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Prosecutors say a California enterprise investor wished a Vermont man lifeless as a result of he feared the sufferer would go to the FBI with damning details about alleged fraud in a “multimillion-dollar oil deal” between them, in keeping with newly launched paperwork.
A courtroom submitting by federal prosecutors on Monday offers the primary look into the motive and connections between 4 males from three completely different states charged over the previous two months in what authorities have described as a murder-for-hire plot during which Gregory Davis, 49, of Danville was kidnapped and shot to loss of life in January 2018.
Serhat Gumrukcu, 39, of Los Angeles and Berk Eratay, 35, of Las Vegas had been each arrested final week after being indicted by a federal grand jury in Vermont. The 2 males are every charged with conspiring to make use of interstate commerce services within the fee of the homicide scheme.
Federal prosecutors in Nevada, in a submitting that seeks to carry Eratay in custody whereas the case in opposition to him is pending, went into rather more element concerning the alleged plot and reported that one of many defendants had confessed.
Early within the investigation, the submitting said, Serhat Gumrukcu was recognized as a possible suspect within the homicide as a result of he and his brother, Murat Gumrukcu, had been the one individuals who appeared to have a dispute with Davis that “would probably be a motive for Davis’s execution.”
“In 2017, Davis was threatening the Gumrukcus about going to the FBI with proof that the Gumrukcus had been defrauding him in a multimillion-dollar oil deal that the Gumrukcus had entered into with Davis in early 2015,” in keeping with the doc signed by Assistant U.S. Lawyer Jacob Operskalski.
“The Gumrukcus didn’t carry out on the deal,” the prosecutor mentioned. “Davis believed that the Gumrukcus had lied to him about varied issues.”
Additionally in 2017, the doc said, Serhat Gumrukcu was dealing with felony fraud expenses in California state courtroom, which included allegations of bounced checks that Serhat Gumrukcu had supplied to the “intermediary” within the oil deal.
On these bounced checks, Serhat Gumrukcu reportedly falsely referred to himself as “HRH Serhat Gumrukcu,” a reference to “His Royal Highness.”
At that very same time, the submitting said, Serhat Gumrukcu was placing collectively what turned out to be a profitable deal after the homicide: securing a major possession stake in a California biotechnology firm, Enochian BioSciences.
“Gumrukcu subsequently had a powerful motive to forestall Davis from reporting yet one more fraud, and sure threatening the Enochian deal,” Operskalski mentioned.
Authorities mentioned Serhat Gumrukcu seems to personal greater than $100 million price of Enochian inventory. A few week earlier than his arrest earlier this month, prosecutors mentioned, he bought a few of his inventory for $2 million in money.
“Neither Serhat nor Murat Gumrukcu had traveled to Vermont to personally kill Davis, so the almost certainly plot concerned a employed killer,” in keeping with the prosecution’s submitting.
Murat Gumrukcu, who lives in Turkey, apparently visited america between December 2017 and March 2018, and was staying at Eratay’s former house in Las Vegas on the time of Davis’s killing.
The Gumrukcu brothers had been interviewed in early 2018 concerning the homicide and denied any involvement. Murat Gumrukcu has not returned to the U.S. since March 2018, in keeping with authorities.
Prosecutors mentioned the investigation then turned to attempting to establish the alleged hitman. In 2020, a break within the case got here when a Colorado man named Jerry Banks was recognized as a suspect, prosecutors mentioned.
Banks, 34, was arrested in Wyoming in April on a cost that he kidnapped Davis. Aron Lee Ethridge, 41, of Henderson, Nevada, was additionally detained on a cost that he conspired with Banks on the kidnapping.
Police say Banks took Davis from his residence on Jan. 6, 2018, by posing as a U.S. marshal who got here to arrest him on racketeering expenses.
A day later, Davis was discovered lifeless in a snowbank in Barnet, 15 miles from his residence, shot within the head and torso.
