Post on 21-Jul-2020
Dennis M. Duffy
Assistant U.S. Attorney, Senior Litigation Counsel
Eastern District of North Carolina
310 New Bern Avenue, Suite 800, Raleigh, NC 27601
919-856-4847 dennis.duffy@usdoj.gov
WHITE COLLAR PROSECUTIONS
September 26, 2012
Association of Credit Union Internal Auditors
1.
Prostitution Financial Fraud
3. 2.
Arson
4.
Burglaries
WHITE COLLAR PROSECUTIONS
White collar crimes cover an incredibly wide spectrum of conduct:
1.
Prostitution
Financial Fraud
3.
2.
Arson
4.
Burglaries
1. Prostitution
Veotis Harding
ITAR and Money Laundering
Veotis Harding
Sherry Westbrook Clarence Saunders
Alfonita Lee Wanda Hall Tiffany Campbell Ruby Williams Lori Barton Lesonja Riddick April Kittrell Jessica White
Brandi Bates Serena Krotzer Renea Hartsock Rhonda Brock Deanna Borrillo
David Taylor Antowain Steward
Organizational Structure for: Diamonds and Pearls Escorts First In Flight Anastasia Escorts
Trash Runs
Credit Card Records
Bank Records
Phone Records
Potential Charges
ITAR § 1952:
1. Use Interstate Facility; and
2. Facilitate Racketeering Enterprise.
MONEY LAUNDERING § 1956:
1. Financial Transaction;
2. Proceeds of Specified Unlawful Activity (“SUA”);
3. Knew Stolen Proceeds; and
4. Knew Transaction Intended, in Whole or in Part, to
Conceal or Promote.
Veotis Harding Sherry Westbrook Clarence Saunders
24 ½ Years 5 Years Probation
January 6, 1998
2. Arson
NOVEMBER 10, 1997
TIMELINE OF EVENTS AFTER FIRE
11/10/97 - 10/13/98
11
/10
/97
11
/14
/97
11
/28
/97
12
/12
/97
12
/21
/97
01
/06
/98
02
/13
/98
03
/25
/98
04
/20
/98
11
/07
/98
10
/13
/98
Fire
UNITY B - 90K
UNITY C - 344K
UNITY A - 75K
Claim Form Sent
5K Check Issued
Wire Fraud
5K Check Issued 5K Check Issued
Letter Re: Advance
10K Check Issued
$7,240 Check Issued
Debris Photo
Hauling Invoice
TIMELINE OF EVENTS LEADING UP TO FIRE
01/01/97 - 11/10/97
01
/01
/97
01
/21
/97
Financial
Statement
Tax Return
Complaint
01
/28
/97
Unity A
02
/07
/97
Centura Complaint
Note
02
/25
/97
02
/27
/97
Unity B
Unity C
03
/21
/97
Note
Extension
03
/25
/97
Extension
Extension
04
/01
/97
Settlement
05
/27
/97
Judgment
Insurance Application
06
/10
/97
08
/21
/97
Increase in
Insurance
• Allen Security
• Scruggs
• C.O.D.
• NC
• Talks to Jones Re: Burning Down Store
• Needs Time to Move Stuff to Warehouse
June - November
• Gives Scales to Brenda
• Moves Trucks
• Moves Profitable Business
to Warehouse
11
/97
11
/03
/97
First Attempt
• Gasoline Smell
• Cigarettes and Meat Gone
11
/07
/97
11
/10
/97
Lori Sees
Jones with
Cigarettes
Nov. 3 - 10
• Defendant Confirms Insurance
• Defendant Refills Cigarettes
Fire
Sum of Debt
Note
Bank Records
Insurance Investigation
Tax Records
Potential
Charges
NOVEMBER 10, 1997
Thomas Patrick McGlon
Defendant
Gary De Bellonia
Clifton C. West
Daniel Watlington
Defendant
William Muwwakkil Rickey Jessie
Advance Fee Scheme And
Counterfeit Checks
3. Financial Fraud
SGI SPORTS Ex. 396
Ex. 130, Page 39
Ex. 403
Ex. 398
6/20/00
Wire to McGlon &
Assoc. - $30,000
4/19/01
Account West Transfers
$6,536 from SGI Sports to
Conifer Economic Group –
Zeros Out SGI Sports
6/09/00
SGI Sports Wires $300,000
to Trust Account Maintained
by West
6/20/00
Wire to Villei Int’l
(McGlon) - $100,000
Ex.
397
Ex. 400
6/20/00
Check to Daniel
Watlington (via Pallie
Trust) - $60,000
Ex.
