Month: July 2022

Source: United States Department of Justice News

Baltimore, Maryland – Luther Moody Trent, age 21, of Baltimore, Maryland, pleaded guilty yesterday to malicious destruction of property by fire.

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian S. Geraci; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Niles R. Ford of the Baltimore City Fire Department

According to his guilty plea, on May 21, 2021, at approximately 1:30 a.m., Trent poured gasoline along the exterior of a Baltimore residence and then set the gasoline on fire while Victim 1, Victim 2, and Victim 3 were inside.  The fire caused significant damage to the residence and the adjoining property.  All three victims and firefighter personnel were alerted and were able to evacuate without injury.

Victim 1 was in a prior volatile relationship with Trent which result in the police being called on at least one occasion, as well as an order of protection being issued in favor of Victim 1.  Examination of Victim 1’s cell phone revealed that Trent had sent threatening text messages to Victim 1.

After further investigation, a Baltimore City police detective located a video of a prior incident with Trent and Victim 1 on March 23, 2021.  After reviewing the video, the BPD detective recognized Trent and remembered that he had approached him at the scene of the arson.  At that time, Trent identified himself as “Trey Johnson” and claimed to be inquiring about his “cousin” that he said lived in the residence.  According to the detective, Trent seemed to be acting nervous and drove away from the scene in a black two-door sedan.  Victim 1 confirmed that Trent drove a black two-door sedan at the time.

As stated in his guilty plea, Trent was interviewed by a local news station about the arson in which he claimed to have set Victim 1’s residence on fire because he was upset that he could not see Victim 1.  Further, Trent compared his actions to Romeo and Juliet and stated that “if I can’t have her, nobody can, or at least no one in Baltimore.”

Trent faces a mandatory minimum of 5 years and a maximum of 20 years in prison for malicious destruction of property by fire.  U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 11, 2022 at 10 a.m.

United States Attorney Erek L. Barron commended the ATF, Maryland State Fire Marshals, the Baltimore City State’s Attorney’s Office, the Baltimore Police Department, and the Baltimore City Fire Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

Source: United States Department of Justice News

Joseph Smith, 57, formerly of Fishkill, New York, was sentenced to three years and six months in prison, three years of supervised release, and ordered to pay $2,100,450 in restitution by U.S. District Court Judge Gerald J. Pappert for his scheme to defraud prospective franchisees of more than $2.1 million, collectively.

In February 2022, the defendant, the owner of New York Bagel Enterprises Inc., (New York Bagel), which operated in Pennsylvania and other states, pleaded guilty to charges of conspiracy to commit wire fraud and tax evasion in connection with this scheme. According to court documents and statements made in court, Smith and Dennis Mason, charged separately, made numerous misrepresentations to individuals interested in buying a New York Bagel franchise. These misrepresentations included: a guarantee that New York Bagel could get financing for the prospective franchisee, the actual costs to open a franchise, the number of franchises that were already open or opening, and the profitability of existing franchises. The defendant and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When some prospective franchisees learned of the misrepresentations and demanded their money back, Smith refused to refund these fees. As a result of the fraud, Smith and New York Bagel sold more than 160 franchises and obtained more than $2.1 million in franchise fees.

From 2014 through 2016, Smith deposited more than $1.3 million franchise fees into New York Bagel bank accounts which he controlled. The defendant spent these funds on personal items unrelated to the business, including rent for his home, travel, car payments for personal vehicles and living expenses. Smith did not file corporate or individual income taxes for these three years or pay the taxes he owed to the IRS.

In addition to the term of imprisonment, Smith was ordered to serve three years of supervised release and pay $2,100,450 in restitution.

Mason previously pleaded guilty to related charges and was sentenced to three years in prison in April 2022.

“While Smith was defrauding investors out of their franchise fees, he also evaded nearly $175,000 in taxes due on that income,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Business owners who pay the IRS their fair share of taxes deserve to compete on a level playing field. Competitors who cut corners and seek to skirt their legal obligations should know they will be investigated and prosecuted.”

“Individuals seeking to own and operate business franchises are seeking opportunity and financial stability for themselves and their families; they deserve honesty and forthrightness in their business dealings so they can make informed decisions,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Mr. Smith took advantage of his position to swindle millions of dollars from people seeking legitimate business opportunities, and for that crime he will now spend years in prison.”

“Joseph Smith peddled what looked like a great opportunity to potential franchisees,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Division. “But once they signed on the dotted line, they learned he’d been peddling something else instead. Smith treated their franchise fees like found money. It was a clear-cut case of fraud and this sentence puts him behind bars and provides some justice for his victims. The FBI will always fight to hold crooks like this accountable.”    

“Mr. Smith’s scheme served no purpose other than to mislead and defraud perspective franchisees,” said Special Agent in Charge Yury Kruty of IRS-Criminal Investigation. “Furthermore, he took steps to hide his earnings from IRS, thus shirking his tax liability. The sentence he received is a victory for all Americans who play by the rules.”

The FBI and IRS-Criminal Investigation are investigating the case.

Trial Attorney Eric B. Powers of the Tax Division and Assistant U.S. Attorney David Ignall for the Eastern District of Pennsylvania  are prosecuting the case.

Source: United States Department of Justice News

SPRINGFIELD, Mo. – A West Plains man has been sentenced in federal court for illegally possessing a sawed-off shotgun, which was found in one of the two vehicles he stole within a week of each other.

Michael Bryant, 33, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 28, to eight years in federal prison without parole.

On Nov. 18, 2021, Bryant pleaded guilty to being a felon in possession of a firearm.

A Howell County, Mo., sheriff’s deputy located a stolen Mazda Miata in a trailer park located on County Road 6540 on Oct. 23, 2019. As the deputy was about to search the trailer, he heard glass break and saw Bryant jump out of the back window of the trailer. The deputy chased him until he injured his leg and Bryant was able to escape.

Another deputy arrived and searched the stolen vehicle. The deputy found a loaded Harrington and Richardson 12-gauge sawed-off shotgun wedged between the driver’s side door and seat.

On Oct. 28, 2019, an individual called the Howell County Sheriff’s Department to report that a vehicle was stuck on a rock near the driveway of her rental property. Deputies arrived at the location and found an extensively damaged Chevrolet Silverado stuck on some rocks. The truck’s license plate was registered to another vehicle. Deputies learned that Bryant, who had a number of outstanding arrest warrants, had been operating the truck earlier in the day.

The deputies knocked on the door of a nearby residence. They were told that Bryant was no longer there, but refused permission to enter the residence to search for him. While the investigators began preparing a warrant to search the home, Bryant came out of the residence and was taken into custody.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Bryant has prior felony convictions for tampering with a motor vehicle, stealing, resisting arrest, and possession of a controlled substance.

This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Project Safe Neighborhoods

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.