Free Motion to Suppress Statements - District Court of Delaware - Delaware

Case 1:06-cr-00125-SLR

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THE UNITED STATES DISTRICT COURT FOR THE DISTRI~T OF DELA WARE

United Statesof America v. TheresaM. Flood ORDER

: CR. 06-125 (SLR)

And NOW this day of , 2007, upon consideration of the Motion to Suppressof defendantTheresaM. Flood and any responsethereto it is hereby ORDERED and DECREED that said the relief sought by means of said motion is GRANTED. It is further ORDERED and DECREED that the government is prohibited and enjoined from introducing into evidence any and all statementsgiven by the defendantto agents of the government before or after her arrest.

A hearing is scheduled on the within motion for the day of in Courtroom of the United StatesCourthouse, Wilmington, DE.

,2007

ROBINSON, J.

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELA W ARE

United Statesof America v. TheresaM. Flood

: CR. 06-125 (SLR)

DEFENDANT'S PRETRIAL MOTION TO SUPPRESS ANY AND ALL ST A TEMENTS GIVEN TO AGENTS OF THE GOVERNMENT

TO THE HONORABLE SUE L. ROBINSON: Defendant, TheresaM. Flood, by her attorney, Richard G. Freeman, Esquire, hereby moves that this Honorable Court issue an order suppressing all statementsthe defendant gave to agents of the government at any prior to and after her arrest and in support thereof respectfully represents:
.The defendant, a 40-year old woman and single mother with no

prior criminal record, was accusedin a four-count indictment filed on November 16,2006 of violating 18 V.S.C. §§ 1344 and 1342 charging bank fraud; 18 V.S.C. §§ 1028A and 2 charging identity theft and 18 V.S.C. § 1343 charging wire fraud. 2. The foregoing charges all arise from the actions of Glenny Coleman, a man who has pleaded guilty to federal crimes in

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connection with 1) stealing the identities of three persons, 2) depositing a forged check in the name of one of his stolen identities into a legitimate bank accountmaintained by the defendantherein, and 3) using the defendant's bank account further to write a phony check to make a down payment on a home Mr. Coleman was buying for himself and a third person, Lisa Reed. Whom he identified as his fiancee. The indictment relates that the defendantmade phone calls and accompaniedMr. Coleman while he looked at two homes. (See indictment attached
hereto as Exhibit " A" and its contents incorporated herein).

3 Prior to defendant's indictment but after her arrest on a warrant she was questioned by police from Delaware in the company of Agent Andrew Balceniuk of the United States Secret Service. By means of her statementshe admitted that she knew Glenny
Coleman; she also acknowledged that she "must have ..[deposited

in her account]" a check the agentsshowed her and representedto her as having been deposited in her account. (See the statement
attached hereto as exhibit "B" and its contents incorporated herein,

4. In an affidavit supporting the defendant's arrest agent Balceniuk set forth the government's basis-the probable cause--for the

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defendant's arrest, essen~ially the form later outlined by the in indictment (see affidavit of agent Balceniuk attached hereto as
Exhibit "c" its contents incorporated herein).

5. The entire basis of the gbvernment's probable causeto arrestMs. Flood stems from the fact that certain checks Glenny Coleman wrote in the names of others were on her account; the government did not establishprearrest and before taking her statementthat the defendant knew or had reasonto know that the checks were in the names of personswho either didn't exist or did not know their
names were being used,

WHEREFORE, the defendant by her counsel respectfully requests that this Honorable Court issue an order holding that the defendant's
arrest was not based upon pl1obable cause and as a result her statement

was tainted by the lack of probable causeand the government is enjoined and prohibited from introducing her statement for any purpose in the trial of her case.

