Montgomery, Alabama – Today, Jesse Morgan Hinson, 36, formerly of Troy, Alabama, pleaded guilty to mail fraud, announced United States Attorney Sandra J. Stewart. The Alabama Securities Commission provided valuable assistance in the investigation and prosecution of the case.
According to the plea agreement and other court documents, in 2022, Hinson engaged in schemes to defraud multiple victims by falsely representing himself to be a man of great wealth with the ability to conduct profitable real estate transactions. He convinced victims to give him money based on promises of future financial benefits. However, Hinson had no significant assets and intended to take his victims’ money for his own use. Hinson also failed to let his victims know that he had prior convictions for securities fraud, including convictions on Alabama securities fraud charges as recently as March and April of 2022. Hinson was in custody of the Alabama Department of Corrections as of April 30, 2022.
In his plea agreement, Hinson specifically admitted that, in March of 2022, he defrauded an individual in Butler County by claiming that Hinson could finance real estate purchases for a 10 percent down payment. This was not true. Hinson obtained approximately $66,500.00 from the Butler County victim despite Hinson having no ability to finance real estate purchases, and none of the proceeds were used for the victim’s benefit. Instead, Hinson used much of these funds to pay personal expenses and to pay the debts of a woman with whom he had a romantic relationship. After the Butler County victim began demanding his money back, to discourage him from speaking with law enforcement, Hinson, posing as a New York attorney, telephoned the victim, falsely stated that Hinson would be receiving the proceeds of an $11 million loan, and then threatened to bankrupt the victim by opening competing businesses.
Additionally, in April of 2022 and continuing after his incarceration on April 30 of that year, Hinson, as he admitted during his plea hearing, defrauded two other individuals from Tuscaloosa. Hinson told the victims that he would provide them with the profits from the sale of land that Hinson claimed to own to Auburn University if the victims would provide money upfront for taxes. During the course of discussions with the Tuscaloosa victims, Hinson had someone make false misrepresentations to the victims claiming that Hinson controlled assets in the range of $2 to $3 billion. This claim was also untrue. The Tuscaloosa victims provided multiple payments to Hinson’s attorney and to Hinson’s girlfriend totaling $124,028.80.
A sentencing hearing will be scheduled in the coming months. At that hearing, Hinson will face a maximum sentence of 20 years in prison, along with substantial fines and restitution.
“Mr. Hinson has a checkered history of engaging in securities fraud schemes,” said United States Attorney Stewart. “I commend the work of the investigators and prosecutors who unraveled the brazen schemes at issue in this case, thus protecting the public from falling victim to Hinson’s lies.”
“Jesse Morgan Hinson has worked hard to build a horrible reputation of deceiving folks,” said Alabama Securities Commission Chief Deputy Director Amanda Senn. “We encourage everyone to research who you invest your hard-earned money with to avoid career criminals like Hinson, who has left a path of financial devastation and destruction in his wake.”
The United States Secret Service and the Alabama Securities Commission investigated the case. Assistant United States Attorney Stephen K. Moulton and Special Assistant United States Attorneys Andrew O. Schiff and Amanda Senn of the Alabama Securities Commission are prosecuting the case.
WASHINGTON – The Justice Department today announced that Willie M. Burks III, 41, a former Alabama Department of Corrections (ADOC) lieutenant, was sentenced today in federal court to 108 months’ imprisonment, with two years of supervised release to follow. Burks was convicted by a federal jury on July 21, 2021 of failing to stop an officer under his command from assaulting an inmate at ADOC’s Elmore Correctional Facility.
The evidence at trial established that on Feb. 16, 2019, former Correctional Sergeant Ulysses Oliver Jr., Burks’ subordinate, went to an observation room holding two handcuffed and unresisting inmates. Oliver, intending to punish the inmates for bringing contraband into the prison, pulled the first inmate from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to repeatedly strike the victim. Burks came into the hallway after Oliver had finished beating the first inmate. Burks then stood and watched as Oliver pulled the second inmate from the observation room, threw him on the floor, and beat the inmate with his feet and his collapsible baton. Despite having the duty, ability and opportunity to intervene to stop Oliver from beating the second inmate, Burks only stood by and said, “it’s fair.” Other ADOC correctional staff who reported to Burks were present for some or all of the assaults, but none intervened to stop Oliver from beating the inmates.
