Showing posts with label James A. Beaty. Show all posts
Showing posts with label James A. Beaty. Show all posts

Court of Appeals upholds conviction of Greensboro businessman

Greg Harrison
A three-judge panel of the US Court of Appeals for the Fourth Circuit upheld the conviction of Greg Harrison, a Greensboro resident who operated a national chain of temporary labor agencies in the 2000s while financing movies and nightclubs in a decision on Oct. 3.

US District Court Judge James A. Beaty sentenced Harrison to 12 years in prison and ordered him to pay $43.2 million in restitution in 2012 following his conviction for payroll tax fraud.

The ruling summarized the case:

Harrison owned and operated several temporary staffing agencies and offices in Greensboro, North Carolina. Although Harrison employed a large workforce, he failed to file required Internal Revenue Service (IRS) forms and failed to collect and withhold, inter alia, payroll taxes. Harrison also failed to file personal tax returns for 2004, 2005 and 2006. In late 2006, Harrison sold the staffing companies to two employees. While those employees operated the companies, the payroll taxes were paid and employment tax returns were filed. In 2008, Harrison reacquired the companies and again stopped paying payroll taxes. Harrison used these withheld payments to fund his lifestyle, including the purchase of a luxury beach house and the production of two motion pictures, National Lampoon's Pucked, featuring Jon Bon Jovi, and Home of the Giants

The court found that the case was adequately presented in written materials and determined that oral arguments were not necessary to render a decision.

North Carolina Latin King sentenced to 15 years in prison

Russell Kilfoil in 2009
The man identified by the US government as "second in command" of the NC Latin Kings was attempting to leave North Carolina to start a new life with his family and land a job with the New York City Housing Authority when he was arrested by the FBI in late 2011.

US District Court Judge James A. Beaty Jr. overruled an objection by Kilfoil to the government's characterization of him as a leader in the Latin Kings — a distinction that carries sentencing enhancements. Prosecutor Leshia Lee-Dixon argued that Kilfoil served as "second in command" under his biological half-brother Jorge Cornell from the 2006, when he came to North Carolina at the age of 20, to the time of the indictment.

Compared to Cornell's sentencing, which drew about 20 supporters and a handful of reporters, Kilfoil's hearing today was a low-key affair. Carlos Coleman, a co-defendant whose case was dismissed, and Wesley Morris, a community organizer at the Beloved Community Center, watched from the gallery, along with an FBI agent and two Guilford County sheriff's deputies who helped the government bring down the Latin Kings as members of an anti-gang task force.

Known most commonly by his nickname Spanky, Coleman said afterwards that he could relate to Kilfoil's situation, having left the Latin Kings shortly before the indictment was issued.

"I was in the same situation," he said. "I had left myself. I was dragged back into it. I wanted to make a change for myself. Not to say that the Latin Kings were a bad organization, but here in North Carolina I was starting to see the negative."

Coleman went to the Beloved Community Center in Greensboro this morning to try to catch a ride to the federal court building in Winston-Salem. A staff member gave him some bus passes, and he ended up traveling on the PART bus.

"I wanted him to know he still got my support — always," Coleman said.

Kilfoil read a short statement before standing to receive his sentence.

"Shortly after my 25th birthday, I saw that some things needed to change," he said. "I chose to get away from the negative influence of the Latin Kings. I was planning to move with my family back to Long Island. I had a job set up with an interview with the New York Housing Authority. I was going to enroll in Nassau County Community College. I needed to return to Greensboro one last time when I was arrested by the FBI. I want to come home to my daughter, girlfriend and support group. My daughter is 4 years old. I need her as much as she needs me. I give my life to God, and I know that He has a plan for me."

Beaty sentenced Kilfoil to 15 years in prison, a downward departure from the maximum possible sentence of 20 years that the judge said reflected a need to avoid sentencing disparities considering that he had sentenced Cornell to 28 years, as opposed to the maximum length of 50 years. While overruling an objection to the characterization of Kilfoil as a manager and supervisor, Beaty said he accepted the defendant's statement that he was trying to remove himself from the bad influence of the Latin Kings at the time of his arrest.

