Attorney General Kathy Jennings has joined a coalition of 25 states and territories in filing a letter with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) in support of proposed rules entitled “Anti-Money Laundering Regulations for Residential Real Estate Transactions.”  

The April 16 letter expresses staunch support for the would-be regulations, which will reduce criminals’ ability to launder money through residential real estate transactions. Specifically, the proposal requires “certain persons involved in real estate closing and settlements to submit reports and keep records on identified non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis.”  

The proposed regulations would help deter wrongdoing as well as provide an important tool for criminal investigations. 

“We must use every tool at our disposal to respond to bad actors who would exploit the system to conceal criminal activity,” said Attorney General Kathy Jennings. “The proposed regulations represent an effective and expedient option for doing just that.” 

The proposed regulations will: 

• Require businesses – including attorneys – performing closing or settlement functions, for a non-financed sale or transfer of residential property to any entity or trust, to collect and report information to FinCEN.   
   
• Permit federal, state, and local law enforcement to access more information about suspicious real estate transactions more efficiently from a single source.  
   
• Aid law enforcement in identifying suspicious real estate transactions on a national basis that may otherwise remain undetected. 

“This regulatory scheme strikes an appropriate middle ground and will not be unduly burdensome on the reporting parties,” the letter states. “The Real Estate Reports impose a streamlined reporting requirement that is less onerous than financial institutions’ obligations to file Suspicious Activity Reports. FinCEN will also continue to exempt persons involved in real estate closings and settlements from the Bank Security Act’s requirement to establish anti-money laundering programs. Moreover, certain transfers, including purchases of real estate by natural persons, will not be subject to the reporting requirements.” 

The letter was led by Delaware, Oklahoma, New Hampshire, and Rhode Island. Also signing on to the letter were the attorneys general of Alaska, Arizona, California, Colorado, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, Pennsylvania, South Dakota, Tennessee, Vermont, and the U.S. Virgin Islands.

In 2023, Oklahoma AG Drummond led a 42-state coalition that successfully convinced FinCEN to provide state, local and tribal entities streamlined access to corporation ownership information established under the Corporate Transparency Act of 2021. 

In addition to Delaware, the 2023 coalition included Arizona, California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Commonwealth of the Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington and Wisconsin. 

Prosecutors have secured multiple felony convictions, including Delaware’s first-ever conviction for Deprivation of Civil Rights, against a Delaware State Trooper for the assault of two juvenile victims, Attorney General Kathy Jennings announced Friday. Dempsey Walters, 30, was indicted in September 2023 for assaulting two victims — a 17-year-old and a 15-year-old, whose orbital socket was fractured by Walters after he switched off his body-worn camera. On April 12th, Walters pleaded guilty to Assault 2nd Degree and Deprivation of Civil Rights, both felonies, as well as two counts of Assault 3rd Degree and two counts of Official Misconduct. The State will seek prison time as part of the plea. 

“We do not recommend prison sentences lightly – but there is no question that justice demands it here,” said Attorney General Jennings. “The Defendant’s rampage against two kids, and his subsequent attempt to conceal his misconduct, was brutal, dishonest, and unacceptable. It was a flagrant and felonious violation of his oath and an insult to his fellow officers; the consequences are serious. I am grateful to the prosecutors and police who have prioritized justice for these victims. And above all else I am thinking of the victims and their parents. Nobody should have to fear for their child’s safety – let alone from those sworn to protect.”  

“I extend my sincere gratitude to the Delaware Department of Justice for their partnership during this investigation and swift action in this matter stemming from last summer,” said Colonel Melissa Zebley, Superintendent of the Delaware State Police. “In the wake of this incident, Mr. Walters was promptly suspended without pay and benefits, with the intent to dismiss. Our protocol emphasizes a divided strategy, prioritizing the criminal investigation first. Moving forward, the Delaware State Police will diligently pursue its administrative investigation. It is disheartening that the actions of one can tarnish the noble endeavors of many. However, I firmly believe that this isolated incident will not overshadow the unwavering dedication of our troopers. I remain confident in the steadfast commitment of our Delaware State Troopers, who consistently demonstrate professionalism, competence, and compassion in their enforcement duties. I stand proud of their relentless dedication to upholding our mission each day.” 

On August 17, Trooper Dempsey Walters, 30, was off duty and returning to his residence in Elsmere’s Lancaster Village when he made contact with a 17-year-old minor (Victim One). The two engaged in a verbal altercation and Walters contacted Elsmere Police Department; two officers responded and transported Victim One to his home on Taft Avenue. He was turned over to his mother and was not arrested. The following day, Walters looked up the juvenile on DELJIS, a controlled-access law enforcement database. 

On the evening of August 21, Walters was on duty when a 15-year-old minor (Victim Two) was with three friends — none of whom were Victim One — in Elsmere walking past Walters’ residence. Victim Two and his friends decided to play a prank: Victim Two ran up to Walters’ house and, covering his face, loudly kicked the door and ran off. (See: Doorbell video) Walters’ girlfriend called him, gave him a description of Victim Two, and informed him that Victim Two and his friends had fled. Walters drove to his neighborhood and, en route, called DSP troopers and other police departments for assistance. 

