Middle District of Alabama
Press releases recorded for this federal judicial district.
Eight Defendants Plead Guilty in $20 Million Stolen Identity Refund Fraud RingRead the Press Release
Montgomery, Alabama – Alabama and Georgia residents pleaded guilty for their roles in a $20 million stolen identity refund fraud (SIRF) conspiracy, U.S. Attorney George L. Beck Jr. of the Middle District of Alabama and acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
The defendants pleaded guilty on the following dates to the following charges:
- Talarius Paige, of Phenix City, Alabama, on March 31, to one count of conspiracy to file false claims and one count of aggravated identity theft;
- Tracy Mitchell, of Phenix City, Alabama, on March 30, to one count of conspiracy to file false claims, one count of wire fraud and one count of aggravated identity theft;
- Latasha Mitchell, of Phenix City, Alabama, on March 30, to one count of conspiracy to file false claims and one count of aggravated identity theft;
- Demeisha Mitchell, of Phenix City, Alabama, on March 26, to one count of conspiracy to file false claims and one count of aggravated identity theft;
- Keisha Lanier, of Seale, Alabama, on March 5, to one count of wire fraud and one count of aggravated identity theft;
- Sharondra Johnson, of Phenix City, Alabama, on Feb. 17, to one count of conspiracy to file false claims;
- Cynthia Johnson, of Phenix City, Alabama, on Dec. 17, 2014, to one count of conspiracy to file false claims; and
- Patrice Taylor, of Midland, Georgia, on July 18, 2014, to one count of conspiracy to file false claims.
The defendants are scheduled to be sentenced on June 30. Mequetta Snell-Quick, another co-conspirator from Phenix City, Alabama, is scheduled to appear in court on April 6. In a related case, on Oct. 2, 2014, Tamika Floyd, of Salem, Alabama, pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft and is scheduled to be sentenced on May 19. The defendants each face a statutory maximum sentence of 10 years in prison for each count of conspiracy to file false claims, a statutory maximum sentence of 20 years in prison for each wire fraud count, and a statutory mandatory minimum sentence of two years in prison for each aggravated identity theft count.
“The guilty pleas of the nine defendants who participated in this conspiracy send a clear message that the Tax Division, along with its law enforcement partners, will vigorously pursue and prosecute individuals involved at every level of these extensive criminal schemes,” stated Acting Assistant Attorney General Ciraolo. “The division will seek significant jail time and restitution from offenders who choose to victimize unsuspecting American taxpayers, including the dedicated men and women serving in the U.S. military, and steal from the U.S. Treasury.”
“Stealing a person’s identity is a horrendous crime,” said U.S. Attorney Beck. “It can take months or years for a victim of identity theft to correct the damage that these criminals reaped upon him or her. But these defendants stole identities from military men and women who have volunteered to protect our country. That is inexcusable and will not be tolerated.”
According to court documents, between January 2011 and December 2013, the defendants ran a large-scale identity theft ring in which they filed more than 7,000 false tax returns that included fraudulent claims for refunds in excess of $20 million. In order to file false returns, the defendants obtained stolen identities from various sources. Tracy Mitchell worked at a military hospital located at Fort Benning, Georgia, and as a hospital employee, she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. Tracy Mitchell stole soldiers’ personal information and used that information to file false tax returns.
“This case is an excellent example of Army CID working shoulder-to-shoulder with our fellow law enforcement partners to protect the nation’s soldiers,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command’s (CID) Computer Crime Investigative Unit. “It demonstrates our vigilance against cybercrime and an unswerving commitment to dismantle criminal operations impacting the U.S. Army.”
Floyd stole personal information from two Alabama state agencies and provided those names to Lanier. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others for use in filing false tax returns. Lanier also obtained stolen identities from the Alabama Department of Corrections that were then used to file false tax returns. Also, Paige and Taylor worked in a call center for a Columbus, Georgia, company and stole identities from that company. Paige, in turn, used those identities to file false tax returns and filed some of the returns from Tracy Mitchell’s residence.
In order to file the false tax returns, Floyd applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs so that the defendants could print refund checks.
The defendants cashed the tax refund checks at several businesses located in Alabama, Georgia and Kentucky. Sharondra Johnson worked at the Walmart money center in Columbus, Georgia, and as part of her employment, she cashed checks for customers of the money center. Demeisha Mitchell approached Sharondra Johnson about cashing tax refund checks issued in the names of other individuals. Sharondra Johnson agreed to cash these refund checks and was paid a fee for her role in the scheme.
“Taking advantage of innocent citizens, especially service members and their families, is disgraceful,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS Criminal Investigation is committed to stopping those who would prey on others by stealing their identities. As criminals continue to become more sophisticated, we will continue to work with our law enforcement partners to bring them to justice.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS - CI and the U.S. Army – CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama, for prosecuting the case. Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
Montgomery Man Sentenced to 10 Years for Gun and Drug ChargesRead the Press Release
Montgomery, Alabama-- Joseph Irwin Westerlund, a 49-year old Montgomery resident, was sentenced last week to 120-months in prison for firearm and methamphetamine charges, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
On May 22, 2014, postal workers at the Lagoon Station Post Office in Montgomery contacted postal inspectors concerning a Postal Priority Mail Express envelope addressed to Joe Westerlund. According to postal management, the owners of the residence told them that they did not want mail in the name of Joe Westerlund delivered to them because he did not live there. On the same date, a man claiming to be Joe Westerlund called the Lagoon Park Post Office inquiring about the Priority Mail Express envelope.
After obtaining a search warrant, U.S. Postal Inspectors examined the contents of the Priority Mail envelope on May 28, 2015 and found 1.1 ounces of methamphetamine.
The next day, at the direction of postal inspectors and law enforcement, management at the post office called Westerlund and informed him that his package was available for pick up. Westerlund came to the post office and signed for the envelope. As he was leaving the post office he was arrested and his vehicle searched. Inside the vehicle officers found a loaded handgun. Westerlund later pled guilty to possession of a controlled substance with intent to distribute, and possession of a firearm in connection with a drug trafficking crime.
“Methamphetamine is a dangerous drug that destroys lives and wreaks havoc on our neighborhoods,” stated U.S. Attorney Beck. “Drugs and guns do not mix. As long as this deadly combination continues to plague our community, we will prosecute those who illegally possess and distribute them.”
The case was investigated by U.S. Postal Inspectors with assistance from the Montgomery Police Department, and prosecuted by Assistant United States Attorney John Geer.
Alabama and Georgia Residents Sentenced to Prison for their Participation in $3 Million Identity Theft SchemeRead the Press Release
Montgomery, Alabama – A Phenix City, Alabama, resident was sentenced yesterday to serve 111 months in prison for her role in a more than $3 million Stolen Identity Refund Fraud (SIRF) tax scheme.
Carnesha Alexander was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $840,692. On Feb. 5, a co-conspirator in the scheme, Robert Walker, of Columbus, Georgia, was sentenced to serve 94 months in prison, three years of supervised release and ordered to pay restitution in the amount of $840,692. Alexander and Walker each previously pleaded guilty to conspiracy to defraud the government and one count of aggravated identity theft, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division.
According to court documents and statements made in court, between January 2011 and December 2013, Alexander, Walker and their co-conspirators used stolen identities to file more than 900 false tax returns that requested approximately $3.4 million in tax refunds. Alexander obtained stolen identities from various sources, including the identities of employees from a company in Columbus. In order to file the false tax returns, Alexander, Walker and their co-conspirators applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks. Walker and his co-conspirators cashed the fraudulent refund checks at several businesses located in Alabama and Walker deposited fraudulent refund checks into a bank account he controlled.
“One of the Tax Division’s highest priorities is prosecuting individuals such as Carnesha Alexander, Robert Walker and their co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and punish the offenders who view the Federal Treasury as their own personal bank account.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory P. Bailey of the Tax Division, who prosecuted the case with the assistance of Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama.
Alabama and Georgia Residents Sentenced to Prison for Their Participation in $3 Million Identity Theft SchemeRead the Press Release
Marck 06, 2015Montgomery, Alabama - A Phenix City, Alabama, resident was sentenced yesterday to serve 111 months in prison for her role in a more than $3 million Stolen Identity Refund Fraud (SIRF) tax scheme.
Carnesha Alexander was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $840,692. On Feb. 5, a co-conspirator in the scheme, Robert Walker, of Columbus, Georgia, was sentenced to serve 94 months in prison, three years of supervised release and ordered to pay restitution in the amount of $840,692. Alexander and Walker each previously pleaded guilty to conspiracy to defraud the government and one count of aggravated identity theft, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division.
According to court documents and statements made in court, between January 2011 and December 2013, Alexander, Walker and their co-conspirators used stolen identities to file more than 900 false tax returns that requested approximately $3.4 million in tax refunds. Alexander obtained stolen identities from various sources, including the identities of employees from a company in Columbus. In order to file the false tax returns, Alexander, Walker and their co-conspirators applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks. Walker and his co-conspirators cashed the fraudulent refund checks at several businesses located in Alabama and Walker deposited fraudulent refund checks into a bank account he controlled.
“One of the Tax Division’s highest priorities is prosecuting individuals such as Carnesha Alexander, Robert Walker and their co-conspirators, who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and punish the offenders who view the Federal Treasury as their own personal bank account.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory P. Bailey of the Tax Division, who prosecuted the case with the assistance of Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Ku Klux Klan Officer Sentenced to 10 Months for Committing Perjury During Cross-Burning InvestigationRead the Press Release
Montgomery, Alabama - Today, U.S. District Court Judge L. Scott Coogler sentenced Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, to 10 months in prison and three years of supervised release for committing perjury during a grand jury’s investigation into a racially motivated cross-burning.
