Vero Beach Attorney, Property Developer, and Buyer Sentenced to Prison for Conspiracy and Making False Statements to a Federally Insured Institution

Today, three individuals, a Vero Beach attorney, a property developer and a condominium buyer were sentenced to prison for participating in a criminal conspiracy and making false statements to a federally insured institution.  Two of the three men were ordered to forfeit a total of approximately $290,000.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Edwin Bonano, Special Agent in Charge, Tampa, Florida, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) made the announcement.

According to the court record, in 2009, Eric Granitur, age 60, a member of the Florida Bar, owned and operated Live Oak Title, which conducted two real estate closings for the purchase of five condominiums at the Vero Beach Hotel and Spa.  The seller and developer of the Vero Beach Hotel and Spa, George Heaton, age 75, of West Palm Beach, paid numerous incentives to buyer Stephen McKenzie, age 46, of Melbourne, to purchase the condominiums.  Heaton agreed to pay the “cash-to-close” amount that the buyer McKenzie was expected to bring to closing, and nearly $380,000 in additional cash after closing.

Granitur’s title company, Live Oak Title, conducted the closings for the sales of the Vero Beach Hotel and Spa condominium units sold to buyer McKenzie.  As an escrow agent, Granitur was required to truthfully and accurately prepare and distribute a settlement statement to the financial institutions, known as a “HUD-1,” in preliminary form for review by the financial institution, prior to the closing of escrow.   The closing statement was required to accurately reflect, among other information, the sales price, the closing funds provided by the borrower and all of the seller’s contributions.  As an escrow agent, Granitur was responsible for receiving and holding in trust, in an escrow account, the mortgage loan proceeds from the financial institutions that financed the purchase of the condominium units, and he was responsible for disbursing those loan proceeds only after final approval by the financial institutions.

On two occasions, involving Vero Beach Hotel and Club condo units sold by Heaton to McKenzie, Granitur knowingly caused a false closing statement to be transmitted to a federally insured financial institution.  The HUD-1 closing statements failed to truthfully disclose seller credits and incentives.  Additionally, the closing statements failed to disclose that the seller was paying the buyer’s “cash-to-close.”  The financial institutions relied upon the closing statement in authorizing the release of funds.

U.S. District Judge Robin L. Rosenberg sentenced Granitur, Heaton and McKenzie to prison today.

Granitur was sentenced to 12 months and one day in prison, to be followed by 5 years of supervised release.  He was ordered to forfeit approximately $28,000.

Heaton, who pleaded guilty and cooperated with the government, was sentenced to 6 months in prison, 3 years of supervised release, and forfeited approximately $263,000.

McKenzie, who pleaded guilty and cooperated with the government, was sentenced to 4 months in prison and 3 years of supervised release.

Mr. Greenberg commended the investigative efforts of the FBI and FHFA-OIG in this matter.  This case was prosecuted by Special Assistant U.S. Attorney Joseph A. Capone and Assistant U.S. Attorney Daniel E. Funk.

Pittsburgh Woman Sentenced to 90 Months in Prison for Conspiring to Distribute Fentanyl and Cocaine that Resulted in an Overdose Death

PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 90 months’ imprisonment, followed by six years’ supervised release on her conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.

United States District Judge Arthur J. Schwab imposed the sentence on Katie Spratt, 32. According to information presented to the court at the time Spratt entered a guilty plea, she regularly purchased fentanyl and cocaine from her co-defendant, Skyler Carter, for both personal use and further distribution, and was responsible for distributing quantities of fentanyl and cocaine resulting in the June 5, 2017, overdose death of a victim, identified as "A.B." Spratt further acknowledged her responsibility for participating with other members of the conspiracy in the distribution of more than 160 grams of fentanyl, 280 grams of cocaine base, and 3.5 kilograms of cocaine. Spratt is the sixth of the 21 defendants charged in the conspiracy to be sentenced.

In imposing sentence, Judge Schwab noted the tragic consequences of Spratt’s drug trafficking activity and the fentanyl epidemic gripping western Pennsylvania. He added that calling drug trafficking a "nonviolent [offense] is misguided."

The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

Four Members of the Seven Mile Bloods Street Gang Convicted of Racketeering and Other Related Offenses

After a 10-week trial, a federal jury in the Eastern District of Michigan convicted four members of the Seven Mile Bloods Street Gang today for their participation in various criminal acts, including racketeering conspiracy and related firearm offenses.                         

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan and Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division made the announcement.

“The Seven Mile Bloods and its rival conducted a gang war on the east side of Detroit, leading to an increase in murders and shootings in that part of the city,” said Assistant Attorney General Benczkowski.  “We commend our prosecutors and law enforcement partners for their hard work to hold members of the gang accountable for their crimes.  Today’s verdict sends a strong message that the Department of Justice and its partners will use every tool available as we continue our work to disrupt and dismantle violent street gangs like the Seven Mile Bloods.”

“These guilty verdicts are a tremendous victory for the Detroit community that was plagued by the violence, drug dealing and mayhem inflicted by this violent street gang,” said U.S. Attorney Schneider.  “The jury’s guilty verdicts highlight that our community has no tolerance for the senseless murders and violence spread by gang members.”

“The FBI, our Task Force partners and the U.S. Attorney’s Office, will continue to vigorously combat gang, drug and gun crimes in our neighborhoods so that all residents of the City of Detroit can live in an environment that is safe and free of violence,” said FBI Special Agent in Charge Slater.

The trial was conducted before U.S. District Judge George Caram Steeh in Detroit, Michigan.  The jury deliberated approximately seven days before reaching their verdicts.  Amongst those convicted are:

    Corey Bailey, aka “Sonny,” “Cocaine Sonny,” 30, of Detroit, was convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence;

    Arlandis Shy, aka “Grymee,” “Vil,” 29, of Clinton Township was convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence;

    Robert Brown II, aka “R.O.,” 36, of Warren, Michigan, was convicted of RICO conspiracy, attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence; and

    Keithon Porter, aka “KP,” 32, of Detroit; was convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence.

A fifth defendant, Eugene Fisher, aka “Fes,” 38, of Detroit, was convicted of two counts of felon in possession of a firearm.

According to evidence presented during the trial,  the Seven Mile Bloods gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads.  Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.”  The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.

Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014.  These rival gangs have been violently attacking one another and have posted respective “hit lists” on social media.  This shooting war has led to increased homicides and non-fatal shootings on Detroit’s east side.

This case was the work of the Detroit One Initiative.  Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA).

The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.

The case was prosecuted by Trial Attorney Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Justin Wechsler, Mark Bilkovic and Tare Wigod of the U.S. Attorney’s Office for the Eastern District of Michigan.