Conspirators Sentenced to Prison in Construction Escrow Fraud Scheme

EDGAR J. BEAUDREAULT, JR., 61, of Alpharetta, Georgia, and HOWARD A. SPERLING, 45, of San Diego, California, were sentenced today by United States District Judge Clarence Cooper to federal prison on charges of conspiracy to commit wire fraud for their part in a scheme to defraud a California corrections facility operator of nearly $13 million.

United State Attorney Sally Quillian Yates said, “These defendants were part of an elaborate fraud scheme that ironically involved the construction of a prison. They will now experience how business is conducted inside a real prison.”

BEAUDREAULT was sentenced to three years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,417,500. BEAUDREAULT pleaded guilty to the charges on December 17, 2008.

SPERLING was sentenced to five years, 10 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,417,500. SPERLING pleaded guilty to the charges on February 2, 2009.

Both BEAUDREAULT and SPERLING cooperated with the government, and in February 2010, testified in the trial of co-defendant ROBERT B. SURLES, which resulted in guilty verdicts on 16 counts of conspiracy and wire fraud. SURLES is scheduled to be sentenced by Judge Cooper on June 22, 2010.

According to United States Attorney Yates, the charges and other information presented in court: From August 2003 through January 2004, BEAUDREAULT, SPERLING and SURLES conspired to defraud “Cornell Corrections of California, Inc.,” a private company that operates corrections facilities for various governmental units. In June 2003, Cornell Corrections contracted to have a corrections facility built in Canon City, Colorado for $13 million. The $13 million purchase price was to be held in an escrow account until the facility was completed.

In August 2003, the defendants induced Cornell Corrections to transfer its $13 million to an account in Atlanta, which they controlled, by falsely representing to Cornell that the account was an escrow account that was administered by a reputable bank. Upon receipt of Cornell Corrections’ $13 million, the defendants wire transferred the majority of Cornell’s $13 million to other accounts, to be used for their own purposes. Under the terms of their contract, the defendants were also to obtain a construction loan on behalf of “Western Comfort, Inc.” the general contractor who began construction of the facility. No loan was secured, making Western Comfort another victim of this scheme.

This case was investigated by special agents of the Federal Bureau of Investigation.

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Manhattan U.S. Attorney Charges Georgia Man for Selling Fake Vintage Horror Movie Posters and Lobby Cards Over the Internet

PREET BHARARA, the United States Attorney for the Southern District of New York, and GEORGE VENIZELOS, the Special Agent-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced that KERRY HAGGARD was arrested this morning in Georgia on mail fraud charges relating to his sale of fake vintage horror movie posters and lobby cards which he misrepresented over the Internet and elsewhere to be authentic vintage collectibles. In doing so, HAGGARD defrauded his victims of over a million dollars in money and property.

According to a criminal complaint unsealed today in Manhattan federal court:

Horror movie posters and lobby cards were displayed in the lobby of movie theaters as a type of advertising product that the movie industry introduced in the 1920s. Lobby cards are popular collectible items which are often sold through auction houses and over the Internet through online auction sites such as eBay.

From January 2006 to August 2009, HAGGARD engaged in a scheme to defraud collectors by selling purportedly vintage horror movie posters and lobby cards which he represented were original pieces, knowing that the items were reproductions that HAGGARD himself had created. HAGGARD used a New York-based printing company to make high-quality ink jet copies of horror movie cards or posters from either hard copies or digital scans of such pieces provided by HAGGARD. HAGGARD also used a restoration company to attach the inkjet copies to lobby card stock and to airbrush and otherwise alter the resulting product to make it look as real as possible.

HAGGARD then fraudulently marketed the reproductions as originals through eBay using a member username and various e-mail addresses. HAGGARD was able to sell numerous fake lobby cards and posters for movies such as "Frankenstein," "Son of Frankenstein," "Mummy's Hand," and "Murder in the Rue Morgue," at prices ranging from $500 to $5,000, to approximately 25 victims. In other instances, HAGGARD traded his fake reproductions to other sellers who gave HAGGARD real lobby cards and/or posters in return.

The victims learned of the fraud in various ways, including after providing the lobby card to a restoration expert, or after consigning the piece to a large auction house for sale. As a result of HAGGARD's fraud, his victims lost more than $1 million in money and property.

HAGGARD is charged with one count of mail fraud. If convicted, he faces a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross pecuniary loss or gain derived from the offense on each count.

HAGGARD, 45, of Commerce, Georgia, was presented today in federal court in Gainesville, Georgia.

U.S. Attorney PREET BHARARA stated: "Kerry Haggard's purported fraud was a real-life horror show for his victims, who are allegedly out of pocket more than one million dollars. It is especially difficult to police fraud over the Internet, but increasingly important that we do so aggressively. Together with our partners at the FBI, this office will continue to go after those who disguise their scams through online auctions and websites."