Morris, 47, previously admitted during her plea hearing on June 12, 2014, that she lied to a federal grand jury investigating a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the Exalted Cyclops (president) of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African American neighborhood in Ozark to threaten and intimidate residents. Several witnesses observed and were frightened by the cross, including a young man returning from choir practice as the defendants set the cross ablaze. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the Klan or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
Dinkle is currently serving a 24-month sentence imposed on May 15, 2014, for his conviction on hate-crime and obstruction-of-justice charges related to the cross burning. Smith, Dinkle’s co-conspirator, was sentenced to five years of probation on Aug. 19, 2014.
“Acts that target individuals and communities for violence based on race have no place in our society,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Nor can we tolerate those who lie under oath to obstruct the pursuit of justice.”
“Ms. Morris blatantly lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. "Ms. Morris lied after she swore to the grand jury that she would tell the truth. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case was prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Millbrook Man Arrested on Federal Drug, Firearms ChargesRead the Press Release
Montgomery, Alabama - Freddie Lee Parker, Jr., 37 years old, of Millbrook, Alabama was arrested yesterday following grand jury indictments for distribution of crack cocaine and for using and carrying a firearm while distributing the drug, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Parker was arrested at his residence yesterday in an area of Millbrook known as “Sandtown.”
The indictments are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation’s Safe Streets Violent Gang Task Force, along with the Central Alabama Drug Task Force, Elmore County Sheriff’s Office, Millbrook Police Department, and Wetumpka Police Department. The case is being prosecuted by Assistant United States Attorney Verne Speirs.
The FBI’s Central Alabama Violent Gang Safe Streets Task Force has been created to combat the increase in violence in Central Alabama. The Central Alabama Violent Gang Safe Streets Task Force was created to identify, target, arrest, and convict criminals who commit drug trafficking, money laundering, alien smuggling, murder, aggravated assault, robbery, and other violent crimes. This Safe Streets Task Force combines federal, state, and local resources and using these resources to most effectively investigate, arrest, and convict these dangerous criminals.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Agencies and Cities Receive over $21 Million from Justice Department for Crime Prevention and Victim ServicesRead the Press Release
Montgomery, Alabama - In 2014 the Department of Justice awarded $21,617,777.00 in grant money to Alabama agencies and cities in the Middle District of Alabama, announced U. S. Attorney George L. Beck, Jr.
The money is to be used for crime prevention and victim services in the form of state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice; to decrease the time necessary for DNA analysis; to aid in juvenile delinquent rehabilitation; and to provide a variety of victim services. The Alabama Department of Economic and Community Affairs (ADECA) Law Enforcement and Traffic Safety Division, the Alabama Criminal Justice Information Center, the Alabama Department of Forensic Sciences, and the Alabama Board of Pardons and Pardons received very large grants from the Department of Justice. However, several other agencies and cities also received grant funds from the Justice Department.
Municipalities receiving 2014 DOJ grant funding included:
• The City of Montgomery received $77,075.00 to be used for training and to purchase canines, canine vehicle inserts, Cellebrite equipment, and a low rise scissor lift and wheel balancer.
• The City of Dothan received $35,479.00 to purchase in-car video cameras, mounted lights, holsters, and flashlights.
• The City of Auburn was awarded $27,940.00 to purchase license plate readers, traffic radar units, body cameras, and digital video systems.
• The City of Phenix City received $20,462.00 to purchase an Automatic Fingerprint Identification System.
• The City of Enterprise received $11,771.00 for the purchase of tasers and accessories, and a digital in-car video system.
In addition to the cities above, fourteen agencies received grant funding as well. Those agencies include:
• The Alabama Department of Economic and Community Affairs (ADECA) Law Enforcement and Traffic Safety Division received nine grants totaling $13,930,417.00. This funding will be used for a variety of purposes including: enhancing crime victim’s services throughout the state; supporting drug and violent crime task forces; addressing violence against women; improving the juvenile justice system and reducing juvenile delinquency; providing substance abuse treatment in correctional and detention facilities; improving forensic and medical examiner services; and enhancing the safety of women incarcerated in correctional facilities.
• The Alabama Criminal Justice Information Center was awarded four grants totaling $1,940,629.00. This funding will be used increase the safety and security of citizens by improving background checks and the collection sex offender data.
• The Alabama Department of Forensic Sciences obtained $1,263,414.00 in grant funds. These funds will be used to update equipment used to process DNA samples which will allow such samples to be analyzed more effectively and efficiently.
• The Alabama Board of Pardons and Paroles received two grants totaling $1,057,176.00. These grants will be used for reentry and supervision programs that will seek to reduce recidivism.
• The Alabama Administrative Office of Courts received $509,112.00 in grant funding to implement the Alabama Family Drug Court Statewide System Reform project in an effort to serve families in the child welfare system affected by parental substance abuse disorders more effectively and improve child, parent, and family outcomes.
• The Alabama Department of Mental Health and Mental Retardation was awarded $499,185.00 to enhance information sharing between criminal justice and mental health/substance abuse agencies and providers.
• The Alabama Department of Corrections received $499,166.00 to enhance the safety of women incarcerated in correctional facilities.
• The Alabama Crime Victims Compensation Commission received $453,000.00 to enhance victim compensation payments to eligible crime victims.
• The Alabama Department of Public Health was awarded $400,000.00 to enhance prescription drug data collection in order to better address prescription drug diversion and abuse.
• The Alabama Department of Public Safety received $326,989.00 to maintain and expand its Internet Crimes Against Children program and improve the Task Force’s effectiveness in preventing, interdicting, investigating and prosecuting online crimes against children.
• The Alabama Office of Prosecution Services received two grants totaling $233.117.00. The largest grant will be used to improve programs that prosecute, register, monitor, and track sex offenders. A grant was also awarded for student loan repayment for eligible public defenders and prosecutors.
• The Alabama Coalition Against Rape was awarded $126,045.00 to provide services to victims of sexual assault and domestic violence.
• The Alabama Attorney General's Office received $125,000.00 to assist in solving cold cases using DNA analysis.
• The Alabama Coalition Against Domestic Violence was awarded $81,795.00 to provide services to victims of sexual assault and domestic violence.
“We must make sure our law enforcement officers and service providers have all the tools necessary to vigorously combat crime in this District,” stated U.S. Attorney George Beck. “These grants will allow law enforcement to purchase those tools necessary to protect the citizens as well as protect the law enforcement officers while fighting crime. I am proud that the Department of Justice chose to allocate grant money to these cities and agencies to prevent crime and provide enhanced services in our community.”
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Joint Federal Human Trafficking Task Forces Meeting to be held January 15, 2015Read the Press Release
Montgomery, Alabama - United States Attorney George L. Beck, Jr., will join with members of the Middle District of Alabama Human Trafficking Task Force, the Northern District of Alabama Human Trafficking Task Force, and the Southern District of Alabama Human Trafficking Task Force for a meeting tomorrow, January 15, 2015. The purpose of the meeting is to unite federal, state, and local law enforcement officials, prosecutors and victim service providers to discuss investigation strategies and victim resources, and to implement a state-wide protocol in an effort to combat human trafficking.
Human trafficking is recognized as “a modern-day form of slavery” and “is tied with the illegal arms industry as the second largest criminal industry in the world today,” according to the U.S. Department of Health and Human Services. Human trafficking often takes one of two forms – labor or sex trafficking. Labor trafficking may include forced labor or debt bondage, where a victim continually works to pay off an undefined and seemingly endless debt. Sex trafficking includes forcing victims to perform sexual acts, performances, or prostitution, or subjecting them to sexual abuse or torture. Victims may be subject to inhumane conditions and may be afraid to seek help due to language barriers, immigration status, or fear of the trafficker. Both Federal and Alabama law criminalize human trafficking, with penalties including significant prison time, large fines, and mandatory restitution.
“January is Human Trafficking Prevention month, and I am pleased that we can gather together for meaningful discussions and training on this vital subject,” stated U.S. Attorney George Beck Jr. from the Middle District of Alabama. “It is critical that citizens and law enforcement be more proactive and take every opportunity to learn how to recognize the signs of a terrible crime that results in the abuse, intimidation, and enslavement of women and children.”
The mission of the Middle District of Alabama Human Trafficking Task Force is “To Find and Free” victims of human trafficking. The Task Force began its work in 2009, initiated by the U.S. Attorney’s Office for the Middle District of Alabama, and thereafter partnered with the Montgomery County District Attorney’s Office.
The Task Force consists of federal, state, and local partners within the River Region and from the 23 counties which comprise the Middle District of Alabama. In addition to the United States Attorney’s Office for the Middle District of Alabama and the Montgomery County District Attorney’s Office, the Task Force partners include: the Federal Bureau of Investigation, the Homeland Security Investigations of the United States Department of Homeland Security, the Alabama Attorney General’s Office, the Alabama Fusion Center (which is a division of ALEA), the Montgomery Police Department, the Montgomery County Sheriff’s Office, One Place Family Justice Center, Legal Services Alabama, the Family Sunshine Center, the Alabama Coalition Against Domestic Violence, Stella’s Voice, SABRA Sanctuary of Selma, the Alabama Department of Youth Services, the Alabama Department of Child Abuse and Neglect Prevention, the Alabama Department of Education, survivors of human trafficking, college students, and local college chapters of International Justice Mission.
The meeting on Thursday will include training and a law enforcement case study. Members of law enforcement, victim service providers, and service organizations are invited to attend.
For more information, please contact Assistant United States Attorney Jerusha T. Adams at 334-223-7280 or Montgomery County Deputy District Attorney Carrie G. Shaw at 334-262-7378.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Fort Rucker Soldier Sentenced to Six Years in Daughter’s DeathRead the Press Release
Montgomery, Alabama - Benjamin Schrad, a former soldier stationed at Fort Rucker, was sentenced Friday, January 9, 2015, to six years in prison for manslaughter. Schrad’s sentence follows his conviction in federal court for the 2011 death of his four-year old daughter.
The sentence was announced by United States Attorney for the Middle District of Alabama, George L. Beck, Jr., who noted that the sentence was above the recommended sentencing range of 33-41 months set out in the Federal Sentencing Guidelines.