The sentence also reflected Kilfoil's statement of remorse and a strong network of support from his adopted family, while also taking into consideration what the judge characterized as "a significant role in the activities of the Latin Kings."

Although the defendant had no involvement in a 2008 shooting and 2007 string of robberies carried out by other Latin Kings members, Beaty agreed with the government's assertion that based on his leadership role, Kilfoil should be held responsible under the Racketeer Influenced and Corrupt Organizations Act because it was reasonable to assume he knew such criminal activities would occur.

"There was a pattern that Russell Kilfoil engaged in that he not only taught the tools of the gang but directed them in their activities," Lee-Dixon said. "Mr. Kilfoil helped to run the Latin Kings with Mr. Cornell."

Lee-Dixon argued that Kilfoil's motivation for leaving North Carolina in 2011 had more to do with the fact that members had been put on notice by Latin King Jason Yates that the FBI was investigating the organization and an indictment was likely pending than any genuine change of heart.

Brian Aus, Kilfoil's court-appointed lawyer, challenged the government's assertion that Kilfoil was a leader and organizer of the Latin Kings at the time Cornell was shot by an unknown assailant in 2008. Aus said the only evidence presented to support the allegation that Kilfoil ordered Latin Kings members to obtain firearms to retaliate for the shooting of Cornell came from Jose Lugo, a paid FBI informant who taught fellow members how to make firebombs. Aus pointed out that Kilfoil called off a plot to carry out a firebombing.

He added that it was not clear who, if anybody, the Latin Kings might retaliate against and said that, in fact, the purpose of the weapons was protection.

The judge also overruled objections to references in Kilfoil's pre-sentence report to a plot to steal firearms for the purpose of shooting estranged members to check-kiting activity by Latin Kings members Richard Robinson and Wesley Williams. The government contended that Kilfoil kept in touch with Robinson and Williams by cell phone when they set out to shoot brothers Anthony and Robert Vasquez, and that he drove them to banks where they cashed bad checks.

Aus said that his client was born addicted to cocaine because of his biological mother's abuse of the drug while she was pregnant, and that he encountered academic challenges that resulted in his placement in special education. Aus also mentioned several letters of support submitted by members of Kilfoil's adopted family in New York.

"Russell was leaving the Latin Kings and was going back to New York to make a new start," Aus said. "He had had enough of his biological half-brother, Jorge Cornell. Jorge put a 'beat on site' order on Russell. It's obvious that he had had enough of the Latin Kings. The investigators told you that when he was arrested none of the Latin Kings jewelry and clothes. It should tell you something that when he was put in the cell with Jorge Cornell, the comment was made: 'Okay, he's one of us again.'"

INITIAL POST: Russell Kilfoil, a member of the North Carolina Latin Kings, has received a 15-year federal prison sentence for criminal racketeering.

US District Court Judge James A. Beaty Jr. said he was mindful of the need to avoid sentencing disparities when he gave Kilfoil a downward departure from the maximum sentence of 20 years because. In August, the judge sentenced the organization's leader — and Kilfoil's biological half-brother — Jorge Cornell to 28 out of 50 possible years. Beaty also credited Kilfoil's expression of remorse, but agreed with the government that the defendant acted in a managerial role as second in command under Cornell from 2006 to the time of the indictment in 2011.

More to come.

Judge strikes a blow for open records in Latin Kings case

A federal judge has turned down a request by the government to seal transcripts reflecting testimony by six witnesses in the racketeering case against the North Carolina Latin Kings.

Prosecutors sought to shield the testimony of former Latin Kings members Marcelo Perez (Sacrifice), Luis Alberto Rosa (Speechless), Richard Robinson (Focus), Charles Lawrence Moore (Toasty), Allan Jordan (Smooth), along with a sixth witness, Antwan Lloyd.

