Obstruction of Justice—Las Vegas Halfway Houses

Three individuals have been in indicted in Las Vegas on charges that they misused $330,000 from a Justice Department grant.^[1] Reverend Willie Davis and his wife Emma, along with Reverend McTheron Jones are facing charges of conspiracy, wire fraud, mail fraud, theft of government property, making false statements to a government agency, and obstruction of justice.^[2] Emma Davis faces additional charges for bank fraud, bankruptcy fraud, and misuse of a Social Security number.^[3]

The three individuals allegedly obtained a Justice Department grant that was intended to be used to build halfway houses for prison inmates.^[4] However, according to the indictment, the funds were used to pay Mrs. Davis, Rev. Jones and others for work which was not done, and it also went to a consultant fee for Rev. Davis and salary raises for Mrs. Davis and Rev. Jones.^[5] Both actions were prohibited under the terms of the grant.^[6] The indictment also alleged that the defendants used false documents, made false statements to investigators, and no halfway house ever opened.^[7]

Conspiracy
Under 18 U.S.C. § 371, if two or more persons conspire to defraud the United States, and any one of those individuals commits some overt act in furtherance of the scheme, each member of the conspiracy can be fined, imprisoned for up to five years, or both.

Wire Fraud
Wire Fraud is a crime under 18 U.S.C. § 1343, which states that it is illegal for a person to devise a scheme or artifice to defraud and use some sort of wire, radio, or television communication to carry out that scheme.

Violating section 1343 can be punished by a fine, imprisonment for up to 20 years, or both. If a financial institution is affected by the fraud, the person can be fined up to $1,000,000, imprisoned for up to 30 years, or both.

Mail Fraud
Mail fraud is a crime under 18 U.S.C. § 1341. Under this section, it is illegal to devise a scheme or artifice to defraud and use the nations mails to carry out the scheme.

Like wire fraud, the punishment for committing mail fraud is a fine, imprisonment for up to 20 years, or both. Likewise, if the fraud affects a financial institution, the fine can be as high as $1,000,000, and the prison sentence can be as high as 30 years.

Theft of Government Property
Under 18 U.S.C. § 666, it is a crime for a person who is an agent of an organization^[8] that receives more than $10,000 in Federal grants^[9] to obtain by fraud property that is valued more than $5,000 an is controlled by that organization.^[10]

The punishment for violating section 666 is a fine, imprisonment for up to 10 years, or both.^[11]

Making False Statements
Under 18 U.S.C. § 1001, it is a crime for a person to make a materially false statement in any matter within the executive branch’s jurisdiction.^[12]

The penalty for doing so is a fine, imprisonment more up to 5 years, or both.^[13]

Obstruction of Justice
Under 18 U.S.C. § 1519, any person who falsifies documents with the intent to impede, obstruct, or influence the investigation of any matter within the jurisdiction of a department of the United State can be fined, imprisoned for 20 years, or both.

Bank Fraud
Bank fraud is criminalized by 18 U.S.C. § 1344, which makes it illegal for a person to execute a scheme or artifice to obtain money controlled by a financial institution by means of false or fraudulent pretenses, representations, or promises.^[14]

The punishment for violating section 1344 is a fine of no more than $1,000,000, imprisonment for up to 30 years, or both.^[15]

Bankruptcy Fraud
Under 18 U.S.C. § 152(1), a person who conceals property from a bankruptcy trustee can be fined, imprisoned for up to five years or both.

Misuse of a Social Security Number
Under 42 U.S.C. § 408(a)(7), it is a crime for a person to use a social security that that does not belong to that person for the purpose of obtaining money from a program financed with Federal funds.

Violating this section can be punished by a fine, imprisonment for up to 5 years, or both.^[16]

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[1] Baptist Minister, Two Others Indicted on Fraud Charges, Associated Press, Sept. 28, 2005, partial story available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] 18 U.S.C. § 666(a)(1).
[9] Id. § 666(b).
[10] Id. § 666(a)(1)(A).
[11] Id. § 666(a).
[12] Id. § 1001(a)(2).
[13] Id. § 1001(a).
[14] Id. § 1344(2).
[15] Id. § 1344.
[16] 42 U.S.C. § 408(a).