- The Washington Times - Wednesday, March 3, 2004

BALTIMORE — An investment banker charged with defrauding Maryland’s pension system out of millions of dollars faces more charges in a federal indictment returned by a grand jury yesterday.

The superseding indictment says Nathan Chapman Jr., 46, “looted” his public companies by using corporate funds to pay for gifts, trips and financial support to various women.

Mr. Chapman, who was a member of the state university system’s Board of Regents, took more than $518,000 for personal use, the indictment says. That is about $80,000 more than stated in the original indictment in June.

The 36-count superseding indictment also says Mr. Chapman made false statements on joint federal income tax returns he filed from 1997 to 2001.

The new charges also say Mr. Chapman made false statements to a bank in connection with an application for a $920,000 mortgage.

“This is yet another tactic by the prosecution to pile on false and malicious charges against Nathan Chapman,” said Billy Martin, a lawyer representing Mr. Chapman.

“We are preparing to go to trial in June and we are confident that trial will clear Mr. Chapman’s good name.”

Mr. Chapman also was accused in the new indictment with money laundering last year when he and his wife sold their house. His wife has not been charged in the case.

Authorities say they intend to seize the home and the contents of several bank accounts.

In July, Mr. Chapman pleaded not guilty to the initial charges that he fraudulently used more than $5 million of state pension funds to boost stock prices in his own company and took $437,000 from three companies he ran, spending the money on women.

He gave one of the women $246,000 in cash and gifts, including a car and a motorcycle, the indictment says.

Mr. Chapman managed between $87 million and $259 million of the state’s $29 billion pension system before he was fired. The system, which is responsible for the pensions of more than 250,000 teachers, police officers, firefighters and other government workers, lost $4.7 million before Mr. Chapman’s investment firm was liquidated.

Mr. Chapman resigned from the Board of Regents soon after he was indicted. He had served for eight years, nearly four of them — from 1999 to 2002 — as chairman.

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