FBI Special Agent-in-Charge GEORGE VENIZELOS stated: "Authentic vintage movie posters are valuable pieces of memorabilia sometimes worth thousands of dollars. But Haggard wasn't a legitimate purveyor of fine collectibles. He created and peddled fakes. Whether the merchandise is artwork, baseball memorabilia, or movie posters, if you try to peddle fakes, you'll draw the attention of not just potential purchasers, but the FBI."

Mr. BHARARA praised the work of the FBI's New York and Atlanta field offices and said the investigation in continuing.

This case is being prosecuted by the Office's Complex Frauds Unit. Assistant United States Attorney RYAN P. POSCABLO is in charge of this prosecution.

The charge contained in the criminal complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

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Delta Flight 273 Passenger Charged with Interfering With Flight Crew and Making False Bomb Threats on Aircraft

/PRNewswire/ -- Derek Michael Stansberry, a U.S. citizen and resident of Riverview, Fla., was charged today in a criminal complaint in the District of Maine with interfering with flight crew members and willfully making false threats about an explosive device on an aircraft, U.S. Attorney Paula D. Silsby announced.

Stansberry, 27, a passenger on Delta flight 273 from Paris to Atlanta on April 27, 2010, was arrested yesterday after the flight was diverted to Bangor, Maine, in connection with his alleged illegal activities. Stansberry is expected to make his initial appearance in federal court in Bangor, but a time for the hearing has not yet been set. He faces a potential sentence of 20 years in prison for interfering with flight crew members and five years in prison for making false threats about an explosive device on an aircraft.

"Making false bomb threats on an aircraft and interfering with the flight crew are serious crimes that have serious consequences," said U.S. Attorney Silsby. "Today's charges should serve as a reminder that the federal government will not tolerate this activity. This case also highlights the extensive resources required to address threats that prove to be false -- resources that could be better utilized addressing real threats."

According to an affidavit filed in support of the criminal complaint, during the course of the flight, Stansberry passed a note to the flight attendant stating, among other things, that he was not an American citizen, that his passports and identity were fake, that he would leave his wallet and passport on the aircraft and "Please let my family know the truth..."

The flight attendant provided the note to a Federal Air Marshal on the plane. Stansberry was then moved to the back of the plane and taken into custody by the air marshals without incident. According to the affidavit, Stansberry told the air marshals that he had dynamite in his boots, which were located in his backpack, and that a pressure plate switch would detonate the dynamite. Stansberry also allegedly stated that there were explosives in his laptop.

According to the affidavit, the air marshals took custody of the laptop and the boots, placed them at the rear of the plane and built a bunker around these items to dampen the effects of any potential explosion. Stansberry remained in custody as the flight was diverted to Bangor.

Upon arrival in Bangor at approximately 3:30 p.m., Stansberry was removed from the aircraft and taken into FBI custody. Passenger and crew were also removed from the aircraft. The Bangor Police Department bomb squad searched the entire plane and all carry-on and checked luggage. No explosive devices were located on the plane or in the luggage.

The affidavit alleges that, after being searched and brought to the holding area at the airport, Stansberry stated that he held high-level government clearances and was in possession of classified documents. He also allegedly stated that he believed people on the plane were following him, ridiculing him and using interrogation techniques on him, although these people never spoke directly to him or asked him any questions.

According to the affidavit, Stansberry said he decided to claim he had a bomb in order to divert attention from himself and the fact that he had classified information. He said he did not actually possess any explosive device and that he did not have the ability to make one. During the interview, Stansberry indicated that he had taken one Ambien earlier in the day. A report by the Federal Air Marshals indicated that Stansberry had stated to an air marshal that he had taken eight Ambien and had previously used Valium but not on this flight.

This investigation is being conducted by the FBI, Federal Air Marshals, U.S. Immigration and Customs Enforcement, Bureau of Alcohol, Tobacco and Firearms, U.S. Customs and Border Protection, Transportation and Security Administration and the Bangor Police Department. The prosecution is being handled by the U.S. Attorney's Office for the District of Maine.

The public is reminded that a criminal complaint contains mere allegations. Defendants are presumed innocent unless and until proven guilty in a court of law.

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Army Colonel Charged with Producing Own Child Pornography

EDGAR PAGAN-TORRES, 41, of Peachtree City, Georgia, a lieutenant colonel with the U.S. Army, has been indicted by a federal grand jury on child pornography production and possession offenses. PAGAN made his initial appearance before a United States Magistrate Judge on April 15, 2009 and was indicted this afternoon.