Schrad, 31, from Storm Lake, Iowa, was stationed and living in base housing at Fort Rucker when he rushed his daughter to an emergency room in Enterprise in August 2011, advising doctors that she had collapsed while they were playing at home. However, medical testimony at the trial established that the girl was violently shaken and that the injuries that caused her death could not have resulted from a mere fall.
“The U. S. Attorney’s Office is grateful that the judge in this case upwardly departed from the guidelines and sentenced the offender to 72 months,” stated U.S. Attorney George Beck. “This is a heartbreaking case involving the death of a child, and it is unfortunate that the Federal Sentencing Guidelines only allow for such a narrow sentencing range. A review of the current guidelines by the Sentencing Commission would be welcomed, followed by revisions that would ensure that the level of punishment could more adequately reflect the devastating nature of the crime.”
This case was investigated by the Federal Bureau of Investigation (FBI), the Army Criminal Investigative Division at Fort Rucker, and the Alabama Department of Forensic Sciences. The Birmingham Children’s Hospital also provided assistance in the investigation and trial of this case. This case was prosecuted by Assistant United States Attorneys Susan Redmond and Bob Anderson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Pike Road Man Sentenced for Stolen Identity Refund Fraud Using Names Stolen from Nursing HomesRead the Press Release
Montgomery, Alabama - A Pike Road, Alabama man was sentenced to serve 51 months in prison yesterday for committing stolen identity refund fraud (SIRF) crimes, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division.
Charlie Jackson, 37, pleaded guilty to wire fraud and aggravated identity theft on May 5, 2014. In addition to his prison sentence, Jackson was ordered to serve three years of supervised release following his incarceration and to pay $98,177 in restitution.
According to court documents, from October 2010 up until April 2013, Jackson was involved in SIRF crimes—the use of stolen identities to steal money from the Internal Revenue Service (IRS)—by filing fraudulent tax returns claiming refunds in the victims’ names. He admitted to obtaining stolen identities from various sources, including from nursing homes. Altogether, the false tax returns filed by Jackson fraudulently claimed more than $170,000 in refunds. Many of the returns were detected as fraudulent by the IRS and were not issued; however, Jackson was successful in defrauding the IRS of more than $90,000 in illegitimate refunds.
This case was investigated by special agents of the IRS-Criminal Investigation. Trial Attorneys Michael C. Boteler and Charles M. Edgar Jr. of the Tax Division prosecuted the case with the assistance of Assistant U.S. Attorney Todd Brown of the U.S. Attorney’s Office for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division website at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Medical Clerk Sentenced to Prison Tax Refund Fraud Scheme that Involved U.S. Postal Service EmployeeRead the Press Release
Montgomery, Alabama - A Prattville, Alabama woman was sentenced yesterday to serve 70 months in prison for her involvement in a stolen identity tax refund fraud (SIRF) scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division.
Sasha Webb, 26, was also ordered to serve three years of supervised release following her prison sentence and to pay $528,823 in restitution.
According to court documents and court proceedings in this and related cases, Webb worked as a medical records clerk at an Alabama Department of Corrections facility in Elmore County, Alabama, where she had access to the means of identification of inmates from databases maintained by the Alabama Department of Corrections. On several occasions in 2009 and 2010, Webb stole identities from those databases and sold them to Harvey James and his sister, Jacqueline Slaton, for the purpose of filing false tax returns.
Between 2010 and 2012, James and Slaton used those stolen identities to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. James’s brother-in-law, Gregory Slaton, recruited Vernon Harrison, a U.S. Postal Service employee, to the scheme. James directed prepaid debit cards and state tax refund checks to be mailed to addresses that Harrison provided from his postal route. Harrison collected the debit cards and checks and provided them to Gregory Slaton who in turn gave them to James and Jacqueline Slaton. In total, James and Slaton filed more than 1,000 federal and state income tax returns that claimed more than $1 million in fraudulent tax refunds.
On Oct. 31, 2013, Harrison was sentenced to serve 111 months in prison. James was sentenced on April 29, 2014, to serve 110 months in prison and Jacqueline Slaton was sentenced on Oct. 23, 2012, to serve 70 months in prison. Gregory Slaton was sentenced on Oct. 28, 2014, to serve 70 months in prison.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason H. Poole and Michael C. Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617U.S. Attorney Warns of Phone ScamRead the Press Release
Montgomery, Alabama - The U.S. Attorney’s Office for the Middle District of Alabama has become aware of a telephone scam in which the caller claims to be an Internal Revenue Service (IRS) representative. The caller will demand immediate payment and seeks to intimidate victims by stating the IRS has charges against them and threatens legal action or arrest. In many cases, the caller will have the victim’s name and may even have a portion of his/her Social Security number.
Taxpayers should be aware that the IRS usually makes initial contact with people by mail, not by phone, about unpaid taxes or other tax issues. This means that if you receive a call about unpaid taxes, it should come after receiving written correspondence from the IRS. Taxpayers should also remember that the IRS does not ask for payment using a pre-paid debit card or wire transfer, and they will not ask for a credit card number over the phone.
“The volume of complaints received by the Treasury Inspector General for Tax Administration’s (TIGTA) Complaint Hotline Center about this scam is unprecedented in TIGTA’s 15-year history,” said Timothy P. Camus, TIGTA’s Deputy Inspector General for Investigations. “Since October of last year, we have received more than 225,000 contacts about this scam and reports of over $11 million in losses.”
Camus urged people to stay vigilant and avoid becoming a victim if they receive contact out of the blue from someone claiming to be from the IRS who demands money. “Federal, State and local law enforcement and consumer protection officials are doing an outstanding job educating taxpayers about the scam and encouraging victims to contact TIGTA,” Camus said. “The most effective way for individuals to report scam attempts and losses is by filling out the ‘IRS Impersonation scam’ form on TIGTA’s website, www.treasury.gov/tigta.” When you arrive at TIGTA’s homepage, click on the red button, “IRS Impersonation Scam Reporting.”
If you receive a suspicious call and you owe Federal taxes, or think you might owe taxes, hang up and call the IRS at 1-800-829-1040. IRS workers can help you with your payment questions. If you do not owe Federal taxes or have no reason to believe you owe any taxes (for example, you have not received a bill or the caller made threats as described above), call and report the incident to TIGTA at 1-800-366-4484.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617U.S. Attorney’s Office for Middle District of Alabama Collects over $2 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck Jr. announced today that the Middle District of Alabama collected $2,051,872.00 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,276,453.00 was collected in criminal actions and $775,419.00 was collected in civil actions.
Additionally, the Middle District of Alabama worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $132,500.00 in civil action cases pursued jointly with these offices.
Attorney General Eric Holder announced yesterday that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“The U.S. Attorney’s Office is committed to protecting the public and recovering funds for the victims of crime as well as every taxpayer,” said U.S. Attorney Beck. “Unfortunately, there is enormous profit in crime and these profits come at the expense of hardworking citizens. We will continue to hold accountable, both civilly and criminally, those who seek to make money from illegal activities.”
An example of a sizable collection in the Middle District of Alabama occurred this past May when $360,420.00 was recovered from Rhashema Deramus. In August 2012, Deramus pled guilty to theft of government money, fraudulent use of debit cards, and aggravated identity theft all related to filing fraudulent tax returns. In addition to restitution, Deramus was sentenced to 10 years in prison.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Middle District of Alabama, working with partner agencies and divisions, collected $899,211.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The announcement from Attorney General Eric Holder is available HERE.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Strong Sentences Handed Down by Alabama Court in Historic Dog Fighting CaseRead the Press Release
Montgomery, Alabama - The United States District Court for the Middle District of Alabama concluded sentencing today for eight individuals arrested during the second largest dog fighting raid in U.S. history in August 2013. The case was led by the United States Attorney’s Office and the Federal Bureau of Investigation, who requested assistance from the ASPCA® (American Society for the Prevention of Cruelty to Animals®) and The Humane Society of the United States in the removal, transport, sheltering, medical and daily care of the animals seized during the raid. Sentences ranged from six months to eight years—which is the longest prison term ever handed down in a federal dog fighting case.
Sentenced defendants:
- Donnie Anderson, 50, of Auburn, Alabama, received an eight-year sentence after pleading guilty to conspiracy, sponsoring dog fights, possessing a fighting dog and operating an illegal gambling business;
- Demontt Allen, 38, of Houston, Texas, received five years in prison after pleading guilty to conspiracy and admitting participation in high-stakes dog fights;
- Michael Martin, 56, of Auburn, Alabama, received a five-year sentence after pleading guilty to conspiracy and being a felon in possession of firearms;
- Irkis Forrest, 33, of Theodore, Alabama, received a three-year sentence after pleading guilty to conspiracy;
- William Antone Edwards, 43, of Brantley, Ala. received one year and one day in prison after pleading guilty to conspiracy;
- Sandy Brown, 48, of Brownsville, Alabama, received six months in prison for sponsoring a dog fight;
- Edward Duckworth, 39, of Decatur, Ga., received 14 months in prison and two years of supervised release after pleading guilty to conspiracy; and
- Jennifer McDonald, 36, of Collins, Miss., received two months in prison and two years of supervised release after pleading guilty to conspiracy.
U.S. District Judge Keith Watkins also ordered that after their release from prison, each defendant serve a two or three-year term of supervised release. While on supervised release, the defendants are prohibited from possessing dogs. Further, a restitution hearing will be scheduled in the future where the defendants may be ordered to pay restitution to the ASPCA and The HSUS for the cost of caring for the seized dogs. Some defendants will be required to attend a drug program due to the large amounts of drugs involved with this case.
