Deputy Sgt. Lance Rawson Charged with Securities Fraud

CHARLOTTE COUNTY

Two men accused of securities fraud say the case is just a big misunderstanding, but a Charlotte County sheriff's deputy has been charged, a circle of Punta Gorda friends has been broken and fingerpointing has begun.

Sgt. Lance Scott Rawson's photo was not released. Joseph R. Venezia, above, is also charged. Sgt. Lance Scott Rawson, 39, a 14-year veteran of the Sheriff's Office, and Joseph R. Venezia, 72, each were charged with securities fraud, a third-degree felony, on Nov. 12.

The two were released from jail the same day after posting $10,000 bail. Rawson was placed on leave without pay pending the outcome of an administrative investigation. They are scheduled for arraignment on Dec. 15.

Investigators say they sold more than $20,000 worth of eSuite Hotels stock to MaryAnn Hall -- an acquaintance of Venezia's -- after telling her the shares would triple in price within weeks.

Trouble was, they were never authorized to sell the stock in the first place, sheriff's Detective Cpl. Randy Whitney said.

Venezia claims that eSuite Chairman Jerry Ellenburg asked both him and Rawson to seek investors to help raise money for the fledgling Tampa-based hotel company. Venezia owned 254,000 shares and Rawson 506,000 as accredited investors.

"I thought it was OK to sell the stock," Venezia said, adding that shares were sold to 17 people. "I had no idea I would get in trouble."

Ellenburg declined to comment on whether he asked the pair to sell shares, but stressed that they required company approval to do so and that no permission was granted.

"Permission was not achieved, everybody knows that, that is the beginning and end of that topic," Ellenburg said. "The rest is speculation. Did they know they shouldn't have sold it? Should they have known? No one knows."

Both Venezia and Rawson told investigators they knew each stock sale had to be approved by eSuites.

But Venezia says he is being "railroaded" by Ellenburg because the chairman does not want a black eye for his company.

He also said he believes Rawson, a friend and neighbor from the 26000 block of Copiapo Circle, has turned against him.

Rawson agreed with Venezia that the case is a misunderstanding, but declined to comment further. Rawson told investigators he was never a part of the deal with Hall and never received any money from the transactions.

Rawson's attorney, Russell Kirshy, said his client is innocent and that the alleged actions do not even amount to a crime.

Prosecutor Donald Mason's office said he would not comment.

Hall was introduced to Venezia and Rawson, both of whom told her the value of the shares would triple in two to four weeks, she told investigators. Rawson said she could trust him because he was a deputy and had never cheated anyone, the arrest warrant said.

Venezia received a check for $16,500 in October 2007 and one for $6,000 in November 2007 from Hall, the warrant stated. Hall was told she was buying 18,000 shares in eSuite Hotels, described on its Web site as a new upscale hotel brand offering high-tech infrastructure and services.

According to Venezia, as well as Hall's statement to detectives, Rawson asked that the second check be made out to Venezia and not to him. Venezia says he and Rawson each took half of the $22,500.

When the stock failed to sell, Hall contacted Ellenburg, who told her that no such transaction was ever made in her name, and that there was no board approval for the transfer.

Venezia said Hall has since been repaid all of her money, plus $100, with him and Rawson splitting the payback 50-50. Kirshy, Rawson's attorney, confirmed that Hall has been compensated but said he could not comment on how the repayment was split.