The government contends that the information could be used for retaliatory purposed by North Carolina Latin Kings leader Jorge Cornell (Jay) and other defendants, Russell Kilfoil (Peaceful) and Ernesto Wilson. Cornell and Wilson were sentenced in August, while Kilfoil's sentencing has been scheduled for Oct. 9. The government is also concerned that three other defendants who pleaded guilty but did not cooperate — Jason Paul Yates (Squirrel), Wesley Anderson Williams (Bam) and Steaphan Acencio-Vasquez (Leo) might use the information for retaliatory purposes.

US District Court Judge James A. Beaty found that the government did not meet the "heavy burden" of overcoming the common law presumption that the public has the right "to inspect and copy all judicial records and documents."

"The government wishes to shield the witnesses' trial transcript testimony from defendants who were present at the public, criminal trial and could readily identify witnesses and their testimony," Beaty wrote. "Thus, any potential act of retaliation may not necessarily stem from witnesses' trial transcripts."

Beaty said the government's request comes far too late to be meaningful, considering that the trial took place 10 months ago.

"The nature and content of witnesses' testimony were the subject of extensive reporting in the news and such information is available to the public from various media outlets," Beaty added. "Therefore, any act now by the court to shield witnesses' trial transcripts from the public would not likely thwart third-party retaliation because the request comes 'too late' to prevent public disclosure."


Variance in Latin Kings leader's sentence reflects 'good works'

The Rev. Nelson Johnson embraces Saralee Gallien outside federal court in Winston-Salem following the sentencing.
North Carolina Latin Kings leader Jorge Cornell leader received a sentence of 28 years in federal prison for criminal racketeering on Wednesday, with a federal judge in Winston-Salem noting the defendant’s “good works and ethics” before granting a variance from sentencing guidelines.

The statutory maximum of 50 years would likely have amounted to a life sentence for the 36-year-old Cornell, who suffers from high blood pressure and sleep apnea. The sentencing guidelines set a minimum of 30 years. US District Court Judge James A. Beaty Jr. consolidated two counts of racketeering against Cornell, including one related to the defendant’s alleged role in a shooting at Maplewood apartments for a total of 18 years. A third count, also related to the Maplewood shooting, of use of a firearm during a violent crime in aid of racketeering carried a mandatory minimum of 10 years.

Cornell spoke extensively before receiving the sentence, telling the court he doesn’t hold faith in the justice system although he expects the verdicts to be overturned on appeal.

“When I founded this nation, I kicked out everyone who committed crimes,” said Cornell, wearing an orange jumpsuit and chains around his waist. “Individuals who took the stand, they didn’t understand the true nature of what it meant to be a King. You look at the lessons: It doesn’t say, ‘Go kill.’ It doesn’t say, ‘Go sell drugs.’

“I never, ever gave any order to anyone to commit any act of violence,” he continued. “Never.

“I’m an innocent man,” he continued. “I will continue to say I’m innocent ’til the day I die. To the community, I say, ‘It’s not goodbye; it’s see you later.’”

Anticipating the judge’s sentence, Cornell said, “I forgive you and I forgive those that wronged me. I forgive those that took the stand, because I knew they were under pressure. They were mad because I kicked them out because they wanted to be gangster. These very people who wanted to be gangster were the first to break when the indictment came down. If you’re a so-called gangster, you’re supposed to take responsibility. I said to them: ‘Why would you want to be gangster when you can be royalty?’ Being royalty is helping your community.”

About 20 people, mostly from Greensboro but also from Chapel Hill, attended the sentencing to demonstrate support for Cornell, and six testified on his behalf.

Brian Sims, a faculty member at NC A&T University, said he got to know Cornell while speaking with him on a panel on the topic of black-brown unity at Guilford College in 2008. Later, Sims invited Cornell to speak to a night class at A&T as a guest lecturer. He testified that Cornell was an effective communicator who engaged his students so well that some “stuck around for hours to talk” with him – uncharacteristic for a group that was usually out the door the minute the class concluded.