United States Attorney Sally Quillian Yates said, “This defendant allegedly sexually abused his own daughter and niece and then produced videos of his crimes, ‘mementos’ that he carefully organized into home video-style DVDs. This shocking and tragic conduct has no place in our nation’s military, nor anywhere else. I appreciate all the hard work the U.S. Army investigators did to bring this case to the FBI and to ensure that the Defendant now faces these very serious charges.”

“Today's indictment and continuing investigation clearly illustrates tremendous interagency cooperation with our global law enforcement partners,” said Brigadier General Colleen McGuire, the Provost Marshal General of the Army and the Commanding General of the U.S. Army Criminal Investigation Command. “Working hand in hand with Federal, State and local law enforcement agencies in cross jurisdictional investigations, we are continually proving our commitment to investigate crimes impacting the Army, wherever they may occur.”

According to United States Attorney Yates, the indictment and evidence in public record and in court: PAGAN was assigned to a military installation in Puerto Rico from 2004 to 2007. At that time, he and his family lived near PAGAN’s sister, who has a daughter the same age as PAGAN’s daughter. In 2008, a year after PAGAN and his family relocated to Peachtree City, PAGAN’s niece made an outcry alleging that PAGAN had molested her and his daughter. In 2009, family members passed this information to law enforcement in Puerto Rico, resulting in PAGAN’s guilty plea last month in Puerto Rico to criminal charges related to his niece’s molestation allegations.

At the same time the Puerto Rican authorities were investigating, agents from the U.S. Army’s Criminal Investigations Division based at Ft. McPherson seized various computers and digital media from PAGAN’s home in Peachtree City. Searches of these items revealed sexually explicit videos PAGAN had made involving his daughter and his niece. Some of the videos were made in PAGAN’s home in Puerto Rico and others were made in his Peachtree City residence. Many of the videos had been transferred from the original recording media to home video-style DVDs organized into chapters. Additional forensic work uncovered a large collection of child pornography PAGAN had downloaded from the internet.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt.

This case is being investigated by Special Agents of the FBI, U.S. Army Criminal Investigations Division, and the Peachtree City Police Department.

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State Highway Safety Agencies Supporting Oprah's 'No Phone Zone' Day

/PRNewswire/ -- The Governors Highway Safety Association (GHSA) and its member State Highway Safety Agencies are joining forces with Oprah Winfrey and Harpo Studios to fight distracted driving during "No Phone Zone Day" on Friday April 30, 2010.

Affiliates nationwide will air a special live episode of "The Oprah Winfrey Show" devoted to dangers associated with cell phone use and texting while driving. Special viewing rallies will be held in Atlanta, Boston, Detroit, Los Angeles and Washington, D.C., bringing together victims' families, elected officials, advocacy organizations, parents, youth, and law enforcement to discuss best practices and steps to limit distracted driving in their own communities. In addition, the "Oprah" show will debut a new sponsored public service announcement campaign. All participants and viewers will be asked to pledge to make their cars a "No Phone Zone."

GHSA's State Highway Safety Office members are participating in the viewing rallies and other community mobilization activities. GHSA is encouraging all states to spread the word through news releases, community events, and through social media sites such as Facebook and Twitter. States with distracted driving laws may use the day to draw attention to the legislation. Currently, 23 states and Washington, D.C. have texting laws. (For a full list, visit www.ghsa.org/html/stateinfo/laws/cellphone_laws.html).

GHSA Chairman Vernon Betkey has personally taken the "No Phone Zone" pledge and will participate in the Washington D.C. rally. He notes that "GHSA has always supported a multifaceted approach to combating distracted driving. While state legislation and enforcement are both critical factors, education efforts are also important--and what better person to raise public awareness than Oprah Winfrey? As a society, we need to make cell phone use while driving as unacceptable as drunk driving. We are very grateful to Harpo and Ms. Winfrey for their leadership and commitment."

Also supporting Oprah's "No Phone Zone Day" are: the U.S. Department of Transportation (DOT), National Highway Traffic Safety Administration (NHTSA), National Organizations for Youth Safety (NOYS), FocusDriven, SADD (Students Against Destructive Decisions) and RADD - the Entertainment Industry's Voice for Road Safety.

For a list of state activities, visit: www.ghsa.org/html/projects/dist_drv/npz/2010.html.

To take the "No Phone Zone" pledge, visit: www.oprah.com/nophonezone.

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Smoke Alarm Maintenance How To’s

(BUSINESS WIRE)--With their proven ability to double your family’s chance of surviving a residential fire, smoke detectors are one of the most valuable fire safety tools on the market – yet we tend to take them for granted.

