Category: US Department of Justice

Source: United States Department of Justice News

Baltimore, Maryland – Stephen Franklin, age 54, of Salisbury, Maryland, pleaded guilty today to a wire fraud conspiracy and to aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection. 

The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, Franklin was the chief operating officer of Accurate Optical, a chain of optometric shops on the Eastern Shore of Maryland and with the owners of Accurate Optical he also purchased East Coast Optometric, a chain of South Carolina optical shops.  Franklin and co-defendant Duane G. Larmore met through the Salisbury Chamber of Commerce and became friendly.

As detailed in the plea agreement, Larmore was an employee at Shore Appliance Connection (“Shore Appliance”), located in Salisbury, Maryland, whose duties included maintaining the books and records for the company.  The company was owned and operated by Owner #1 and Owner #2.  From mid-September 2016 through about March 2020, Franklin conspired with others, including Larmore, to steal more than $1.8 million from Shore Appliance.

Specifically, Franklin and Larmore stole over $1 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for Franklin’s businesses, without the knowledge and consent of the owners of Shore Appliance.  For example, Franklin introduced Larmore to an individual who offered an opportunity to invest in an oil deal that promised quick and substantial returns, for an initial investment of $100,000.  Franklin did not have $100,000 but knew that Larmore could obtain the investment funds from Shore Appliance.  Larmore wire transferred $100,000 of Shore Appliance’s money to an account controlled by Franklin, who wire transferred the funds to an individual in the United Kingdom to invest in the oil deal.  Those funds were ultimately returned to Shore Appliance because the name on the bank account did not match the named beneficiary on the wire transfer form completed by Franklin.  Prior to the funds being returned and at Franklin’s urging, Larmore transferred another $100,000 to T.H., purportedly an attorney for the oil deal.  Franklin also convinced Larmore to invest in other deals, including: in 2016, a $95,000 investment with GenFinance II, PLC, London, U.K., which then required an additional $300,000, and then additional funds for additional expenses and travel abroad; in 2018, an investment through W.S. of $35,000 and an investment through Gateway Capital of $50,000; and in 2019 – 2020, investments and expenses through I.P. and E. P.-S. to recover assets in the custody of U.S. Customs, part of the Department of Homeland Security.  No investment paid any return to the schemers.

To conceal how much money had been removed from Shore Appliance and to obtain cash to invest, Franklin suggested that Larmore enter into factoring contracts.  Franklin had experience with borrowing operating funds for his optical companies from factors and provided Larmore with the names and contact information for factoring companies.  Factoring is a means by which businesses, can obtain cash quickly by leveraging accounts receivable.  With Franklin’s encouragement, Larmore applied for a factoring contract for Shore Appliance without the knowledge or approval of the owners, corporate directors, or officers of Shore Appliance.  As detailed in the plea agreement, the factoring contracts provided cash deposits to Shore Appliance’s bank accounts but encumbered the accounts receivable of Shore Appliance and required payments and interest of more than $725,000. 

To obtain contracts with factoring companies for Shore Appliance and to conceal the fact that the Shore Appliance owners were not aware of and had not approved the factoring contracts, the signatures of the owners were forged, and the fraudulent signatures were witnessed or notarized by Franklin.  Further, Larmore and a female employee of Franklin’s posed as the owners in telephone conversations with representatives of the factoring companies to confirm their approval of the factoring contracts.  In addition, to conceal Larmore’s embezzlements and the factoring agreements, Larmore caused Shore Appliance to draw on Shore Appliance’s lines of credit with two separate financial institutions to obtain another $200,000 in cash.  As of March 2020, Shore Appliance still owed $208,394.92 in principal and interest on these lines of credit.

Finally, when Franklin’s business began having financial difficulties, Franklin requested that Larmore provide funds from Shore Appliance for Franklin’s companies.  Larmore provided funds to Franklin for his businesses, including to pay rent and employee salaries, as well as paying to rent a storage facility and hire trucks to move equipment and office furniture when Accurate Optical was evicted from its Salisbury, Maryland office in July 2019.  All the while, Franklin continued to suggest that Larmore put money into other investment schemes, which Larmore did. 