“These dogs lived in deplorable conditions that constituted extraordinary cruelty,” stated U.S. Attorney George L. Beck, Jr. “They were made to fight and if they lost, they were killed. In addition to the brutality experienced by the dogs, these events attracted drugs dealers and illegal gambling. It was not uncommon for large amounts of cash, often between twenty and two-hundred thousand dollars, to change hands. The prospect of huge profits made these fights even more popular and provided a venue for other criminal activity. I hope that these sentences demonstrate the seriousness of this crime and will deter others from committing these atrocities.”
Throughout the hearing, Judge Watkins commented on the extreme cruelty committed both due to dog fighting and the conditions in which these dogs were forced to live. Judge Watkins further reiterated that the federal sentencing guidelines for dog fighting are wholly inadequate to address the seriousness of the crime. He estimated that the defendants had injured or killed between 420 to 640 dogs in the course of this dog fighting operation. Also noted was the amount of drugs, weapons and violence intertwined with dog fighting.
“This is truly a landmark case for the animal welfare community,” said Tim Rickey, vice president of ASPCA Field Investigations and Response, who testified at the hearings. “We hope this case serves as a precedent for future dog fighting cases and sends a message to dog fighters everywhere that this crime will be prosecuted to the fullest extent of the law. We are grateful to Assistant U.S. Attorney Clark Morris of the Office of U.S. Attorney George L. Beck for her determination in seeking justice for the hundreds of dogs tortured at the hands of their owners.”
“Through his closing statements and the sentences he has handed down, U.S. District Judge Keith Watkins is making a strong statement,” said Chris Schindler, manager of animal fighting investigations for the HSUS, who testified at the hearings. “The Humane Society of the United States wants to echo that statement loud and clear: dogfighting is a serious crime, it will not be tolerated, and there will be consequences if you chose to partake. We are proud to have been involved in this case from the start, and we owe our immense gratitude to the U.S. Attorney’s Office, the FBI, and the Auburn Police Department for their unwavering dedication to seeing justice served for more than 400 innocent dogs.”
On Aug. 23, 2013, The HSUS and ASPCA assisted the United States Attorney’s Office and FBI in seizing hundreds of dogs in Alabama, Mississippi and Georgia. Federal and local officials also seized firearms and drugs, as well as more than $500,000 in cash from dog fighting gambling activities. The ASPCA and the HSUS assisted authorities with collecting forensic evidence and testified to the gruesome cruelty committed. Many of the dogs seized during this case have finally moved on to the second chapters of their lives and were placed with various rescue groups across the country to be made available for adoption.
Dog fighting is a felony in all 50 states and the District of Columbia. Earlier this year, the Farm Bill was signed by President Obama, making it a federal offense to attend an organized animal fight and imposing additional penalties for bringing a minor to a fight. The HSUS and ASPCA advocate strengthening federal and state animal fighting statutes, and regularly assist local, state and federal authorities on dog fighting investigations and raids across the country.
The case was investigated by the Auburn Police Division and the Federal Bureau of Investigation, with assistance from the Alabama Alcoholic Beverage Control Board; the Coffee County Sheriff’s Office; Alabama State Troopers; the Lee County District Attorney’s Office; the Alabama Department of Public Safety; Bainbridge, Georgia Department of Public Safety; Georgia Bureau of Investigation, Echols County Sheriff’s Office, the United States Marshals Service; the Lee County Sheriff’s Office; the Houston County Sheriff’s Office; the Opelika Police Department; the Georgia Highway Patrol; the Georgia Bureau of Investigation; the Mississippi Bureau of Investigation; the Pensacola, Florida and Columbus, Georgia offices of the Drug Enforcement Administration; and Taylor Crossing Animal Hospital. Assistant United States Attorney Clark Morris prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Brothers Sentenced for Check Fraud SchemeRead the Press Release
Montgomery, Alabama - On November 6, 2014, Derrick Gadsden, 34 years old of Montgomery, Alabama, was sentenced to 240 months imprisonment followed by three-years of supervised release for conspiracy to commit wire fraud. Derrick Gadsen’s brother, David Gadsden, 45 years old of Montgomery, Alabama, was sentenced to 120 months imprisonment followed by three-years of supervised release for conspiracy to commit wire fraud. Both of the brothers were ordered to pay $1,000,000.00 in restitution to the victims of their scheme.
From approximately 2006 to 2013, the Gadsden brothers ran a check fraud scheme from David Gadsden’s and Derrick Gadsden’s places of business in Montgomery, Alabama. David Gadsden’s place of business was supposedly an automotive garage, and Derrick Gadsden’s was a tire shop. However, these businesses were actually the nerve center of the scheme that the Gadsdens ran. The Gadsdens or their assistants would find vulnerable people, such as those who were in dire financial straits, and lure them into the scheme with the promise of money. These people were the “runners” in the scheme. The Gadsdens would enlist the runners to open bank accounts at different financial institutions, transport them to the banks, and provide the minimum amount to open up a checking account. After the initial deposit, no further deposits were placed into these accounts. The Gadsdens would then have the runners order checks for these accounts, and have the checks sent overnight to them.
The next members of the scheme were the “buyers” who placed orders with the Gadsdens to purchase large ticket items such as trailers, shingles, plywood, washers, and dryers. These buyers wanted to pay much less than market or wholesale price for these items. Once orders were placed, the Gadsdens or their assistants would take the runners to various merchants and they would pay for the merchandise with the checks the Gadsdens had acquired even though there were insufficient funds in the account. The checks were accepted by the merchants for sale of the items, and the Gadsdens were able to leave the businesses with their purchases. They would then resell or trade the items for a profit to their fraudulent buyers.
The scheme involved approximately two-hundred bank accounts, and at least seven different financial institutions. Over one hundred victims have been identified in this scheme. In addition to Alabama, the scheme also affected the states of Florida, Mississippi, Georgia, and Louisiana.
The case was investigated by the United States Secret Service, the Montgomery Police Department, Opelika Police Department, and the Alabama Alcoholic Beverage Control Board. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Two Montgomery Men Sentenced for $900K Tax Refund SchemeRead the Press Release
Montgomery, Alabama - Yesterday, two Montgomery men were sentenced for their roles in a tax refund scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Edmund Lee McCall (39) was sentenced to 108 months imprisonment for conspiracy to commit wire fraud, and 24 months for aggravated identity theft. When combined with his conviction for bank and wire fraud and aggravated identity theft from a prior case, McCall will serve a total of twenty-years in prison for his financial fraud crimes. McCall’s Co-Defendant, Antonio Devon Harris (39), was sentenced to 87 months imprisonment for conspiracy to commit wire fraud and 24 months for aggravated identity theft. Both defendants’ sentences will be followed by 3 years of supervised release.
From 2010 to 2012, McCall and Harris employed a scheme to file false tax returns by obtaining the names, social security numbers, dates of birth, and other personal identifying information of unsuspecting individuals. They would use this information to create W2s with fraudulent employee and wage information and would then file fraudulent income tax returns on-line.
As part of the scheme, McCall and Harris also created a fraudulent tax preparing business. They used this business as a front to order a large number of pre-paid credit cards and had a false tax return proceeds diverted to the cards for their own use. Using this scheme, they were able to steal approximately $920,872.00 from the Internal Revenue Service. Both men were ordered to make restitution in that amount to the IRS.
This case was investigated by the United States Department of Treasury Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Owners of Safari Company Indicted for Illegal Rhino HuntsRead the Press Release
Out of Africa Charged with Wildlife Crimes, Fraud and Money LaunderingMontgomery, Alabama - The owners of Out of Africa Adventurous Safaris were charged with conspiracy to sell illegal rhinoceros hunts in South Africa in order to defraud American hunters, money laundering and secretly trafficking in rhino horns, announced Sam Hirsch Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Dan Ashe, Director of the U.S. Fish & Wildlife Service. The indictment was unsealed today in Montgomery, Alabama following the federal indictment.
The indictment charges Dawie Groenewald, 46, and his brother, Janneman Groenewald, 44, both South African nationals, and their company Valinor Trading CC (d/b/a Out of Africa Adventurous Safaris) with conspiracy, Lacey Act violations, mail fraud, money laundering and structuring bank deposits to avoid reporting requirements. The Lacey Act, the nation’s oldest criminal statute addressing illegal poaching and wildlife trafficking, makes it a crime to sell animal hunts conducted in violation of state, federal, tribal and foreign law.
According to the 18-count indictment, from 2005 to 2010, the Groenewald brothers traveled throughout the United States to attend hunting conventions and gun shows where they sold outfitting services and accommodations to American hunters to be conducted at their ranch in Mussina, South Africa. During the time period covered by the indictment, Janneman Groenewald lived in Autauga County, Alabama, where Out of Africa maintained bank accounts and is accused of money laundering and structuring deposits to avoid federal reporting requirements. Hunters paid between $3,500 and $15,000 for the illegal rhino hunts.
The defendants are charged with selling illegal rhino hunts by misleading American hunters. The hunters were told the lie that a particular rhino had to be killed because it was a “problem rhino.” Therefore, while no trophy could be legally exported, the hunters could nonetheless shoot the rhino, pose for a picture with the dead animal, and make record book entries, all at a reduced price. Meanwhile, the defendants are alleged to have failed to obtain necessary permits required by South Africa and cut the horns off some of the rhinos with chainsaws and knives.
The indictment alleges that the defendants then sold the rhino horn on the black market. Eleven illegal hunts are detailed in the papers filed in federal court, including one in which the rhino had to be shot and killed after being repeatedly wounded by a bow, and another in which Dawie Groenewald used a chainsaw to remove the horn from a sedated rhino that had been hunted with a tranquilizer gun. The American hunters have not been charged.
“We are literally fighting for the survival of a species today. In that fight, we will do all we can to prosecute those who traffic in rhino horns and sell rhino hunts to Americans in violation of foreign law,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “This case should send a warning shot to outfitters and hunters that the sale of illegal hunts in the U.S. will be vigorously prosecuted regardless of where the hunt takes place.”