After the assault, Burks allowed Oliver to come back into the observation room where the victims were held. As Burks again stood by and did nothing, Oliver entered, stood over the victims, and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face.
Oliver and two other former corrections officers have pleaded guilty in connection with this incident. Oliver pleaded guilty to assaulting the two inmates on April 2, 2019. Former ADOC correctional officers Bryanna Mosley and Leon Williams pleaded guilty in May and July 2019, respectively, to failing to intervene to stop the assaults.
“Those working inside our jails and prisons have a duty to intervene in the face of unlawful and violent conduct being carried out by their colleagues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under the Constitution, correctional officers may not physically assault inmates for violations of prison rules, and any officials who see this happening must do what they can to stop it. The Department of Justice will vigorously prosecute officers who stand by and do nothing while other officers brutalize inmates in their charge.”
“The job of a correctional officer can be difficult and hazardous,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “A vast majority of them serve with honor and are dedicated to upholding their duty to protect and serve. Unfortunately, some choose to ignore their sacred oaths and engage in criminal conduct or turn a blind eye when others do so. This office will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“The unacceptable actions of Willie Burks in no way reflect the hard and tireless work of our corrections staff, who endeavor each day to provide a safe and rehabilitative environment for all incarcerated people,” said Arnaldo Mercado, the ADOC’s Law Enforcement Services Division’s Chief Law Enforcement Officer. “We condemn in the strongest possible terms Burks’ behavior and blatant violation of his sworn oath to serve. Any and all incidents such as this are thoroughly investigated and, if appropriate, referred to the proper prosecuting authority. We extend our thanks to the DOJ for their assistance in bringing forth justice in this case.”
“The mission to protect the civil rights of American citizens is a priority of the men and women of the FBI and does not end after incarceration,” said Acting Special Agent in Charge Bryan D. Duchene of the FBI’s Mobile Division. “The actions of the corrections officers in this case will not be tolerated and we are proud to be a part of bringing them to justice.”
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. Assistant U.S. Attorney Eric Counts of the Middle District of Alabama and Trial Attorneys Katherine DeVar and David Reese of the Civil Rights Division prosecuted the case.
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced that Nicholas Houston Allen, 36, a resident of Montgomery, Alabama, pleaded guilty to two counts of wire fraud. The convictions result from Allen’s victimizing an elderly Montgomery resident. The United States Secret Service and the Alabama Securities Commission provided valuable assistance in the investigation and prosecution of this case.
According to the indictment and other court records, Allen held himself out as the owner of an insulation business called Professional Fix, LLC. In January of 2021, Allen told an elderly victim that his mother had recently passed away and that he had inherited his mother’s house in Montgomery. Allen asked the victim to provide him with money so that he could remodel and resell the house for a profit. None of this was true. Allen’s mother was still alive, and he had not inherited her house. Based on Allen’s misrepresentations, from January 2021 through May 2021, the victim gave Allen approximately $95,800 for the sole purpose of remodeling the house. Allen told the victim the money would be used to cover the cost of a new roof, water damage repairs, soil testing, and pool repairs, among other expenses. These repairs were never accomplished. Instead, Allen used the money for his own personal benefit. On November 2, 2023, Allen pleaded guilty to two counts of wire fraud.
A sentencing hearing is scheduled for February 15, 2024. At that hearing, Allen will face a maximum sentence of 20 years in prison, along with substantial fines and restitution.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s efforts to combat elder abuse, neglect, and financial fraud scams that target our nation’s seniors. To learn more, visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).
The United States Secret Service and the Alabama Securities Commission investigated this case. Assistant United States Attorney Michelle R. Turner and Special Assistant United States Attorney Louis V. Franklin, Sr., of the Alabama Securities Commission are prosecuting the case.
NORFOLK, Va. – A Virginia Beach woman was sentenced today to four years in prison for two counts of wire fraud after perpetrating embezzlement and COVID-19 program schemes resulting in over a million dollars in losses.
