United States v. Russell Lee Ebersole

411 F.3d 517, 2005 U.S. App. LEXIS 11143, 2005 WL 1389529
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 14, 2005
Docket03-4847
StatusPublished
Cited by117 cases

This text of 411 F.3d 517 (United States v. Russell Lee Ebersole) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Russell Lee Ebersole, 411 F.3d 517, 2005 U.S. App. LEXIS 11143, 2005 WL 1389529 (4th Cir. 2005).

Opinions

Affirmed in part, vacated in part, and remanded by published opinion. Judge KING wrote the opinion, in which Judge WILKINSON joined. Judge MICHAEL wrote a separate opinion concurring in part and dissenting in part.

OPINION

KING, Circuit Judge.

Russell Lee Ebersole appeals his convictions and sentence on twenty-five counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of presenting false claims to the government, in contravention of 18 U.S.C. § 287. The district court sentenced Ebersole to seventy-eight months of imprisonment. Ebersole maintains, among various appellate contentions, that venue was defective in the Eastern District of Virginia, and that the court erroneously enhanced his sentence under the Sentencing Guidelines. As explained below, we affirm Ebersole’s convictions on all counts. However, we vacate his sentence, which was imposed in violation of the Sixth Amendment and otherwise improperly enhanced for abuse of a position of trust, and we remand for resentencing in light of United States v. Booker, — U.S.-, 125 S.Ct. 738, 160 L.Ed.2d 621 (2005), and its progeny.

I.

Ebersole was the president and director of a business called Detector Dogs Against Drugs and Explosives, Inc. (“Detector Dogs”), a privately held Maryland corporation. Detector Dogs trained dogs and their human handlers to find drugs and explosives, and then offered the services of the canine teams to customers. Ebersole operated Detector Dogs alongside a pet boarding and training facility in Frederick County, Virginia, in the Western District of Virginia, as well as from his home in Hagerstown, Maryland.

[521]*521In the aftermath of the September 11, 2001 terrorist attacks, federal agencies urgently sought the services of qualified explosive ordnance detection canine teams (sometimes referred to as “EOD canine teams” or “bomb-sniffing canine teams”) for the protection of their employees and the public. Among those agencies were the Department of State (the “State Department”), through its primary contractor, Intercon Security Services, Inc. (“In-tercon”), for the State Department’s Harry S Truman Building in Washington, D.C.; the Board of Governors of the Federal Reserve System (the “BOG-FED”), also for buildings in Washington; and the Internal Revenue Service (the “IRS”), through its primary contractor, Worldwide Security Services, Inc. (“Worldwide”), for the IRS service center in Fresno, California. Ebersole sought to persuade those agencies to retain Detector Dogs’s services based on a series of material misrepresentations that he made in written proposals and in fabricated examination, certification, and training curriculum documents. The dogs on the Detector Dogs canine teams actually were poorly trained, and their human handlers lacked adequate knowledge and experience, all in contravention of government standards and requirements.1 Detector Dogs initiated its services for the State Department on September 24, 2001. Eventually doubting the competence of the Detector Dogs canine teams, the State Department arranged to have an odor recognition proficiency test administered to six of the dogs assigned to protect the Harry S Truman Building. The test had been developed earlier by the Bureau of Alcohol, Tobacco and Firearms (the “BATF”) to determine by a standardized method whether a dog could successfully detect the odor of explosives. The test was given on April 22, 2002, at the BATF Canine Enforcement Training Academy in Front Royal, Virginia, to the dogs on the State Department job, all of which failed the test (with their Detector Dogs handlers participating). Immediately thereafter, Intercon terminated its subcontract with Detector Dogs for the provision of EOD canine teams to the State Department.

Detector Dogs was paid more than $212,000 for services it rendered to the State Department during the period of the Intercon subcontract. Detector Dogs had submitted its invoices to Intercon in the [522]*522District of Columbia. Intercon then reviewed and approved those invoices for payment, paid Detector Dogs by check, and submitted Intercon invoices (with the Detector Dogs invoices attached) to a State Department office in Washington, D.C. Consistent with State Department procedures, the Washington office initially approved the Intercon invoices, and then forwarded them for final payment authorization to a State Department office in Ros-slyn, Arlington County, Virginia, in the Eastern District of Virginia. Upon final approval of the Intercon invoices, the State Department’s Rosslyn office communicated by wire with a Treasury Department office in Kansas City, Missouri, which paid Inter-con.

