Robert Craddock: Criminal Case Sentencing Information


SENTENCE IMPOSED as to Counts One and Two of the Indictment.

INCARCERATION: 6 months. This term consists of terms of six months on each of Counts
One and Two, such terms to run concurrently.

SUPERVISED RELEASE: 3 years. Special conditions of supervised release: Mandatory drug
testing requirements are waived. Defendant shall serve 15 days at the Brevard County Work
Farm. Credit conditions imposed. Defendant shall cooperate in the collection of DNA.

FINE and cost of imprisonment are waived.

SPECIAL ASSESSMENT of $200.00 is due immediately.

RESTITUTION ordered in the amount of $117,700 to Gulf Coast Claims Facility.

Defendant shall make payments toward his financial obligations by an immediate payment of
$5,000.00, and thereafter by monthly payments of $500.00.

FORFEITURE ordered per the Money Judgment entered at Doc. 41.

The defendant shall surrender for service of sentence at the institution designated by the
Bureau of Prisons before 2 p.m. on the tenth day following notification of designation.


Robert Craddock: Sentencing Memorandum Filed in Criminal Case

When I started reading this filing, I actually started laughing. This is probably the most ridiculous thing I robert-craddockhave read in quite a while. Robert L. Craddock (right), self-proclaimed guru of whatever he is doing at that particular moment, has spoken through his court appointed Federal Defender. Together, they are putting forth “the following to show why probation, restitution, community service and a fine are the appropriate punishments.”

MR. CRADDOCK pled guilty to two counts of wire fraud pursuant to a plea agreement. (Doc 27) The $117,700 loss to Gulf Coast Claims Facility occurred when MR. CRADDOCK submitted a single false claim alleging lost revenue due to the Deepwater Horizon oil spill. (Doc 47, ¶¶ 10-11) The total offense level of 13 and a category 1 criminal history under the United States Sentencing Guidelines (“Guidelines”) correspond with an advisory sentence between 12 and 18 months. (Doc 47, ¶66) MR. CRADDOCK is self-employed and can pay a fine if allowed to maintain that employment.

And here is the part that caused me to laugh rather loudly:

Five years of probation is a prolonged punishment that reinforces daily the seriousness of the offense and deters any unlawful behavior by MR. CRADDOCK for, should he violate any term of probation, imprisonment follows. Additionally, requiring that MR. CRADDOCK perform community service and pay a fine and restitution benefits society, promotes respect for the law and compensates the business victim. MR. CRADDOCK has demonstrated while on supervised release that he will scrupulously adhere to all conditions of release and the Court can confidently conclude that probation poses no threat to the community.

Yeah, I thought that was hilarious. Craddock is now and has always been concerned with benefiting society!! (As long as he makes money) But, it gets even better:

Rather, the absence of mental, emotional and substance abuse issues and the exemplary compliance on pretrial release support the determination that the most effective correctional treatment for MR. CRADDOCK is to allow him during these stagnant fiscal times to nurture his business so that society benefits from new technology that he is developing and the possible employment of many others to manufacture and market that technology.

The “new technology” in question is “QxStart”, yet another MLM telecommunications scheme, as if there has not been enough of those. Attached is an exhibit from Stephen Carnes, the President of Kryptos Communications, Inc., in which he

“states in his letter that his company depends on building and growing the distribution network that is “dependent upon Mr. Craddock’s continued involvement with QxStart.” (A-2). The marketing and sale of this product impacts the employment of others.”

I also have my doubts that it is anything more than another pyramid scheme, much like other “programs” that has seen Craddock as a member and promoter. Next, we hear about Craddock’s concerns over his marriage and how we wants the world to have cheap communications:

His promise to always be there for his wife of 25 years is in jeopardy due to his behavior and the responsibility he feels toward his wife provides insight that he has learned a valuable lesson. The evolution of his company that, at times, benefited local communities through donations and contributions of services and ideas has now expanded so that people around the world may one day be able to afford low cost mobile communication. The company is now beginning to expand is in the field of communication technology, where even a slight delay in the development and marketing of new technology will substantially diminish the likelihood of success.

Yep, nothing like being a convicted felon and trying to market “new technology”. I am sure people want to invest money with someone who committed fraud. And in his usual effort to “spin” things, Craddock has an Exhibit attached which reinforces just how wonderful he really is:

Likewise, Charles Lynch, a long-time friend of MR. CRADDOCK, expresses dismay but recalls his experiences with MR. CRADDOCK beginning during employment in 1997 and concludes, “I don’t fully understand how Robert has gotten in this situation but what I can say is there was never a time I felt if I needed help I could not call Robert and he would drop anything to come help.” (A-3). These letters show that a support system is in place that promotes the successful completion of probation by MR. CRADDOCK.

