In May 2022, Timothy Gibson (USA v. TIMOTHY GIBSON) pled guilty to conspiracy to commit wire fraud, bank fraud, and making false statements to a bank in connection with schemes originating in New Jersey and Utah. To streamline the legal process and minimize his sentencing, the government allowed Gibson to plead guilty to all charges in New Jersey. He got a great deal. This arrangement capped his loss amount, omitted certain sentencing enhancements, and provided other concessions. Despite these benefits, Gibson has delayed proceedings through various tactics, including motions to withdraw his guilty pleas, claiming ineffective counsel, and other deficiencies.
Gibson’s fraudulent activities involved creating fake business accounts to exploit reward points from credit card companies and advising clients to submit false information to obtain Paycheck Protection Program (PPP) loans. His New Jersey scheme resulted in losses of over $8 million, while his Utah scheme involved misleading banks to secure PPP loans for businesses with falsified employee and payroll information.
Details From the New Jersey case:
“The conspirators recruited nominee cardholders through newspaper advertisements, e- mails, and other means: “You can earn up to $5000 in just one month! We will get you approved, arrange the spending and sell the points. Call for our special rates.” The conspirators: (i) instructed nominee cardholders “to provide their PII . . . in exchange for a fee,” (ii) “created fake email addresses purportedly associated with the Nominees,” (iii) “applied for Fake Business Card Accounts using the Nominees’ PII and the Fake Email Addresses,” (iv) “made large purchases for, among other things, air travel and car rentals, which they often later cancelled,” (v) “transferred certain of the Reward Points into Frequent Flyer Mile accounts” associated with the Defendant, and (vi) “used the Frequent Flyer Miles to purchase international air fare.” The conspirators “opened more than 7,000 credit card accounts with the Credit Card Company, in the names of more than 1,500 different individuals and/or small businesses, to obtain more than 500 million Rewards Points.” The conspirators agreed to a value of “approximately 1.3 cents per point,” and the Defendant paid Lev “by wire transfer, ACH payments, cash, and other means,” including by wiring “payments of approximately $10,000 and $20,000” on or about January 28 and January 29, 2016. “During the course of the conspiracy, [the Defendant] transferred approximately $3.5 million from bank accounts controlled by [the Defendant] to bank accounts controlled by”
The conspirators took steps to avoid detection. For example, they instructed nominee cardholders to never speak to the credit card company, and registered the nominee cardholder accounts using e-mail addresses they controlled. Lev instructed the Defendant: “My name should never be anywhere!” D
Despite having multiple seasoned lawyers, Gibson attempted to withdraw his guilty pleas, asserting ineffective counsel and procedural deficiencies. However, his motions lacked credible assertions of innocence and failed to provide evidence challenging any elements of his crimes. The court, supported by affidavits from Gibson’s former counsel, found his claims baseless and sought to expedite his sentencing.
Gibson’s legal team changed multiple times, each new counsel seeking delays to review case materials or consider withdrawing guilty pleas. These delays extended the proceedings significantly.
For example: Gibson’s initial counsel withdrew in June 2022, necessitating the appointment of new lawyers who required additional time to familiarize themselves with the case.
In April 2023, new counsel requested adjournments to assess the validity of Gibson’s potential motions to withdraw his guilty pleas.
In July 2023, during a status conference, Gibson’s counsel again requested a delay in sentencing, claiming they needed more time to review case material, resulting in further postponements.
Gibson filed a civil lawsuit in July 2023 against American Express, the victim in the New Jersey case, alleging the company manipulated the Department of Justice into filing criminal charges against him. This lawsuit was filed just before a court status conference and was later withdrawn, but it served to further delay the proceedings.
Gibson employed various Sovereign Citizen tactics to stall the proceedings and attempt to challenge the court’s authority. Some of Gibson’s tactics included:
- Referring to himself in unusual formats, such as “Timothy Walther Gibson ©, a North American/State Citizen/Utahan,” claiming a form of criminal immunity.
- Declaring himself “civilly dead” and under bankruptcy protection, asserting that no entity could compel him to pay debts, thereby challenging the court’s jurisdiction. He writes: “The alleged DECEDENT, TIMOTHY WALTER GIBSON/Timothy Walter Gibson is “civilly dead” and under bankruptcy protection; and whereby NO entity can compel payment of a debt from such an entity. Strisimi jurici meaning you can’t compel debt from one party to another. Thereby, the court does NOT have in personam jurisdiction. The court’s in-personam jurisdiction is challenged and remains unproven.
- Labeling judges and government officials as “Enemy Combatants” and claiming his name had been “repatriated” to the U.S. Department of the Treasury, suggesting that any process against him must go through the Treasury Department.
Gibson’s filings included demands for expungement of his name from registries and declarations that failure to honor his “free will choice” not to contract was a violation of divine law. He also made grandiose demands for monetary compensation for perceived contractual violations by court officials and attorneys.
The court has urged the denial of Gibson’s motions to withdraw his guilty pleas and seeks an expedited sentencing. Gibson’s repeated delays and unfounded motions, combined with his sovereign citizen tactics, have prolonged the case without providing any substantial grounds for his claims. The court aims to bring this case to a resolution, emphasizing the finality of Gibson’s guilty pleas and the need for an immediate sentencing date.