Back in his neighborhood and searching for the minors, Walters was informed by a witness that several juveniles had just run down Taft Avenue.  Walters drove to Taft Avenue, where he met two Newport police officers who had responded to assist DSP.  Walters once again looked up Victim One in DELJIS—revealing his address on Taft Avenue—and went to his house with the Newport police officers. Victim One and a friend came to the front door, unarmed, and complied with all orders, including putting his hands up and appearing to kneel. Walters forcibly pulled Victim One out of the doorway and forced him onto the ground, causing injuries. Victim One was handcuffed and detained, but never formally arrested. (See: Newport PD body cam, Walters body cam).  Victim One was not part of the group who kicked on Walters’ door earlier that evening. 

Walters then heard that Victim Two and his friends had been found and detained; he drove to their location. When Walters arrived, Victim Two was face-down on the ground with a different Trooper attempting to handcuff him. Almost immediately upon arriving, Walters dropped his knee onto the back of Victim Two’s neck/head, causing injury and causing Victim Two to scream in distress. (See: State Police MVR Footage, Walters body cam) 

While a Trooper moved Victim Two to the back of a police vehicle, Walters confirmed with a third Trooper that Victim Two was the juvenile who had kicked his door. Walters then turned off his body-worn camera and walked to the police vehicle. While Victim Two was handcuffed and detained in the back of the vehicle, Walters punched him in the face, fracturing his right eye socket. Walters then walked around the vehicle and turned his body-worn camera back on.1 (See: Walters body cam) 

Delaware State Police supervisors immediately referred the incident to the Division of Civil Rights & Public Trust when they uncovered Walters’ misconduct. Delaware State Police leadership suspended Walters without pay, stated their intent to terminate, and have fully supported the criminal investigation.  

Walters was charged in September with Deprivation of Civil Rights, Assault 2nd Degree, two counts of Assault 3rd Degree, and two counts of Official Misconduct. His plea Friday includes all of these charges, with Deprivation of Civil Rights constituting a Class D Felony rather than the original Class B Felony. The Department of Justice has remained in constant contact with the victims’ families through this process, and they are in support of the plea. The State will recommend Walters be sentenced to 18 months in prison. 

This is the Department of Justice’s first use of Delaware’s Deprivation of Civil Rights statute, which was introduced by Rep. Kendra Johnson in collaboration with the DOJ and passed unanimously in 2022. 

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[1] The body-worn cameras used by Delaware law enforcement capture 30 seconds of buffer video, without audio, when the camera is activated. Walters’ body-worn camera captured continuous footage even though it was turned off because less than 30 seconds elapsed between Walters turning off and reactivating the camera. 

Attorney General Kathy Jennings has obtained a preliminary victory for residents of the Pine Haven manufactured home community after the community owner, Blue Beach Bungalows DE, LLC, violated statutory protections afforded to the residents. An administrative hearing officer issued an opinion last Thursday, April 4th, finding that Blue Beach has willfully violated Delaware’s Consumer Fraud Act, among other laws, and ordered the company to pay over $800,000 in penalties, along with rebates of excess rent paid by residents.  Blue Beach has 30 days to appeal the order.  

“Owners of manufactured home communities should consider themselves on notice,” said Attorney General Kathy Jennings. “Exploiting vulnerable Delawareans with threats and lies is not something manufactured home community owners can expect to get away with.”   

 

“We’re grateful for the DOJ’s vigorous enforcement of our state’s manufactured housing and consumer fraud laws against an exploitive community owner who took advantage of vulnerable residents,” said Anthony Panicola, Supervising Attorney of the Elder Law Program at Community Legal Aid Society, Inc. (CLASI). “CLASI is proud to have worked together with DOJ on this important enforcement action, which will help ensure that community owners respect residents’ fundamental rights going forward.”

In April 2023, after receiving numerous complaints from residents, AG Jennings’ Consumer Protection Unit (the “CPU”) issued a Summary Cease and Desist Order requiring Blue Beach to refrain from making false statements to residents and evicting residents in violation of the law, among other things. The Cease and Desist Order was accompanied by a complaint detailing how residents were subjected to illegal rent increases, illegally threatened with eviction and arrest, and, in some cases, forced out of their homes prematurely. An administrative proceeding followed, culminating in an administrative hearing in September 2023.    

“The harm caused by [Blue Beach]’s actions cannot be undone,” the Hearing Officer wrote in a 90-page opinion issued on April 4th. Despite being operated as a manufactured home community with “numerous year-round residents,” the park owner repeatedly made false and misleading claims as to the nature of the park as justification for taking action against residents. The Hearing Officer ordered the park owner to rebate all tenants and former tenants “any excess rental payments,” and awarded an administrative penalty of $737,000 for willful violations of the Consumer Fraud Act, as well as a penalty of $94,000 for violations of the Cease and Desist Order. The park owner has the option to appeal, and the order is not final until the window for appeal is closed.  

A number of Pine Haven residents targeted for eviction by the park owner were protected due to a recent amendment to Delaware’s Manufactured Housing Code. 2022’s House Bill 374, proposed by Attorney General Jennings and sponsored by Representative Madinah Wilson-Anton, expanded the definition of a manufactured home to include certain camper trailers, recreational vehicles, and motor homes.  

Manufactured housing complaints can be made to the Office of the Manufactured Housing Ombudsperson on the Delaware Department of Justice’s website or by calling the hotline at (800) 220-5424.