Score:   1
Docket Number:   WD-WA  2:19-cr-00059
Case Name:   USA v. Gibb
  Press Releases:
Seattle – U.S. Attorney Brian T. Moran announced today that the Western District of Washington collected more than $14 million in criminal and civil actions in fiscal year 2019.  $10.3 million of that amount was collected in criminal cases, while $3.7 was collected in civil cases.  Additionally, the office forfeited more than $4.6 million in criminally involved property in fiscal year 2019. 

“Part of holding law breakers accountable is taking the profit out of crime and misconduct,” said U.S. Attorney Brian Moran. “I want to recognize the hard work of the attorneys and professional staff in the U.S. Attorney’s Office who work diligently to get offenders to pay up and work to see that civil fines and payments go to help those who have been damaged.”

In criminal case collections, the office secured more than $2 million in restitution for the investment fraud victims in U.S. v. Dennis Gibb.

In U.S. v. Steven Ross, the U.S. Attorney’s Office collected the full $368,000 in restitution for this case involving fraud on the Social Security Administration.

In civil collections, the office collected more than $400,000 from doctors and medical practices who settled allegations they received kickbacks for ordering unnecessary medical tests. And a nationwide flooring company paid more than $133,000 to settle allegations it paid kick-backs for government work.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Additionally, the U.S. Attorney’s Office in the Western District of Washington, working with partner agencies and divisions, forfeited $4,625,430 in criminally-involved property in FY 2019. The proceeds from those forfeitures are deposited into the Department of Justice Assets Forfeiture Fund, where they are used to restore funds to crime victims and for a variety of law enforcement purposes.

In 2019, significant Department of Justice forfeitures included the criminal forfeiture of $745,000 real property and financial accounts in U.S. v. Lionel Hampton, et al.  The criminal group distributed controlled substances including oxycodone and laundered the proceeds through real property purchases.

In a second case, U.S. v. Keenan Gracey, the office forfeited nearly $604,000 in proceeds that Gracey paid to rent a mansion used in the fraud scheme.  We have requested that these funds be applied to Gracey’s restitution order and paid to his victims.

          A long-time investment advisor in Redmond, Washington was sentenced today in U.S. District Court in Seattle to five years in prison for defrauding more than 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran.  DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty in March 2019, to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC).  Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity.     At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said GIBB “entered into a scheme and deliberately, intentionally and knowingly stole money from people who came to him…. Many victims, late in their lives, entrusting him with money they intended to get them through the last years of their lives.”

            “Those who invested with this defendant were not looking for the ridiculously large profits promised by some Ponzi schemers – they invested with the defendant because he promised them a secure, if modest, payout,” said U.S. Attorney Brian T. Moran.  “Instead, over more than a decade this defendant stole their savings, retirement funds, future home down payments, and children’s education funds.  To make matters worse, he provided victims with false tax documents, causing some to pay additional taxes on non-existent gains.  This defendant not only robbed the victims financially, he stole their peace of mind and their trust.”   

            According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008.  As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future.  Between 2007 and 2018, about 25 investors put about $7.3 million into the fund.  GIBB secretly transferred more than $3.1 million from the fund for his own expenses.  To hide his theft, GIBB sent investors falsified quarterly account statements.  When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated. 

          GIBB agreed to forfeit a money judgment of $3,197,401. The Court also ordered restitution of $4,233,616.   This amount includes approximately $1.77 million that remained in the Income Flood fund at the time of Gibb’s consent decree and guilty plea.  Gibb agreed to turn these funds over to the SEC for disbursement to victims, and the funds will be disbursed as part of the restitution order. 

         The case was investigated by the SEC and the FBI.  The case is being prosecuted by Assistant United States Attorney Matthew Diggs.

          A long-time investment advisor in Redmond, Washington pleaded guilty today in U.S. District Court in Seattle to defrauding some 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran.  DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC).  Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity.     Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing in the criminal case for June 28, 2019.

            “Sadly, this defendant sold his investors a dream of a safe retirement, representing that he would use a sophisticated investment strategy, including investing in government bonds, to produce stable returns.  Instead, Dennis Gibb used investor funds to pay business expenses for Sweetwater Investments, as well as mortgage and car payments and other living expenses,” said U.S. Attorney Brian T. Moran.  “He told investors there was $7.8 million in the fund – the reality was there was less than $2 million. The investors no longer have the safe retirement income they were promised.”

            According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008.  As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future.  According to the SEC between 2007 and 2018, about 20 investors put about $7.3 million into the fund.  GIBB secretly transferred more than $3.1 million from the fund for his own expenses.  To hide his theft, GIBB sent investors falsified quarterly account statements.  When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated. 

            In his plea agreement GIBB agrees to forfeit a money judgment in the amount of $3,197,401.  Gibb will also owe full restitution for the amount he stole.  The government will recommend that any money collected on the money judgment go toward the defendant’s restitution obligation.  The SEC is ordering GIBB to liquidate the approximately $1.8 million remaining in the Income Flood Fund and provide it to the SEC for disbursement to victims. 

