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He also faced a number of problems in recent years: Florida investment job went sour, his Seattle-area home was condemned as he struggled to make payments on another, and he failed to get a recent promotion. He also still faces the $1.5 million securities fraud judgment from 2003. The National Association of Securities Dealers found that Bales, another man and his company "engaged in fraud, breach of fiduciary duty, churning, unauthorized trading and unsuitable investments." Records show Gary Liebschner of Columbus, Ohio, filed the complaint in 2000, when Bales was a stockbroker. WCPO-TV in Ohio quoted Liebschner's wife as saying her husband became ill so they asked Bales to sell stock to pay medical bills, but never received the proceeds. An arbitration panel found Bales, Michael Patterson and Michael Patterson Inc. individually and jointly liable for $637,000 in compensatory damages, $637,000 in punitive damages, $216,500 in attorneys' fees and several thousand dollars in other fees. Punitive damages were allowed because the panel found Bales' conduct "fraudulent and malicious." Bales did not file a "statement of answer," get an attorney or appear at an Ohio hearing, records show. About a year and a half after the complaint was filed, Bales enlisted -- just two months after 9/11. His legal troubles included charges that he assaulted a girlfriend and, in a hit-and-run accident, ran bleeding in military clothes into the woods, according to court records. He told police he fell asleep at the wheel and paid a fine to get the charges dismissed. In March 1998, Bales was given a $65 citation for possessing alcohol at Daytona Beach, Fla. He did not pay the fine nor did he defend himself in court. A warrant was issued for his arrest, but it later expired. If the case goes to court, the trial will be held in the U.S., said a legal expert with the U.S. military familiar with the investigation who spoke on condition of anonymity to discuss the case. That expert said charges were still being decided and that the location for any trial had not yet been determined. If the suspect is brought to trial, it is possible that Afghan witnesses and victims would be flown to the U.S. to participate, he said. After their investigation, military attorneys could draft charges and present them to a commander, who then makes a judgment on whether there is probable cause to believe that an offense was committed and that the accused committed it. That commander then submits the charges to a convening authority, who typically is the commander of the brigade to which the accused is assigned but could be of higher rank.
[Associated
Press;
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