Detector Dogs began providing services at BOG-FED buildings in Washington, D.C., on October 9, 2001. In a covert on-site test performed on April 4, 2002, three of the Detector Dogs dogs failed to detect the presence of fifty pounds of trenchrite 5 dynamite, fifty pounds of TNT, and fifteen pounds of the plastic explosive C-4 contained in three separate unmarked vehicles that were allowed to enter a BOG-FED parking garage. . Based on those test results, the BOG-FED cancelled its contract with Detector Dogs on April 30, 2002.

The BOG-FED paid Detector Dogs approximately $392,000 for its services. Once the BOG-FED had decided to pay a particular Detector Dogs invoice, relevant data was entered into a computerized accounting system in Washington and then transmitted to the Federal Reserve Bank in Richmond, Virginia, in the Eastern District of Virginia, where the BOG-FED maintained an account. The amount of the Detector Dogs invoice was thereafter: (1) debited from the BOG-FED account at the Federal Reserve Bank; (2) credited to the Bank of America’s reserve account, also at the Federal Reserve Bank; and (3) credited by the Bank of America from its reserve account to an account held by Detector Dogs at a Bank of America branch office in Frederick, Maryland.

As for the services provided by Detector Dogs to the IRS, Worldwide informed Detector Dogs that its bomb-sniffing canine teams would be subjected to on-site operational testing at the inception of the job. The Detector Dogs teams began work at the IRS Fresno service center in early 2002, and they subsequently failed tests involving odor detection of hidden explosives on March 19, 25, and 26, and April 29, 2002. On May 16, 2002, Worldwide terminated its subcontract with Detector Dogs for the IRS-Fresno work. Detector Dogs received approximately $92,000 for its services to the IRS. Worldwide had paid Detector Dogs by wire transfer from its bank in Chicago, Illinois, to the reserve account that Detector Dogs’s bank, the Bank of America, maintained at the Federal Reserve Bank of Richmond. Those payments then were credited by the Bank of America to Detector Dogs’s account at the bank’s Frederick, Maryland branch office.

Ebersole also pursued a contract for Detector Dogs to provide bomb-sniffing canine teams to the Federal Emergency Management Agency (“FEMA”) for its disaster field office in New York City. On September 27, 2001, Ebersole dispatched a dog-and-handler team to New York City for FEMA; however, the team returned to Maryland the next day without performing any work. FEMA had agreed to reimburse Detector Dogs for travel expenses. Although the handler submitted expenses to Ebersole of $1,100 for the overnight trip, Ebersole submitted an invoice to FEMA in the sum of $11,514.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Jarohn Parham
129 F.4th 280 (Fourth Circuit, 2025)
United States v. Robert McCabe
103 F.4th 259 (Fourth Circuit, 2024)
Tamer Mahmoud v. Monifa McKnight
102 F.4th 191 (Fourth Circuit, 2024)
United States v. Laura Gallagher
90 F.4th 182 (Fourth Circuit, 2024)
United States v. Teresa Barringer
25 F.4th 239 (Fourth Circuit, 2022)
United States v. Nayna Taylor
Fourth Circuit, 2019
United States v. Mallory
337 F. Supp. 3d 621 (E.D. Virginia, 2018)
United States v. Elbaz
332 F. Supp. 3d 960 (D. Maryland, 2018)
United States v. Jeffrey Sterling
860 F.3d 233 (Fourth Circuit, 2017)
United States v. Brian Hendrix
675 F. App'x 385 (Fourth Circuit, 2017)
United States v. Kofi Agyekum
846 F.3d 744 (Fourth Circuit, 2017)
United States v. Maz
232 F. Supp. 3d 844 (E.D. Virginia, 2017)
United States v. Jason Medlyn
583 F. App'x 119 (Fourth Circuit, 2014)
United States v. Mohammad Hassan
742 F.3d 104 (Fourth Circuit, 2014)
United States v. Hager
721 F.3d 167 (Fourth Circuit, 2013)
In re E.H.
742 S.E.2d 844 (Court of Appeals of North Carolina, 2013)
United States v. Yannick Pierre
525 F. App'x 237 (Fourth Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
411 F.3d 517, 2005 U.S. App. LEXIS 11143, 2005 WL 1389529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-russell-lee-ebersole-ca4-2005.