“I want to counter the notion that Jorge Cornell was anything other than a positive, sometimes essential contributor to the lifeblood of the community,” Sims said. “Look out into the courtroom and you’ll see people of all races and ages, people who are believers and non-believers. What all of us, despite our differences, have seen is a very dignified, humble, wonderful individual who all of us want to be.”

Signe Waller Foxworth testified about living with Cornell for most of 2011 when she and her husband rented a spare, upstairs room to him at their home in Greensboro. Foxworth said she “respected” and “admired” Cornell and spoke of “the great love he had for his daughters. Foxworth said she knew Cornell had been seeking employment during that period and might have secured some temporary jobs, but wasn’t certain.

“I can speak about how he used my kitchen a couple times to make candy lollypops with his daughters that he sold just to get a little money,” she said.

Terence Muhammad, a community activist who worked extensively with the defendant said, “If Jorge Cornell was a drug dealer, he was the brokest one I ever met.”

Muhammad described taking part in a meeting that Cornell convened in the basement of Genesis Baptist Church in 2008 to develop a peace accord among street organizations. While there was no apparent conflict at the time, Muhammad said the participants engaged in “an in-depth, long discussion, a frank and open discussion.”

Muhammad said, “Jorge Cornell is not a thug. Jorge Cornell is not a gangster. In my 42 years in Greensboro, I have not lived in terror of gang violence.”

A number of witnesses spoke about Cornell’s unsuccessful bids for Greensboro City Council and his effort to establish a non-profit temporary labor agency to employ ex-felons.

Lewis Pitts, managing attorney for the Advocates for Children’s Services unit of Legal Aid of North Carolina, said became involved with Cornell after reading in a newspaper about the peace accord among street organizations.

“When I read that several of the gangs – and I use that term in quotes – had been meeting together with the intent of ceasing any physical conflict and violence between each other and pursuing racial and economic justice, based on my many years of work with groups pursuing racial and economic justice, it prompted me to be concerned whether there would be retaliation for that.”

Pitts, who began his career as a criminal defense lawyer, addressed Beaty directly.

“I want to be more than a name on a piece of paper to you, Judge Beaty, to refute the idea that I have been duped by some kind of smokescreen,” Pitts said. “As a criminal defense attorney I’ve dealt with some pretty unsavory people who have done heinous things. I think I’m pretty good at sizing people up.”

Pitts said he recognized that the jury had spoken in finding Cornell guilty of racketeering activities, but that he found it impossible to believe that the allegations were true. He asked Beaty to consider allegations that the Latin Kings’ civil rights had been violated that are outlined in a 2010 complaint to the U.S. Justice Department.

“Keep in the back of your mind that this was an improper prosecution,” he said. “Some people at the lower level might have been squeezed to provide false testimony.”

Cornell began his statement to the court by accusing the government of engaging in prosecutorial misconduct. He alluded to evidence the prosecution put on to the effect that Cornell ordered members in Charlotte to procure weapons for the purpose of retaliation after he was shot in 2008.

“They had information that an officer of the Greensboro Police Department CSI said the police set me up to be shot,” Cornell said. “They have a duty as officers of the law to seek justice, but they did not want to investigate this; they wanted it to blow over.”

Former Greensboro police officer AJ Blake filed a complaint against police employee Patricia Caffey alleging that she told US Attorney Robert AJ Lang that Blake shot Cornell. Blake said the statement was completely false.

Cornell said the defense didn’t have an opportunity to enter the information into evidence because his lawyer Michael Patrick misplaced the document. Patrick declined to comment after the sentencing except to say that that was not his recollection.

Cornell attempted to submit the document to the court. Judge Beaty said he would not allow it to be entered into evidence.

Cornell also alleged that the government prevented him from presenting evidence by placing a gag order on the Greensboro Police Department to thwart public records requests by his supporters.

“This is serious, judge,” Cornell said. “Mr. Lang from the US Attorney’s office was the one who put the veil of secrecy to keep me from getting the documents.”