Investigators imagine Banks had been paid to kill Davis, since investigators couldn’t discover a private connection between the 2 males. To this point, no person has been charged with homicide within the killing of Davis.
The probe uncovered a sequence connecting the 4 males charged to date within the case: Banks was buddies with Ethridge, and Ethridge was buddies with Eratay, who labored for Gumrukcu, prosecutors mentioned.
A number of items of proof supported the hyperlink, comparable to Banks assembly with Ethridge on varied events in late 2017 because the homicide scheme was being finalized, authorities mentioned.
“Ethridge was the primary individual Banks telephoned after the homicide,” Operskalski wrote. “The primary name Ethridge made after receiving the post-murder name from Banks was to Eratay’s cellphone.”
Authorities say Ethridge has admitted to his function in Davis’s kidnapping and killing.
“Ethridge admitted that he employed Banks to kill Davis and that he was in flip employed by Eratay (his former neighbor and good friend for years) and Gumrukcu to seek out somebody to homicide Davis,” Operskalski wrote.
“Ethridge’s admissions are extremely credible, as they’re per the opposite proof within the case,” the prosecutor mentioned, including that the federal government expects Ethridge to testify at trial in opposition to Banks, Eratay and Gumrukcu.
Monetary data for Eratay, whom authorities mentioned recognized himself as Gumrukcu’s assistant, confirmed greater than $150,000 in wire transfers from Turkish accounts Gumrukcu managed between June and October 2017, “because the homicide scheme was constructing,” prosecutors mentioned.
“Eratay fastidiously and secretly remodeled these funds into money on the identical time,” the courtroom submitting said. “Additional, Eratay’s electronic mail account confirmed that he documented private details about Davis in July 2017, together with his full title, date of beginning, homeland, and cellular phone with a Vermont space code.”
This story shall be up to date.
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Nine of the Vermont Senate’s 11 standing committees will have new leaders this biennium and three will be helmed by Republicans, Lt. Gov. John Rodgers announced from the Senate floor Thursday afternoon.
The committee overhaul follows the retirement, death or defeat of a considerable number of veteran chairs last year — and after Republicans picked up six seats in the 30-member body in November’s election. Democrats and Progressives now hold 17 seats, while Republicans control 13.
Unlike the Vermont House, where committee positions are chosen unilaterally by the speaker, Senate assignments are doled out by a three-member panel, the Committee on Committees, which this year includes two new participants: Rodgers, a Republican, and Sen. Ginny Lyons, D-Chittenden Southeast. Senate President Pro Tempore Phil Baruth, D/P-Chittenden Central, returned to the committee.
The trio had few experienced senators from which to choose, given that — as Baruth noted in his opening remarks to the chamber Wednesday — nearly two-thirds of the Senate’s members joined the body over the past two years. Illustrating the point, newly sworn-in Sen. Seth Bongartz, D-Bennington, was tapped to chair the Senate Education Committee. (Bongartz had previously served in the House since 2021 — and had tours of duty in both the House and Senate in the 1980s.)
Perhaps the most significant appointment went to Sen. Andrew Perchlik, D/P-Washington, who will chair the powerful Senate Appropriations Committee. He succeeds Sen. Jane Kitchel, D-Caledonia, who retired after leading the budget-writing panel for 14 years.
Sen. Nader Hashim, D-Windham, will helm the Senate Judiciary Committee, following the death last June of veteran Sen. Dick Sears, D-Bennington.
The Senate Natural Resources & Energy Committee will be led by Sen. Anne Watson, D/P-Washington. Its former chair, Sen. Chris Bray, D-Addison, was defeated in November.
Sen. Alison Clarkson, D-Windsor, takes over the Senate Economic Development, Housing & General Affairs Committee from Sen. Kesha Ram Hinsdale, D-Chittenden Southeast. Ram Hinsdale defeated Clarkson for the role of Senate majority leader in November, requiring the former to step down from her committee leadership position and allowing the latter to step up.
