Posts tagged: Greg Jeffreys
The girlfriend of convicted Ponzi scheme artist Greg Jeffreys said she's fulfilling court-ordered restitution and denied victimizing anyone in a response filed in federal court over the weekend.
The U.S. Attorney's Office for Eastern Washington filed a motion last week after it came to light Shannon Stiltner, who spent seven months in federal prison after pleading guilty to misprision of a felony for her role in Jeffreys' scams, had received a cash gift of $2,700 from her mother that she used to buy Gonzaga men's basketball tickets for the upcoming season. U.S. Assistant Attorney Sean McLaughlin called the purchase “a slap in the face” to the two named victims in court documents owed a little more than $58,000 in restitution.
In rebuttal, Stiltner's attorney John B. McEntire IV called the motion, which would require all cash gifts received by Stiltner to be given to the debtors until they've been repaid in full, “awfully aggressive.”
“Before receiving the $2,700 cash gift from her mother for the Gonzaga tickets, Ms. Stiltner contacted her supervising probation officer to explain the situation and seek advice. Ms. Stiltner’s supervising probation officer “staffed” the issue with her supervisor, who ultimately concluded that so long as Ms. Stiltner contributed 10% of this one-time cash gift ($270) towards her restitution obligation, then she would be fully compliant with the Court’s restitution order. “
- John B. McEntire IV
Response to United States' motion
McEntire said that Stiltner paid $270 of her own money in order to receive the cash gift and pay for the Zags tickets.
In support of the motion, McEntire writes that Stiltner is making restitution payments to victims of Jeffreys' scams, not her own. When pleading guilty to charges, Stiltner admitted only that she knowingly kept herself from learning that Jeffreys was involved in fraud, not that she actively participated in his schemes.
“Nowhere did Ms. Stiltner ever admit knowing that Mr. Jeffreys was engaged in a scheme to defraud investors – because she did not,” McEntire wrote.
Stiltner also argues that the government's request is not feasible, because it would require cash gifts of any amount to be turned over to the two named victims.
“Or let’s say, as another example, that Ms. Stiltner forgets her wallet and her friend offers to buy her lunch,” McEntire wrote. “Under these circumstances, Ms. Stiltner could not accept the $8 or $11-dollar gift for lunch.”
U.S. District Judge Rosanna M. Peterson will decide whether Stiltner's restitution order should be changed. No oral argument has been scheduled, and Peterson could rule as early as this week.
A recently filed U.S. Supreme Court opinion has federal prosecutors asking for about $2 million more in restitution from jailed Spokane developer Greg Jeffreys, who pleaded guilty last year to wire fraud in a series of real estate schemes.
Sentencing documents filed ahead of a scheduled hearing in June had originally asked Jeffreys - who admitted in November to duping individual investors and banks on projects including condominiums, units in the downtown Ridpath Tower and a military facility off Highway 2 - to pay back $10.3 million. But a decision rendered in Washington, D.C., earlier this month in the case of a convicted mortgage fraudster out of Wisconsin prompted prosecutors to revise that amount closer to $12 million.
The unanimous decision in Robers v. United States, decided in a lightning-fast (for the court) 10 weeks after oral argument, overturned restitution guidelines set forth by the Ninth Circuit Court of Appeals, according to prosecutors. While the Wisconsin court ruled Benjamin Robers, a man who bought two houses using fraudulent loan applications, must pay the difference between the amount the bank lent and how much the properties sold for after foreclosure, the Ninth Circuit had calculated restitution based on the value of forfeited properties at the time they were seized. The Supreme Court agreed to hear the case in February 2013 to settle the dispute in the way the two courts calculated restitution.
The decision affirming the Wisconsin court's practice increases the amount Jeffreys owes banks and investors on three properties that were foreclosed upon, prosecutors say in documents filed last week. This includes units in the downtown Ridpath tower.
Jeffreys' ex-wife, Kimberly Jeffreys, also pleaded guilty in February to a charge of fraud in dealings surrounding the military facility. She is tentatively scheduled to be sentenced in July for her role in the scheme, facing a potential six-month sentence and restitution of close to $160,000.
Shannon Stiltner, a woman who lived with Greg Jeffreys in Las Vegas and pleaded guilty in November to deliberately ignoring signs her boyfriend was swindling investors, is serving her seven-month sentence at a federal detention center in Seattle. Stiltner has been ordered to pay $58,000 in restitution and is scheduled for release in August.
Prosecutors have not filed requests to change Kimberly Jeffreys' or Shannon Stiltner's restitution amounts.
A judge has ordered the sentencing for married couple Greg and Kimberly Jeffreys, both of whom pleaded guilty to defrauding development investors in Spokane and elsewhere, pushed to the summer.
For Greg Jeffreys, the accused mastermind of schemes ranging from leasing property at inflated rices in the restored Ridpath Hotel downtown and bilking the federal government of funds in the construction of a military installation off Highway 2, it is the second continuance granted ahead of sentencing. Prosecutors want Jeffreys to serve eight years in prison and pay back millions in restitution from fraudulent schemes, but Jeffreys plans to fight that amount by calling a cavalcade of witnesses at his sentencing hearing.
That hearing will now tentatively take place in June, according to a court order signed last week.