I think the only genuine thing here is Craddock is sorry that he got caught.

A felony conviction for fraud carries with it a special stigma and the loss of reputation, embarrassment, humiliation and shame that is reflected in the letters to this Court.

Um, I think when Craddock tried to trademark the word “Scam” might have been the starting point for the loss of reputation and humiliation.

 

Robert Craddock: Sentencing Rescheduled

As some of you may recall, Robert Craddock, was criminally charged on two counts of wire fraud forrobert-craddock defrauding British Petroleum (BP) following the oil spill in the Gulf of Mexico. Craddock was a well-known figure in Zeek Rewards and other scams, who possessed a largely self-inflated importance of his opinions and didn’t mind threatening anyone who disagreed with his opinions.

Craddock recently tried to copyright/trademark the word “Scam”, as another indication of his inability to grasp reality.

Craddock submitted falsified documents in a scheme to get money from the Deep Horizon Oil Spill Trust for oil clean up that he never, ever did. A motion made by the government for forfeiture of the ill-gotten moneys resulted in the Court ordering the forfeiture of $117,700.00

Craddock pleaded Guilty to two counts of wire fraud and this guilty plea was accepted by the Court on July 29, 2015. The sentencing hearing previously scheduled for September 14, 2015, has been rescheduled to Monday, October 26, 2015, at 11:00 a.m.

Robert L. Craddock’s Guilty Plea for Wire Fraud

CASE NO: 6:15-cr-49-Orl-31DAB

ACCEPTANCE OF GUILTY PLEA AND ADJUDICATION OF GUILT

Pursuant to the Report and Recommendation of the United States Magistrate Judge (Doc. 32), the parties having filed Notices of No Objection thereto (Docs. 33 and 34), the plea of guilty of the defendant to Counts One and Two of the Indictment is now accepted and the defendant is adjudged guilty of such offenses. A sentencing hearing has been scheduled for September 14, 2015, under separate notice.

DONE and ORDERED at Orlando, Florida this June 29, 2015.

Robert Craddock Enters Guilty Plea Today, Sentencing to Follow

The Change of Plea Hearing scheduled today when off as expected, with Robert Craddock officially entering a plea of Guilty and signed the Consent form changing the plea. In addition to the Plea change, Craddock also consented to a Pre-sentence Investigation by probation officers and that this investigation report will be disclosed to the Judge and US Attorney, as well as Craddock and his federal public defender.

There was also a “Report and Recommendation Concerning Plea of Guilty” filed by Magistrate Judge David A. Baker, detailing that Craddock was cautioned and examined under oath, that the Judge determined that the guilty plea was knowledgeable and voluntary and that the charging offenses are supported by independent basis in fact. Magistrate Judge Baker further recommended that the plea agreement and plea of guilty be accepted, and that the defendant be adjudged guilty and sentence imposed accordingly. Craddock will remain on conditions of release pending sentencing.

At the bottom of this R&R, there is a Notice that failure to file a written objection to this Report and Recommendation “within fourteen (14) days from date of service will bar any aggrieved party from attacking such Report and recommendation before the assigned United States District Judge.”

And, filed the same day as this Report and Recommendation is a “Notice of No Objections to Report and Recommendation” by the Assistant US Attorney. Nothing yet from Craddock or his public defender.

Robert L. Craddock Enters Plea Agreement

Looks like Craddock has pleaded guilty to 2 Counts of Wire Fraud, and is scheduled for a Change of Plea Hearing set for 6/22/2015 at 2:00 PM in Orlando Courtroom 6 D before Magistrate Judge David A. Baker.

Here are a few bits from the Plea Agreement:


 

Pursuant to Fed. R. Crim. P. 11(c), the United States of America, by A. Lee Bentley, lll, United States Attorney for the Middle District of Florida, and the defendant, ROBERT LEE CRADDOCK, and the attorney for the defendant, Stephen Baer, Esq., mutually agree as follows:
A. ParticularizedTerms

1. Counts Pleading To
The defendant shall enter a plea of guilty to Counts One and Two of the lndictment. Counts One and Two charge the defendant with wire fraud, in violation of 18 U.S.C. S 1343.

2. Maximum Penalties
Counts One and Two each carry a maximum sentence of twenty years of imprisonment, a fine of $250,000, a term of supervised release of not more than three years, and a special assessment of $100 per felony count for individuals. With respect to certain offenses, the Court shall order the defendant to make restitution to any victim of the offenses, and with respect to other offenses, the Court may order the defendant to make restitution to any victim of the offenses, or to the community, as set forth below.

