Former Oakland Police Chief Sentenced for Misuse of Public Funds

Acting United States Attorney Susan Lehr announced that Terry A. Poland, 34, of Fremont, Nebraska, was sentenced on July 25, 2023, by the Honorable Michael D. Nelson, United States Magistrate Judge, to three years of probation, 60 days of which must be served in jail as a condition of probation.  There is no parole in the federal system.  Poland pleaded guilty in April 2023 to Misuse of Public Funds.  Poland paid $14,631.00 in restitution, agreed to surrender his law enforcement certification, and not to work as a law enforcement officer in the future.     

During February 2020 to January 2021, Poland purchased about 27 gift cards in four transactions from a sporting goods store operating in Nebraska, using the charge account that the City of Oakland had at the store.  Poland was the Oakland Police Chief at the time.  The total value of the gift cards that Poland acquired with Oakland’s funds was $14,631.00.

Poland used the gift cards to acquire items for the use of himself and family members.  Poland purchased among other things women’s and children’s clothing, an ice fishing house, an auger, fishing equipment and a basketball backboard.  Poland made most purchases using the gift cards at store locations in Nebraska but made at least one purchase online. 

An outside auditor questioned the acquisition of the gift cards.  At the request of the outside auditor, the Oakland City Clerk requested additional receipts from Poland.  Poland stated that all the gift cards were used to purchase ammunition for the Oakland Police Department and provided to the City Clerk five purported receipts, each captioned “Purchase Statement.”  Each Purchase Statement was purportedly from the store and reflected the purchase of ammunition on a particular date during August 2020 to January 2021. 

The Purchase Statements that Poland provided to the City Clerk were phony.  They were not issued by the store, and the transactions, item numbers, and item descriptions did not match the store’s records.

This case was investigated by the Federal Bureau of Investigation.

Two New York Salesmen Sentenced to Prison in Business Opportunity Fraud Scheme

Scheme Defrauded More than 330 Victims Across the Country

A federal judge in the Eastern District of New York sentenced two sales representatives to prison today for their roles in a vending machine business opportunity fraud scheme, the Department of Justice announced today.

Howard S. Strauss, 66, of Jericho, New York, was sentenced to serve 28 months in prison by U.S. District Court Judge Joan M. Azrack, who also ordered him to pay $2,291,844 in restitution to 230 victims.  Mark Benowitz, 68, of Midlothian, Virginia, was sentenced to serve 24 months in prison and ordered to pay $997,210 in restitution to 101 victims.

Both Strauss and Benowitz pleaded guilty last year to fraud charges in connection with Multivend LLC, doing business as Vendstar, a company based in Deer Park, New York, that sold vending machine business opportunities to consumers throughout the United States until 2010.  Strauss and Benowitz were Vendstar sales representatives who misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines, and the level of location assistance that customers would receive from locating companies recommended by Vendstar.  Both Strauss and Benowitz also falsely told potential customers that they operated profitable candy vending machine routes themselves.

“These defendants promised the American dream, but knew that what they in fact were offering was a worthless business opportunity,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “The Department of Justice will continue to prosecute those who seek to scam out of everyday Americans the hard-earned money in their retirement accounts and life savings.”

Twenty-two individuals have been charged with fraud in connection with Vendstar, including Vendstar managers and sales representatives, and the operators of locating companies recommended by Vendstar.  Three of those defendants have now been sentenced; 13 defendants are awaiting sentencing; and six defendants are scheduled to stand trial in September.

Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation.  The case is being prosecuted by Trial Attorneys Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch.