Fraudster Tries to Reduce His Sentence by Continuing His Fraud
Post number 5267
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In Spite of Defendants Claims He Will Spend Serious Time in Prison
In United States Of America v. Henry Ford, Criminal Action No. 23-130, United States District Court, E.D. Pennsylvania (January 5, 2026) Henry Ford (no relation to the creator of the Model T), also known as “Cleothus Lefty Jackson,” was indicted and pled guilty to one count of securities fraud and aiding and abetting, along with seven counts of wire fraud.
FACTUAL BACKGROUND
Defendant falsely represented to victims that a business he controlled, Fallcatcher, had “pilot approvals in writing” with two large insurance companies and that several states “want the [Fallcatcher] technology” [Count Five]. In reality, Fallcatcher did not have any pilot programs with insurance companies and the Letter Of Intent was not a legitimate document.
Ford founded and operated several Fallcatcher entities, holding various executive roles, and purportedly used some of the funds to promote the business and hire employees.
Ford orchestrated a fraudulent investment scheme involving the sale of securities tied to companies he controlled, collectively known as “Fallcatcher.” The scheme defrauded 61 victims out of nearly $5 million. The SEC recovered and returned a portion of the funds, but over $2 million in restitution remains outstanding.
Approximately sixty-one (61) investor victims invested $4,964,775.79 in Fallcatcher, in return for shares of Fallcatcher’s common stock at a price of $.50 per share. These investments constituted the purchase of securities. And although Defendant did not have access to the investment proceeds located in Fallcatcher bank accounts, bank records reflected that Defendant and his wife received approximately $493,000 in payments from Fallcatcher after the proceeds were in the accounts.
The Present Criminal Case
In the instant criminal case a grand jury returned an eight-count Indictment against Defendant. On May 13, 2025, Defendant pled guilty to all charges in the Indictment, pursuant to a written plea agreement. The parties agreed, pursuant to Federal Rules of Criminal Procedure 11(c)(1)(C), that a sentence of imprisonment between forty-six (46) and seventy-eight (78) months is the appropriate disposition of this case.
Legal Issues & Sentencing
The sentencing in this case centers on the calculation of “loss” under § 2B1.1 of the United States Sentencing Commission Guidelines. The court clarified that “loss” means the actual harm suffered by victims. This means that any money recovered and returned to victims should be deducted from the loss calculation.
Analysis/Discussion
First, the money recovered by the SEC and returned to victims was deducted from the loss calculation, as only the net loss actually suffered by victims is relevant to a sentencing court.
Second, the court rejected the argument that funds not returned but used for “legitimate business purposes” should be excluded from the loss calculation. The rationale is that such expenditures, even if ostensibly for business operations, do not offset the loss suffered by victims, as the funds were obtained through fraud.
Fraud Loss Calculation in the Presentence Report
In the Presentence Report (“PSR”), the Probation Officer set the applicable fraud loss at $4,964,775.79. Since the loss exceeded $3,500,000, but was less than $9,500,000,” eighteen (18) offense levels were added.
Defendant Ford objected to the loss amount. The Court found that under § 2B1.1 of the Sentencing Guidelines: (1) the money returned to the victims by the SEC is not included in the amount of “actual loss”; and (2) the remainder of investment funds apparently used for “legitimate business expenses” are not excluded from “actual loss.”
The Government argued that because Defendant’s misrepresentations successfully resulted in investors transferring approximately $4.9 million to Fallcatcher Inc., Defendant caused “actual loss” in that amount once the funds were out of the victims’ possession.
Since the $2,095,480.38 balance was actually lost by the victims, he received no credit. The defendant has clearly demonstrated acceptance of responsibility for the offense. Accordingly, the offense level is decreased by two levels. The defendant has assisted the authorities in the investigation or prosecution of the defendant’s own misconduct by timely notifying authorities of the intention to enter a plea of guilty. Accordingly, the offense level is decreased by one additional level.
Total Offense Level: 24
In conclusion the court concluded that at Offense Level of 24, with a Criminal History Category of II, the guideline range for imprisonment is fifty-seven (57) to seventy-one (71) months.
ZALMA OPINION
Fraudsters, even when arrested and convicted with a guilty plea insist on drawing courts into lengthy opinions to support the serious sentence the fraud perpetrator using a famous person’s name as his own, will be sentenced – contrary to his objections, between 57 and 71 months in prison for his fraud.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Convicted Criminal Seeks to Compel Receiver to Protect his Assets
Post number 5291
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The Work of a Court Appointed Receiver is Constitutionally Protected
In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.
Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
When There are Two Different Other Insurance Clauses They Eliminate Each Other and Both Insurers Owe Indemnity Equally
Post number 5289
In Great West Casualty Co. v. Nationwide Agribusiness Insurance Co., and Conserv FS, Inc., and Timothy A. Brennan, as Administrator of the Estate of Pat- rick J. Brennan, deceased, Nos. 24-1258, 24-1259, United States Court of Appeals, Seventh Circuit (February 11, 2026) the USCA was required to resolve a dispute that arose when a tractor-trailer operated by Robert D. Fisher (agent of Deerpass Farms Trucking, LLC-II) was involved in a side-impact collision with an SUV driven by Patrick J. Brennan, resulting in Brennan’s death.
Facts
Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...
Opiod Producer Seeks Indemnity from CGL Insurers
Post number 5288
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Insurers Exclude Damages Due to Insured’s Products
In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.
KEY FACTS
Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.
Bankruptcy & Settlements
Endo filed Chapter 11 in August 2022; before bankruptcy it ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.
Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
