U.S. District Judge William D. Quarles, Jr. sentenced Keith Eugene Daughtry, age 50, of Washington, D.C., today to 41 months in prison followed by five years of supervised release for conspiring to commit bank fraud in connection with a scheme to steal over $1.399 million from a Baltimore Housing Authority (BHA) bank account in just a few months. Judge Quarles also entered an order requiring Daughtry to forfeit and pay restitution of $1,399,700.
The sentence was announced by United States Attorney for the District of
Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the
Federal Bureau of Investigation.
According to his guilty plea, Daughtry agreed to provide his identity in a
scheme to steal money from the BHA. In May 2010, co-defendant William Darden
used Daughtry’s identity to obtain a fraudulent driver’s license in Daughtry’s
name but bearing the co-conspirator’s photograph. The fraudulent driver’s
license was made so that if law enforcement were to locate Daughtry through the
fraudulent license’s use, Daughtry could claim that his identity had been
On May 25, 2010, Darden used the fraudulent driver’s license to open a bank
account for an entity called Keith Daughtry Contracting LLC. Shortly thereafter,
substantial amounts of funds illegally diverted by Daughtry’s conspirators from
a BHA bank account were electronically transferred into the Daughtry LLC bank
account, even though Daughtry LLC had never provided any services to the BHA
requiring compensation. Investigators have determined that the conspirators were
responsible for transferring at least $1,399,700 stolen from BHA’s account into
Daughtry LLC’s account between July and September 2010.
The conspirators then drained the stolen funds from Daughtry LLC’s account by
electronic transfers of funds onto debit cards in other individuals’ names, at
least one of whose identity had been stolen; electronic transfers into accounts
at other banks; and through in-person cash withdrawals from Daughtry LLC bank
accounts and from ATMs in the Washington, D.C. area. Daughtry himself withdrew
$38,550 from the fraudulent Daughtry LLC account from August 17 to September 9,
Daughtry admits that he is responsible for over $1 million in losses as a
result of his participation in the conspiracy.
William Darden pleaded guilty to his role in the scheme and is awaiting
This law enforcement action is part of President Barack Obama’s Financial
Fraud Enforcement Task Force. President Obama established the interagency
Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and
proactive effort to investigate and prosecute financial crimes. The task force
includes representatives from a broad range of federal agencies, regulatory
authorities, inspectors general, and state and local law enforcement who,
working together, bring to bear a powerful array of criminal and civil
enforcement resources. The task force is working to improve efforts across the
federal executive branch and, with state and local partners, to investigate and
prosecute significant financial crimes, ensure just and effective punishment for
those who perpetrate financial crimes, combat discrimination in the lending and
financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the FBI for its work in the
investigation and praised Assistant U.S. Attorneys Sujit Raman and Gregory R.
Bockin, who prosecuted the case.
As an American, I have witnessed many events in our nation's history. Some of them great like placing a man on the moon. Some of them were dark and shameful events. No matter what happened, it is the people that make this nation great. Each looking to the future with optimism and looking to improve this nation for all. The United States is a great and wonderful nation and her people are her best asset. As Americans, we need to stand together and let our voices be heard.
Wednesday, July 18, 2012
Conspirator Sentenced in Scheme to Fraudulently Obtain Over $1.399 Million from Baltimore Housing Authority Account
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