3. Elements of the Offenses
The defendant acknowledges understanding the nature and elements of the offenses with which defendant has been charged and to which defendant is pleading guilty. The elements of Counts One and Two are:

First: The Defendant knowingly devised or participated in a scheme to defraud, or to obtain money or property by using false pretenses, representations, or promises;
Second: The false pretenses, representations, or promises
were about a material fact;
Third: The Defendant acted with the intent to defraud; and
Forth: The Defendant transmitted or caused to be transmitted by wire some communication in interstate commerce to help carry out the scheme to defraud.

4. No Further Charges
lf the Court accepts this plea agreement, the United States Attorney’s Office for the Middle District of Florida agrees not to charge defendant
with committing any other federal criminal offenses known to the United States Attorney’s Office at the time of the execution of this agreement, related to the conduct giving rise to this plea agreement.

And there is a lot more available from the link above.

Zeek Rewards: Robert Craddock, Zeek Figure, Indicted For Wire Fraud in BP Oil Spill Scam

Robert Craddock indicted for wire fraud

Before he became one of the prominent faces of the Zeek Rewards Ponzi scheme, before he solicited thousands of dollars from victims and then disappeared with the money, before he attempted to profit zeekrewards
further by writing a book about his Ponzi scamming, before he attempted to sell those who invested under him in Zeek to the highest bidder, before he ran campaigns of untruths and vicious accusations against those who called him out…

Before all of this… who was Robert Craddock?

Turns out he was a fraudster who attempted to fleece over $100,000 from a disaster relief fund.

[Continue reading…]

FunClubUSA: Order to Strike Answer and Enter Default

I just saw this today, an Order from Judge Richard F Boulware, II, in the case #14-cv-190 filed against Fun Club USA by OfferHubb.  Here is the main substance of this Order:

Pursuant to Local Rule IB 3-2(a), objections were due by October 29, 2014. No objections have been filed. The Court has reviewed the record in this case and concurs with the Magistrate Judge’s recommendation(s) that (ECF No. 9) Answer of Defendant Fun Club USA, Inc., should be stricken and its default entered based on Defendant’s failure to comply with this Court’s Order to obtain counsel. Therefore, the Court has determined that Magistrate Judge’s Recommendation should be ACCEPTED and ADOPTED to the extent that it is not inconsistent with this opinion.

IT IS THEREFORE ORDERED that the Report and Recommendation (ECF No. 26) is ACCEPTED and ADOPTED in full.

IT IS FURTHER ORDERD that the Answer of Defendant Fun Club USA, Inc.,[ECF 9] is stricken and its default entered based on Defendant’s failure to comply with this Court’s Order to obtain counsel.

IT IS ORDERED that the Clerk of Court shall mail a copy of this Findings and Recommendation and Order to Defendant Fun Club USA, Inc., c/o Robert Craddock, (Address withheld by me)

The Clerk shall enter judgment accordingly and close case.
DATED this 29th day of January, 2015.

Fun Club USA had 14 days to file any objection to the Finding and Recommendation indicated here, Doc 26, the Magistrate’s recommendations.

More Problems for Robert Craddock

We have 2 Orders entered by the District of Nevada against Fun Club USA and its figurehead, Robert Craddock; the first is an ORDER to show cause:

This matter is before the Court on Defendant Fun Club USA, Inc.’s failure to retain new
counsel. This Court’s Order (#23) gave Defendant until August 25, 2014 to retain new counsel.
To date, the Defendant has not complied. Accordingly,

IT IS ORDERED that Defendant Fun Club USA, Inc. shall show cause, in writing, no later
than October 6, 2014, why sanctions should not be imposed for the failure to comply with this
Court’s prior order. Failure to timely respond to this Order to Show Cause may result in the
imposition of sanctions up to and including a recommendation to the District Judge to strike
Defendant’s Answer and enter a default judgment against Defendant for violation of the Court’s
order.

And, surprise, surprise, Fun Club USA did not comply with that Court ORDER, so there’s this:

FINDINGS AND RECOMMENDATION AND  ORDER

This matter is before the Court on the Order to Show Cause (#25), filed September 24,
2014, wherein this Court ordered Defendant Fun Club USA, Inc. to show cause, in writing, no later
than October 6, 2014, why sanctions should not be imposed for its failure to comply with this
Court’s prior order (#23) to retain counsel. To date, Defendant Fun Club USA, Inc. has failed to
comply. Accordingly,

RECOMMENDATION
IT IS RECOMMENDED by the undersigned United States Magistrate Judge that the
Answer of Defendant Fun Club USA, Inc. should be stricken and its default entered based on
Defendant’s failure to comply with this Court’s Order to obtain counsel.

ORDER
IT IS HEREBY ORDERED that the Clerk of the Court shall mail a copy of this Findings
& Recommendation and Order to Defendant Fun Club USA, Inc., c/o Robert Craddock, xxxx
Baron Court, Port Orange, Florida 32128.