The three Republicans chairing panels are Sen. Richard Westman, R-Lamoille, who will run the Senate Transportation Committee; Sen. Russ Ingalls, R-Essex, who will head the Senate Agriculture Committee; and Sen. Brian Collamore, R-Rutland, who will lead the Senate Government Operations Committee. (Republicans similarly made gains in House leadership positions this year.)
Sen. Wendy Harrison, D-Windham, takes over the Senate Institutions Committee from Ingalls, who chaired it last biennium.
The sole returning chairs are Lyons, who will continue to lead the Senate Health & Welfare Committee, and Sen. Ann Cummings, D-Washington, who will retain control of the Senate Finance Committee.
Speaking to reporters Thursday afternoon, Baruth said the Committee on Committees had intentionally sought partisan equilibrium on certain panels. The Senate Education Committee, for example, which is expected to engage in heavy lifting as lawmakers reconsider the state’s education funding scheme, includes three Democrats and three Republicans. For a bill to clear that panel, four members would have to approve.
“What I intended for that committee… to do is to put out bipartisan bills,” Baruth said of Senate Ed.
Similarly, Baruth called the composition of the tax-writing Senate Finance Committee “very centrist,” with four Democrats and three Republicans.
“They’re going to have a lot of work to do, hard work, but the one thing I want them to think — to think long and hard about — is any kind of raising taxes or fees,” Baruth said. “The only time I’m looking to do that, if it’s necessary, is if it brings down the property tax.”
Ethan Weinstein contributed reporting.
This article will be updated.
Gov. Phil Scott proposed a sweeping overhaul of what he called Vermont’s “broken and failing” education funding and governing systems during his inaugural address Thursday.
In his first major speech since voters overwhelmingly reelected him and booted Democrats up and down the ballot from office, Scott focused on the topic that most infuriated Vermonters in November: affordability.
“When it comes to politics, I know it can be hard to admit when you’ve gone down the wrong path and need to turn around,” Scott told House and Senate lawmakers during his fifth inaugural address at the Statehouse in Montpelier. “But we’re not here to worry about egos. We’re here to do what Vermonters need. And they just sent a very clear message: They think we’re off course.”
As is typical for an inaugural speech, Scott did not delve into specifics on Thursday — the details of his plan will be unveiled later this month during his budget address.
But in the broad strokes, Scott teased a plan that would overhaul Vermont’s byzantine school governance structure and see the state assume a direct role in deciding how much districts spend.
“The bottom line is our system is out of scale and very expensive,” Scott said. “And as obvious as these challenges are, we haven’t been able to fix it.”
At the heart of Scott’s vision is a transition to a so-called foundation formula, whereby the state would calculate how much districts should spend on their schools and provide them corresponding grants.
Currently, local voters decide how much their school districts should spend when they approve or reject budgets during Town Meeting Day in the spring. Whatever the amount, the state must pay. To calculate each town’s fair share into Vermont’s more than $2 billion education fund, residential property tax rates are adjusted based on how much each district is spending per pupil.
While potentially explosive in a state where local control is jealously guarded, a foundation formula is fairly typical across the country. And in Vermont, a bill to transition over to such a system even passed the House in 2018 with Democratic support. The architect of that 2018 legislation, then-GOP Rep. Scott Beck, was just elected to the Senate and named Republican minority leader for the chamber — where he is working closely with administration officials on their education plans.
“I think what we’re going to see [from the governor] here in a couple, three weeks is something that is far beyond just education finance,” Beck said in an interview Thursday. “I think it’s going to get into governance and delivery and outcomes.”
Beck said the transition to a foundation formula would force a series of questions, including whether districts would be allowed to approve any spending beyond the state’s base foundation grant.
“And in that case, where do they get that money from? And under what conditions can they access that money?” Beck said. “There’s a myriad of decisions that go into that whole thing. None of those decisions have been made. But I think in various circles, we have committed to going down the road of building a foundation formula in Vermont.”
Beck said he expects Scott’s education proposal will also include provisions that are designed to reduce staffing in the public education system.