404
6/30/00
Check to Daniel
Watlington - $1,500
Ex. 407
10/27/00
Wire to Gary De
Bellonia - $1,000
Ex. 408
4/06/01
Wire to Gary De
Bellonia - $5,000
06/30/00
SGI Sports Wires $5,678
to Trust Account
Maintained by West
6/20/00
Wire to Connie
Givens -$7,500 (for
Watlington)
Ex. 399
6/23/00
Wire to Alex Lam
- $5,000 (for
Gary De
Bellonia)
Ex. 402
6/30/00
Wire to Connie Givens
-$500 (for Watlington)
Ex. 405
9/01/00
West Transfers $75,000
from SGI Sports to
Conifer Economic Group
Ex. 409
4/19/01
Check to West -
$3,642
Ex. 406
10/27/00
Wire to Teresa De
Bellonia - $2,000
Ex. 401
6/23/00
Wire to Teresa De
Bellonia - $8,000
Potential Charges
WIRE FRAUD § 1343:
1. Plan to Defraud OR Obtain Money;
2. Knowing Participation;
3. Misrepresentation was Material; and
4. Use of Wire.
BANK FRAUD § 1344:
1. Plan to Defraud OR Obtain Money;
2. Intent to Defraud;
3. Victim was FDIC Insured; and
4. Misrepresentation was Material.
MONEY LAUNDERING § 1956:
1. Financial Transaction;
2. Proceeds of SUA;
3. Knew Stolen Proceeds; and
4. Knew Transaction Intended, in Whole or in Part, to Conceal or
Promote.
SGI SPORTS Ex. 396
Ex. 130, Page 39
Ex. 403
Ex. 398
6/20/00
Wire to McGlon &
Assoc. - $30,000
4/19/01
West Transfers $6,536 from
SGI Sports to Conifer
Economic Group – Zeros
Out SGI Sports Account
6/09/00
SGI Sports Wires $300,000
to Trust Account Maintained
by West
6/20/00
Wire to Villei Int’l
(McGlon) - $100,000
Ex.
397
Ex. 400
6/20/00
Check to Daniel
Watlington (via Pallie
Trust) - $60,000
Ex.
404
6/30/00
Check to Daniel
Watlington - $1,500
Ex. 407
10/27/00
Wire to Gary De
Bellonia - $1,000
Ex. 408
4/06/01
Wire to Gary De
Bellonia - $5,000
06/30/00
SGI Sports Wires $5,678
to Trust Account
Maintained by West
6/20/00
Wire to Connie
Givens -$7,500 (for
Watlington)
Ex. 399
6/23/00
Wire to Alex Lam -
$5,000 (for Gary De
Bellonia)
Ex. 402
6/30/00
Wire to Connie Givens
-$500 (for Watlington)
Ex. 405
9/01/00
West Transfers $75,000
from SGI Sports to
Conifer Economic
Group
Ex. 409
4/19/01
Check to West - $3,642
Ex. 406
10/27/00
Wire to Teresa De
Bellonia - $2,000
Ex. 401
6/23/00
Wire to Teresa De
Bellonia - $8,000
COUNT 8 COUNT 9
COUNT
26
Thomas Patrick McGlon
CONVICTED:
2 Counts Conspiracy
10 Counts Wire Fraud
11 Counts Money Laundering
Gary De Bellonia
PLED GUILTY &
COOPERATED
Clifton C. West
PLED GUILTY &
COOPERATED
Daniel Watlington
CONVICTED:
2 Counts Conspiracy
5 Counts Bank Fraud
11 Counts Wire Fraud
14 Counts Money Laundering
William Muwwakkil
PLED GUILTY
Rickey Jessie
PLED GUILTY &
COOPERATED
EVENTS TIMELINEEVENTS TIMELINE
03/25/9902/18/9912/24/9811/11/98
1998
Charleston TreasuresCharleston, SC
10/07/98 05/21/99 06/17/99 06/18/99
1999
Mark Andrews Jewelers
Cary / Durham, NC
Winn Dixie
Cary / Durham, NC
Winn DixieApex, NC
10/97
1997
Lands JewelersRaleigh, NC
Friedman’s Jewelers
Birmingham, AL
Spartanburg, SCWinn Dixie
Raleigh, NC
Kroger
Macon, GAFriedman’s JewlersFt. Oglethorpe, GA
GOVERNMENT
EXHIBIT
214
5:01-CR-292-3H/4H
Regency JewelersMacon, GA
Hertz Rental Agreement10/21/97
Macon, GA
Hertz Rental Agreement10/26/97
Macon, GA
National Car Rental Agreement12/21097
Macon, GA
Enterprise Car Rental Agreement05/21099
Chapel Hill, NC
SERANO BUYS STOLEN JEWELRY AND
STAMPS FROM GRANIMS / ORNELAS
February$54,500
March$60,000
May$30,000
July300 Bks Stamps
07/99
Pocket Watch Found on E-Bay
4. Interstate Burglary Ring
Events Timeline
MARK ANDREWS JEWELERS WINN DIXIE