In all, Larmore paid $739,295.28 of Shore Appliance’s funds, without the officers and owners’ knowledge or consent, to invest in fraudulent schemes that never paid any money back.  Of that amount, $395,000 was moved through bank accounts controlled by Franklin.  Franklin caused an additional loss of $171,548.67 by having Larmore transfer funds to Franklin or to Franklin’s companies.  As a result of the conspiracy and efforts to conceal the losses, Shore Appliance lost an additional $731,250.07 in fees and other payments to factors and to factoring brokers.  Shore appliance also paid extra interest in the amount of $208,395 from Larmore drawing on its bank lines of credit.  Thus, the factoring arrangements and advances on Shore Appliance’s lines of credit in total caused Shore Appliance to lose in actual funds $939,645.  However, Shore Appliance as of March 2020 still owed the factors almost $270,000.  For all of Franklin’s and Larmore’s conduct, actual cash losses to Shore Appliance totaled $1,850,488.94 and intended losses totaled $2,137,674.74.

Franklin faces a maximum sentence of 20 years in federal prison for a wire fraud conspiracy and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for September 7, 2023, at 9:30 a.m.  As stated in his plea agreement, Franklin will be required to pay restitution in the full amount of the victims’ losses, which the parties stipulate is $1,850,488.94.  Franklin’s liability is joint with co-defendant Duane G. Larmore.  Duane G. Larmore, age 48, of Salisbury, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.

United States Attorney Erek L. Barron commended the FBI for its work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Evelyn L. Cusson, Joyce K. McDonald, and Leo J. Wise, who are 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. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.

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Source: United States Department of Justice News

            WASHINGTON – Shamell Joyner, 35, of the District of Columbia, has been charged by superseding criminal complaint in the United States District Court for the District of Columbia for an April 13, 2023, armed carjacking and a series of armed robberies committed between April 12 and May 2, 2023.

            U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division, and Chief Robert J. Contee III, of the Metropolitan Police Department announced the charges.

            The superseding criminal complaint describes an armed carjacking from April 13, and eight robberies of commercial establishments from April 12 through May 2, at locations in Northeast and Northwest Washington, as well as in Alexandria, Virginia, and Hanover, Maryland.  As alleged in the complaint, Joyner brandished a firearm during all of the robberies.  He discharged a firearm during the April 12 armed robbery of a Northwest Washington gas station and the April 17 armed robbery of an Alexandria, Virginia convenience store.  A store employee working at the time of the Alexandria robbery sustained a non–life threatening gunshot wound to his leg.

            Joyner is also alleged to have carjacked a man at gunpoint in the Mount Vernon Triangle neighborhood on April 13, and to have used that car to commit subsequent armed robbery offenses.  In addition, Joyner is alleged to have robbed a Hanover, Maryland gas station at gunpoint on May 2, during which he also stole a station employee’s vehicle.  The Metropolitan Police Department found Joyner in the stolen vehicle’s driver’s seat later that day and arrested him.  At the time of his arrest, Joyner was in possession of a firearm used in several of the robberies, as well as clothing and other evidence that tied him to numerous offenses.

            Joyner has been detained since his May 2, 2023, arrest pending further court proceedings.

            Joyner is charged with 16 counts under the United States and District of Columbia Codes.  Under the U.S. Code, Joyner is charged with six counts of Interference with Interstate Commerce by Robbery (also known as “Hobbs Act” robbery), which carries a maximum sentence of 20 years in prison; six counts of Using, Carrying, and Possessing a Firearm During a Crime of Violence, which carries a mandatory minimum sentence of up to 10 years in prison and a maximum sentence of life in prison; two counts of Interstate Transportation of Stolen Vehicles, which carries a maximum sentence of 10 years in prison; and one count of Unlawful Possession of a Firearm and Ammunition by a Person Convicted of a Crime Punishable by Imprisonment for a Term Exceeding One Year, which carries a maximum sentence of 15 years in prison.  Under the D.C. Code, Joyner is charged with one count of Armed Carjacking, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison. The maximum potential sentences in this case are prescribed by Congress and the Council of the District of Columbia and are provided here for informational purposes only, as any sentence imposed in this case will be determined by a federal district court judge after considering applicable sentencing guidelines and other statutory factors.