Date: January 16, 2007

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THE UNITED STATf-S DISTRICT COURT FOR THE DISTRItT OF DELA WARE

United States of America v. TheresaM. Flood

: CR. 06-125 (SLR)

MEMORANDUM 0 DEFENDANT'S PRET ANY AND ALL ST AGENTS OF

LAW IN SUPPORT OF MOTION TO SUPPRESS MENTS GIVEN TO GOVERNMENT

TO 11HEHONORABLE SUE L. RjOBINSON: The Defendant has moved to suppressany and all statementsshe gave government agents Becausethe dFfendantis a 40-year old single mother with a college education and a sub$tantialrecord of employment but no criminal record voluntariness of her statementis not an issue, However, the defendant doestake issue with the Igovernment'sclaimed basis for taking the statement. Plainly, there was qo probable cause.
In deciding whether the district court erred by admitting the defendant s statement this Court mlust ask two questions.

First, it must ask

whether the authorities had probabllecauseto arrestMs. Flood for bank
fraud, wire fraud and identity theftf

Second, it must ask whether, assuming

the authorities lacked probable cause,the statementshould have been

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had purged the taint of the improp~r arrest thereby rendering the statement admissible. See Taylor v. Alabama, 457 US. 687 (1982) The question whether authotities has probable causeto arrest Ms. Flood turns on whether, at the moment the arrestwas made, the officers had probable causeto make it-whetherlat that moment the facts and circumstanceswithin their knowle4igeand of which they had reasonably trustworthy information were suffibient to warrant a prudent man in believing that the [suspect] had co~mitted or was committing an offense.
Beck v. Ohio, 379 US. 89 (1964),

In the instant case, at the time of the

arrests all that the Delaware policel and Secret Service knew about Ms.

Flood was that she had a bank accpunt, another person had deposited bogus checks into that account, that she ~ad used the account and that she arrangedto seeand did seethree homes with the other person. The other person, Glenny Coleman, later usep a credit line he obtained with a false identity to obtain a mortgage undet that identity but without the Ms. Flood's partiqipation. Does this conduct ~ake Ms. Flood an aider and abettor (conspiracy is not charged) or mer~ly an instrument of Mr. Coleman's duplicity? The defendant submits that the latter is the more plausible theory even at this stage-the probable c~useinquiry: there was no probable cause

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based on this innocent, uninvolved conduct. Yes, a crime had been committed; but the second prong df the timeless analysis was missing: there was scant if any information to watrant a prudent person to believe this defendantwas involved in the offense. If anything the presencein t~e government's accusatory scenario of Ms. Flood and her checking account could lead the factfinder to conclude only that she was merely present at marginal sites of Mr. Coleman's
criminality. Mere presence at a gi~,en location cannot in and of itself constitute probable cause to arrest. I As the United States Supreme Court observed in Ybarra v. Illinois, 444 US. 85,90 (1979):

[A] person'smere propinquity to others independently suspectedof criminal activity does not, without more, give rise to probable causeto searchthat person. Where the standardis probable cause,a searchor seizure of a person must be supported by prob~ble causeparticularized with respectto that person. This requirement canpot be undercut or avoided by simply pointing to the fact that coincident~lly there exists probable causeto search or se,ze another or to searchthe premiseswhere the person may happento be. The Fourth and Fourteenth Amendments protect the "legitimate expectations of privacy" ofperson~, not places.444 US. at 91 (citations deleted). Thus, Ms. Flood's mereipresenceas the owner of the checking

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account and at the house tour coul~ not have constituted probable causeto arrest. Having concluded that Ms. flood was arrested without probable cause,the Court must then decide whether the statementobtained from her should have been excluded as the (Nit of a poisonous tree or whether the
taint of the illegal arrest had been I!>urgedby some intervening event. The Supreme Court spoke to this issue ~n Taylor v. Alabama, 457 US. 687

(1982)
"In Brown v.Illinois, 422 US. 590 (1975), and Dunaway v. New

York, 442 US. 200 (1979) ], the pdlice arrestedsuspectswithout probable cause. The suspectswere transported to police headquarters,advised of their Miranda rights, and interrog~ed. They confessedwithin two hours of their arrest. This Court held that the confessionswere not admissible at trial, reasoning that a confession obtained through custodial interrogation after an illegal arrest should be exdluded unless intervening events break the causal connection betweenthe illegal arrestand the confession so that the
confession is " 'sufficiently an act of free will to purge the primary taint.' "

Brown v. Illinois, 422 US. at 602 (quoting Wong Sun v. UnitedStates, 371

us. 471 (1963) The Court identified severalfactors that should be
considered in determining whethe~a confessionhas beenpurged of the taint

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of the illegal arrest "the temporal iproximity of the arrest and the

the purpose and flagrancy of the official misconduct." Brown v. Illinois, 422

us. at 603 The State bearsthe btIrden of proving that a statement it
characterizes as aconfession is admissible. Ibid. See also In Florida v.

