Professional Documents
Culture Documents
4:12-CR-88-1H(2)
GOVERNMENTS RESPONSE TO
DEFENDANTS SENTENCING
MEMORANUDM (DE-284)
Attorney
for
hereby
responds
in
the
Eastern
opposition
to
District
the
of
North
Defendants
Carolina,
Sentencing
Memorandum.
SUMMARY OF POSITION
The Defendant should be sentenced to a term of 30 months
imprisonment 1 for his theft of hundreds of thousands of dollars
from
defenseless
society
to
know
nonprofit
that
those
organization.
holding
It
is
high-paying
vital
for
fiduciary
FACTS
By 2007, the Defendant had seized full control of a nonprofit
named
East
Carolina
Development
Corporation
(ECDC).
hefty
salary,
ECDCs
began
making
fewer
and
fewer
On January 22,
See
the
form
of
inflated
salary
and
unauthorized
expense
reimbursements. 3
The Defendant withdrew the $300,000 that he stole from ECDC
under the guise of four loan disbursements from ECDC to his
2
During the period from 1998 through 2012, the Defendant received
wages of $1.6 million and unauthorized reimbursement payments of
approximately $133,591.
2
money through LMG, the money was used to purchase assets held in
his individual name.
2008-09 (which covered the period during which the $150,000 loan
to
LMG
was
purportedly
made),
the
$150,000
bogus
loan
was
Carolina
Board
following question:
profit
of
Elections
(NC-BOE),
was
asked
the
organizations
[ECDC
and
PDC]?
In
response
to
this
the
fall
of
2010,
the
Defendant
ran
for
the
North
During the
businesses.
The
Defendant
responded
by
sending
out
See Exhibit 5.
request
which
might
have
revealed
the
$300,000
in
making
inquiries
regarding
the
manner
in
which
the
See Exhibit 6.
the
Defendant
conference
on
conference
the
August
responded
16,
Defendant
that
2011,
in
disclosed
he
would
Kinston.
neither
hold
At
the
press
the
press
existence
of
August
Defendants
23,
2011,
instruction,
ECDCs
altered
accountant,
ECDCs
pursuant
completed
to
the
2009-10
liability
7
of
includes
$192,257.95.
the
pages
See
removed
Exhibits
from
the
and
8.
original
compilation
altered
pages
signed
generated
on
per
October
the
25,
2010)
Defendants
contains
instruction
the
in
August 2011.
On September 6, 2011, the day before federal grand jury
subpoenas began to be served in this case, the Defendant sent an
email
to
Debra
pertaining
to
Clary
an
requesting
alleged
her
employment
to
sign
contract
an
affidavit
with
Piedmont
See Exhibit 9 at 2.
In the
the
on
Defendant
Defendant
the
then
official
Id.
redacted
the
minutes.
attached
copy
unsigned
See
of
Exhibit
a
signature
9
at
corporate
block
5.
The
borrowing
Id. at 6-9.
copy of the same minutes from PDCs official records shows that
the Defendant redacted the unsigned signature block from the
minutes.
Soon
after
being
served
with
grand
jury
subpoenas,
the
able
to
raise
enough
cash
to
pay
back
Ultimately he
$200,000
of
the
After paying
back the $200,000 bogus loan, the Defendant then withdrew this
amount in the form of bogus salary payments.
DISCUSSION
The Defendant claims that the facts of this case dictate a
sentence of probation and argues that a portion of his agreed
full restitution payment should be held back and used in payment
of his lawsuit against ECDC.
A
probationary
sentence
appropriate in this case.
is
not
Defendant
next
claims
that
probation
is
warranted
$300,000
from
defenseless
federal prosecution.
nonprofit
clearly
The theft
warrants
manner
in
which
the
Defendant
concealed
his
criminal
conduct.
The Defendant also argues that a probationary sentence is
somehow
warranted
because
he
had
to
endure
the
expense
and
money
from
ECDC.
The
Defendant
has
also
agreed
to
pay
$300,000
payable
in
restitution
immediately.
and
that
such
Consequently,
amounts
the
are
Defendant
due
should
and
be
CERTIFICATE OF SERVICE
This is to certify that I have this 6th day of July, 2015,
served a copy of the foregoing upon the defendant in this action
either electronically or by depositing a copy of the same in the
United States mail in a postpaid envelope addressed as follows:
THOMAS G. WALKER
United States Attorney
BY:
s/ Dennis M. Duffy
DENNIS M. DUFFY
Assistant U.S. Attorney
310 New Bern Avenue, Suite 800
Raleigh, North Carolina 27601
Telephone: (919) 856-4530;
Fax: (919) 856-4487
E-mail: dennis.duffy@usdoj.gov
NC Bar No. 27225
10