“Smoke alarms are such a common presence in our homes that it’s easy to just expect them to work every time”

“Smoke alarms are such a common presence in our homes that it’s easy to just expect them to work every time,” says CableOrganizer.com product specialist Christina Hansen. “But like many other devices and appliances around the house, smoke detectors require regular cleaning and maintenance to function effectively.”

To ensure the best smoke detection possible, CableOrganizer.com offers these 5 easy tips for keeping household smoke alarms tuned up, properly powered, and ready for action:

* Dust and contaminants can interfere with a smoke alarm’s ability to detect smoke, so clean all detectors in your home at least twice a year. Use your vacuum cleaner’s long upholstery wand to clear away any dust or cobwebs that have settled around the detectors, and – if possible – vacuum out the smoke alarms’ interior compartments as well.
* Don’t wait for that high-pitched chirp to annoy you into changing smoke detector batteries; instead, keep a standing annual date with yourself to replace the battery in each smoke alarm. Try choosing an easy-to-remember date that has personal significance, like a birthday, anniversary, or the day you turn your clocks back from Daylight Savings Time.
* Remember that smoke detectors don’t last forever. Outdated smoke alarms can randomly fail, so it’s important to stay on the safe side and replace all household smoke detectors every 10 years. If you’ve lived in your home for less than 10 years but aren’t sure how old the existing smoke alarms are, don’t take any chances with your safety – switch them out for new units immediately.
* Test smoke detectors monthly by pressing their “test” buttons – if the alarm sounds, everything’s working fine. If you’d prefer extra reassurance, test your alarms with actual smoke. All you need to do is light a candle, blow it out, then immediately hold it a few inches below the detector, allowing a trail of smoke from the just-extinguished wick to drift inside the unit and trigger its alarm.
* If a particular smoke alarm is sounding frequently even when there isn’t any smoke in the air, don’t disable it – instead, investigate the cause of the false alarms. Oftentimes you’ll find that the smoke detector is located too close to the kitchen or bathroom, where cooking fumes and steam can trick it into going off even when there’s no danger. Relocating the detector a little further away should solve the problem; however, if the false alarms keep occurring, you could be dealing with a faulty smoke alarm, in which case it should just be replaced.

Consumers may order a wide selection of smoke and carbon monoxide detectors online at http://CableOrganizer.com or via toll-free telephone at 1-866-222-0030.

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Convicted Felon Indicted for Sex Trafficking of a Minor

CHESIRE MARTINEZ ROBINSON, a/k/a “Candyman,” 28, of Austell, Georgia, was arraigned today on federal charges of trafficking of a minor for sex; transporting a minor in interstate commerce for prostitution; and possession of a firearm by a convicted felon. ROBINSON, who is being held on unrelated state charges, was arraigned before United States Magistrate Judge Gerrilyn Brill and remains detained.

United States Attorney Sally Quillian Yates said, “The FBI and our other partner law enforcement agencies continue to see the brutal victimization of young girls by men who force them into prostitution, and use violence and intimidation to keep them there. We have charged a number of similar cases this year alone, and will continue to find and prosecute these predators who belong in a federal prison where there is no parole.”

FBI Atlanta Acting Special Agent in Charge Ricky Maxwell said, “Exploiting a minor child by forcing her into prostitution is a despicable act that cannot be tolerated. The FBI funds and operates a task force consisting of agents and officers from the surrounding area who are dedicated to combating child prostitution in the region by targeting those that exploit these minor children.”

According to United States Attorney Yates, the indictment and information presented in court: In or about July 2009, and continuing through on or about October 2, 2009, ROBINSON allegedly caused the victim, a 16-year-old girl, to engage in prostitution at various hotels and at a truck stop, in the Atlanta area. ROBINSON brought the victim, who he knew to be a minor, from her home in South Carolina to the Atlanta area. He then placed photographs of the victim in escort and erotic services sections of various Internet websites, and used those ads to recruit men to engage in commercial sex acts with the victim. When the girl refused to engage in commercial sex acts, ROBINSON allegedly beat the victim on several occasions. During a search of ROBINSON’s apartment on October 2, 2009, investigators found a 9 mm pistol that belonged to ROBINSON, who had previously been convicted of the felony offense of armed robbery in Cobb County, Georgia.

The indictment charges ROBINSON with conspiracy; sex trafficking of a minor; transporting a minor in interstate commerce for the purpose of prostitution; and possession of a firearm by a convicted felon. The charges carry a mandatory minimum sentence of 10 years, up to a combined, maximum sentence of life imprisonment, and a fine of up to $1,000,000.

This case is being investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.

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Four Sentenced to Lengthy Prison Terms for Their Roles in Drug Trafficking Ring

Brian Christopher HARRIS, 28, of Augusta; Marsignor Cornelius WHITE, 26, of Augusta; Derrick D. KING, 32, of Millegeville, Georgia; and Jaimere PROSSER, 27, of Newark, New Jersey, were sentenced this week by United States District Judge J. Randal Hall to serve prison terms of 14 years or more in federal prison on charges of drug trafficking.