Royer, 460 U.S.491 (1983). Applying the rule of Taylor to the instant case,this Court should find
that the Government failed to carr)f its burden of proving that the taint of Ms. Flood's illegal arrest had beerupurged prior to the time of her statement.

She gave this statementbut a few hours after she was taken into custody on the basis of the suspicious checks. Nowhere could the Government suggest that any meaningful event occurred within those few hours which could have purged the taint of an illegal ~rrest. At the time that the police arrestedher they knew absolutely pothing about her except that she had a
bank account through which some Isuspicious checks passed. Could she not

fit the role of victim better than th~t of suspect?Although Ms. Flood's subsequentstatement may have be~nvoluntary for Fifth Amendment
purposes "in the sense that Miranda warnings were given and understood,

[this] is not by itself sufficient to purge the taint of the illegal arrest." Taylor
v. Alabama, supra Such a findint ofvoluntariness "is merely a threshold

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requirement for the Fourth Amendment analysis." Taylor v. Alabama,

supra Her statementshould be exjcludedfor all purposes at trial. CONCLWSION For the reasons set forth in t~e within motion and memorandum the defendant respectfully requ~ststhis Honorable Court issue an order
holding that the defendant's !arrest was not based upon probable cause and as a result her statement Iwas tainted by the lack of probable cause

and the government is enjoi*ed and prohibited from introducing her statementfor any purpose in the trial of her case.

Date: January 16,2007 CERTIF~CATE OF SERVICE
I herebycertify that I havetodaysetlved copyof the within Motion to Suppress a upon the following personby electronictransmission:
Beth Moskow-Schnall, Esquire Assistant United StatesAttorney 1007Orangestreet, 7th floor Wilmington,DE 1~9

~

jRICHARq
Date:January16,2007

Attorney !C ~r

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FOR THE DISTRICT OF BELA WARE UNITED STATES OF AMERICA,

Pl8intiff,
Criminal A£tion No. 06TERESA M. FLOOD, Defendant.

mDI CTME1Ijl:

COUNT o~
Introduction
I

Corporation or FDIC.

Scheme Defraud to
2.

4.

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Bank approved $30,000line of credit for] oFf Genesis a of InvestorsGroup at the Cinnaminson, New Jersey address.

5.

On or about Janu81Y 2006, a $15,000 check was written off the line of credit. 12L

On or aboutJanuary18,2006, the $15,000chqckwas deposited into a bank accountin Delaware held solely by Teresa M.~1he 6. ~.!~-~!!~~~~&~ ¥en~S:~) t';h s' . '"0

On or aboutJanuary23. 2006.teresa M. Flood, the de'tendant. useda portion

of the moneythathad beendeposited into the AgapeVenturesbank account pay the rent for to the CinnaIn;nson, Ne!-:.!~~~ffice-to which the original offer from Wells FargoBank had been

sent. Within a month, all but a few hundreddollarsof the moneyalsowas withdrawn from rT~resa M. Flood'B~ounTvia; ATM-wjthdraw~B. checks.and checkcardpurchases.
--"' ~

1/4-;

00'"
~t~.-"

Charging Paragraph 7.

\1:11,z.'-!
I

From in or aroundNovember2QO5 through in or aroundFebruary2006, in the

District of DeJaware elsewhere, and G.C., III, aidedandabettedby TeresaM. Flood, the defendant, knowingly executeand attemptto executea scheme artifice to defraudWells did and
Fargo Bank, a federally insured finanl'-ia1institution, as descn"bed mor~ fuUy in paragraphs 1

through6 above,incorporated hereinby reference, and in executionof the scheme, or about on January17.2006, a $15,000checkoff a Wells ~argoBank line of creditwas deposited into the defendantts bank account,all in violation of TiUe 18,United StatesCode, Sections1344and2.
' COUNT TWO

\
;.)\

8.

