Keith v. United States

CourtDistrict Court, W.D. North Carolina
DecidedMarch 10, 2020
Docket3:19-cv-00209
StatusUnknown

This text of Keith v. United States (Keith v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keith v. United States, (W.D.N.C. 2020).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION 3:19-cv-209-MOC (3:17-cr-180-MOC-DSC-1)

ERNEST KEITH, JR., ) ) Petitioner, ) ) vs. ) ORDER ) UNITED STATES OF AMERICA, ) ) Respondent. ) _______________________________________ )

THIS MATTER is before the Court on Petitioner’s pro se Motion to Vacate, Set Aside or Correct Sentence under 28 U.S.C. § 2255.1 (Doc. No. 1). Also pending is “Complaint on BOP/Violation of Rights, Failure to Submit BPA0383,” that was docketed as a Motion, (Doc. No. 4), which appears to seek civil rights relief regarding the conditions of Petitioner’s confinement in federal prison. I. BACKGROUND Petitioner was charged in the underlying criminal case with executing a scheme to defraud FedEx Corporation and individuals by operating a series of purported logistics businesses that he falsely and fraudulently represented would arrange shipments of goods throughout the United States at a reduced price. The scheme lasted from 2011 to 2016, involved approximately 200 individuals for more than 390 shipments using more than 20 different FedEx accounts and “resulting in a loss of more than $680,000.” (3:17-cr-180, Doc. No. 3 at 1) (Indictment). The charges were: Count (1), mail fraud scheme (18 U.S.C. § 1341); and Count (2), wire fraud scheme

1 Petitioner previously sought post-conviction relief in case numbers 3:18-cv-474-MOC and 3:18-cv-559- MOC, but those proceedings were dismissed without prejudice as premature. (18 U.S.C. § 1343). (Id., Doc. No. 3). The Indictment contains a Notice of Forfeiture and Finding of Probable Cause in the amount of “at least $680,000, such amount constituting the proceeds of the violations set forth in this bill of indictment.” (Id., Doc. No. 3 at 13). Petitioner pled guilty to being “in fact guilty as charged in Count One” in exchange for the Government’s dismissal of Count (2). See (Id., Doc. No. 17 at 1). In a written Plea Agreement,

Petitioner acknowledged that his sentencing exposure of up to 20 years’ imprisonment, no more than three years of supervised release, and a $250,000 fine. (Id., Doc. No. 17 at 2). Petitioner acknowledged that the advisory Sentencing Guidelines apply to determine the sentence, that the sentence had not yet been determined, that “any estimate of the likely sentence is a prediction rather than a promise,” that the Court would not be bound by any of the parties’ recommendations or agreements, and that Petitioner “may not withdraw the plea as a result of the sentence imposed.” (Id., Doc. No. 17 at 2). The parties agreed to jointly recommend: a known or reasonably foreseeable loss amount in excess of $550,000 but less than $1,500,000, a base offense level of seven, a 14-level

enhancement for loss amount, a two-level enhancement for sophisticated means, and a total offense level of 23. (Id., Doc. No. 17 at 2). The Government agreed that Petitioner’s entry of the plea is timely for purposes of U.S. Sentencing Guidelines § 3E1.1(b). (Id., Doc. No. 17 at 2). Notwithstanding any other recommendation, the Plea Agreement provides that, if the Court determines from Petitioner’s criminal history that he is a career offender or armed career criminal, such provision may be used in determining the sentence. The parties agreed to make the foregoing recommendations with regards to offense level and would not seek any other enhancements or reductions. The parties were free to seek departure or variance from the applicable guideline range at sentencing. (Id., Doc. No. 17 at 3). Petitioner stipulated to the existence of a factual basis for the guilty plea, confirmed that he read and understood the written Factual Basis filed with the Plea Agreement, and agreed that the Factual Basis may be used without objection to determine the applicable advisory guideline range or appropriate sentence except for objections that are explicitly reserved. (Id., Doc. No. 17 at 4); see (Id., Doc. No. 18) (Factual Basis).

Petitioner acknowledged the rights he was waiving by pleading guilty including the right to be tried by a jury, to be assisted by an attorney at trial, to confront and cross-examine witnesses, and not to be compelled to incriminate himself (Id., Doc. No. 17 at 5). Petitioner specifically agreed to waive his appellate and post-conviction rights except for claims of prosecutorial misconduct and ineffective assistance of counsel. (Id., Doc. No. 17 at 5). Petitioner also agreed to “pay full restitution regardless of the resulting loss amount…,” and to assist the Government with forfeiture as determined by the forfeiture judgment. (Id., Doc. No. 17 at 3-4). The Factual Basis attached to the Plea Agreement provides: From in or about 2011 through in or about 2016, the defendant ERNEST KEITH, JR executed a scheme to defraud FedEx Corporation (“FedEx”) and individuals throughout the United States by operating a series of purported logistics businesses which he falsely and fraudulently represented would arrange shipments of goods throughout the United States for a reduced price.

In total, KEITH fraudulently induced approximately 200 individuals to utilize his purported shipping services to arrange for more than 390 shipments using more than 20 different FedEx accounts he created for purposes of facilitating his fraudulent scheme as well as multiple accounts associated with unrelated third parties, resulting in a loss of more than $680,000.

From in or about February 2012 through in or about March 2016, KEITH was a resident of charlotte, North Carolina, residing at various addresses in Mecklenburg County that he associated with several of the sham companies he created accounts for at FedEx.

FedEx is an international shipping business headquartered in Memphis, Tennessee. One of the companies operated by FedEx is FedEx Freight. FedEx Freight provides shipping services for less-than-truckload freight shipping. FedEx Freight generates shipping invoices through its Customer Accounts Processing System, which is located in Harrison, Arizona, and sends those electronic files to a vendor in Logan, Utah for printing and mailing to FedEx Freight customers.

KEITH’S scheme generally operated in the following manner:

a. KEITH created FedEx Freight shipping accounts in the names of various sham companies;

b. KEITH solicited customers usually through various internet sites, such as uShip and/or Citizen Shipper, fraudulently inducing customers to utilize his purported shipping services by falsely offering shipping services for purportedly reduced rates;

c. KEITH had the customer send him payment via various money transmitting services, including, for example, Western Union, Moneygram, PayPal, and/or a Walmart to Walmart transfer;

d. KEITH then arranged to have the shipment picked up by FedEx, using the FedEx Freight account he had created in the name of a sham company and having the shipment charged to either that sham company or another;

e. KEITH kept the money transmitted to him by the customer seeking shipment while (l) failing to pay the FedEx invoices or otherwise remit any payment to FedEx for the shipments and/or (2) purporting to submit payments to FedEx from accounts that did not have the funds to cover the payments KEITH submitted; and

f. When FedEx began holding shipments it identified as associated with KEITH's sham company, KEITH purported to make payments via telephone, which were rejected by the bank due to insufficient funds,

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Bluebook (online)
Keith v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keith-v-united-states-ncwd-2020.