Burglary Ring
Events Timeline
GOVERNMENT
EXHIBIT
3
5:01-CR-292-3H/4H
GOVERNMENT
EXHIBIT
4
5:01-CR-292-3H/4H
EVENTS TIMELINEEVENTS TIMELINE
03/25/9902/18/9912/24/9811/11/98
1998
Charleston TreasuresCharleston, SC
10/07/98 05/21/99 06/17/99 06/18/99
1999
Mark Andrews Jewelers
Cary / Durham, NC
Winn Dixie
Cary / Durham, NC
Winn DixieApex, NC
10/97
1997
Lands JewelersRaleigh, NC
Friedman’s Jewelers
Birmingham, AL
Spartanburg, SCWinn Dixie
Raleigh, NC
Kroger
Macon, GAFriedman’s JewlersFt. Oglethorpe, GA
GOVERNMENT
EXHIBIT
214
5:01-CR-292-3H/4H
Regency JewelersMacon, GA
Hertz Rental Agreement10/21/97
Macon, GA
Hertz Rental Agreement10/26/97
Macon, GA
National Car Rental Agreement12/21097
Macon, GA
Enterprise Car Rental Agreement05/21099
Chapel Hill, NC
SERANO BUYS STOLEN JEWELRY AND
STAMPS FROM GRANIMS / ORNELAS
February$54,500
March$60,000
May$30,000
July300 Bks Stamps
07/99
Pocket Watch Found on E-Bay
Serrano Pays Granims and Ornelas
For Jewelry Stolen from Friedmans
in Alabama - $54,500
February 19, 1999
Florida
Serrano Pays Granims and Ornelas For
Jewelry Stolen from Mark Andrews
Jewelers in North Carolina $30,000
May 24, 1999
Florida
Robert Marshall SerranoRonald Jay Myers, Jr.
GOVERNMENT
EXHIBIT
215
5:01-CR-292-3H/4H
William Anthony Granims Michael Clarence Ornelas
John Mark Collins
INTERSTATE TRANSPORTATION OF STOLEN
ITSP
Interstate Travel;
Knows Property Stolen; and
Total Value - $5,000 or More
Aid & Abet
Knew of Crime
Did Act
Intended to Further Crime
PROPERTY (ITSP)
COUNT 1 ITSP Conspiracy
§371
(8/96 – 7/99)
Agreement
Knowingly Joined In; and
An Overt Act in Furtherance
COUNT 2
ITSP / Aiding & Abetting
§2314 & §2
(Mark Andrews: 5/17 - 5/25/99)
COUNT 3 ITSP / Aiding and Abetting
§2314 & §2
(Winn Dixie - Raleigh/Apex
6/14/99 – 7/13/99)
Money Laundering
Financial Transaction;
Proceeds of ITSP;
Knew Stolen Proceeds;
Knew Transaction Intended,
Aid & Abet
Knew of Crime
Did Act
Intended to further crime
MONEY LAUNDERING
COUNT 4 Conspiracy
§1956(h)
(5/20/99 – 5/25/99)
Agreement
Knowingly Joined In; and
An Overt Act in Furtherance
COUNT 5
Money Laundering
And Aiding & Abetting
§1956(a)(1)(B)(i)
(5/24/99 – 5/25/99)
in Whole or in Part, to Conceal
Potential Charges
05/21
MAY 1999
05/24 05/26
Joint American Express
Account: Granims and Collins
Granims’ Personal Checking Account
GOVERNMENT
EXHIBIT
212
5:01-CR-292-3H/4H
Ex 114
Ex 114
Ex 114
Ex. 130, Pg. 025
Ex. 130, Pg. 043
Ex 129, Pgs. 081 & 082 Ex 129, Pgs. 081 & 083 Ex 77
WINN DIXIE
Cary / Durham
Ex 8
MARK ANDREWS
JEWELERS
Ex 1
Ex 79
Ex. 130, Pg. 105 Ex. 130, Pg. 106
Robert Marshall SerranoRonald Jay Myers, Jr.
GOVERNMENT
EXHIBIT
215
5:01-CR-292-3H/4H
William Anthony Granims Michael Clarence Ornelas
John Mark Collins
Serrano
Robert Marshall SerranoRonald Jay Myers, Jr.
GOVERNMENT
EXHIBIT
215
5:01-CR-292-3H/4H
William Anthony Granims Michael Clarence Ornelas
John Mark CollinsCollins
66 Months 54 Months
Robert Marshall SerranoRonald Jay Myers, Jr.
GOVERNMENT
EXHIBIT
215
5:01-CR-292-3H/4H
William Anthony Granims Michael Clarence Ornelas
John Mark Collins
Robert Marshall SerranoRonald Jay Myers, Jr.
GOVERNMENT
EXHIBIT
215
5:01-CR-292-3H/4H
William Anthony Granims Michael Clarence Ornelas
John Mark Collins
Robert Marshall SerranoRonald Jay Myers, Jr.
GOVERNMENT
EXHIBIT
215
5:01-CR-292-3H/4H
William Anthony Granims Michael Clarence Ornelas
John Mark Collins
Pled Guilty Pled Guilty Pled Guilty