“These defendants tricked, lied and defrauded American citizens in order to profit from these illegal rhinoceros hunts,” stated U.S. Attorney Beck. “Not only did they break South African laws, but they laundered their ill-gotten gains through our banks here in Alabama. We will not allow United States’ citizens to be used as a tool to destroy a species that is virtually harmless to people or other animals.”
“The fact that defendants used American hunters to execute this scheme is appalling - but not as appalling as the brutal tactics they employed to kill eleven critically endangered wild rhinos,” said FWS Director Ashe. “South Africa has worked extraordinarily hard to protect its wild rhino population, using trophy hunts as a key management tool. The illegal ‘hunts’ perpetrated by these criminals undermine that work and the reputation of responsible hunters everywhere.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. Adult rhinoceros have no known natural predators. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. Like hair or finger nails, rhino horn is actually composed of keratin and has no proven medical efficacy. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 1004 in 2013. Illegally killed rhinos like the ones charged in this prosecution are not included in the published statistics of poached animals.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation of Out of Africa is part of Operation Crash (named for the term “crash” which describes a herd of rhinoceros), an ongoing nation-wide effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns led by the Special Investigations Unit of the Fish and Wildlife Service Office of Law Enforcement in coordination with the U.S. Department of Justice. Thus far there have been 26 arrests and 18 convictions with prison terms as high as 70 months. (See attached Crash Fact Sheet). Throughout the course of the investigation on the current charges, U.S. authorities received substantial cooperation from South Africa’s National Prosecuting Authority and a specialized endangered species unit within the organized crime unit of the South African Police Service. That unit is known as the Hawks. Additional assistance has been provided in this case by the Bureau of Alcohol, Tobacco and Firearms, in Montgomery, Alabama and the Autauga County, Alabama Sheriff’s Office. The Out of Africa case is being prosecuted in the Middle District of Alabama by Assistant U.S. Attorney Brandon K. Essig and by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C. The Out of Africa investigation is continuing.
The Criminal Division’s Office of International Affairs provided assistance.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Middle District of Alabama Human Trafficking Task Force Meeting Held Today at 10:00 AMRead the Press Release
Montgomery, Alabama - United States Attorney George L. Beck, Jr., joined with members of the Middle District of Alabama Human Trafficking Task Force, which was formerly known as the “Central Alabama Human Trafficking Task Force,” on today. The Middle District of Alabama Human Trafficking Task Force (hereinafter “Task Force”) met to discuss its plans to revitalize the Task Force and increase law enforcement participation. The purpose of the meeting is to unite federal, state, and local law enforcement officials, prosecutors and victim service providers to discuss investigation strategies and victim resources, and to implement a district-wide protocol in an effort to combat human trafficking.
Human trafficking is recognized as “a modern-day form of slavery” and “is tied with the illegal arms industry as the second largest criminal industry in the world today,” according to the U.S. Department of Health and Human Services. Human trafficking often takes one of two forms – labor or sex trafficking. Labor trafficking may include forced labor or debt bondage, where a victim continually works to pay off an undefined and seemingly endless debt. Sex trafficking includes forcing victims to perform sexual acts, performances, or prostitution, or subjecting them to sexual abuse or torture. Victims may be subject to inhumane conditions and may be afraid to seek help due to language barriers, immigration status, or fear of the trafficker. Both Federal and Alabama law criminalize human trafficking, with penalties including significant prison time, large fines, and mandatory restitution.
Effective January 1, 2013, Alabama law requires certain establishments to display the National Human Trafficking Resource Center toll-free hotline number, 1-888-373-7888. The hotline provides information on human trafficking and resources for victims in 170 languages. Establishments required to post this information include hotels and massage parlors that have been cited as nuisances, airports, bus and train stations, and establishments offering stripteasing or topless entertaining.
“Victims of human trafficking hide in fright in our own backyard often in nightmare conditions and forced prostitution,” stated George L. Beck, U.S. Attorney for the Middle District of Alabama. “Make no mistake, human trafficking is enslaving our fellow Americans, many of whom are children of broken homes or runaways, targeted to serve in the commercial sex trade. This office will prosecute traffickers and protect victims. I encourage everyone to visit DOJ’s website at www.ovc.ncjrs.gov or the HHS website at www.acf.hhs.gov/trafficking to learn more about human trafficking. Let’s work together to fight and prevent this evil criminal conduct.”
“The FBI is committed to bringing to justice those individuals who are responsible for the heinous crime of human trafficking,” stated Jeannette L. Williams, Assistant Special Agent in Charge of the FBI office in Mobile. “Together with our partner law enforcement agencies, and with the assistance of the community, we will continue to pursue those who rob the innocent of their freedom.”
“Homeland Security Investigations investigates and seeks prosecution of human trafficking as one of its highest priorities,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “The results speak for themselves; in FY13 HSI set a record number of criminal arrests resulting from human trafficking investigations – up 91 percent over FY12 and more than 543 percent over FY10. HSI utilizes all of its resources via a coordinated global effort to dismantle the criminal infrastructure engaged in human trafficking, and HSI is fully committed to victim-centered investigations in which the identification, rescue and needs of victims are treated with equal weight as the prosecution of traffickers.” Parmer oversees a five-state area of responsibility to include Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
“The Alabama Law Enforcement Agency (ALEA) is committed to working with our federal, state and local partners to combat human trafficking in our state,” said Secretary of Law Enforcement Spencer Collier. "By utilizing our Fusion Center as a central hub for helping gather, analyze, and share information, our intel analyst will provide real-time mission critical information to the agencies involved in this multi-jurisdictional effort."
The mission of the Task Force is “To Find and Free” victims of human trafficking. The Task Force began its work in 2009, initiated by the U.S. Attorney’s Office for the Middle District of Alabama, and thereafter partnered with the Montgomery County District Attorney’s Office.
The Task Force consists of federal, state, and local partners within the River Region and from the 23 counties which comprise the Middle District of Alabama. In addition to the United States Attorney’s Office for the Middle District of Alabama and the Montgomery County District Attorney’s Office, the Task Force partners include: the Federal Bureau of Investigation, the Homeland Security Investigations of the United States Department of Homeland Security, the Alabama Attorney General’s Office, the Alabama Fusion Center (which is a division of ALEA), the Montgomery Police Department, the Montgomery County Sheriff’s Office, One Place Family Justice Center, Legal Services Alabama, the Family Sunshine Center, the Alabama Coalition Against Domestic Violence, Stella’s Voice, SABRA Sanctuary of Selma, the Alabama Department of Youth Services, the Alabama Department of Child Abuse and Neglect Prevention, the Alabama Department of Education, survivors of human trafficking, college students, and local college chapters of International Justice Mission.
For more information, please contact Assistant United States Attorney Jerusha T. Adams at 334-223-7280 or Montgomery County Deputy District Attorney Carrie G. Shaw at 334-262-7378.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Autauga County Man Sentenced to 210 Months in Federal Prison for his Role in Drug OrganizationRead the Press Release
Montgomery, Alabama - Mark Edward Elliott (52), of Deatsville, Ala., was sentenced on October 15, 2014 to serve 210 months in prison, to be followed by 5 years of supervised release for conspiracy to distribute a controlled substance, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
According to court documents, Elliot was the leader of a large methamphetamine distribution operation that was responsible for bringing several pounds of the controlled substance from Atlanta, Georgia to central Alabama, including Autauga, Elmore and Montgomery counties. Elliot and his co-conspirators were arrested in March of 2013 after law enforcement executed five federal search warrants and found large amounts of “ice” methamphetamine, cash, and firearms, along with and several vehicles that were being used to transport illegal drugs.
During the investigation, it was discovered that several individuals in this case had used violence, threats of violence, and intimidation to further their drug dealing efforts and to collect money. Investigators also learned that Elliott, also known as “Mighty Whitey,” was a captain in the Aryan Brotherhood, a powerful prison gang with white supremacy beliefs. Elliott has tattoos of Swastikas, the words “White Power” and SS in lightning bolts on his body, all tattoos that indicate membership in the Aryan Brotherhood.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Gulf Coast High Intensity Drug Trafficking Area Task Force, the Central Alabama Drug Task Force, the Autauga County Sherriff’s Office, the Wetumpka Police Department and the Prattville Police Department.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Nine Montgomery Gang Members Arrested for Drug and Gun CrimesRead the Press Release
Montgomery, Alabama - Earnest Lee “Junior” Stromer, age 31; Earl Sadiki “Cujo” Wilson, age 30; Sanquez Deontra “Quez” Bivens, age 23; and Dewayne “Kemonte” Thomas, a.k.a. D’Wayne Thomas, age 20, all from Montgomery, were arrested today for conspiring to distribute powder cocaine, crack cocaine, and marijuana, as well as for using and carrying a firearm, during and in relation to the drug conspiracy, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Marquis Tamel Tymes, age 33; and Aaron Key “Keith” Reynolds, age 40; also all from Montgomery, were arrested today and charged in a separate indictment for conspiring to distribute powder cocaine, crack cocaine, and marijuana, in violation of federal law. Raydreco Gardner, Earnest Stromer (a different person than Earnest Lee “Junior” Stromer) and Sabrina Stinson were also arrested on State of Alabama drug charges.
In 2010, the FBI’s Safe Streets Task Force and the Montgomery Police Department began an investigation into a Montgomery neighborhood gang, called the Vineyard Gang. All of the defendants named above were members of the Vineyard Gang. The Vineyard Gang lived and operated in an area of Montgomery known as the “Vineyard”. The “Vineyard” is a high-crime neighborhood located in south Montgomery, Alabama, consisting of John Morris Avenue and Martin Patton Avenue. The two streets join to form a “U” shaped neighborhood off of Norman Bridge Road. The criminal gang members who lived and conducted their criminal activity in the “Vineyard” also refer to themselves as the “Two Street” gang, referencing the two streets that make up the “Vineyard” neighborhood. Violent crime in the “Vineyard” includes shootings, home invasions, and murder.