            A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

            This case is being investigated by the FBI’s Washington Field Office’s Violent Crime Task Force and the Metropolitan Police Department’s Carjacking Task Force. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alexandria City, Anne Arundel County, Fairfax County, and Prince George’s County Police Departments. The case is being prosecuted by Assistant U.S. Attorney Paul V. Courtney and Special Assistant United States Attorney Lauren E. Renaud of the U.S. Attorney’s Office for the District of Columbia.

            The investigation into these offenses and potentially related armed robberies of commercial establishments located in the District of Columbia, Maryland, and Virginia remains ongoing.  Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Source: United States Department of Justice News

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Anthony James, 39, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 29 months in federal prison for possessing a firearm after previously being convicted of a felony.  James pleaded guilty to this charge on February 10, 2023.

On April 3, 2022, a Wisconsin State Patrol trooper stopped a vehicle driven by James in La Crosse County for suspended registration and illegal window tint.  The trooper noticed an odor of marijuana coming from the car and conducted a search of the vehicle.  During the search, the trooper recovered a .22 caliber Sterling handgun from a lockbox that was opened using a key from James’ keyring that was in the ignition of the car.

James’s prior felony convictions include a 2018 conviction in Sheboygan County for felony strangulation/suffocation and Illinois felony convictions for forgery and retail theft.  James also was under state supervision for prior convictions in Kenosha and Ozaukee Counties at the time of his arrest. 

At sentencing, Judge Peterson acknowledged that aggravating factors in determining a sentence were James’s voluminous criminal history and, specifically, his domestic abuse related strangulation conviction in 2018, which raised special concern about his unlawful possession of a firearm.  However, the judge considered that the gun was not loaded, in a locked container, and was not used or possessed in connection with any other offense. 

The charge against James was the result of an investigation conducted by the Wisconsin State Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Robert A. Anderson prosecuted this case. 

Source: United States Department of Justice News

ANCHORAGE – A federal grand jury in Alaska returned an indictment on April 21, 2023, charging a Wasilla man with serving as an airman without an airman’s certificate and displaying false or misleading marks about the registration of an aircraft.

According to court documents, Michael Anthony Roberts, 61, served as an airman without an airman’s certificate when he piloted Piper PA-18 registered as N99640, at Wolf Lake Airport, Wasilla, Alaska on February 27, 2022. The aircraft crashed on takeoff. The indictment also charges that Roberts displayed a false or misleading mark on the Piper PA-18 about the registration of the aircraft.    

Roberts is charged with one count of serving as an airman without a pilot certificate, in violation of 49 U.S.C. § 46306(b)(7) and one count of displaying false or misleading marks about the registration of an aircraft, in violation of 49 U.S.C. § 46306(b)(3). If convicted, he faces a maximum penalty of three years in prison and a $250,000 fine on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The defendant had his initial court appearance on May 9, 2023, before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska, where he was ordered to be detained pending trial.

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The Office of the Inspector General for the Department of Transportation, the Federal Aviation Administration, and the Alaska State Troopers are investigating the case.

Assistant U.S. Attorney Seth Brickey is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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usao/ak/23-037

Source: United States Department of Justice News

            WASHINGTON – Anthony Duncan, 42, of Washington, D.C., was sentenced to 18 months’ imprisonment and 3 years of supervised release today for assaulting a pedestrian in May 2022, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            On February 27, 2023, Duncan was found guilty of Assault with Significant Bodily Injury at a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz presided over the trial.

            According to the government’s evidence presented at trial, on May 21, 2022, the victim was walking home on 15^th Street in Northwest, Washington, D.C. from a Bocce Ball game when he was confronted by Duncan. Duncan, who was a stranger to the victim, accused the victim of directing a sexually suggestive act towards him and took offense. The victim vehemently denied making any such advance. As Duncan confronted the victim for this perceived advanced, he pulled out his cell phone, and recorded himself physically attacking the victim. Duncan broke the victim’s nose and teeth, and the victim required numerous stitches to stop the bleeding. Duncan called the victim a derogatory gay slur numerous times as he attacked the victim.

            In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jared English and Randle Wilson, who investigated and prosecuted the case.