United States Attorney Edward J. Tarver said, “These defendants directly participated in the distribution of significant quantities of cocaine throughout the Augusta area. These sentences demonstrate that those who distribute cocaine and other dangerous drugs in our communities will serve long prison sentences.”

HARRIS was sentenced to more than 14 years (175 months) in prison to be followed by five years of supervised release. WHITE was sentenced to more than 15 years (188 months) in prison to be followed by five years of supervised release. KING was sentenced to more than 18 years (220 months) in prison to be followed by five years of supervised release. PROSSER was sentenced to 25 years (300 months) in prison to be followed by eight years of supervised release.

United States Attorney Tarver noted that these sentences relate to a 14-month federal investigation of a cocaine trafficking ring in the East Augusta area including Augusta’s Dogwood Terrace Public Housing Community. During the investigation, government agents seized significant quantities of crack and powder cocaine, nine firearms and over $55,000 cash. The investigation was conducted by the FBI’s Safe Streets Task Force which consists of officers and agents from the FBI, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the GBI, and the Georgia State Board of Pardons and Paroles. ATF, DEA and the United States Marshal’s Service also participated in the investigation.

Other defendants who pleaded guilty and are awaiting sentencing include: Reginald Darrell BEALE, 28, of Hephzibah, Georgia; Latria Grenise SMITH, 26, of Hephzibah; Mark JONES, 52, of Augusta; Sylvester Ruben LEWIS, 33, of Augusta; and Sequoyah ELAM, 28, of Lincolnton, Georgia.

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Woman Pleads Guilty to Tax Violations

On April 13, 2010, PATSY D. BAKER entered a plea of guilty to one (1) count of aiding and assisting the filing of a false return in violation of Title 26, United States Code, Section 7206(2) in the Middle District of Georgia.

The defendant will be sentenced before the Honorable C. Ashley Royal, Chief Judge of the United States District Court for the Middle District of Georgia. The charge of aiding and assisting the filing of false returns carries a possible maximum sentence of three (3) years' imprisonment, and lor a possible maximum fine of $250,000.00.

Baker held herself out to the public as a tax preparer, and was the owner and operator of Elite Tax Service. Baker operated her tax refund preparation business out of a restaurant known as Kazzmo's, located in Eatonton, Georgia.

The defendant falsely represented to the Internal Revenue Service that the information contained in the tax returns for various taxpayers was accurate, when in truth and fact as the defendant well knew, the information contained therein was false. Such false information included representations of fictitious employment. The false information made it appear that the various taxpayers were entitled to larger income tax refunds than would be the case had the returns been truthfully and accurately completed. From on or about November 26, 2003, through on or about September 5, 2006, Baker did aid and assist in the preparation and presentation to the Internal Revenue Service of fifteen (15) Income Tax Returns Forms, 1040EZ, 1040A, and 1040, which were fraudulent and false as to material matters, in that the returns represented that said taxpayers were entitled to larger income tax refunds than would be the case had the return been truthfully and accurately completed, wherein said taxpayers claimed $46,398.13.

The charges against Baker arose from an investigation conducted by the Internal Revenue Service - Criminal Investigation Division, Federal Bureau of Investigation, and the Georgia Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Harry J. Fox, Jr.

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Fulton County Deputy Sheriff Indicted on Corruption, Drug, and Firearm Offenses

ANTHONY C. ATWATER, 32, of Atlanta, Georgia, a deputy with the Fulton County Sheriff’s Office, has been indicted by a federal grand jury on corruption, drug, and firearm offenses. ATWATER is scheduled to make his initial appearance before United States Magistrate Judge Russell G. Vineyard at 1:30 p.m. this afternoon.

United States Attorney Sally Quillian Yates said, “In exchange for cash payments, this deputy sheriff allegedly provided protection for drug deals. He chose to protect suspected drug dealers rather than protect the public. This office and our law enforcement partners will continue to investigate and prosecute corrupt public officials at all levels of government who abuse their positions to line their own pockets.”

FBI Atlanta Acting Special Agent in Charge Jeffrey C. Mazanec said, “It is paramount that the public maintain the highest level of trust in the law enforcement officers charged with protecting the citizens of Fulton County. These charges serve as a reminder that nobody is above the law, and that the FBI is committed to work with all parts of the law enforcement community to prevent the erosion of public trust that accompany such incidents.”