From in or aroundNovember2005, throughin or aroWldJanuary 2006,in the

Stateand District of Delaware;G;C.,m, aided-and abettedby TeresaM. Flood, the defendant, did knowingly use,without lawful authority, a meansof identification of J.F. during and in
2

.~

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through 7 above,incolporatedherein by reference, in violation of Title 18, United States all Code,SectionslO28A and2.

CO~TTHREE
Schemeand Artifice to Defraud In or aroundFebruary2006,G.~., ill, using the name1'fMichael Fuller) and the Social Securitynumberof l.-H..~acted Aggressive Mortgage in Malyland and inquired about

obtaininga mortgagefOlU"resiuentialpropertjfm Delaware.

10.

Sometimelater in February2006,G.C.,m. using ilie name"Michael Fuller" and
c

the Social Securitynumberof J.H.. went to Aggressive Mortgageand filled out a mortgageloan application. In connectionwith the application,the defendant submittedfalse identity infoIU1ation false employment and fufonnatio~. 11. Basedon the infonnation he h~ submitted,AggressiveMortgagepre-quaJified

G.C., ill as "Michael Fuller" with the Social Securitynwnberof I.H., for a $399,900mortgage.

12.

In or aroundMarch2006, TeresaM. Flood, the defendant. called a real estate

agent in Delaware and schedUled-a time for herself and for G.C., ill, using the name «
Fuller" andthe Social Securitynumberof J.H.~to view residentialproperties. Also in or around March 2006.Teresa Flood; the defendant, G.C., ill met with a real estateagentin M. and Delaware,viewed threeresidentiaf prcOperties were listed for sale,and choseto purchase that one of the properties.

13.

On or aboutMarch g, 2006,L.R. andG.C., ill went to the office of the real estate

3

9.

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,"

abovetincorporatedhereinby referencet ~ violation otTilIe 18,United StatesCodetSections all
lO28A and 2.

~ TRUE Bu..L:

Foreperson CaLM F. CONNOLLY United StatesAttorney,

~

BY:

~AJ J,J/.)j ~
Beth Moskow-Schnall
Assistant United States Attorney

Dated:in or around November16, 2006

5

Case 1:06-cr-00125-SLR

,In 081806, at app~oximately 1345 hours, State'Detectives transported D- Teresa Flood to troop 2 for a pending war~ant. At approximately 1448lhours, Secret Service Agent A. Balceniuk began the interview. At that time, she was of her Mira~da Rights and signed that she understood these rights and waived them. SSA Balceniuk and ~ signed the warning form. She stated her full name ~s Teresa Marie Flood, --~~ ~~~ -, and that s~e was currently staying with family members and her ?arents at .~ She saiq that she had lived in Delaware at ~ --'S, _-_r, but moved from there in 20031 or 2004. She said that when she lived in Delaware 3he worked for a company named Square D. Compapy as an assistant. She stated that prior to that 3he worked at FMC which specialized in robotic: systems which she helped design. She advised that she attended University of Pennsylvania fpr four years but she did not obtain a degree. She ~as studying electrical engineering. She saip that most recently she has been working as a tutor at Sky Learning and doing consulting. She said that when she lived in Delaware she had a :onsulting business.

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)- Flood advised that she met

i~ the fall

of 200~through

her cousin with his mother they were never in in

3he said she was l~ving at the Naamans Apts. at the time and he was living 10rth Wilmington. She stated that it was a pensonal relationship and that )usiness together.

)- Flood stated that she had opened Agape Ventu~es in approximately 2005. She said that she was :he only employee of the company and that she d~d consulting for education, engineering and ~ntertainment. She also said that she opened T' & T Enterprises which involved telecommunication Both of these business were run out of her home.

