Letter of Apology » 2008 » June

Nigerian Check Scam Accomplice Sentenced To Two Years In Prison

Dave Westheimer — Mon, 30 Jun 2008 06:09:33 +0000

In Tacoma on Wednesday, US District Judge Benjamin Settle sentenced Edna Fiedler of Olympia, Washington to two years in prison for her role as an accomplice in a Nigerian check scam. This is the all-too-familiar scheme in which a mark who has goods for sale is paid with a phony check for more than the amount and asked to return some of the proceeds, eventually winding up on the hook for the whole amount. Fiedler had pleaded guilty in March to conspiracy to commit bank, wire and mail fraud. She worked in connection with a man from Lagos, Nigeria who shipped counterfeit checks and money orders to her with instructions on how to fill them out and where to ship them. When she was arrested in December she had already shipped out over $600,000 in phony checks and money orders and had $1.1 million more ready to ship. No word on whether the people who fell for the scam will be investigated for terminal idiocy (Seattle Times).

Snipes Asks Permission To Film Abroad

Dave Westheimer — Mon, 30 Jun 2008 05:48:45 +0000

Attorneys for actor Wesley Snipes on Wednesday filed a motion in US District Court in Ocala, Florida requesting that US District Judge William Terrell Hodges grant permission for Snipes to go to London to do post-production work on one movie and then to Bangkok to start work on another. Snipes was convicted in February on three failure to file misdemeanor tax counts and sentenced in April to three years in prison. He is free on bond pending appeal but the USAO is challenging that ruling, so expect them to fight this tooth and nail (Ocala Star-Banner).

Scruggs Redux: Transcripts, Reactions and Editorials

Dave Westheimer — Sun, 29 Jun 2008 22:24:31 +0000

The Sun Herald has the Dickie Scruggs sentencing transcript in plain text, Folo has a partial transcript from the Backstrom sentencing. The Clarion-Ledger has reactions from various parties, including Judge Henry Lackey. Alan Lange at Y’all Politics criticizes the questionable post-sentencing comments of AG Jim Hood and former AG Mike Moore. The Sun Herald points out that the minimum security Pensacola prison Scruggs has requested is the same one that houses Paul Minor whom Scruggs testified against; the Bureau of Prisons is unlikely to allow both men in the same facility. Alan Lange’s editorial is outstanding, and the Sun Herald’s editorial is also worthwhile. UPDATE: here’s the official transcript of Dickie Scruggs’ sentencing hearing; the Backstrom transcript is here. (h/t folo).

Backstrom Sentenced To 28 Months In Prison

Dave Westheimer — Fri, 27 Jun 2008 22:11:40 +0000

There has been some confusion in the reporting of the length of the sentence, but both the Daily Journal and folo are reporting that Sid Backstrom was sentenced to 28 months in prison this afternoon by US District Judge Neal Biggers in Oxford. That’s two months less than the maximum under his plea agreement, which capped his sentence at no more than half of whatever sentence Dickie Scruggs received. As with Scruggs, Backstrom was fined $250,000 and ordered to pay for the cost of his incarceration. He was ordered to report to prison on August 4. The court accepted a defense request to ask for imprisonment at Forrest City, Arkansas. UPDATE: here’s the transcript (h/t folo).

Breaking: Dickie Scruggs Sentenced to Five Years In Prison

Dave Westheimer — Fri, 27 Jun 2008 16:26:21 +0000

The Sun Herald reports that US District Judge Neal Biggers has sentenced Dickie Scruggs to five years in prison, the maximum under the plea agreement, plus a $250,000 fine. He was ordered to report to prison on August 4 “in a facility that offers mental health and drug treatment.” Tom (NMC) Freeland at folo reports that in response to Ole Miss Chancellor Robert Khayyat’s letter (earlier), which among other things called imprisoning Scruggs “a waste of taxpayers’ money”, Judge Biggers increased the fine to account from the cost of incarceration.

Abramoff Crony Adam Kidan’s Sentence Cut In Half

Dave Westheimer — Fri, 27 Jun 2008 06:30:53 +0000

US District Judge Paul Huck in Miami on Wednesday reduced the sentence of former Jack Abramoff associate Adam Kidan from 70 months to 35 months in prison because of his extensive cooperation in the SunCruz Casinos case which resulted in his and Abramoff’s convictions. Kidan pleaded guilty in December 2005 (followed by Abramoff’s plea in early 2006) to conspiracy and wire fraud in the case, admitting that he and Abramoff counterfeited a $23 million wire transfer which induced lenders to fund loans toward their purchase of the gambling ships from Gus Boulis. They were sentenced in March 2006; Kidan has already served 20 months in prison (Miami Herald).

