Former Store Employee Charged with the Interstate Transportation of Stolen Goods and Mortgage Fraud

FRESNO, CA—United States Attorney Benjamin B. Wagner announced today that a federal grand jury returned an indictment charging Richard Earl Norton Jr., 48, of Fresno, with interstate transportation of stolen property relating to his alleged sales over the Internet of goods and merchandise he stole from the Macy’s department store where he worked. The indictment also charges Norton with mail fraud relating to an alleged scheme to defraud the U.S. Department of Housing and Urban Development (HUD) HOME program, the State of California CALHOME program, and the City of Fresno’s Home Improvement Program by submitting a false and fraudulent application to obtain grant and loan funds designed to assist low-income home owners in repairing health and safety issues in their homes.

This case is the product of an joint investigation by the FBI Cyber Crimes Task Force, the Fresno Police Department, and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Kirk Sherriff and Deanna Martinez.

The indictment alleges that from October 2005, to September 2009, Norton stole designer purses, handbags, wallets, and other goods and merchandise valued at over $900,000 from Macy’s, and then sold many of these items on eBay. Between 2005, and September 2009, Norton received net PayPal receipts totaling over $1 million.

The indictment also alleges that from August 2006, to May 2007, Norton defrauded the HUD HOME program, the CALHOME program, and the City of Fresno Home Improvement Program by obtaining funds based on false and fraudulent statements. In August 2006, Norton applied for and received funds from the Fresno Home Improvement Program claiming that his total annual income was $13,171. The indictment alleges that Norton was required to disclose his income from all sources, but that he failed to disclose the proceeds of his alleged criminal activity relating to the interstate transportation of stolen goods. The Fresno Home Improvement Program paid $25,312 on defendant’s behalf for the repairs to defendant’s residence, consisting of $12,656.50 of HUD HOME funds in the form of a grant, and $12,655.50 of CALHOME funds in the form of a 30-year interest-free loan with no payments due until the end of the 30-year term.

The indictment also seeks forfeiture of the following assets:  (i)  over a half million dollars in cash, consisting of approximately $346,610 seized from Norton’s PayPal account, approximately $5,362 seized from Norton’s bank accounts, and approximately $157,989 seized from Norton’s residence; (ii) Norton’s residence; and (iii) vehicles consisting of a 2002 Ford truck, a 2005 Chrysler Crossfire, two 2005 BMW Z4 cars, and a 2007 Pontiac Solstice.

Norton was arrested Thursday afternoon and will make an initial appearance today before the U.S. Magistrate Judge at 1:30 p.m.

The maximum statutory penalty for the interstate transportation of stolen property charge is 10 years in prison, a $250,000 fine, and up to three years’ supervised release. The maximum statutory penalty for each count of mail fraud is 20 years in prison, a $250,000 fine and up to three years’ supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.