1- Flood advised that she opened P.O. Boxes at the Talleyville Post Office 'ilmington) and in a UPS Store on Kennett Pike, ~Wilmington. She advised ox received mail for Agape Ventures, T & T, anq Teresa Flood. She stated ohn Carr had a key to that mail box for a coup1e months, but no one else The Kennett Pike box received mail for T & T and Agape Ventures.

(on Concord Pike in that the Talleyville that a client named had access to that box.

-Flood stated that she opened the PNC account in 2005 for herself. She stated that she listed )th mailboxes on her account information. She advised that she was the only person to have ~cess to that account.

Ie was shown a copy of the !posit slip. She said "if .eck c~e from a consulting

it

---1 check t*at was deposited into that PNC account and the went in my accoun~, I must have done it." She advised that the job.that a friend of hers had set up. She advised that she never

t Ronald Fagan and did not end up doing e said she got it from that friend.

work for

him.

When asked where she go.t the

check

from

en D- Flood e memo line ked who she attorney.

was shown a copy of the Cashier's :Check from PNC Bank to Marmaco Management, LLC. reads "TERESA FLOOD (AGAPEVENTURES)." She said it was to rent office space. When was renting office space for, she became quiet then stated she wanted to speak to The interview ended at 1519 hours.

Flood was fingerprtnted ~Otficer
~IK -41.?51. 001.

and photographed.
--'--I

Judge Hudson of JP CT 2 completed I~_~_____04

the

arraignment

i
I

A___'040-

SUSANL JONES PSPT713 Date 08/28/20061310

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I, AndrewBalceniuk,being duly SW9~ depose say: and
1. Yow affiant is a Special Agent with the U.S. SecrBtS~rvic:e.andha-S b~en so employed since October 2002. Y o~ affiant -is CW'l"et1tly assigned to the Wilmington, Delaware Resident Office. Your affiant has received approximately six months f:tffield and (;las5room training in the i~m~itication and iDvestigatiouCJfvarious sr;hemesperpe.tratedtOoe.ommit identity theft 8f1dother cnme$.

.

~AFFIDAVIT DF SPECIAL AGENT ANPRtW BALCENIUK

2. This affidavit is ~ubmittedin supportora criminal complaiIlt,ii!]dw~t chat:ging Lisa Reedand Teresa FIOQdwitheonspiracy commitwire fraud in violation -of 18 V.S..C. M. to § 1343,a11 vi01ation in of18 U.S.C. § 311. The allegaticms forth in this affidavit arebased set upon my personalknowfedge,aswell as upon informationobtainedfrom law enforcement officers. investif,ators. complaints.witnesses, public recordsand otherpartiesand sow-ces.This affidavit doesnot c9nt~-aft infornlation obtained-in courseof thetl1e investigation,as it details {}nJya sampling-ofthe fraudulentactivity ~ngag~ in by ReedandFlood -a samplingthat, your affiant submits,is sufficient to establish probableCAUse arrestbow W9@~. to 3. Sometimein February 2006, GlennyColeman,m, usingthe naIrte"Michael Fuller" and a Social Securitynumberbeleng!!!groanotheIperson,contacted AggressiveMortgagein Maryland and inquired aboutobtaininga mortgagefor a residentialpropertyin Delaware. 4. Sometimelarerin February2006,OlennyC"leman, ill, still using the name "Michael Fuller~'and a Soc},a:l Securit)lnumber (SSN)belongi~1O LK,.went tQAggressiveMortgageand filled out a mortgageloan applicatlon. In connection with the application.the defendant submitted,inter alia. f~idefltity informationandfalsec-emptoymeBt infonnarion. Basedon the infonnan.onbebadspbPJitted, Aggressive Mortjage pre-qualified "Michael Fuller" for a

