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http://www.philly.com/mld/philly/news/13604770.htm
Gun dealer sentenced for fraud
Michael Zomber got 21/2 years for bilking a weapons collector. The judge said he lacked "respect for the law."
By John Shiffman
Inquirer Staff Writer
A once-distinguished antique-firearms dealer who duped a Bucks County millionaire while helping him amass a $30 million gun collection was sentenced to 21/2 years in prison yesterday.
The case, which included the sale of a pair of revolvers carried into battle by famed Texas Ranger Samuel Walker, was widely followed in the unregulated antique-firearms industry, where the dealers' crimes became a major scandal.
U.S. District Judge Cynthia M. Rufe said that she hoped the prison sentence for the dealer, Michael Zomber of Franklin, Tenn., would deter others who might try to defraud antiques collectors.
"What is seriously missing here is respect for the law," Rufe said. "It's not about money or lack of money; it's about treating each other legally and fairly."
Zomber was convicted of fraud at trial. His accomplice, Richard Ellis, of LeClaire, Iowa, pleaded guilty and cooperated with the government. Rufe sentenced Ellis to 10 months, half of which must be spent in prison; the other half may be spent in a halfway house, she said. Restitution will be calculated later.
"The entire industry was poised to find out what happened to Ellis and Zomber," said FBI agent Bob Wittman, who handled the case. "There's an element that's going to be happy that it's a new day, and there's an element that's going to be upset that their antics are going to be put under the microscope."
The Bucks County businessman who was duped, Joseph A. Murphy of New Hope, said in a related suit that the men defrauded him of $12 million. That suit was settled for $4.7 million worth of antique firearms.
Ellis, hired by Murphy as his expert consultant on a commission basis, led Murphy to believe that Zomber was a disinterested dealer.
He was not. Zomber wrote letters feigning interest in the pieces Murphy sought, artificially inflating the firearms' values. In turn, authorities said, Ellis paid Zomber more than $1 million in kickbacks.
The largest deal involved two firearms Walker designed with Samuel Colt in 1846 - the world's first Magnum revolvers, .44-caliber handguns that launched Colt from bankruptcy to fame, according to Philip Schreier, a curator at the National Firearms Museum in Fairfax, Va.
Murphy paid about $2.2 million for the so-called Walker Colts, about twice what authorities said they are worth.
Before Zomber was sentenced yesterday, he asked for leniency, saying that what happened has consumed him to the point that he has not slept for three years without the aid of pills. He also cited his extensive charitable work on behalf of children with cancer.
"I am extraordinarily sorry and remorseful that my actions have caused pain," Zomber said. "I am disgraced forever."
Murphy also addressed the court. His voice thundering at times, he said he was angry that Zomber had argued that charitable work and medical stresses were relevant at sentencing.
"I'm the laughingstock," Murphy said, explaining that the scandal is the talk of the antique-gun circuit. "I'm the one who had two heart attacks over this, stents put in... . As a victim, I'm pleading with you to sentence him in the most horrible way you can, because he did this without regret. I want punishment."
Afterward, Murphy's attorney, Gavin Lenz, said he was satisfied with both sentences.
Zomber plans to appeal, and Rufe said she is considering whether to allow him to remain free until that appeal is heard.
Rufe chastised both men for continuing to attend gun shows following their convictions. Her sentence forbids the dealers from possessing any firearms, including antiques, for three years after the jail terms.
Assistant U.S. Attorney Robert Goldman said that Ellis deserved a lighter sentence because he cooperated with the investigation and pleaded guilty. Still, Goldman said, he deserved to go to prison.
Ellis wept through much of his statement to the judge: "I'm very sorry for what I did. It was wrong and I regret it. In my business, my good name meant everything. I blew it."
Ellis then turned around to face his victim, who sat in the gallery.
"Joe, I'm truly sorry," Ellis said. "I really am."
Murphy nodded.
http://www.philly.com/mld/philly/news/13604770.htm
Gun dealer sentenced for fraud
Michael Zomber got 21/2 years for bilking a weapons collector. The judge said he lacked "respect for the law."
By John Shiffman
Inquirer Staff Writer
A once-distinguished antique-firearms dealer who duped a Bucks County millionaire while helping him amass a $30 million gun collection was sentenced to 21/2 years in prison yesterday.
The case, which included the sale of a pair of revolvers carried into battle by famed Texas Ranger Samuel Walker, was widely followed in the unregulated antique-firearms industry, where the dealers' crimes became a major scandal.
U.S. District Judge Cynthia M. Rufe said that she hoped the prison sentence for the dealer, Michael Zomber of Franklin, Tenn., would deter others who might try to defraud antiques collectors.
"What is seriously missing here is respect for the law," Rufe said. "It's not about money or lack of money; it's about treating each other legally and fairly."
Zomber was convicted of fraud at trial. His accomplice, Richard Ellis, of LeClaire, Iowa, pleaded guilty and cooperated with the government. Rufe sentenced Ellis to 10 months, half of which must be spent in prison; the other half may be spent in a halfway house, she said. Restitution will be calculated later.
"The entire industry was poised to find out what happened to Ellis and Zomber," said FBI agent Bob Wittman, who handled the case. "There's an element that's going to be happy that it's a new day, and there's an element that's going to be upset that their antics are going to be put under the microscope."
The Bucks County businessman who was duped, Joseph A. Murphy of New Hope, said in a related suit that the men defrauded him of $12 million. That suit was settled for $4.7 million worth of antique firearms.
Ellis, hired by Murphy as his expert consultant on a commission basis, led Murphy to believe that Zomber was a disinterested dealer.
He was not. Zomber wrote letters feigning interest in the pieces Murphy sought, artificially inflating the firearms' values. In turn, authorities said, Ellis paid Zomber more than $1 million in kickbacks.
The largest deal involved two firearms Walker designed with Samuel Colt in 1846 - the world's first Magnum revolvers, .44-caliber handguns that launched Colt from bankruptcy to fame, according to Philip Schreier, a curator at the National Firearms Museum in Fairfax, Va.
Murphy paid about $2.2 million for the so-called Walker Colts, about twice what authorities said they are worth.
Before Zomber was sentenced yesterday, he asked for leniency, saying that what happened has consumed him to the point that he has not slept for three years without the aid of pills. He also cited his extensive charitable work on behalf of children with cancer.
"I am extraordinarily sorry and remorseful that my actions have caused pain," Zomber said. "I am disgraced forever."
Murphy also addressed the court. His voice thundering at times, he said he was angry that Zomber had argued that charitable work and medical stresses were relevant at sentencing.
"I'm the laughingstock," Murphy said, explaining that the scandal is the talk of the antique-gun circuit. "I'm the one who had two heart attacks over this, stents put in... . As a victim, I'm pleading with you to sentence him in the most horrible way you can, because he did this without regret. I want punishment."
Afterward, Murphy's attorney, Gavin Lenz, said he was satisfied with both sentences.
Zomber plans to appeal, and Rufe said she is considering whether to allow him to remain free until that appeal is heard.
Rufe chastised both men for continuing to attend gun shows following their convictions. Her sentence forbids the dealers from possessing any firearms, including antiques, for three years after the jail terms.
Assistant U.S. Attorney Robert Goldman said that Ellis deserved a lighter sentence because he cooperated with the investigation and pleaded guilty. Still, Goldman said, he deserved to go to prison.
Ellis wept through much of his statement to the judge: "I'm very sorry for what I did. It was wrong and I regret it. In my business, my good name meant everything. I blew it."
Ellis then turned around to face his victim, who sat in the gallery.
"Joe, I'm truly sorry," Ellis said. "I really am."
Murphy nodded.
