JANUARY 11, 2002
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT
Virginia B. Evans
(410) 209-4885

FAIRFAX MAN SENTENCED ON INTERSTATE TRANSPORTATION OF STOLEN PROPERTY AND INCOME TAX EVASION

Greenbelt, MD- United States Attorney Thomas M. DiBiagio, the Federal Bureau of Investigation and the Internal Revenue Service today announced that Morrell C. Gaines, Jr. of Fairfax Station, Virginia was sentenced to 27 months imprisonment on January 10, 2002 following his convictions for interstate transportation of property obtained by fraud and tax evasion. Gaines pleaded guilty to these offenses in September 2001 in United States District Court in Greenbelt and was sentenced today by United States District Judge Peter J. Messitte.

Evidence presented at the September guilty plea demonstrated that Gaines, 51, served as general manager of BTB Financial of Lanham, Maryland, a licensed residential mortgage loan broker owned by Ernest Brooks. BTB later changed its name to Superior Mortgage Services. Gaines had signature authority on corporate bank accounts and during 1997, 1998 and 1999 wrote checks to himself or for his benefit in amounts which far exceeded his agreed-upon share of business profits. In June 1999 he embezzled company funds to pay for a new home, leaving Superior without sufficient capital to continue business operations. Gaines also applied for a license for Superior to operate in Virginia and sold a one-half interest in the Virginia operation to Curtis Harris. Harris paid Gaines more than $92,000 in June 1999, which Gaines then converted to his own use in connection with his purchase of his new home. Finally, Gaines evaded payment of federal income taxes by willfully failing to file income tax returns for 1997 and 1998, resulting in taxes due and owing of more than $220,000.

In addition to the 27-month prison sentence, Judge Messitte ordered placed Gaines on supervised release for three years and ordered him to pay restitution in the amount of $614,358 to Superior Mortgage and Ernest Brooks, and another $74,500 to Curtis Harris.

The case was prosecuted by Assistant United States Attorney Stuart A. Berman and investigated by the FBI's Baltimore Office and the IRS Criminal Investigative Division.