Boulis was murdered in an apparent mob hit in 2001; the Herald story says that Kidan was attacked in prison in New Jersey after he was deposed by lawyers in the pending trial of three men accused in Boulis’ murder. Here’s the Washington Post’s extensive background article from 2005, including congressional connections.

Scrushy Again Denied Bond Pending Appeal

Dave Westheimer — Fri, 27 Jun 2008 06:02:56 +0000

In a decision filed on Tuesday and released on Wednesday, the US Court of Appeals for the Eleventh Circuit for the third time denied former HealthSouth CEO Richard Scrushy’s motion for bail pending appeal. Scrushy had asked for reconsideration because the court in March granted his co-defendant, former Alabama Governor Don Siegelman, release on bond pending appeal (earlier). However, the court ruled that Scrushy still “had not met his initial burden…of demonstrating by clear and convincing evidence that he is unlikely to flee if he is released pending resolution of this appeal.” The court made it clear that this is a separate issue from whether his appeal has a substantial chance of success (AP).

The Scruggs Sentencing Recommendation Letters: A Mixed Mailbag

Dave Westheimer — Thu, 26 Jun 2008 07:28:58 +0000

Representatives from the Sun-Herald (here and here), folo, the Daily Journal, and others were allowed to examine the sentencing recommendation letters from the public on behalf of Dickie and Zach Scruggs and Sid Backstrom. Tom (NMC) Freeland at folo called the positive letters “pretty standard: most accept the gravity of the offense and guilt, but try to explain positive things they have seen about the various defendants over the years.” That’s to be expected from family, friends and associates.

The lowlight: a letter from Ole Miss Chancellor Robert Khayyat on University stationery enthusiastically fawning over Dickie Scruggs, calling him a “model citizen” and calling any incarceration “an absolute waste of a great deal of talent and ability.” We’re talking about an admitted judge briber here, someone who attempted to corrupt justice, and the university’s chancellor thinks that’s excusable in a major financial contributor.

The missing: nothing from Jim Hood, Trent Lott, Mike Moore or P.L. Blake.

The opposition: criticism from Mississippi Bar president Robert Bailess and an unnamed retired Oxford police officer.

Those who examined the letters were not allowed to copy them, which prompted this outstanding response from commenter Fyodor1 at Y’all Politics: “Can we just send in Sandy Berger to help get copies of all the letters? He has a good track record at getting documents.”

UPDATE: Anita Lee at the Sun Herald has more excerpts from the letters.

Dickie Scruggs Asks For 30 Month Prison Term

Dave Westheimer — Thu, 26 Jun 2008 06:32:20 +0000

In a sentencing memorandum filed on Wednesday, attorneys for Dickie Scruggs asked the court to impose a 30 month sentence instead of the maximum 60 months allowed under his plea agreement. His primary argument is that the potential benefit from the bribe has been grossly mischaracterized by the US Probation Office (also argued by Backstrom) and that the value of the bribe should only be the amount of the bribe. By his calculation, Scruggs claims a 30-37 month range is called for by the guidelines. While Scruggs does acknowledge his offense, the document is remarkably void of any sense of remorse, and he continues to argue about his role in the conspiracy, as he did at his plea hearing. Whatever the merits of his arguments, the tone of the memorandum is not likely to impress Judge Biggers.

The government response (to both Dickie Scruggs and Sid Backstrom) argues that the intent of the bribe determines the benefit and that even at the $50,000 bribe amount Scruggs’ guideline would be 46-57 months; further, that Backstrom’s argument is moot because even just using the bribe amount, his range would more than the 30 month cap under his plea agreement. The government is seeking the maximum allowed under the plea agreements for both defendants (Sun Herald).

UPDATE: The government has subpoenaed John Jones’ attorney Grady Tollison to testify at the sentencing hearing. He expects to be asked about the amount of legal fees at stake in Jones v. Scruggs (Sun Herald).

Anne Hathaway’s Ex-Boyfriend Indicted In Investment Fraud Scheme

Dave Westheimer — Thu, 26 Jun 2008 05:54:16 +0000

Raffaello Follieri, recently-dumped longtime beau of Anne (Agent 99) Hathaway, has been charged with with one count of conspiracy, six counts of wire fraud, and five counts of money laundering in connection with a real estate investment scheme he operated from 2005 to 2007. The DOJ press release (.pdf) alleges that Follieri solicited investors by claiming that he had close connections with the Vatican that enabled him to purchase unwanted Catholic Church properties in the US at a substantial discount, but that in reality he only had limited Vatican connections and no such authority. He allegedly converted investor funds for his personal use, including a $37,000-a-month lease on his Manhattan apartment. Follieri made an initial appearance on Tuesday before US Magistrate Judge Henry Pitman in Manhattan; he did not enter a plea (Reuters).