On October 27, 2016, a federal grand jury indicted Stowe Vermont resident Daniel Burgess on one charge of wire fraud. The United States Attorney for the District of Vermont, Gregory Waples, alleged that Mr. Burgess, owner of Tucker Financial Services, bought and sold stocks. A Nevada woman contracted him to sell 520,000 shares of penny stock that she owned through his company. The contract stated that Mr. Burgess would receive 20% of the gross from the sale of said stocks, and the owner would receive the remaining 80%.
United States District Attorney, Waples, alleged that between August and October of 2011, Mr. Burgess did indeed sell the penny stock as he had agreed. He received $619,000 for the total sale of the penny stocks. Mr. Burgess owed the Nevada woman $495,000 but instead only paid her $246,000. He allegedly used his ill-gotten gains to pay for his elaborate European wedding and vacation.
On July 18, 2018, Mr. Burgess pleaded guilty to one charge of wire fraud in the United States District Court. His defense attorney, Brice Simon, argued that Mr. Burgess should receive leniency o that he could work to liquidate his assets to pay back his victim.
United States District Attorney, Waples, said that Mr. Burgess had a lot of time to pay back the money but had not made a single payment, even after the indictment was brought against him. The prosecutor said he found it astonishing that Mr. Burgess would ask for more time to pay when he had not made the slightest good faith effort in all the years since he had defrauded his victim.
When asked by judge Crawford if he had a response. Mr. Burgess turned to the victim, who had traveled to Rutland for the hearing, and said, “I’d like to apologize for not paying you in a timely fashion. I take full responsibility.”
The victim, a single mother of five children, then responded to the judge that she did not believe his apology, calling him a thief and a liar. “He isn’t sorry for what he did. He’s sorry he messed with the wrong person.” His victim added, “He is the most dishonest person I know.” She had initially sued Mr. Burgess in civil court to receive restitution. But eventually, she had to bring the situation to the FBI because he refused to pay. She said his actions had caused her family severe financial hardship. She hoped the judge would consider that when considering sentencing.
The prosecuting attorney, Gregory Waples, pointed out that the money Mr. Burgess had stolen was used for pleasure while his victim suffered. “In this period, according to the FBI’s analysis, Burgess spent more than $20,500 on airline tickets; $36,000 on other Europe trip expenses; nearly $8,000 on restaurants; $11,000 on hotels; and $5,200 for online shopping.” He continued, “The fact that in the 18 months since his indictment Burgess has not paid even a penny of restitution is a telling but grim reminder of the direction in which Burgess’ moral compass is pointed.”
Judge Crawford prefaced his ruling by saying that he doubted the deterrent effect of a prison sentence in impulsive crimes or crimes fueled by drugs. However, in financial crimes resulting from greed, prison can deter others who have a “wavering and lacking moral compass” and are considering similar crimes. “We expect people to treat us honestly,” Judge Crawford added.
Judge Crawford sentenced Burgess to two years in prison. He also said that Burgess must immediately pay his victim $248,900 and never work in the securities industry again. He also sentenced him to three years of supervised release following his prison term.
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