005, Currin admits, he funneled $675,000 belonging to Mr. J through his law firm's trust account."I was willfully blind to the fact that those funds were proceeds of criminal activity," Currin wrote.
Staff writer Andrea Weigl can be reached at 829-4848 or aweigl@newsobserver.com.
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