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DWIGHT C. HOLTON,
OSB #09054
United States Attorney
District of Oregon
HELEN L. COOPER ,
OSB #87195
Special Assistant United States Attorney
helen.cooper@usdoj.gov
UNITED STATES ATTORNEY’S OFFICE
1000 S.W. Third Ave., Suite 600
Portland, OR 97204-2902
Telephone: (503) 727-1000
Facsimile: (503) 727-1117
Attorneys for United States of America
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
PORTLAND DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.
LAFAYETTE FREDERICK KEATON,
aka Jerome Garnett Keaton,
Defendant.
________________________________
Case No: CR 10-64-KI
GOVERNMENT’S SENTENCING
MEMORANDUM
Sentencing Date: November 15, 2010
10:00 a.m.
The United States of America, by and through Dwight C.
Holton, United States
Attorney for the District of Oregon, and Helen L.
Cooper, Special Assistant United States
Attorney, respectfully submits the following information
for the Court’s consideration regarding
imposition of sentence in the above-captioned matter.
Page 1 - GOVERNMENT’S SENTENCING MEMORANDUM
Sentencing Guidelines Calculation
The government agrees with the guidelines as calculated
in the pre-sentence report.
Keaton is responsible for a loss amount greater than
$120,000 but less than $200,000 for a base
offense level of 16. The defendant is entitled to a
three-point reduction for acceptance of
responsibility, resulting in a total offense level of 13
for a sentence range of 12 - 18 months. 1
The government respectfully requests a sentence of 12
months and one day of
imprisonment.
Summary of Facts
Mr. Keaton comes before the court for sentencing on
charges of Social Security Fraud
and Theft of Government Funds. Mr. Keaton used his
deceased brother’s identifying information
to obtain a social security card and a driver’s license
and to collect benefits administered by the
Social Security Administration (SSA) and the Department
of Human Services. (DHS).
The Oregon Department of Justice investigated Mr. Keaton
(Keaton) for election fraud
and determined that Keaton had been voting under his own
identity, the identity of his deceased
brother Jerome, and the identity of his deceased son
Shaman. Further investigation revealed that
Keaton had been collecting supplemental security income
(SSI) administered by SSA under his
dead brother’s identification since 1997. Keaton’s
brother Jerome died in 1989. In 1997, when
Jerome would have turned 65 and been eligible for SSI
benefits, Keaton used Jerome’s identity
to apply for SSI benefits. The benefits were
direct-deposited to a bank account Keaton had
opened in Jerome’s name. In 1994, 1998, and 2002 Keaton
posed as Jerome and obtained an
1
Keaton has no criminal history
that would affect the guidelines’ calculation.
Page 2 - GOVERNMENT’S SENTENCING MEMORANDUM
Oregon driver’s license in Jerome’s name with Keaton’s
photo. In March 2005, Keaton went to
the Department of Motor Vehicles and renewed the
driver’s license in Jerome’s name. On or
about the same date in March 2005, Keaton went to a
local social security field office and applied
for a replacement social security card in Jerome’s name
and social security number. Keaton also
used Jerome’s identity in 2001 to apply for food stamps
and medical benefits through the
Department of Human Services. Keaton fraudulently
collected more than $139,000 in
government benefits over the past 13 years.
Factors not Considered by the Guidelines
Criminal conduct in the instant offense
Keaton’s criminal conduct spanned more than a decade and
affected at least four
government agencies; the Social Security Administration,
the Department of Human Services,
the Elections Division 2,
and the Department of Motor Vehicles. To perpetuate the fraud on
multiple agencies over such a long period of time
required extensive effort and planning by
Keaton. Keaton opened a bank account in Jerome’s name
for the direct-deposit of the social
security benefits. Keaton was careful not to renew
Jerome’s driver’s license at the same DMV
where he was renewing his own driver’s license within
the same year. Keaton also presented
fabricated receipts to DHS as proof of “Jerome’s”
monthly household expenses.
Furthermore, Keaton’s criminal conduct was on-going
since its inception. DHS required
2
Keaton is awaiting sentencing in
Marion County on the election fraud charges.
Page 3 - GOVERNMENT’S SENTENCING MEMORANDUM
frequent renewal applications for benefits and Keaton
submitted applications in Jerome’s name
in January 2001, December 2001, January 2003, December
2003, December 2007 and December
2009, each time resulting in the continuation of the
food stamps, cash, and medical benefits.
Keaton has renewed Jerome’s driver’s license without
fail since 1994.
