Attorney General’s Office secures multi-count indictments in investment fraud schemes

Attorney General’s Office secures multi-count indictments in investment fraud schemes Separate ponzi scheme and real estate scam defrauded investors out of nearly half a million dollars.
Today, the Attorney General’s Securities Unit announced that it has securedindictments resulting from two separate investigations charging Thomas Dolby and Robert Smithfieldwith multiple counts of securities fraud, theft, and other related crimes. It is alleged that in total the men defrauded investors out of more than $460,000.

“The Delaware Department of Justice is standing up for Delaware’s investors by rigorously enforcing our Securities laws,” stated Securities Commissioner Peter Jamison. “We encourage investors who believe they may be a victim of investment fraud to contact our Securities Unit at (302)577-8424.”

The first indictment charges Thomas Dolby, age 38, of Smyrna, DE, with securities fraud, theft, and racketeering. It alleges that Dolby solicited funds that he claimed would be invested in a realestate development project in Turkey. A complaint filed with the Attorney General’s Office by a Delaware investor initiated an eight month investigation by the Securities Unit, which revealed thatDolby took in more than $400,000 from six investors in two states. The indictment alleges that the funds were not invested as promised, but instead were retained and used by the defendant for his personal expenses. Investigators also learned that Dolby was not properly registered to sell securities in Delaware, and the investment was not registered with Delaware officials as required by state law.

A separate Securities Unit investigation has also led to an indictment charging Robert Smithfield, age 49, of Mountville, PA, with securities fraud and theft. According to the indictment, Smithfield operated a complex ponzi scheme in which he solicited funds from individuals to invest in a company that that he had formed. In order to continue the scheme, Smithfield used funds he secured from investors to make promised interest payments to earlier investors in the scheme. Several investors were swindled, including two Delaware residents who were defrauded of more than $60,000.

The Attorney General’s Securities Unit enforces the Delaware Securities Act, which regulates the sale of investment products and the activities of investment professionals. The Unit investigates and prosecutes securities fraud and licensing violations by investment brokers, advisors, and firms. Delaware investors are encouraged to report suspected incidents of investment crime and fraud by calling the Attorney General’s Securities Fraud hotline at (302) 577-8424. The Delaware Department of Justice reminds the public that an indictment is merely an allegation and is not evidence of guilt. Defendants are presumed innocent and are entitled to a jury trial at which the state bears the burden of proving each charge beyond a reasonable doubt.

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Bills stemming from Bradley investigation filed to better protect Delaware’s patients

Attorney General Beau Biden’s office, Governor Jack Markell and a bipartisan coalition ofoversight of the medical profession in response to the Earl Bradley case.

The bills filed today reflect recommendations made by separate reviews the Attorney General and Governor ordered after Bradley was arrested on charges that he allegedly molested over 100 youngpatients at his Lewes pediatric office. Both reports found multiple instances of systemic failure and made clear that the laws and procedures in this area were broken and in need of significant reform tobetter protect patients. “These bills have broad bipartisan support. They should make a real difference to protect patients, and particularly children, going forward. Both reviews provided important suggestions onhow a system that failed terribly should improve – suggestions that have been incorporated into these bills. I look forward to the legislature taking action on them and the opportunity to sign them into law,”Markell said.

“Since this case broke, Attorney General Biden has been concerned with two things: first with the prosecution of Dr. Bradley and second with a review of our systems to ensure we do everything we
can to prevent this from ever happening again. These reforms are aimed at doing just that,” said Chief Deputy Attorney General Charles Butler. “We are particularly pleased that the Governor and the
General Assembly have so eagerly participated in the effort to improve the oversight of the medical profession and to make other important changes to ensure suspicious behavior is reported and
investigated. The impact of this tragedy transcends political parties and government agencies. The Attorney General’s Office will be urging the General Assembly to pass this package of bills in their entirety and without delay.”