$399,900 mortgage.
$. Sometimein or aroundMar.cli1006,a ReMAX agent De1awl]:~ in r~.c~_ived a phone call from a womanid~&herself as"T-ere5a Marie" who madean appointment seesome to -houses.Soonafter,.. Teresa Marie anda manident1f)'ing himself as "Michael Fuller" met with the real estateagent. When the~~ ~Ked~TemsacMarie last name.-her Teresa Mme told her tv j\ist call ber "TeresaMarie." "Michael Full.ftr:.stated th~t_ThresA~~=was11is busi!!ess partner. The real ~tat-eagent~wed T~ Marie and F~_three homes. Th~ cpuplewas mostinterested in ahomem EmeraldRidg~,Beartbathad aliit price.of$399,900. The descriptionof Teresa MM_ie provided by the real estate ~gent-matebes'the descriptitm-ef-T~a M. Flood. f>. On March 8, 2006;"Fu1leI"~ Df:.r.!)mp_~i~ a woman meetingLisa Reed'sdescription, by met with the R~Max agentin Defaware. DUringthe meeting,with Lisa Reedby _hi$ s:i~, "Fuller" entered -into~ agreement toP:Urchase holm in EmeraldRidg~ fw $399,900md provideda the $1,000 checkasa good faith deposit. The checlc written off a Commer(;~ was bank:account held in thenameT -and Enterprise T Inc¥with -PD address Qreenville,Delaware. in

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flJO13

7.

The Gr~vil1e M. Flood, Also

address who

comes

back

10 a majj

drop

opened T and

in the name T Enterprise Fuller"

T and

T Enterprise

by Teresa ~pplication. 8. persons

described

herself Teresa

as "president"of M. Flood "Funer" listed asked

on the as.one lender of the for

on the application,

"Michael

During authorizedthe meeting to receive on mail at the 2006, March 8. box.

if he coutd

use his

settlement during ReMax

and

have

the

settlement

in Maryland.

The ReMax Mortgage

agent

said fax

that

wDuld

be fine>

so, tfJ the

tne meeting. ag~nt

"Fuller"

had Aggressive

in Baltimore

an applova11etter

in Dela~e.

9. Soonafter. the selleraccepted theoffeJ:, thehome W»$ and ~CJ) off the market. Glenny Colem:2D} W~S: m atTested lat-erthatmonth, so the ttansfa {)f thepropertydid not occur. 10. On March23, 2006,DetectiveSueJones the DelawMcStateP~..ljc~ of $b9Wed ReMax the agenta photographicline-upof six men and askedwhetherany{)fthem was the man the agent knewas Michael FutlCL Thc real estateagent quiekly picked the ~oto of GlennyColeman. DetectiveJonesalsoshowedthe reatestateagenta photographicarrayof six women and asked whetheranyof themwas thewomanwho accompanied Michael'F'ulterwhenhe signedthe paperwork. Thereal estateagentchosetIle photo of Lisa ReedwitbDnthesitation.
11. Detectiv-eJones also interviewed Sus-3nKee of _AggJ:essivc Mortgage in Baltimore. Kee said when Fuller contact~ ~ he.P8§~\~ himself as an cstabl1shedbusjnessman Wh9 wanted to purchase a hom~ fOThis j=--o:trs"tl~'"eed. On February 15, 2006, Fuller t;ame to Kee's office and fi1Ied out a mortgage application. Later in Febnlary. Fcullerprovided Kee with a-copy of his Delaware driver's--~eftSeJPNC bank I~i1t}MS, pay stIlhSand income tax returns. Detective Jones showed Kee a photographic array and asked whether any of the men was the man whom Kee knew ASMichael Fulfer.. K~~ po_si~ identified Col~n.

-""

12. Keepr6vided a copy of the OOcumentaticn submittedby COleman.The Delawaredriver's licensein the nameMichael Fuller bearsa photo of Coleman. In eachof thethree applicatioo5 he submittedto Aggressive Mortgage,Colemanusedthe nameMichael Fuller and a 88N belongingto J.H. He a1~afalse address -an addrcssbe1ongingw V.D., Lisa Reed's cous.m.Coleman, F~}J~r. M cJ.aiJned be employedasan '+investingmanager" Genesis to by InvestjngVr{)UPat101 Kri1ite130,-Ctementon. In suppOrt the application,Coleman,as NJ: of Fuller, submitted fraudulentW-2 anda fraudulenttaXremrn sb6wingthathe hadearned a $116,400from Genesis h1vcstment Group, 101 RGute130 South,Cinnammson, in 2005. He NJ also suomittedstateffientso a.ENe b~ accountSllpposedi¥ 1nthename MiebaelFuller. for held 13. Investi~ation byye\n'aftiant and theDelawareStatePo1iee detenninedthat an office was r~d by GJ~y Coleman,againusingthe nameof V ;D., Lisa Reed's cousin, for "TAF'C Receivables" the Cinnaminson at address.. The checkused-to rent the office space, was a PNC Bank cashier'scheck in the amountof $2,100 with a notatibnSctating. "Remi.t1~r~_r~sa Flood (Agape VenttJres)."PNC Bank recordsrcv~aledthat Teresa Flood is the sol£signatory.on M. an account held in the name~ VentureawhichFlood ~ in October2005. A review cf the AgapeVenturesaccountstatement the period 12/31/Q5 1/31/06showsthat on January23. for to