“Violent street gangs terrorize communities all over this country and Montgomery is not immune,” stated U.S. Attorney Beck. “We are dedicated to wiping out this violent crime and will continue to prosecute those who are involved in neighborhood street gangs to the fullest extent of the law. Our local police risk their lives each day to protect us from violent crime. We owe those heroes our eternal gratitude for their dedication and service.”
“Through the combined efforts of local, state, and federal law enforcement, this violent criminal enterprise has been disrupted,” stated Robert F. Lasky, Special Agent in Charge of the FBI Mobile division. “Violence and drugs have a devastating effect on our communities and we will continue to work with our law enforcement partners to make this state a safer place.”
“We appreciate our valuable partnerships with the FBI, the U.S. Attorney’s Office and other law enforcement agencies as we work to build safer communities and combat crime. Last year we referred to several longer-term initiatives that we had undertaken in the Montgomery area, and today’s arrests are indicative of the success we are realizing,” said Montgomery Public Safety Director J. Christopher Murphy.
The indictments are merely accusations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each faces a maximum sentence of 40 years in prison for the drug conspiracy, and a maximum sentence of life for the weapons violation.
This case is being investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, with assistance from the Montgomery Police Department, the Montgomery County Sheriff’s Office and the Elmore County Sheriff’s Office, and is being to prosecuted by Assistant United States Attorney’s Susan Redmond and John Geer.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former State of Alabama Employee Pleads Guilty to Stealing Identities from State Databases that were used to Request over $7 Million in Tax RefundsRead the Press Release
Montgomery, Alabama - Tamika Floyd (30), a resident of Salem, Ala., pled guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft for her involvement in a Stolen Identity Tax Refund Scheme (SIRF), announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
According to court documents, between 2006 and 2014, Floyd worked at two different state agencies located in Opelika, Alabama. At both jobs, she had access to identification information for numerous individuals. Beginning in 2012, Floyd was approached about getting the names and other information of individuals from her employer to be used to file false tax returns. Floyd agreed to steal the names and then provide them to a co-conspirator. Most of the names stolen were of teenagers. Using the information provided by Floyd, her co-conspirators filed over 3,000 fraudulent federal income tax returns that claimed over $7.5 million in refunds.
A sentencing date has not been scheduled. Floyd faces a maximum sentence of ten years in prison for the conspiracy to defraud the United States count, and a mandatory sentence of two years in prison for aggravated identity theft. She is also subject to a fine of up to $250,000.00 in addition to restitution.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorney Michael Boteler of the Department's Tax Division and Assistant United States Attorney Todd Brown of U.S. Attorney’s Office for the Middle District of Alabama are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Department of Justice Awards Hiring Grants to Help Address Critical Law Enforcement NeedsRead the Press Release
Montgomery, Alabama - Yesterday the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced a funding award to the Alabama Law Enforcement Agency (ALEA) aimed at creating or protecting twenty-five law enforcement positions within the Department of Public Safety. Nearly $124 million will be awarded nationally, including $3,125,000 to ALEA over a three year period.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer, deputy, and trooper hires for three years.
“Our first priority is increasing the number of state troopers on the road. The troopers have been understaffed for a number of years due to budget cuts and restraints,” said Alabama Secretary of Law Enforcement Spencer Collier. “This grant will allow us to better serve and protect the citizens of Alabama by hiring additional state troopers.”
“The Department of Justice is proud to support the brave men and women of law enforcement that serve and protect our communities every day,” said U.S. Attorney George Beck Jr. from the Middle District of Alabama. “The U.S. Attorney’s Office is committed to reducing crime and increasing public safety. This funding will provide additional resources for law enforcement to develop and implement strategies to reduce violent crime, dismantle drug organizations, and save lives.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at cops.usdoj.gov.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Alabama Sheriff’s Investigator Sentenced to 36 Months for Assaulting Handcuffed Man at Macon County JailRead the Press Release
Montgomery, Alabama - J. Keith McCray, previously a criminal investigator with the Macon County, Alabama, Sheriff’s Office, was sentenced today by Judge Myron H. Thompson to 36 months in prison and two years of supervised release for assaulting a handcuffed man at the county jail, announced the Justice Department and U.S. Attorney George L. Beck, Jr. for the Middle District of Alabama.
An indictment against McCray, 42, charged that on July 4, 2013, he violated the civil rights of a door-to-door salesman who was selling alarm systems in McCray’s Tuskegee, Alabama, neighborhood. On April 4, 2014, McCray pleaded guilty to one felony count of deprivation of rights under color of law. At the plea hearing, McCray admitted that he arrested the salesman and transported him to the Macon County Jail. There, McCray struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
“In attacking a defenseless innocent civilian, this officer chose to abuse his power rather than uphold his oath to protect the public,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. “Most members of law enforcement serve honorably and professionally. McCray breached his pledge to protect and serve and he must be held responsible for his actions. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case was being prosecuted by Assistant U.S. Attorneys Jerusha T. Adams and Jonathan Ross of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three Alabama Men Plead Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Three residents of Montgomery, Alabama, each pleaded guilty during the past week to one count of conspiracy to defraud the government and one count of aggravated identity theft, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Cruz Castillo Burnett, Jacorey Giddens and Rodrickus Howard were indicted on May 1, 2014. According to court documents, the defendants conspired to acquire the means of identification of individuals, including names, Social Security numbers and dates of birth, of other persons without their knowledge or consent. From March 2011 to April 2013, the defendants used these stolen identities to file more than 500 false tax returns, and each return claimed fraudulent refunds from the Internal Revenue Service (IRS). The defendants received the fraudulent refunds in various forms, including U.S. Treasury checks, direct deposits to bank accounts and direct deposits onto prepaid debit cards in the names of identity theft victims.
The three defendants each face a statutory maximum sentence of 10 years in prison for the conspiracy count, followed by up to three years of supervised release. The defendants will each be required to serve a statutory mandatory sentence of two years in prison for the aggravated identity theft count.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorneys Greg Bailey and Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three Alabama Men Plead Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Three residents of Montgomery, Alabama, each pleaded guilty during the past week to one count of conspiracy to defraud the government and one count of aggravated identity theft, announced Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Cruz Castillo Burnett, Jacorey Giddens and Rodrickus Howard were indicted on May 1, 2014. According to court documents, the defendants conspired to acquire the means of identification of individuals, including names, Social Security numbers and dates of birth, of other persons without their knowledge or consent. From March 2011 to April 2013, the defendants used these stolen identities to file more than 500 false tax returns, and each return claimed fraudulent refunds from the Internal Revenue Service (IRS). The defendants received the fraudulent refunds in various forms, including U.S. Treasury checks, direct deposits to bank accounts and direct deposits onto prepaid debit cards in the names of identity theft victims.
The three defendants each face a statutory maximum sentence of 10 years in prison for the conspiracy count, followed by up to three years of supervised release. The defendants will each be required to serve a statutory mandatory sentence of two years in prison for the aggravated identity theft count.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorneys Greg Bailey and Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761726 People Convicted in the Crenshaw Village Clean-UpRead the Press Release
Montgomery, Alabama - 26 violent criminals have been taken off the streets making Crenshaw Village a safer place to live, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; Robert F. Lasky, FBI Special Agent in Charge, Mobile Division; Clay Morris, DEA Assistant Special Agent in Charge; and Bill Franklin, Sheriff of Elmore County.
Crenshaw Village is a neighborhood in Elmore County, Alabama that was plagued with violence and drug dealing. Because it was such a high crime area, the Central Alabama Drug Task Force (CADTF) launched an investigation into these violent criminals. CADTF uncovered that Crenshaw Village was being run by a set of the Blood Street Gang called “Care Nothin’ ‘Bout It” or CNB who operated an open-air drug market in Crenshaw Village. CADTF requested the help and resources of FBI to further the gang investigation and Operation Park and Ride was created. Operation Park and Ride targeted the trigger pullers and street-level drug dealers that operated in Crenshaw Village and were members of CNB. In addition to drug dealing, these CNB members committed multiple armed home invasions and convenience store robberies. As FBI continued the investigation into CNB, they discovered that CNB was being supplied by local, regional, and international large-scale drug dealers. FBI forwarded this information to DEA and Operation Two Face was created. Operation Two Face focused on the large-scale drug dealers that were supplying the members of CNB in Crenshaw Village. Operation Two Face prevented hundreds of kilograms of cocaine from entering into the State of Alabama.
The Central Alabama Drug Task Force was the glue between these two operations. Because of the cooperation between the CADTF, the FBI and the DEA, virtually all of the members and associates of CNB have been convicted; from the street-level crack cocaine dealer to the multi-kilogram international drug supplier. These operations have cleaned up Crenshaw Village, making it a much safer place to live. Attached to this release is the list of individuals that were convicted in the Crenshaw Village clean-up.
“It is very difficult to eradicate an entire drug organization from the lowest level dealer to the highest level supplier,” stated U.S. Attorney Beck. “These two operations met and exceeded that goal. Now members of the Crenshaw Village community can feel safer in their own homes, without fear of drug dealers or trigger pullers.”
“I simply cannot express the importance of the relationships we have regarding ongoing investigations where FBI, DEA, U.S. Marshal’s among others are involved,” stated Sheriff Franklin. “We are blessed to have a drug task force assigned to our county that obviously cares about the future well-being of our county as a whole.”
"The dismantlement of this violent gang and drug trafficking network is a great success story of interagency cooperation in central Alabama," stated FBI Special Agent in Charge Lasky.
“It is rare that we see cases that completely destroy an entire organization from top to bottom, but these operations did exactly that,” stated Assistant Special Agent in Charge, Clay Morris. “The cooperation experienced in this case was extraordinary and shows what can be accomplished through teamwork. DEA agents have an expertise in investigating large-scale drug organizations. FBI agents have an expertise in investigating gangs. When you put all of that knowledge together, you can wipe out the scourge of gangs and drugs.”
