HoeDowns' Demise
Former Hoedowns proprietor Ben Elliott hoped that turning in drug dealers, prostitutes and child pornographers would help reduce his time in federal prison, but a mathematical error may have also played a role. Elliott appeared in federal court Feb. 25 in Atlanta to learn his fate after he was indicted in a scheme that attempted to bilk as many as 500 car dealers of up to $30 million. Among Elliott’s uses for the stolen funds was to purchase Hoedowns, the beloved Atlanta gay country bar that shut down in 2007 after several tumultuous months under his leadership.
U.S. District Court Judge Thomas W. Thrash sentenced Elliott to nine years in prison followed by five years of supervised release and required him to pay $4.28 million in restitution to three banks that fell victim to his wire fraud scheme. The sentence came after a federal probation officer’s calculation error in the pre-trial sentence report was discovered in the courtroom.
“This is just so bizarre,” Thrash said after learning of the error during a break. “It is beyond belief. Nobody would have noticed that, including me.”
The mistake was discovered after both parties had agreed to the sentence guideline level, which reflects the severity of the crime and mitigating factors like remorse and cooperation with investigators. Despite objections from prosecutor Russell Phillips, Thrash used the lower guidelines, although he hinted he considered going higher.
Thrash later ordered Elliott into immediate custody before he could say goodbye to his family that had gathered to watch the trial. Before the sentencing Elliott appeared to ignore his attorney’s advice by speaking in his own defense. He said that he asked “the three most Christian women I knew to come over and pray for me,” a few days before the sentencing. “I’m very sorry about what happened and I will do my best to pay back everyone,” he said.
Elliott pleaded guilty last fall to one count of conspiracy to commit wire fraud. Prosecutors charged that Elliott and an associate, Connie Lee Buce, used a direct mail advertising business called 300 Up Promotions to make multiple unauthorized withdrawals from the bank accounts of car dealerships that had been their clients.
Those banks absorbed the loss and Elliott’s $4.28 million restitution will be split between First Horizon Bank, First American Bank and Flag Bank, which has since been bought by RBC Centura. Phillips said that one of the banks involved failed largely because of the millions Elliott defrauded from it.
Buce was also sentenced Feb. 25, receiving 51 months in prison and $4.28 million in restitution for her role. The judge gave her additional credit for contacting federal investigators as soon as she learned of their inquiries and credited her with helping track down Elliot’s deals.
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