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2006, $2,110 was withdrawn for the purchase ofacashier's check. (Th~ ~)S:f;ra likely was to $10 pay a fee for the issuance of the cashier's (;heck.) A .comparison cafthe Agape Ventures b.ank statement with the Michael Fuller bank statementsubmitted b-yColeman (as Michael Fuller) in support ofms mortgage applicatio]:l with Aggressive Mortgage, shows that, except feT the name of the accountholder; the-two-bank statementsare-identical. h1 an interview with the Delaware StatePolice and your affi~t, ~e manager for the office building stated that in setting up the {)ffi.ce space for T AFC: be dealt with a woman wbp jd~J)nfied herself only as "Teresa Marie." 14. On August} 8, 2006, Detective Nancy Skubik, Delawvr; StAteYo lice, and your affiant interviewed Teresa M. Flood at Delaware State Police Troop Twc in Bear, D.elawMe. Flof>d stated that she met Glenny Coleman in the fall of 2003 and had a per$O'nal relationship with him resulting in the binh of aodaughter.Flood stated that she staI-1edAgap~Ventures in approximately 2005 and that she was the only employee of the company. Flood a1sostated that BheopeJ1ed PNC bank-account in 2005for'herpersonal'Use-andthat-she was the only person the to have accessto the.account Fwod was ShPW11copy of the PNC Bank cashier's check and a admitted that the checK w.asused to rent the office spacemCinnam~n. 15. Pursuant to a searchwarrant, the Delaware State Police searchedLisa Reed's home in Wi1mingion, De1awareonMalch-23,-2~ The police found mm] items of int~t during the search, including two blank checks with the names"'Genesis mvestors Group/Michael Fuller" listed as the payors in tbectop-left comerand-"Me!1<>n Ban1E~ listed as the financial institution holding ~~ ac.count. No such account ex~stsiry_that n~e. In ~act,accQf?Ing to ~~l1on :Bank~s own webS1te,m 2001, Mellon Bank ~o}d J~~Atlanttcbanking operatlons to CItIzens Bank.

16. During thesamesearch Lisa Reed'shome, theDefawareStatePolice .aJ$O of found a ~erchant Applicatio~'1nwbich "Optimum,Entertainment,"ownedby "Michael Fuller" with J.H.'s SSNand V.D.'s address, applyingto Bank Card Depotfor authorizationto accept~redit is cards. RecordsreceivedfromBVo-Merchant Servicesshow tbatduring me relevanttime period. Lis~ Reedwas authorizedby Bank Card Depotl sell its merchantcreditcard servicesto to
bu.smesfle~, :

I

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Case 1:06-cr-00125-SLR

Document 19

Filed 01/18/2007

Page 20 of 20

Basedon my training andexperience the foregoingfacts, your affiant submitstl\at and thereis probablecauseto believe ~ Lisa ReedandTeresa Flood conspiredto commit wire M. fraud jn violation of 18V.S.C. § 1343,all in 1oJationof 18 U.S.C. § 371. Therefore,your affiant respectfullyrequests warrantsbe i~suedfor the arrestof Lisa ReedandTeresa that M.
Flood. i ./~)

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Balcemuk SpecialAgent, U.S. Secret Service

SWORN AND SUBSCRlBE~TO

this -2- dayof November, 2006~