These cases were investigated by the Central Alabama Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration, with the assistance from Montgomery HIDTA Task Force, U.S. Marshal Service, Elmore County Sherriff's Office, Wetumpka Police Department, Montgomery Police Department, Montgomery County Sheriff’s Office, Millbrook Police Department, Prattville Police Department, Autauga County Sherriff's Office, Alabama State Troopers, Alabama Beverage Control, Alabama Bureau of Investigation, Chilton County Sherriff's Office, the 19th Circuit District Attorney’s Office, and the Alabama National Guard. These cases were prosecuted by Verne Speirs, Gray Borden, Brandon Essig, and Tommie Brown Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Wilcox County Deputy Sheriff Sentenced to Federal Prison for Transporting DrugsRead the Press Release
Montgomery, Alabama - Former Wilcox County Deputy Greg Barge, 45, from Camden, Alabama, was sentenced yesterday for attempting to possess with the intent to distribute cocaine powder, and using a firearm in furtherance of a drug trafficking crime, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. After pleading guilty to these charges, District Court Judge Mark E. Fuller sentenced Barge to 90 months in prison, to be followed by 3 years of supervised release.
According to court records, on April 10, 2013, May 7, 2013 and June 26, 2013, Barge transported packages that contained what he believed to be multiple kilograms of cocaine powder from Montgomery, Alabama to Camden, Alabama. The packages actually contained a substance that appeared to be cocaine, but was not cocaine. On each of those dates, Barge obtained the supposed cocaine in Montgomery and transported them to Camden using his law enforcement vehicle, dressed in his deputy uniform, and carrying his police issued firearm. Barge was paid $700 on April 10, 2013 for transporting 2 kilograms of what he believed to be cocaine, and $1200 on May 7, 2013 for transporting 3 kilograms. On June 26, 2013, Barge was arrested in Camden after transporting another 3 kilograms of the fake cocaine from Montgomery to Camden.
“Wearing a badge and uniform does not provide immunity from breaking the law,” stated U.S. Attorney George Beck. “Whether a county deputy, city police officer, or federal agent, wrongdoers will be punished. While the majority of law enforcement officers protect and serve our communities honorably, those who violate the public’s trust will be prosecuted.”
“The FBI and our law enforcement partners will continue to utilize all resources to investigate those who have taken an oath to serve and protect our communities and use their position as a public servant to shield their criminal activities and violate the trust of those they serve,” stated FBI Special Agent in Charge Robert F. Lasky.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Alabama Alcoholic Beverage Control Board and the Alabama Department of Public Safety. First Assistant United States Attorney Clark Morris prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Man Convicted for Traveling to Various States to have Sex with a MinorRead the Press Release
Montgomery, Alabama - Charles Dean Partin, 38, of Clayton, Alabama was convicted today in federal court for traveling to Tennessee and Ohio to have sex with a minor child, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. He was also convicted of transporting a stolen vehicle across state lines.
During the two and a half day trial, the jury learned that Partin started molesting this child when she was eight years old. When the child was 14 years old, she got pregnant. DNA results proved Partin was the father. In the beginning of September 2012, Partin took the now 15 year old child to Tennessee. On the way to Tennessee, Partin ordered her to perform oral sex on him and while in Tennessee, the child and Partin had sex several times. While camping at a campground in Tennessee, a maintenance worker saw what he believed to be the child performing oral sex on Partin. Based on the report from the maintence worker, Tennessee law enforcement started to investigate Partin and the child was placed in DHR custody. Partin then devised a plan to abduct the child from DHR custody and go to Mexico. As part of his plan, Partin stole a van in Dothan, Alabama. Partin then tracked the child down at the child’s scheduled prenatal doctor visits in Dothan. Partin coerced the child into leaving the appointment with him and he and child left the State of Alabama in the stolen van. An Amber Alert was issued. During the trip, Partin and the child had sexual intercourse several times. Partin never went to Mexico, but decided to go to Ohio. After law enforcement received an anonymous tip that Partin and the child were in in Ohio, Partin was caught and arrested.
Partin is facing a sentence of at least ten years in prison, a fine of not more than $250,000 and five years of supervised release. There is no parole in the federal system.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Hamilton County, Tennessee Sheriff’s Office, and prosecuted by Assistant U.S. Attorneys Kevin Davidson, Jerusha Adams and Hollie Worley.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Two Alabama Men Sentenced for Stolen Identity Refund Fraud Crimes in Separate CasesRead the Press Release
Montgomery, Alabama - Deundra Milhouse and Fredrick Hill, both residents of Alabama, were sentenced today in separate stolen identity refund fraud (SIRF) cases, announced Acting Assistant Attorney General Tamara Ashford of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. for the Middle District of Alabama. Milhouse was sentenced to 81 months in prison and Hill was sentenced to 74 months in prison.
Milhouse had previously pleaded guilty to one count of access device fraud, one count of aggravated identity theft, and one count of being a felon in possession of a firearm. He was indicted in December 2013 and has been detained since his arrest in late January 2014. According to his plea agreement, Milhouse was involved in SIRF crimes—the use of stolen identities to steal money from the Internal Revenue Service (IRS) by filing fraudulent tax returns claiming refunds in the victims’ names—since the spring of 2011 and up through late 2013. In 2011 and 2012, he received over $80,000 in fraudulently obtained tax refunds into a bank account he controlled. By 2013, he had switched to using prepaid debit cards to receive the refunds.
Milhouse also admitted in his plea agreement that he was driving a car that had been stopped on October 8, 2013, in Elmore County, Alabama. He managed to flee on foot and threw away a handgun that he had been carrying. Milhouse was a convicted felon at that time and prohibited from having a firearm. Numerous prepaid debit cards and documents with personal identifying information were found in the car he had been driving. Milhouse also admitted that a later search of his house uncovered many more documents with the personal identifying information of victims, as well as over 200 prepaid debit cards, a computer used to file tax returns, and a magazine and ammunition for the discarded handgun. As part of his plea, Milhouse had stipulated that his conduct involved an attempted fraud loss of over $400,000, more than 250 victims, and that he had a least one felony conviction for a crime of violence prior to his possession of the handgun.
Hill had previously pleaded guilty to access device fraud and aggravated identity theft. According to his plea agreement, Hill sold stolen identities to others to be used in SIRF crimes. Hill admitted that at one point he possessed dozens of prepaid debit cards and over 300 stolen identities in connection with his involvement in SIRF crime.
Both cases were investigated by special agents of the Internal Revenue Service - Criminal Investigation. The Elmore County Sheriff’s Office also provided assistance in the Milhouse case. Trial Attorneys Jason Poole and Michael Boteler of the Department's Tax Division prosecuted the Milhouse case and Trial Attorneys Jason Poole and Gregory Bailey prosecuted the Hill case. Assistant United States Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama assisted with both cases.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Two Montgomery Men Await Sentencing for $900k Tax Refund SchemeRead the Press Release
Montgomery, Alabama - Edmund Lee McCall, pled guilty today to the charges of conspiracy to commit wire fraud and aggravated identity theft, announced U.S. Attorney George Beck Jr. A co-defendant in this case, Antonio Devon Harris, pled guilty to the same charges in January 2014. Both McCall and Harris are from Montgomery, Alabama.
According to court documents, beginning in 2010 and continuing through October 2012, McCall and Harris conspired together, along with others, to illegally obtain the names, social security numbers, dates of birth, and other personal information of unsuspecting people. McCall and Harris used the victims’ personal information to create W2s with fraudulent employee and wage information and to file income tax returns on-line without the knowledge or permission of the identity theft victims.
After filing the false tax returns, McCall and Harris would have the refund money put on pre-paid credit cards that they owned. Once the funds were received, they would spend the money for their own personal use. During the time period of the conspiracy, McCall and Harris filed for more than $900,000 in fraudulent income tax refunds.
McCall and Harris each face a maximum sentence of 20 years for the conspiracy to commit wire fraud charge, and two years for aggravated identity theft. Antonio Harris is set for sentencing on August 5, 2014. A sentencing date has not yet been set for McCall.
Edmund McCall is currently serving a sentence for a prior identity theft and credit card scheme that ran from 2004 to 2009. In January 2014, McCall was tried and convicted of conspiracy to commit bank fraud and wire fraud, along with six counts of aggravated identity theft. He was sentenced to 18 years for those crimes.
This case was investigated by the United States Department of Treasury Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761710 Arrested for Illegal Gun SalesRead the Press Release
Montgomery, Alabama - Ten people were arrested for illegal gun sales that took place at Sadie’s Flea Market in Dothan, Alabama, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and Special Agent in Charge Jeff Fulton of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, all of those arrested had rented booths at Sadie’s Flea Market and engaged in the sale of firearms. It is alleged that nine of the ten arrested sold guns to individuals they knew had been convicted of a felony. Four were also charged with selling firearms without a license. Court records indicate that some of those charged with illegal gun sales had been convicted of a felony themselves, which prohibited them from even possessing a firearm. Under federal law, it is illegal to possess a gun if you have been convicted of a felony, and also to sell a gun to someone you know has been convicted of a felony. As a result of this investigation, ATF agents seized over 200 firearms and over 5000 rounds of live ammunition.
The following people were arrested:
- RICHARD ALLEN COHEN, 65 years old, of Graceville, Florida is charged with selling a firearm to a convicted felon.
- ROBERT ARTHUR CHUDZIK III, 27 years old, of Headland, Alabama is charged with selling a firearm to a convicted felon.
- WILLIAM DEAN, 84 years old, of Whigham, Georgia is charged with selling a firearm to a convicted felon.
- CHARLES T. GRIMES, 56 years old, of Opp, Alabama is charged with selling a firearm to a convicted felon, dealing firearms without a license.
- THOMAS P. KNOWLES, 47 years old, of Chancellor, Alabama is charged with selling a firearm to a convicted felon.
- MARVIN T. JONES, 70 years old, of Dothan, Alabama is charged with selling a firearm to a convicted felon, possession of a firearm by a convicted felon, and dealing in firearms without a license.