Fulton County Sheriff Ted Jackson said, “When an officer who has taken the oath to serve and protect violates the law, it tarnishes and damages the reputations of those who are committed to doing the right thing. The Fulton County Sheriff's Office has been aware of this investigation since January and has cooperated fully with the FBI and will continue to do so. This deputy was arrested by the FBI, during roll call this morning, sending a message that criminal behavior of any type will not be tolerated. This does not reflect on the many men and women who put their lives on the line for public safety on a daily basis.”

According to United States Attorney Yates, the indictment and evidence presented in court: Between January and March 2010, ATWATER, in exchange for $4,000 in cash payoffs, used his position as a sheriff's deputy to provide armed protection for alleged drug dealers. The indictment alleges that on two separate occasions, January 23, 2010, and March 12, 2010, ATWATER attempted to aid and abet drug deals involving cocaine. In each instance, he knowingly possessed a firearm in furtherance of the drug trafficking crime.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.

This case is being investigated by special agents of the FBI and the Internal Revenue Service-Criminal Investigation.

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Seeking Information on Interstate Serial Bank Robber

Acting Special Agent in Charge (SAC) Jeffrey C. Mazanec, FBI Atlanta, requests the public’s assistance in identifying and locating a serial bank robber, dubbed the “Granddad Bandit” that has robbed at least 20 banks in 12 states to date.

Beginning on January 16, 2009, at Mobile, Alabama, an unknown white male, approximate age between 50-60 years old, began a bank robbery spree that has taken him to Georgia, Virginia, Arkansas, Alabama, New York, and Florida and other southeastern U.S. states. His robberies are described as being calm, with a deliberate attempt to not attract attention to himself. The robber quietly presents a demand note to the victim teller and thereafter departs the bank without disruption to normal banking business going on around him.

This same individual robbed the Bank of America, located at 1280 West Paces Ferry Road, Atlanta, Georgia, at 2:02 p.m. on April 2, 2010. Below are bank surveillance photos from that robbery. This is the fourth bank robbery in the Atlanta area attributed to the Granddad Bandit.

Below are the following bank robberies that are currently being attributed to this individual:
Whitney National Bank, 50 N. Royal Street, Mobile, AL 36602 1/16/09
Amegy Bank of Texas, 711 Louisiana Street, Houston, TX 77002 4/10/09
Suntrust Bank, 303 Peachtree Street NE, Atlanta, GA 30308 4/29/09
Valley Bank, Church Avenue SW, Roanoke, VA 24011 5/29/09
Capital One Bank, 510 Park Street, Beaumont, TX 77701 6/22/09
Arvest Bank, 500 Broadway Street, Little Rock, AR 72201 7/3/09
Wells Fargo, 2611 Cedar Springs Road, Dallas, TX 75201 7/24/09
Bank of America, 100 N. Broadway Street, Wichita, KS 67202 8/07/09
Servis 1st Bank, 324 Richard Arrington Jr., Blvd. N, Birmingham, AL 35203 8/21/09
Solvay Bank, 109 S. Warren Street, Syracuse, NY 13202 9/22/09
Suntrust Bank, 1503 Peachtree St. NE, Atlanta, GA 30309 10/02/09
Bank of America, 3430 Thomasville Road, Tallahassee, FL 32312 10/16/09
Fifth Third Bank, US Highway 127, St. Johns, MI 49220 11/05/09
Regions Bank, 723 Garrison Avenue, Fort Smith, AR 72901 12/10/09
Valley National Bank, 2020 E 21st Street, Tulsa, OK 74114 12/11/09
RBC Bank, 2743 Chastain Meadows Pkwy NW, Marietta, GA 30066 12/18/09
Regions Bank, 1875 Lakeland Drive, Jackson, MS 39211 01/20/10
First Bank, 625 Market Street, Knoxville, TN 37902 2/11/10
BBVA Compass Bank, Governors Drive, Huntsville, AL 2/24/10
Bank of America, W. Paces Ferry Rd., Atlanta, GA 4/02/10

The robber is described as follows:

* Race: White
* Sex: Male
* Age: 50-60 years of age
* Height: 6’0” – 6’4”
* Weight: 220-250 lbs.
* Build: Stocky
* Hair: Bald with short gray hair on side
* Misc: Prescription glasses

There is a $10,000 reward being offered by law enforcement in this matter.

Anyone with information should call the Atlanta FBI at tel. (404) 679-9000.

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Defendants Sentenced for Telemarketing Stock Fraud Scheme

JOHN A. REECE, 57, of St. Augustine, Florida, and PATRICK J. SOLTIS, 47, of Hoschton, Georgia were sentenced today by United States District Judge Clarence Cooper to federal prison for operating a telemarketing scheme in Marietta, Georgia, that defrauded dozens of foreign individuals into investing hundreds of thousands of dollars in fraudulent companies.