Increase scrutiny Delaware physicians receive from the Board of Medical Practice whilerenewing their medical licenses. The legislation mandates physicians disclose to the Board if they have been convicted of crime substantially related to their practice, if they have been penalized or convicted of a drug offense, if they have had a license revoked or suspended in another state and if they have been disciplined by a hospital. Doctors seeking to continue practicing in Delaware would also have to submit fingerprints and other identifying information necessary for the Board to conduct a criminal background check.

•Boosts penalties for health care professionals who fail to live up to their legal responsibilities to report suspicious behavior by doctors that could harm patients. The new fines would be a maximum of $10,000 for a first violation and as much as $50,000 for repeat offenders.

•Require additional child abuse-prevention training for medical professionals, law enforcementofficers and prosecutors, as well as additional instruction on their legal obligations to report suspicions of abuse.

•Require a physician or physician’s assistant treating a person 15 years of age or younger to haveanother adult in the room when that child is disrobed, partially disrobed or otherwise undergoing certain physical examinations. That additional adult may be either a family member or other caretaker, or an adult staff member or colleague of the licensee.

•Toughen penalties for individuals who abuse a child and are in a position of trust or authorityover the victim.

•Enhance the Board of Medical Practice’s authority to crack down on unprofessional conductand enhance the Board’s ability to work with law enforcement to protect public safety. To help the Board better police physician conduct, hospitals must report any disciplinary action against doctors and requires doctors to notify the Board anytime they are the subject of a criminal or civil investigation. If the Board is notified of potentially criminal misconduct by a doctor, the Board must notify law enforcement. The legislation also requires the Board to open its meetings to the public, accept complaints orally in addition to in writing and end the controversial relationship with the Medical Society’s Physicians Health Committee, with which
the Board had previously contracted to handle some of its investigatory responsibilities. The bill also gives law enforcement officials access to additional information about physicians under investigation.

•Double the maximum fine for individuals who knowledge of suspected child abuse but do notalert authorities to $10,000.

•Add two representatives of the public to the Board of Medical Practice as well as the director ofthe Division of Public Health. The bill also renames the Board the Board of Medical Licensure and Discipline to better conform its name to its duties. The bills are filed with broad bipartisan support from each of the four caucuses:

SENATE DEMOCRATS: “These are serious and very necessary revisions to the code. Had they been in place this tragedy might have been avoided,” said Senate President Pro Tem Anthony DeLuca, DNewark
East. “We are going to move quickly, but prudently to ensure that the code is strengthened and Delaware’s patients can have a greater sense of security when they visit their doctors.”

SENATE REPUBLICANS: “I think it’s important that the legislature stands united in these efforts, thus assuring the public that situations like the Bradley case will never happen in the future,” said Senate Republican Leader Gary Simpson.

HOUSE DEMOCRATS: “Many families have been traumatized by this inhuman monster,” said House Majority Leader Rep. Pete Schwartzkopf. “They are hurting, our community is hurting. We unfortunately can’t undo what happened, but we can and must take steps to ensure that this never happens again, that there isn’t a breakdown in the system. This package of bills takes several important steps in addressing the problems that both the governor and attorney general’s reviews found. We will accomplish this through a mixture of increased reporting, increased penalties, changes to the Board of Medical Practice, improved communication between agencies, additional training and protections for young patients. While these pieces of legislation aren’t going to be a cure-all, we hope they will address the issues identified and prevent future tragedies.”

HOUSE REPUBLICANS: “This package should correct some of the blatant lapses that tragically allowed an accused pedophile to operate in our community for years without detection,” said Rep. Ruth Briggs King (R-Georgetown). “While I’m deeply disheartened that these fixes come too late to help the many victims and their families, I take some solace that they will better protect our children in the future.”

Specifically, Tuesday’s legislative response to the Bradley case includes seven bills:
• Increase scrutiny Delaware physicians receive from the Board of Medical Practice while renewing their medical licenses. The legislation mandates physicians disclose to the Board if
they have been convicted of crime substantially related to their practice, if they have been penalized or convicted of a drug offense, if they have had a license revoked or suspended in
another state and if they have been disciplined by a hospital. Doctors seeking to continue practicing in Delaware would also have to submit fingerprints and other identifying information
necessary for the Board to conduct a criminal background check.
• Boosts penalties for health care professionals who fail to live up to their legal responsibilities to report suspicious behavior by doctors that could harm patients. The new fines would be a
maximum of $10,000 for a first violation and as much as $50,000 for repeat offenders.