According to court documents, Maria Gene Reich, 45, was President of ASOC. Inc. d/b/a On Call Accountants (OCA), a Virginia Beach-based business which offered bookkeeping, accounting, and payroll services to small business clients. Beginning in February 2012, Reich and On Call Accountants performed bookkeeping for a family-owned company, identified in court records as Company A, that manufactures condiments. Reich would prepare checks and schedule electronic payments on behalf of Company A to pay the company’s bills.
For most of the period during which she performed services for Company A, Reich did not have signature authority over any of the company’s financial accounts, but possessed a stamp bearing the signature of the owner of Company A, which she used to draft checks for Company A’s business expenses. Reich also had online access to Company A’s financial accounts, which enabled her to view account balances, transfer funds, and initiate electronic payments as needed.
Based on the agreement between Reich and Company A, the maximum total compensation she should have received for services rendered to the company between January 2015 and December 2018 was $98,400. A financial analysis of activity during that time period revealed that Reich’s OCA business account received 270 payments totaling $596,418 from Company A accounts, including 138 checks and 132 electronic payments. Reich also used Company A’s money to pay off her credit cards, which she used for numerous personal expenses. The financial analysis showed that Reich made 366 payments totaling approximately $629,265 to her Capital One personal and business credit card accounts using funds from Company A’s business bank accounts. Reich used Company A’s money to pay for personal expenses such as dining, travel, entertainment, and retail purchases.
In total, Reich stole approximately $1,132,693 from Company A.
In March 2020, Reich applied to the Small Business Administration (SBA) for a $150,000 Economic Injury Disaster Loan (EIDL) on behalf of OCA and requested a $150,000 loan. The purpose of the EIDL program was to enable small businesses to meet financial obligations and operating expenses in light of the coronavirus pandemic. In the EIDL application, Reich certified that none of the EIDL funds would be used for non-business expenses. In May 2020, the SBA funded the loan.
In April 2021, Reich applied for a modification of the EIDL loan to increase the amount to $500,000. In July 2021, the SBA approved the modification and funded the loan for an additional $350,000. On Aug. 3, 2021, a wire deposit from the SBA for $350,000 was made to OCA’s bank account, and Reich immediately transferred $150,000 to her personal banking accounts. On Sept. 27, 2021, Reich withdrew approximately $93,416 from her savings account and used the money for a downpayment on the purchase of a home in Virginia Beach, where Reich and her family continue to reside.
In addition to the downpayment for the residence, Reich used the EIDL funds from that transfer to put money into her minor children’s bank accounts and to make payments for her mortgages, credit cards, personal loan, and life insurance policy.
Of the remaining EIDL funds from the $350,000 EIDL loan, Reich used them to pay for: personal, household, and family expenses; payments to her credit card and PayPal accounts; home improvement costs and automobile expenses; and dining, grocery, and entertainment expenses.
In total, Reich illegally spent $249,102 of the EIDL funds she received.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorney Elizabeth Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-135.
Montgomery, Alabama – On Wednesday, June 13, 2018, Dr. Kenneth G. Edwards, 65, a resident of Columbus, Georgia and previously a practicing chiropractor in Phenix City, Alabama, pleaded guilty to conspiring to commit wire fraud, announced United States Attorney Louis Franklin. Dr. Edwards’s conviction resulted from his scheme to submit false documents to the United States Department of Transportation (USDOT).
According to court records, the false documents Dr. Edwards submitted to the USDOT related to physical examinations that he supposedly performed on licensed truck drivers, or prospective truck drivers who were seeking a commercial driver’s license (CDL). The USDOT requires that all truck drivers undergo an initial physical examination before receiving a CDL, and that they have subsequent examinations every two years to maintain the license.
During the plea hearing, Dr. Edwards admitted that, on occasions, he allowed his employees - none of whom were trained medical professionals - to conduct the USDOT - required physicals. Then, Dr. Edwards would submit documents to the USDOT falsely reporting that he had actually performed the physicals.
A sentencing hearing has not yet been set. Dr. Edwards faces a maximum sentence of 20 years’ imprisonment for conspiracy to commit wire fraud, along with substantial monetary penalties and restitution.
This case was investigated by the United States Department of Transportation’s Office of Inspector General with assistance from the Alabama Law Enforcement Agency. Assistant United States Attorneys Jonathan S. Ross and Steven H. Lee are prosecuting the case.