Kimberly Jeffreys, who pleaded guilty in February to fraud charges stemming from the military installation construction, was granted her first sentencing continuance. A hearing scheduled for next month has been pushed to July, according to court records. For her involvement, prosecutors want Kimberly Jeffreys to spend six months in prison and pay restitution of up to $150,000.
A third conspirator, Shannon Stiltner, was sentenced in February to seven months of prison time and ordered to pay restitution to two investors totaling about $58,000.
The woman who lived with jailed Spokane developer Greg Jeffreys and was implicated in his schemes to defraud real estate investors was sentenced to seven months in prison last week after pleading guilty to concealing plots through ignorance and conspiracy.
Shannon Stiltner was also ordered to pay more than $58,000 in restitution to two defrauded investors by a federal judge at a sentencing hearing in U.S. District Court on Feb. 10. Jeffreys was originally slated to be sentenced last week as well, but that hearing was stayed as attorneys continue to stipulate the amount the former real estate developer owes, which may total in the millions.
In court documents asking U.S. District Court Judge Rosanna Malouf Peterson to accept the seven-month sentence, Stiltner said Jeffreys swept her off her feet after a failed marriage, guiding her drug-addicted daughter to sobriety.
“(Jeffreys') actions established a deep and powerful trust between him and Shannon,” Stiltner's attorney, John McEntire, wrote.
That trust kept her from questioning Jeffreys' business deals, even after news reports began to indicate something was wrong, McEntire said.
Stiltner's sentence ends one chapter of a legal saga that has been ongoing since Jeffreys' arrest more than a year ago. Jeffreys' wife, Kimberly, continues her legal fight with a trial tentatively scheduled for April. Greg Jeffreys sentencing, at which dozens of witnesses are expected to testify about his alleged debts, will take place in March.
The sentencing of jailed developer Greg Jeffreys, who pleaded guilty to fraud and contempt charges in November, will take a little longer than planned, in part to accommodate the dozens of witnesses the former Ridpath Hotel investor plans to call on his behalf.
A U.S. District Court judge this week delayed a hearing, expected to last at least two days, at which Jeffreys is expected to dispute the amount owed numerous debtors listed in court filings. Scheduled for February, the sentencing and a decision on how much Jeffreys owes in restitution will not come until later in March.
In his request for the continuance, Jeffreys and his attorney cite an extensive witness list - including bankers, assessors and family members - as part of the reason for the needed delay. In total, Jeffreys plans to call more than 30 people to testify about his debts and character. Some of those he plans to call were involved in leasing deals at the Ridpath, Spokane's historic hotel whose revitalization was impeded by Jeffreys' legal woes.
Jeffreys was indicted in January 2013 on multiple federal counts of bank and wire fraud, money laundering and theft tied to real estate dealings and developments that never materialized. Jeffreys and his wife, Kimberly, were implicated in a plot to steal federal government money when constructing a military entrance processing station off Highway 2. Employee Shannon Stiltner, who allegedly shared a casino suite with Jeffreys in Las Vegas, also pleaded guilty in November to concealing knowledge of a Ponzi scheme.
Stiltner's sentencing is still set for February.
Spokane developer Greg Jeffreys, who is jailed on federal charges alleging that he defrauded investors of millions of dollars, has asked a judge for a change of venue for his trial, arguing that local media “has saturated the Spokane area with prejudicial and inflammatory remarks.”
Citing primarily Spokesman-Review coverage, Jeffreys argued that half of the county’s potential jury pool had been tainted with information unrelated to the trial. The motion also cited the case against former Spokane Police Officer Karl Thompson, in which Thompson’s trial was moved to Yakima in 2011 after five years of “intense media coverage.” Thompson was found guilty of excessive use of force for his role in the death of Otto Zehm in 2006.
In a response to Jeffreys’ request, the government, through U.S. Attorney Michael Ormsby, said claims of a prejudiced jury pool were “wholly overstated” and asked the judge to reject the request.
U.S. District Judge Rosanna Peterson will hear the request on Sept. 10 at 10 a.m.
The judge will also hear a motion from Jeffreys to suppress evidence, including oral statements from Jeffreys, because they were a “direct result of an illegal search and seizure” of Jeffreys’ 10,000-square-foot home by 24 law enforcement agents on July 19, 2012, as well of Jeffreys’ person when he was arrested at the airport on Jan. 30.
Jeffreys is known for his central role in a development plan of the Ridpath Hotel. He faces 73 felony charges ranging from bank fraud to theft, though none relate to the shuttered downtown high-rise.
After violating previous orders by a judge and threatening a business associate and FBI special agent, Judge Peterson ruled that Jeffreys must remain in jail until his January trial.
Federal investigators are attempting to seize an Arizona property owned by Spokane real estate investors as part of a broader probe into alleged fraud by the couple, who are tangled in the complicated ownership of the former Ridpath Hotel complex.
FBI agent Lisa Jangaard filed a request last week to seize an office building in Sun Lakes, Ariz., a suburb of Phoenix. According to court files, Greg Jeffreys and his wife, Kimberly Jeffreys, obtained $600,000 from an investor as partial payment for the purchase of an upscale office building in San Francisco.