Consensus legislation seeks to reform Delaware’s drug laws

Consensus legislation seeks to reform Delaware’s drug laws

Bill is ‘a bold step forward in creatively fighting crime’

Delaware’s sentencing guidelines will be updated to more effectively deter and punish drugcrimes under a bill drafted by the Attorney General’s Office and introduced in the House of Representatives today. House Bill 443, sponsored by Rep. Melanie George and Sen. Harris McDowell, reflects a consensus after months of talks among a full spectrum of stakeholders. The Attorney General’s Office brought all sides together, including police agencies, criminal justice reform advocates, the Public Defender’s office, the Department of Correction, and others. In addition, the measure has been endorsed unanimously by the Delaware Police Chief’s Council and Delaware Sentencing Accountability Commission.

“Attorney General Biden believes these reforms represent a bold step forward in keeping our communities safer,” stated Chief Deputy Attorney General Charlie Butler. “He has often said that new times often require creative ways to fight crime – realities today are different than thirty years ago. Our drug laws haven’t been changed in decades. That’s why the Attorney General brought together a broad spectrum of stakeholders to develop this comprehensive legislation. We’re pleased that all the various parties we invited to the table, especially law enforcement, are supporting this bill.”

Rep. Melanie L. George, D-Bear, the lead sponsor of HB 443, said the revisions to Delaware’s drug crimes are long overdue and will make important reforms to the state’s criminal justice system. “Because taxpayer dollars are used to operate our prisons, we must ensure that we are using those funds wisely to incarcerate those who should be kept in prison,” said Rep. George, who chairs the House Judiciary Committee. “We must focus our efforts on keeping those who present a serious danger to society off our streets. “I want to thank all of the stakeholders who came together to reach a consensus that represents what is best for Delawareans, especially Attorney General Biden’s office, which worked hard to collaborate with several groups with differing opinions. I look forward to seeing this bill pass both the House and Senate before our session ends in four weeks.”

Specifically, the legislation:

• Emphasizes that the punitive aspects of drug laws are aimed at drug dealers
• Allows greater judicial discretion for drug crimes involving extraordinary circumstances andeliminates convoluted and special sentencing provisions for drug crimes
• Simplifies and streamlines charging decisions for police agencies to a single charge formany drug felonies
• Increases penalties for those dealing in substantial quantities of narcotic prescription drugsand for drug dealers who resist arrest with force or violence
•Retains minimum prison sentences for drug felonies involving certain amounts of drugs or aggravating factors such as prior offenses and eliminates minimum sentences for some firsttime offenders who would face such sentences under current law
• Protects children by increasing the penalty a drug dealer faces for committing a drug crimenear a school or park
• Creates a new crime for those who knowingly provide a dwelling used for drug deliveriesand for those who possess drugs and a handgun or semi-automatic weapon at the same time

“Our police departments are in our communities every day working to keep our neighborhoods safe,” said Delaware State Police Superintendant Colonel Robert M. Coupe. “This legislation will improve law enforcement’s efforts to effectively investigate and charge drug offenses. This legislation came through a diverse committee that was represented by all facets of law enforcement, and the Police Chiefs’ Council overwhelmingly supports it because it is a smart step forward in our fight against crime. We thank the Attorney General for his steadfast support and congratulate Rep. George and Sen. McDowell for their leadership on this important legislation and hope for its swift passage.”

This bill makes important changes to our criminal justice system,” said Charlie Copeland, president of the Board of Directors of the sentencing reform group Stand Up for What is Right and Just. “It addresses the needs of law enforcement and need to help rehabilitate non-violent offenders.”

Sen. Harris B. McDowell III, D-Wilmington North, the bill’s chief Senate sponsor, thanked the Attorney General’s office, law enforcement, and other stakeholders for coming together on this bill. “I want to congratulate the House for acting on this very, very important reform of our criminal justice system. We have allowed this capricious and arbitrary sentencing system to go on for far too long. Justice requires that a prudent jurist be able to review all the relevant facts when passing sentence.”