- DAVID R. LOFTIN, 64 years old, of Lagrange, Georgia is charged with selling a firearm to a convicted felon, and dealing firearms without a license.
- RONALD D. SLOAN, 64 years old, Cottondale, Florida is charged with selling a firearm to a convicted felon.
- CHARLES P. SLY, 75 years old, of Slocomb, Alabama is charged with selling a firearm to a convicted felon, possession of firearm by convicted felon, and dealing firearms without a license.
- BRENT E. UNDERWOOD, 60 years old, of Coffee Springs, Alabama is charged with selling a firearm to an out-of-state resident.
“ATF’s ‘Frontline’ strategy to reduce violent crime includes the investigation of those individuals who sell firearms to prohibited persons,” stated ATF Special Agent in Charge Jeff Fulton. “This investigation demonstrates the continued dedication to provide a safe environment for the public”
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted Cohen, Chudzick, Dean, Grimes, Knowles, Jones, Loftin, Sloan, and Sly face a prison term of up to ten years, a fine of not more than $250,000 and a term of supervised release of not more than three years. Underwood faces a prison term of not more than five years, a $250,000 maximum fine and a term of supervise release of not more than three years.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Chipley, Florida Police Department. This case is being prosecuted by Assistant United States Attorney Susan R. Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - The United States Attorney’s Office will hold a press conference in Dothan, Alabama to announce several indictments and arrests concerning illegal firearms sales at a single location in the Dothan area.
The press conference will be held on Monday, June 30, 2014 at 10:30 a.m., at the Federal Building and U.S. Courthouse in Dothan, located at 100 West Troy Street, Dothan, Alabama, and the media is invited. A press release and other documents will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Ku Klux Klan Officer Pleads Guilty to Committing Perjury During Investigation into Cross-BurningRead the Press Release
Montgomery, Alabama - Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, pleaded guilty today to committing perjury during a grand jury’s investigation into a racially motivated cross-burning in the U.S. District Court for the Middle District of Alabama.
Morris, 46, admitted in plea documents that on Feb. 20, 2013; she lied to a federal grand jury looking into a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the leader of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African-American neighborhood in Ozark to threaten and intimidate residents. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the chapter or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
The sentencing hearing has yet to be set for Morris. She faces a statutory maximum sentence of five years in prison and a $250,000 fine.
Dinkle pleaded guilty on Feb. 3, 2014, to hate crime and obstruction of justice charges related to the cross burning. On May 15, 2014, he was sentenced to serve 24 months in prison. Smith, Dinkle’s co-conspirator, pleaded guilty to conspiracy to interfere with housing rights on Dec. 6, 2013. He is scheduled to be sentenced on Aug. 19, 2014.
“Defendant Morris lied under oath blatantly and repeatedly to hinder an investigation into a cross-burning that was committed to intimidate an entire community,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold accountable not only those who commit such acts of violence, but also those who lie and obstruct the investigation into these crimes of intimidation.”
“Ms. Morris lied to the grand jury in an attempt to protect herself and to protect a cross burner," stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. "When someone testifies in court they swear to tell the truth. Unfortunately, Ms. Morris lied. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."
This case is being investigated by the FBI with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Twenty Million Dollar Stolen Identity Refund Fraud Ring IndictedRead the Press Release
Montgomery, Alabama - Tracy Mitchell, of Phenix City, Alabama; Dameisha Mitchell, of Phenix City, Alabama; Latasha Mitchell, of Phenix City, Alabama; Keisha Lanier, of Seale, Alabama; Sharondra Johnson, of Phenix City, Alabama; Cynthia Johnson, of Phenix City, Alabama; Mequetta Snell-Quick, of Phenix City, Alabama; Talarious Paige, of Phenix City, Alabama; and Patrice Taylor, of Midland, Georgia were indicted for their roles in a $20 million dollar Stolen Identity Refund Fraud (“SIRF”) conspiracy, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama following the unsealing of the superseding indictment.
According to the Superseding Indictment, between January 2011 and December 2013, the Defendants ran a large-scale identity theft ring in which they filed over 7,000 false tax returns that claimed in excess of $20 million in fraudulent claims. The Defendants obtained stolen identities from various sources to be used in filing false returns. Tracy Mitchell worked at the hospital at Fort Benning, Georgia. As a hospital employee, Mitchell had access to the identification data of military personnel, including soldiers who were deployed to Iraq and Afghanistan. Tracy Mitchell and her daughter, Latasha Mitchell, also obtained stolen identities from an Alabama state agency. Keisha Lanier obtained stolen identities from the Alabama Department of Corrections. Talarious Paige and Patrice Taylor worked in a call center for a Columbus, Georgia company and stole identities. Paige, in turn, sold those identities and they were used by Tracy Mitchell, Keisha Lanier, and others to file false tax returns.
In order to file tax returns, according to the Superseding Indictment, the Defendants obtained several Electronic Filing Numbers (“EFIN”) in the names of sham tax businesses. On behalf of those sham tax businesses, the Defendants applied for bank products from various financial institutions, which mailed blank check stock to the Defendants’ homes. Tracy Mitchell, Latasha Mitchell, Keisha Lanier, Mequetta Snell-Quick, and others used the sham tax businesses and stolen identities to file false tax returns.
Furthermore, according to the Superseding Indictment, the Defendants directed anticipated tax refunds to prepaid debit cards, to U.S. Treasury Checks, and to financial institutions which in turn issued the refunds via checks or prepaid debit cards. As to the refunds sent through the financial institutions, the Defendants simply printed out the refund checks from the check stock sent to them. Regarding the U.S. Treasury Checks, the Defendants directed those checks to be mailed to several addresses in Alabama and then obtained them from the mail. To coordinate the cashing of the refund checks, the Defendants sent various text messages between themselves. The Defendants cashed the fraudulent checks at several businesses located in Alabama, Georgia, and Kentucky. In addition to the conspiracy charge, the defendants are also charged with mail and wire fraud, access device fraud, and aggravated identity theft.
“To steal the identity of a soldier serving his/her country is the lowest form of thievery,” stated U.S. Attorney Beck. “If a soldier serving his country is not safe from identity theft, then none of us are safe from this crime. We will continue our efforts to stamp out this crime. Identity theft affects too many people in our communities and we must use all available resources under the law to destroy it. I want to commend the IRS Criminal Investigations Unit and the U.S. Army Criminal Investigation Command for their dedication to destroying this criminal organization.”
Daniel Andrews, the director of the U.S. Army Criminal Investigation Command's Computer Crime Investigative Unit stated, “Today's indictments are not only a strong testament to our unwavering commitment to aggressively pursue cases of identity theft and protect the men and women serving this nation, but also our equal commitment to work shoulder-to-shoulder with other law enforcement agencies and the DOJ in helping to bring those to justice who commit cyber-crime and identity theft while stealing from the American taxpayer.”
“Identifying, investigating and vigorously prosecuting those individuals involved in tax related identity theft schemes, remains a top priority for IRS Criminal Investigation,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “These indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
“The problem with identity theft is that the victims don’t know they have been subjected to the crime until well after the fact,” said U.S. Attorney for the Middle District of Georgia, Michael Moore. “The prosecution of this case resulted from the great work of the U.S. Attorney in Montgomery and the Tax Division. I hope it sends a message to both our soldiers and to those who try to take advantage of them – while you are protecting us from bad guys abroad, we will be protecting you from the bad guys at home.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum potential sentence of 10 years in prison for the conspiracy charge, a maximum potential sentence of 20 years in prison for each wire and mail fraud count, a maximum potential sentence of 15 years in prison for each access device fraud count, and a mandatory two-year sentence for each aggravated identity theft count. The defendants are also subject to fines, forfeiture, and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the Computer Crimes Investigative Unit of the U.S. Army Criminal Investigation Command. Trial Attorney Michael Boteler of the Department's Tax Division and Assistant United States Attorney Todd Brown of Alabama are prosecuting the case. The United States Attorney’s Office for the Middle District of Georgia provided assistance in this matter.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - The United States Attorney’s Office and the Internal Revenue Service Criminal Investigation (CI) Unit will hold a press conference to announce indictments and arrests connected with what could potentially be the largest tax fraud/identity theft case in the Middle District of Alabama.
The press conference will be held on Thursday, May 22, 2014 at 10:00 a.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited. A press release will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Russell County Man Pleads Guilty to Failing to Register as a Convicted Sex OffenderRead the Press Release
Montgomery, Alabama - On Friday, May 9, 2014, Gregory Whidden, a resident of Russell County, Alabama, pled guilty in the United States District Court for the Middle District of Alabama to a federal felony charge of failing to register as a sex offender, announced United States Attorney George L. Beck, Jr.
A federal grand jury indicted Whidden in February 2014 for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act after he traveled in interstate commerce in violation of federal law. According to court documents, Whidden was convicted of sexual abuse second degree in the Circuit Court of Russell County, Alabama in 1987. Due to this conviction, Whidden is required to register as a sex offender for life. Whidden registered in Lee County in 2010 and 2011, then relocated to Florida and registered in Florida. Defendant’s last registration in Florida occurred in November 2012. At the change of plea hearing, Whidden admitted that, as a convicted sex offender, he was required to register and that if he moved to another state he must register in that new state. Whidden also admitted at the hearing that he traveled from Florida to Alabama in August 2013 and relocated to Russell County. Whidden further admitted that, after relocating to Russell County, he did not register as a sex offender in the State of Alabama or update his Alabama registration.
Whidden’s sentencing hearing before Senior United States District Judge Myron H. Thompson is yet to be scheduled. At sentencing, Whidden faces a maximum sentence of ten years in prison, a $250,000 fine, and no less than five years of supervised release following his release from prison. Whidden remains in the custody of the United States Marshals Service pending sentencing.
This case was investigated jointly by the United States Marshals Service and Phenix City Police Department. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Title of the News Release Goes HereRead the Press Release
Montgomery, Alabama - