Maryland man convicted of conspiracy to commit bank fraud

BALTIMORE, MD — Theodore Sapperstein, 67, formerly of Pikesville, was sentenced to 30 months in a federal prison followed by three years of probation for his role in a conspiracy to commit bank fraud. The sentencing took place today in federal court in Baltimore.

The indictment was announced by U.S. Attorney Erek L. Barron, Assistant Attorney General Brian M. Boynton of the Civil Division of the Department of Justice, and Postal Inspector-in-Charge Damon E. Wood of the Washington Division of the U.S. Postal Inspection Service.

Court documents show that Sapperstein and his accomplices used shell companies to illegally withdraw money from the bank accounts of unsuspecting victims across the United States, tricking banks into believing that these withdrawals were for services allegedly provided by these shell companies. To minimize detection and reduce scrutiny by banks, the scheme also involved “micro-withdrawals” from other controlled bank accounts, keeping the shell companies' return rates artificially low.

Attorney General Barron stressed that his office is committed to combating predatory white-collar crimes that use shell companies and fraudulent financial practices to extort money from victims. Assistant Attorney General Boynton also reiterated the Department of Justice's commitment to prosecuting those who steal from American consumers.

In addition, in July 2024, Canadian national Shoaib Ahmad was indicted in the Central District of California for his involvement in similar fraudulent activities, highlighting the international scope of these crimes.

Maryland man convicted of conspiracy to commit bank fraud

BALTIMORE, MD — Theodore Sapperstein, 67, formerly of Pikesville, was sentenced to 30 months in a federal prison followed by three years of probation for his role in a conspiracy to commit bank fraud. The sentencing took place today in federal court in Baltimore.

The indictment was announced by U.S. Attorney Erek L. Barron, Assistant Attorney General Brian M. Boynton of the Civil Division of the Department of Justice, and Postal Inspector-in-Charge Damon E. Wood of the Washington Division of the U.S. Postal Inspection Service.

Court documents show that Sapperstein and his accomplices used shell companies to illegally withdraw money from the bank accounts of unsuspecting victims across the United States, tricking banks into believing these withdrawals were for services allegedly provided by these shell companies. To minimize detection and reduce scrutiny by banks, the scheme also involved “micro-withdrawals” from other controlled bank accounts, keeping the shell companies' return rates artificially low.

Attorney General Barron stressed that his office is committed to combating predatory white-collar crimes that use shell companies and fraudulent financial practices to extort money from victims. Assistant Attorney General Boynton also reiterated the Department of Justice's commitment to prosecuting those who steal from American consumers.

In addition, in July 2024, Canadian national Shoaib Ahmad was indicted in the Central District of California for his involvement in similar fraudulent activities, highlighting the international scope of these crimes.
Florida man pleads guilty to tax evasion, resulting in millions in legal fees

SCRANTON, PA – Robert J. Powell, a 65-year-old resident of Palm Beach, Florida, has pleaded guilty to tax evasion for the 2016 tax year. This charge relates to the management of substantial legal fees earned through the Powell Law Group, PC, based in Luzerne County. Powell appeared in Federal District Court today and was subsequently released on unsecured bail pending sentencing.

Court documents show Powell evaded taxes by using nominee bank accounts, instructing an accountant to file a false extension request that failed to report estimated tax liability for 2016, and making misleading statements during an IRS audit in 2019. Powell was disbarred in 2015 and had given up ownership of Powell Law Group in 2009, but retained the right to collect 90% of future fees from the firm after expenses.

Powell Law Group was involved in a mass tort lawsuit in 2015 that settled for approximately $5.15 billion. It expected to receive approximately $120 million in attorneys' fees. Before the fees were paid, over $125 million in loans were secured with these expected fees as collateral. Contrary to standard practice, Powell diverted these funds to his controlled nominee accounts for personal use.

Most of the attorney fees were paid out and the loans repaid by June 2016. Despite this, Powell did not file an income tax return and did not pay taxes on this income. From the first payout in 2016 through October 2019, another $12 million in fees were collected, with Powell personally receiving another $3.6 million that was also not reported to the IRS. The case highlights a significant abuse of legal and financial privilege and draws attention to broader issues of compliance and ethics within the legal profession.
Maryland man pleads guilty to human trafficking

HARRISONBURG, VA – William O'Neil Murray III, 36, pleaded guilty in federal court to sex trafficking by force, fraud or coercion. His conviction stems from exploiting the drug addictions of at least three women to coerce them into commercial sex work.

According to court documents, Murray's operation ran from December 2021 to July 2022 in several states, including Virginia, Maryland, Pennsylvania, North Carolina, West Virginia, New York, New Jersey and Florida. He meticulously managed victims' access to narcotics, maintained control by being the sole provider of the drugs and exploited their addiction to force compliance with his demands.

Victims were forced into commercial sex acts arranged through websites such as Skipthegames.com. Murray set the dates, prices and locations and kept all the proceeds. He imposed strict rules on them, required constant communication during dates and severely restricted their freedom of movement.

U.S. Attorney Christopher R. Kavanaugh, along with Stanley M. Meador of the FBI's Richmond office and Colonel Gary T. Settle of the Virginia State Police, announced the guilty plea and emphasized coordinated efforts to combat this serious exploitation.