United States Attorney Sally Quillian Yates said of the case, “These defendants ran an investment boiler room operation using telemarketers to pressure their unsuspecting victims into investing thousands of dollars in a variety of phony ventures. The defendants have now been sentenced to federal prison and ordered to pay restitution to their innocent victims.”

REECE was sentenced to six years and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $582,639. SOLTIS, who cooperated with the government and received a sentence reduction as a result, was sentenced to three years and five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $301,601. REECE was convicted of these charges after pleading guilty on January 11, 2010. SOLTIS was convicted after pleading guilty on October 15, 2008.

According to United States Attorney Yates, the charges and other information presented in court: REECE and SOLTIS lied to investors in 2002 to entice them to invest in a shell company, Wolf & Soltis Holdings, LLC. Through telemarketers they hired to sell the stock in unsolicited transactions, the defendants falsely claimed that Wolf & Soltis had substantial business operations and plans to expand in a number of areas. In fact the company was bogus, had no operations, assets, revenues, or even employees, other than the hired telemarketers.

As part of the scheme, the defendants claimed that they owned a private bottled water company, were involved with the University of Minnesota to develop a tree species that grew more quickly, and owned a cosmetics company for which entertainment personality Raquel Welch was the spokesperson. All of these claims were false. In truth, the defendants pocketed the lion’s share of the money they received from investors and used the rest to pay their telemarketers, telephone bills, and related expenses. After a disagreement with SOLTIS, REECE began to operate a second fraudulent telemarketing scheme through an entity he operated known as “Wellington Group,” purportedly selling shares in “Australian Biofund Investments, Ltd.” (ABIL), based on material misrepresentations and omissions. REECE retained the vast majority of the money invested in Wellington, but failed to disclose that fact and even falsely informed investors that there was no commission associated with their investments.

To execute their fraud, REECE and SOLTIS ran a boiler room with high-pressure telemarketers they hired to call hundreds of potentially vulnerable victims each day from call lists they had purchased. In addition to providing call lists to the telemarketers, REECE developed scripts for them to use in selling the fraudulent investments. The call lists targeted foreign investors in English speaking countries. The defendants intentionally targeted foreign investors in part to avoid, or at least delay, the scrutiny of U.S. law enforcement. As a result, the overwhelming majority of the victims live in foreign countries, primarily Australia and Canada. The defendants’ schemes resulted in a loss of over $600,000 to the victims.

This case was investigated by Special Agents of the Federal Bureau of Investigation.

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Disbarred Attorney Pleads Guilty to Defrauding Elderly Clients

M. DEWEY BAIN, 59, of Cumming, Georgia, pleaded guilty today in federal district court to defrauding his clients of over $4.5 million in trust funds that he had misrepresented were in investments earning good returns.

United States Attorney Sally Quillian Yates said of the case, “This defendant, an attorney formerly licensed in Georgia and Texas, entered into trust agreements with elderly victims, told them that he was placing their money in safe investments, and then lost it all after diverting it to his own personal and business use. His egregious abuse of trust defrauded clients out of more than $4.5 million in retirement savings and inheritance money.”

“The Secret Service takes an aggressive approach to the prevention and investigation of con artists who prey upon innocent victims by promising future large financial gain for a small initial investment,” said Jeffrey T. Gilbert, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This case demonstrates the wide-reaching effects of bogus financial and real estate schemes, the impact on innocent victims, and the importance of cooperation among our law enforcement partners.”

According to United States Attorney Yates, the charges and other information presented in court: Between May 2006 and March 2009, BAIN, an attorney formerly licensed in Georgia and Texas, stole over $4.5 million of his clients’ money based on a fraudulent trust scheme. He entered into trust agreements with the defrauded clients, many of whom were elderly, and agreed to act as their financial advisor and invest their retirement savings and inheritances in safe accounts, such as certificates of deposit and loans to third parties that were allegedly secured by real estate and other valuable property. During the scheme, however, BAIN diverted their money to pay for his own personal expenses and, without their permission, used it to support his business interests. His business, DnC Multimedia Corp., formerly known as PlanetLink Communications, Inc., later filed for bankruptcy. Through early 2009, BAIN falsely assured his victims that their trust accounts were earning good interest based on the investments, when in fact the accounts had no value by at least February 2009.

Under one of the trust agreements, BAIN originally invested the money of a 97-year-old client in certificates of deposit and paid her personal expenses out of the trust. He later liquidated the certificates based on false pretenses and moved the money to a bank account in his name. He then used the money in his business, even though she had specifically refused to permit such an investment because it was too risky. He also wrote checks off of her credit card account without her authorization. As a result of BAIN’s fraud, this victim lost nearly $1 million and was no longer able to pay for her assisted living residence. BAIN was disbarred in Georgia in October 2009.