            Wire fraud is punishable by up to 20 years in prison.  Falsification of records is punishable by up to three years in prison.  Prosecutors have agreed to recommend no more than 78 months in prison.  The court is not bound by the recommendation, the sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

            The case was investigated by the SEC and the FBI.  The case is being prosecuted by Assistant United States Attorney Matthew Diggs. 

           The SEC order is available here.

 

Docket (0 Docs):   https://docs.google.com/spreadsheets/d/1ukQkAv3r6Eog7jCmuKdyE2ZUZTwAIFJeYxP_lXvRAFE/edit#gid=0
  Last Updated: 2020-11-13 12:58:10 UTC
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY

Description: The code of the federal judicial circuit where the case was located
Format: A2

Description: The code of the federal judicial district where the case was located
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Description: The code of the district office where the case was located
Format: A2

Description: Docket number assigned by the district to the case
Format: A7

Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3

Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3

Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5

Description: Case type associated with the current defendant record
Format: A2

Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18

Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15

Description: The status of the defendant as assigned by the AOUSC
Format: A2

Description: A code indicating the fugitive status of a defendant
Format: A1

Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD

Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD

Description: The date when a case was first docketed in the district court
Format: YYYYMMDD

Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD

Description: A code used to identify the nature of the proceeding
Format: N2

Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD

Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2

Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2

Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20

Description: A code indicating the level of offense associated with FTITLE1
Format: N2

Description: The four digit AO offense code associated with FTITLE1
Format: A4

Description: The four digit D2 offense code associated with FTITLE1
Format: A4

Description: A code indicating the severity associated with FTITLE1
Format: A3

Description: The title and section of the U.S. Code applicable to the offense committed which carried the second highest severity
Format: A20

Description: A code indicating the level of offense associated with FTITLE2
Format: N2

Description: The four digit AO offense code associated with FTITLE2
Format: A4

Description: The four digit D2 offense code associated with FTITLE2
Format: A4

Description: A code indicating the severity associated with FTITLE2
Format: A3

Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5

Description: The date of the last action taken on the record
Format: YYYYMMDD

Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD

Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD

Description: The date upon which the case was closed
Format: YYYYMMDD

Description: The number of days from the earlier of filing date or first appearance date to proceeding date
Format: N3

Description: The number of days from proceeding date to disposition date
Format: N3

Description: The number of days from disposition date to sentencing date
Format: N3

Description: The code of the district office where the case was terminated
Format: A2

Description: A code indicating the type of legal counsel assigned to a defendant at the time the case was closed
Format: N2

Description: The title and section of the U.S. Code applicable to the offense that carried the most severe disposition and penalty under which the defendant was disposed
Format: A20

Description: A code indicating the level of offense associated with TTITLE1
Format: N2

Description: The four digit AO offense code associated with TTITLE1
Format: A4

Description: The four digit D2 offense code associated with TTITLE1
Format: A4

Description: A code indicating the severity associated with TTITLE1
Format: A3

Description: The code indicating the nature or type of disposition associated with TTITLE1
Format: N2

Description: The number of months a defendant was sentenced to prison under TTITLE1
Format: N4

Description: A code indicating whether the prison sentence associated with TTITLE1 was concurrent or consecutive in relation to the other counts in the indictment or information or multiple counts of the same charge
Format: A4

Description: The number of months of probation imposed upon a defendant under TTITLE1
Format: N4

Description: A period of supervised release imposed upon a defendant under TTITLE1
Format: N3

Description: The fine imposed upon the defendant at sentencing under TTITLE1
Format: N8

Description: The title and section of the U.S. Code applicable to the offense under which the defendant was disposed that carried the second most severe disposition and penalty
Format: A20

Description: A code indicating the level of offense associated with TTITLE2
Format: N2

Description: The four digit AO offense code associated with TTITLE2
Format: A4

Description: The four digit D2 offense code associated with TTITLE2
Format: A4

Description: A code indicating the severity associated with TTITLE2
Format: A3

Description: The code indicating the nature or type of disposition associated with TTITLE2
Format: N2

Description: The number of months a defendant was sentenced to prison under TTITLE2
Format: N4

Description: A code indicating whether the prison sentence associated with TTITLE2 was concurrent or consecutive in relation to the other counts in the indictment or information or multiple counts of the same charge
Format: A4

Description: The number of months of probation imposed upon a defendant under TTITLE2
Format: N4

Description: A period of supervised release imposed upon a defendant under TTITLE2
Format: N3

Description: The fine imposed upon the defendant at sentencing under TTITLE2
Format: N8

Description: The total prison time for all offenses of which the defendant was convicted and prison time was imposed
Format: N4

Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8

Description: A count of defendants filed including inter-district transfers
Format: N1

Description: A count of defendants filed excluding inter-district transfers
Format: N1

Description: A count of original proceedings commenced
Format: N1

Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1

Description: A count of defendants terminated including interdistrict transfers
Format: N1

Description: A count of defendants terminated excluding interdistrict transfers
Format: N1

Description: A count of original proceedings terminated
Format: N1

Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1

Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1

Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1

Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10

Description: A sequential number indicating the iteration of the defendant record
Format: N2

Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD

Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
Format: YYYY

Data imported from FJC Integrated Database
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