Beaty said he had sought to impose a sentence that was “sufficient, but not greater than necessary,” which would provide “just punishment and ample deterrence. He also said the sentence took into consideration Cornell’s difficult childhood and the various community members whose testimony reflected that the defendant “did things with good purpose that, as he perceived it, promoted social justice.”

Arguing for leniency, Patrick spoke about Cornell’s childhood in New York City.

“His natural parents were both addicts in New York City,” Patrick said. “He moved at the age of 8. His recollection of that is that they fought over who was going to get the last batch of drugs. He bounced around from foster home to foster home until he was finally placed with a family for adoption.”

Cornell’s 15-year-old daughter sat on the third row smiling proudly as her father’s defense counsel spoke. Patrick said that contrary to the government’s argument, Cornell moved to North Carolina to be close to his children.

“He is someone who is struggling to make his way in life and chose the Latin Kings as his way to do that,” Patrick said. “But he’s also someone who has made significant contributions to the community, including promoting gang peace.”

Prosecutor Leshia Lee-Dixon said there was no basis for a variance.

“It was clear that Mr. Cornell, based on testimony, came to North Carolina to start the Latin Kings,” she said. “He recruited very young members and taught them who to attack.”

Lee-Dixon cited testimony by John Choe, Mixay and Bouakham Keophakhoun, and Rojelio Lopez, and argued that they all “suffered the impact of orders given by Mr. Cornell.”

Choe and the Keophakhouns are business owners in Greensboro who were robbed by Latin Kings members. Lopez is a construction worker who was shot by a Latin Kings member in an apparent case of mistaken identity during a retaliatory strike.

“I really feel bad for the victims because if I knew that any members did that, I would have thrown them out long before I did,” Cornell said. “I can’t just throw someone out just like that, judge. In the Latin Kings, we require evidence. I waited until I got evidence.”

Lee-Dixon portrayed Cornell’s many associations with community leaders as hypocritical. Alluding to a letter from Guilford County School Board member Deena Hayes-Green lauding Cornell for working “constructively on school safety,” Lee-Dixon said, “Even while he was coordinating with a middle-school administrator, he was recruiting middle-school students to create flourishing organized crime in this community.”

The government and defense counsel argued whether Cornell’s pre-sentence report should include information about drug trafficking and arson. Patrick noted that the jury acquitted all defendants on those overt acts. Both sides acknowledged that the points of contention would not affect the sentencing guidelines either way.

“We think it’s important for the information to not only be accurate, but to also reflect the true nature and scope of the enterprise,” Lee-Dixon said.

Judge Beaty turned down a request by the government to find Cornell guilty of obstruction of justice stemming from phone conversations with supporter Saralee Gallien prior to her testimony. Patrick told the court that Gallien’s testimony would have impeached the testimony of Charles Moore, a cooperating witness. The judge ruled that Gallien’s testimony would be excluded, so it had no impact on the verdict.

The sentencing drew Randall Westmoreland, a delivery driver from Stokesdale who served on the jury.

Westmoreland said before the sentencing that the jury had been split, with one group favoring conviction of all six defendants who pleaded not guilty and went to trial, and another favoring acquittals for all. Westmoreland was in a third group that was adamant that some should be convicted but not all. He said the jury had been confused about whether the instructions required that participation in the enterprise was sufficient to convict or an individual defendant had to commit a specific racketeering act. The jury ultimately resolved the impasse to avoid a mistrial, Westmoreland said, by taking the compromise approach of finding some defendants guilty and others not guilty.

Westmoreland took the view that Randolph Kilfoil, Cornell’s younger brother who was also known as King Paul, should be acquitted. His fellow jurors ultimately agreed.

“One of the problems I had with [convicting] Paul is he had been in prison the majority of the time,” Westmoreland said. “Maybe he communicated in prison; I don’t know.”

He said that he had no doubt about Cornell’s involvement in the Maplewood apartments shooting, and found the evidence presented by the government to be compelling. The shooting accounted for the three guilty counts, including the violence crime in aid of racketeering act, which added 10 years to Cornell’s sentence.