BAIN was charged in a criminal information in March 2010. Today he pleaded guilty to one count of wire fraud. He could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing is scheduled for July 7, 2010, at 10:00 a.m., before United States District Judge Thomas W. Thrash, Jr.

This case is being investigated by special agents of the Federal Bureau of Investigation and the United States Secret Service.

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Georgia Man Sentenced in Mortgage and Bankruptcy Fraud Related to Loans Funded by Failed Bank

Now-Failed Omni National Bank Helped Fund Millions in Loans for Convicted Mortgage Fraudster Mark McBride

Mark Anthony McBride, 44, a/k/a “Charles Conley,” “Charles Conley, Jr.,” and “Manuel Evans,” of East Point, Ga., was sentenced today by United States District Court Judge Jack T. Camp on charges of conspiracy to commit bank, mail, wire, and bankruptcy fraud. McBride was also sentenced for violating the terms of his supervised release on a prior federal mortgage fraud conviction.

U.S. Attorney Sally Quillian Yates said, “The lengthy sentence imposed in this case reflects the damage this defendant did to dozens of banks, including the now-failed Omni National Bank, as well as his abuse of U.S. Bankruptcy courts in three states from his fraudulent filings designed to delay property foreclosures.”

McBride was sentenced to 16 years and two months in prison, to be followed by five years of supervised release, and ordered to pay $2,197,929 in restitution on the charges related to his latest mortgage fraud. He was also sentenced to a consecutive two years in prison for violating supervised release on his prior mortgage fraud conviction.

McBride pleaded guilty to the new charges and admitted his supervised release violations on April 24, 2009.

According to U.S. Attorney Yates and the information presented in court: In 2001, immediately upon release from prison on a prior bank fraud conviction, McBride began a mortgage fraud scheme that continued until 2002, when he reported for service of another federal prison sentence. In that scheme, McBride used unqualified borrowers to obtain fraudulently inflated loans. When he was released again from prison in November 2006, McBride was placed in a halfway house. The evidence showed that while under supervision at the halfway house, he was able to attend his own fraudulent loan closings. After his release from the halfway house, McBride continued his scheme of obtaining fraudulent mortgage loans, vehicle loans, lines of credit, credit cards, and other extensions of credit in his name, in his aliases, in the names of numerous stolen identities, and in the identities of other unqualified borrowers. These fraudulent loans continued until McBride was arrested in September 2008 for violating his supervised release. Dozens of banks and other lenders, including the now-failed “Omni National Bank,” funded fraudulent loans for McBride.

McBride generated mortgage loan proceeds for himself using inflated valuations for properties securing the loans, and shared those proceeds with his straw borrowers and other conspirators. He was able to retain fraud proceeds by filing eight fraudulent bankruptcy cases in Georgia, Alabama, and South Carolina. The last such fraudulent filing was a May 2008 petition in Atlanta, filed in a bogus name and stolen Social Security Number. The petition falsely stated he had never filed bankruptcy in the past.

Additional Omni-related prosecutions to date include:

Jeffrey L. Levine, 68, of Atlanta, who pleaded guilty on January 14, 2010, to causing materially false entries that overvalued bank assets to be made in the books, reports, and statements of Omni, is scheduled to be sentenced on May 25, 2010, at 10:00 a.m. before United States District Judge Jack T. Camp.

Delroy Oliver Davy, 37, of Lithonia, Ga., was charged in a criminal information on December 18, 2009, with bank fraud and conspiracy to commit bank, mail, and wire fraud in connection with a scheme to fraudulently obtain millions of dollars of mortgage loans from Omni and other lenders. A guilty plea is scheduled for May 11, 2010, at 2 p.m. before United States District Judge Jack T. Camp.

Brent Merrill, 37, of Atlanta, pleaded guilty to making false statements to the Federal Deposit Insurance Corporation (FDIC) and aggravated identity theft on March 23, 2010. When facing foreclosure on 14 properties, Merrill attempted to arrange “short sales” in the names of people whose identities had been stolen to obtain forgiveness from the FDIC of $2.2 million in Omni loan payoffs. He is scheduled to be sentenced on May 25, 2010, at 10:00 a.m. before United States District Judge Jack T. Camp.

These cases are part of President Barack Obama’s Financial Fraud Enforcement Task Force.

President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

These Omni-related cases are being investigated by a Mortgage Fraud Task Force comprised of the U. S. Postal Inspection Service, Housing and Urban Development Office of Inspector General (OIG), the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC- OIG), Special Inspector General for the Troubled Asset Relief Program, and special agents of the FBI. Assistance in this case has also been provided by the Office of the U.S. Bankruptcy Trustee.

This case was prosecuted by Assistant U.S. Attorneys Gale McKenzie and Chris Bly.

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