A British developer living in Osceola County made his first appearance in Orlando federal court Monday after his arrest on a charge of conspiracy to commit visa fraud.
Federal agents picked up Michael 'Mick' Leggett on Saturday at his home east of St. Cloud. He was being held at the Orange County Jail with bail set at $100,000, which requires a $50,000 cash deposit.
The U.S. State Department began investigating Leggett and his Florida-based Royal Development LLC in January 2006 after the U.S. Embassy in London contacted them, officials said.
The investigation turned up forged signatures, nonexistent addresses and cases of visa fraud dating back to December 2001, according to a criminal complaint filed with the U.S. District Court. From March 2004 to April 2005, Leggett's company submitted visa applications and supporting documents on behalf of 16 British investors, court papers said.
Several of the investors told the Orlando Sentinel last year that they had paid Royal Development up to $150,000 apiece to set them up in a home-building business that would enable them to get a visa. But the U.S. Embassy said the business plan did not qualify investors for the visa, and they could not get their money back.
Leggett told an investigator that he came up with the idea of selling businesses to British nationals in 2003. Royal Development was born, and the business plan involved creating construction companies to sell to British investors who would build homes using Royal's licensed builder.
'During the interview, Leggett admitted that most of the investors would not have gotten involved with Royal Development but for the possibility of a visa,' according to the complaint.
A few investors still living in Osceola County watched Leggett appear in a jail-issued jumpsuit before U.S. Magistrate David A. Baker on Monday.
Leggett did not have a lawyer and was advised to hire one after Baker turned down his request for a court-appointed attorney.
Assistant U.S. Attorney Bruce Hinshelwood asked the court to take measures to prevent Leggett from fleeing the country before his next court appearance, because his bags were packed and he had an airline reservation when he was arrested, the prosecutor said 'He was apparently about to leave the house and take off to the U.K. [United Kingdom],' Hinshelwood told the court.
If he posts bond, Leggett will be required to be fitted with a GPS-monitoring device, which will track his whereabouts and notify officials if he approaches an airport.
Last week, an investor told investigators he witnessed Royal Development furniture being loaded onto a flatbed truck with the name of a local auction house. The court papers state that on Feb. 8, an unidentified person told investigators that Leggett was removing paperwork and computers from his office at 1531 U.S. Highway 192 in St. Cloud.
The office, located in a strip mall, appeared in disarray during the weekend. Discarded office and cleaning supplies were piled in the middle of the room along with empty bookcases and desks.
On Saturday afternoon, hours after Leggett was arrested, federal agents continued to swarm over his rural, lakefront home, removing items and taking video recordings.
Paul Butterfield, a British investor who lost more than $150,000, attended the hearing. 'All in all, it's a good result,' he said, noting the seriousness of the hearing when he saw Leggett enter the courtroom with chains connecting his wrists and ankles. 'I'm surprised there hasn't been talk about embezzlement and mortgage fraud.'
The U.S. Attorney's Office has 30 days to present its case to a grand jury, which then can issue an indictment.
Until then, special agent Michael Twining, who works for the State Department, applied for a warrant to search and seize evidence at two St. Cloud residences owned by Leggett and a business in Sarasota.
The coveted 'E-2 treaty investor' visa allows the foreign owner of a U.S. business to remain in the United States as long as he or she meets certain conditions.