The sentencing of Marcelo Ysrael Perez, the admitted shooter in the Maplewood incident, along with Richard Robinson, Charles Moore and Luis Rosa, are scheduled for today at 10 a.m. All four pleaded guilty and agreed to cooperate with the government.

Sentencing for Russell Kilfoil, another of Cornell’s brothers — also known as Jonathan Hernandez — is scheduled for Aug. 28.

Cornell’s supporters left the courtroom in solemn but good spirits, having been prepared for the worst.

“I think the sentence in relationship to what I believe to be his innocence is harsh and unwarranted,” the Rev. Nelson Johnson said. “In relationship to the courts and the legal guidelines, the judge seemed to take the lenient side.”

Justin Flores, an organizer with the Farm Labor Organizing Committee, came to court to show support for Cornell. The two had worked together since meeting at Black-Brown Unity Conference in 2009.

“It’s sad,” Flores said. “Thirty years is a long time for something that we all know he was innocent of.”

Cornell concluded his remarks by pledging that the sentence would not be the end of his story.

"I want the community to know that I love them," he said. "This is not an end; it's a beginning. I'm going to take that trip to Puerto Rico real soon and eat pizza. I'm a slave now, but these chains can only hold me so long."

Judge turns down request for new trial by Jorge Cornell and other Latin Kings defendants

A federal judge has turned down a request for a new trial by former North Carolina Latin Kings leader Jorge Cornell and two co-defendants who were found guilty of racketeering in December.

Cornell, along with fellow Latin King and biological brother Russell Kilfoil and an associate named Ernesto Wilson filed a motion for new trial following the verdict based on the contention that the jury was confused about court instructions on the use of a special verdict sheet. 

On the second day of deliberations, the jury asked Judge James A. Beaty for clarification on whether the government's burden of proof rested on establishing that each defendant participated in two racketeering acts or whether they merely had to agree to participate in a racketeering enterprise in which two racketeering acts were committed.

The judge told lawyers for the government and the defendants that "the court cannot provide the answer for the ultimate decision they must make" and instead of answering the jurors question, called them back into court and read the jury instructions for a second time.

When the jury returned guilty verdicts for three of the defendants, they submitted verdict sheets indicating that the three had planned or committed the exact same racketeering activities: Multiple acts of robbery and bank fraud, and single acts of conspiracy to commit murder, attempted murder and threats or violence.

"In light of the evidence presented at the trial of the case, it is clear that the only way the jury could have found identical predicate acts for each of the convicted defendants would be for the jury to ignore the instructions to consider the defendants individually and to base its verdict on the notion that each member of the conspiracy was responsible for all predicate acts that the jury concluded involved the enterprise," Michael Patrick, Cornell's court-appointed lawyer, wrote in the motion.

Defense lawyers cited as the most clear-cut evidence of confusion by the jurors the evidence against Wilson, who was convicted as an associate of the Latin Kings rather than a member.

"The government's evidence taken in the light most favorable to the government was that Mr. Wilson participated in a series of store robberies in April 2007," the motion stated. "No evidence indicated that Mr. Wilson remained in North Carolina after May of 2007 or that he had any further contact with the other persons that the government alleged were members of the conspiracy in this case. Nevertheless, Mr. Wilson was found responsible for conspiracy to commit murder, attempted murder, interference with commerce by threats or violence and multiple acts of bank fraud. The government's evidence established that none of these acts occurred before the spring of 2008 and in the case of the Smith Homes shooting — which may have been found to be the attempted murder predicate act — occurred as late as August 2011, more than four years after Mr. Wilson left North Carolina."

Judge Beaty responded in a written ruling on Wednesday to the effect that the defendants were mistaken in the jury was required to unanimously find that a particular defendant was responsible for committing specific racketeering acts himself.

"Defendants were not charged with and convicted of, committing individual racketeering acts," Beaty wrote. "Rather, defendants were charged with, and convicted of, conspiracy to conduct or participate in the affairs of an enterprise through a pattern of racketeering activity."