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Attorney General’s Office welcomes Summer Law Clerks

Today, the Attorney General’s office welcomed fifteen Summer Law Clerks to the Delaware Department of Justice. Named through a competitive selection process, these law school students volunteer their time, gaining legal experience and insight into the rewards and demands of public service by working in all three county offices in the Department’s Civil, Criminal, Family, and Fraud and Consumer Protection divisions. Over the next ten weeks, Summer Law Clerks will assist in hearings and trials, complete research projects, prepare briefs, write memos, and conduct other tasks reflecting the day-to-day experiences of Deputy Attorneys General. Each of this year’s clerks have completed two years of law school and will also be certified by the Delaware Supreme Court to prosecute minor misdemeanor cases.

“Attorney General Biden and I are pleased to welcome this year’s Summer Law Clerks to the Delaware Department of Justice, Chief Deputy Attorney General Charles Butler stated. “We appreciate their admirable commitment to public service and their contribution to our mission to enforce the law and protect Delawareans and their families.”

The 2010 Summer Law Clerks are as follows (see photo below):

Brian Biggs of Wilmington, DE, a student at Temple University, Beasley School of Law, received a.S. in Medical Physics and a B.S. in Pre-medicine from the Pennsylvania State University, State
College, PA, and a Master of Public Health from Drexel University, Philadelphia,PA. Angela Brenwalt of Dover, DE, a student at Mercer University, Walter F. George School of Law,
received a B.A. in Business Management, German, and Political Science from Hartwick College,Oneonta, NY. Ronald Clarkof Philadelphia, PA, a student at the University of Pennsylvania Law School, received
a B.A. in English and Spanish from Amherst College, Amherst, MA.
Victoria Cuddof Philadelphia, PA, a student at Temple University Beasley School of Law, received a B.A. in Political Science from Dickinson College, Carlisle, PA.
Andrew Dalton of Wilmington, DE, a student at Villanova School of Law, received a B.A. in Creative Writing, Psychology, and Literature from Hampshire College, Amherst, MA.
Brenna Dolphin of Wilmington, DE, a student at Villanova University School of Law, received a .A. in History and Government from Franklin & Marshall College, Lancaster, PA.
Kevin Gardner of Laurel, DE, a student at the Pennsylvania State University, Dickinson School of Law, received a B.A. from the University of Delaware.
Zachary George of Dover, DE, a student at Widener University School of Law, received a B.A. in English from the University of Delaware.
Jamie McCloskey of Newark, DE, a student at Widener University School of Law, received a B.S.in Sports Management from DeSales University, Center Valley, PA.
Sharon Opila of Newark, DE, a student at Emory University School of Law, received a B.A. in Psychology from the University of Rochester, Rochester, NY.
Brittney Russellof Roslyn Heights, NY, a student at Northeastern University School of Law,received a B.A. in History and Political Science from the University of Delaware.
Paige Schmittingerof Wilmington, DE, a student at Widener University School of Law, received a B.A. in Psychology and Sociology from the University of Delaware.
Danielle Strauch of Glen Mills, PA, a student at Widener University School of Law, received a B.A. in Government from Franklin & Marshall College, Lancaster, PA.
David Skoranski of Philadelphia, PA, a student at Temple University, Beasley School of Law,received a B.A. in Government and Politics from the University of Maryland, College Park, MD.
Kenneth Wan of Holmdel, NJ, a student at Widener University School of Law, received a B.S. in Finance from the University of Delaware.
2010 Summer Law Clerks pictured above: back row, left to right – Danielle Strauch, Brittney

Russell, Ronald Clark, Zachary George, Andrew Dalton, Jamie McCloskey, Brian Biggs; Front row, left to right -David Skoranski, Brenna Dolphin, Kevin Gardner, Sharon Opila, Kenneth Wan,

Angela Brenwalt, Paige Schmittinger, Victoria Cudd

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