When Scott first took office in 2016, the state spent about $1.6 billion annually on public schools. This year, that number will exceed $2.3 billion.
Vermont schools now have one staff person for every 3.63 students, the lowest ratio in the United States. In 2018, Scott pushed hard, and unsuccessfully, for legislation that would have instituted mandatory caps on staff-to-student ratios.
“With what we’re spending, we should not be in the middle of the pack on any educational scorecard,” Scott said. “And our kids should all be at grade level in reading and math. In some grades, less than half hit that mark. While educators, administrators, parents and kids are doing their very best to make things work, the statewide system is broken and failing them.”
Inaugural and state-of-the-state speeches tend to include a laundry list of policy ideas. But Scott’s 43-minute speech was focused almost entirely on education and housing — he renewed calls to trim development regulations and to bolster funding for rehabbing dilapidated homes.
Scott only briefly discussed last summer’s floods, and made glancing mentions of public safety, climate change, and health care. The governor, who voted for Vice President Kamala Harris in November, made no mention of President-elect Donald Trump or national politics.
Seeking to highlight some successes, the governor noted that overdose and traffic fatalities have declined recently, the state has welcomed more than 1,000 refugees in the past few years, and that the state park system saw near record visitation last year.
The governor has long argued that Chittenden County is prospering at a rate disproportionate to the rest of Vermont. He intensified that rhetoric in Thursday’s speech.
“As the rest of the state struggles to catch up, they carry the same burden of increasing taxes and fees and navigate the same complicated mandates and regulations,” the governor said. “And regardless of how well-intentioned these policies are, they’re expensive and require resources that places like Burlington, Shelburne and Williston may have, but small towns like Chelsea, Lunenburg, Peacham, Plainfield — and even Rutland, Newport or Brattleboro — do not. Too many bills are passed without considering the impact on these communities.”
Early in his speech, Scott paid tribute to several veteran legislators who died in the past year, including senators Bill Doyle and Dick Sears and representatives Don Turner, Bill Keogh, and Curt McCormack. Scott choked up and was visibly emotional when his recalling “my dear friend and mentor,” Sen. Dick Mazza, who died in May.
Former Governors Peter Shumlin, Jim Douglas and Madeleine Kunin attended the speech.
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Education
MORRISTOWN, Vt. (AP) — A Vermont school district’s inadequate response to serious and widespread harassment of Black and biracial students has led to a settlement agreement with the federal government, the U.S. Justice Department said Wednesday.
The department’s Civil Rights Division and the Vermont U.S. attorney’s office began investigating the Elmore-Morristown Unified Union School District in December 2023 and reviewed records and complaints from the previous three school years. Investigators concluded that students, primarily at the middle school level, faced frequent slurs and racist imagery, including the use of the N-word and displays of confederate flags and Nazi symbols.
“Racial harassment makes students feel unsafe, deprives them of a supportive educational environment and violates the Constitution’s most basic promise of equal protection,” Assistant Attorney General Kristen Clarke said in a statement. “We look forward to the district demonstrating to its students that racial bullying and harassment have no place in its schools.”
Superintendent Ryan Heraty said Wednesday those comments don’t reflect the district’s current reality given that there has been a dramatic decrease in such incidents.
“When students returned from the pandemic, we saw a significant increase in behavior at the middle level, which was deeply concerning,” he said in an email. “In response, we have taken many intentional actions to address this behavior, which the DOJ recognized in its review.”
In a letter to parents and other community members Tuesday, Heraty said the district stands firmly against any acts of racism and responds immediately to reported incidents. In the current academic year, there have been no reported incidents of race-based harassment at the district’s elementary school and a “very limited” number at the middle and high schools, he said.
The Justice Department said the district cooperated fully with the investigation and has already implemented some improvements, including adopting a central reporting system to track incidents. The district also agreed to revise anti-harassment policies and procedures, hold listening sessions with student groups and conduct formal training and education programs for students and staff.
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