Uncharged crimes
Keaton was not charged with Aggravated Identity Theft in
violation of Title 18 U.S.C. §
1028A even though the facts supported such a charge for
the March 9, 2005 use of his brother’s
identity to obtain a social security card. Additionally,
after investigators had contacted Keaton in
May 2009 about stealing his brother’s identity, Keaton
renewed Jerome’s driver’s license on
January 14, 2010, again committing the crime of
Aggravated Identity Theft which carries a
mandatory 24-month prison sentence. Clearly the threat
of prosecution and incarceration in May
2009 did not deter Keaton from further criminal conduct.
Keaton’s driving records under his name and Jerome’s
name indicate additional criminal
behavior. Keaton’s driving record has no infractions but
Jerome’s record shows convictions for
infractions in 2004, 2006 and 2008. Thus Keaton
furnished false information (and again
committed Aggravated Identity Theft) each time he
presented Jerome’s driver’s license to the
police officers who stopped him for the infractions.
Financial Information
An on-line search of property records found several
properties associated with Keaton.
3540 N. Mississippi Ave., Portland, is the address
Keaton has used on his driver’s license. This
Page 4 - GOVERNMENT’S SENTENCING MEMORANDUM
property is owned by four parties in care of Brock
Keaton (Keaton’s son) - Stacey Keaton is a
12.5% owner, Glenn Keaton is a 12.5% owner, Tijuana
Moton is a 50% owner and Ashley
Keaton is a 25% owner. Keaton originally owned the
property and did a quit-claim deed to the
parties in March of 1991.
310 Upperwest Road in Castlerock, Washington appears to
be timber property previously
owned by Keaton but transferred to Keaton’s girlfriend,
Kathryn Skinner. The records available
did not indicate how or when this transfer occurred.
9834 Mt. Angel Road NE in Gervais, Oregon is the address
on Jerome’s driver’s license
and the address provided by Keaton as Jerome’s mailing
address. Keaton is a 50% owner of this
property. Keaton’s son Valiant is a 37.5% owner in care
of Jerome. The balance of the
ownership interest is unclear from the records
available.
Keaton has yet to provide the PSR writer with his
financial statement, therefore, a
thorough, accurate evaluation of Keaton’s finances has
not been completed at this time.
Title 18 U.S.C. § 3553 factors to be considered
The court shall impose a sentence sufficient, but not
greater than necessary, to comply
with the purposes set forth Title 18 U.S.C. § 3553. The
court shall consider:
1. The nature and circumstances of the offense and the
history and characteristics of the
defendant;
2. The need for the sentence imposed -
A. to reflect the seriousness of the offense, to promote
respect for the law, and to
Page 5 - GOVERNMENT’S SENTENCING MEMORANDUM
provide just punishment for the offense;
B. to afford adequate deterrence to criminal conduct;
C. to protect the public from further crimes of the
defendant; and
D. to provide the defendant with needed educational or
vocational training,
medical care, or other correctional treatment in the
most effective manner;
3. The kinds of sentences available;
4. The kinds of sentence and the sentencing range
established by the guidelines;
5. Any pertinent policy statements;
6. The need to avoid unwarranted sentence disparities
among defendants; and
7. The need to provide restitution to any victims of the
offense.
The nature and circumstances of the offense and the
history and characteristics of the
defendant justify a substantial prison sentence. The
prison sentence also would reflect the
seriousness of the offense, promote respect for the law,
and provide just punishment for the
offense. Keaton planned and executed his fraud against
multiple government agencies for more
than a decade. If the court looks only at the
defendant’s actions over the past 13 years and
disregards the older criminal history that did not
affect the guidelines, those actions alone justify
a sentence greater than home confinement and six months’
imprisonment.
Although the defendant does not appear to be a danger to
the community, he continued to
use his brother’s identity even after he had been
contacted by law enforcement. Thus, the mere
threat of prosecution and incarceration was not
sufficient to convince him to stop his criminal
Page 6 - GOVERNMENT’S SENTENCING MEMORANDUM
behavior. A sentence of 12 months and one day is a
sufficient amount of prison time but not
greater than necessary to punish and deter.
Conclusion
Keaton is a healthy, fit, 81 year-old defendant who is
deserving of a prison sentence of
12 months and one day which is at the lower end of the
guidelines’ range. The defendant’s
proclivity to commit fraud and theft over such a long
span of time makes him undeserving of a
split sentence with home confinement. A split sentence
would be more appropriate for a firsttime
offender or a defendant with mitigating circumstances,
and is not appropriate for this
defendant.
Dated this 10th day of November, 2010.
Respectfully submitted,
DWIGHT C. HOLTON
United States Attorney
District of Oregon
/s/ Helen L. Cooper
HELEN L. COOPER, OSB #871957
Special Assistant United States Attorney
Page 7 - GOVERNMENT’S SENTENCING MEMORANDUM
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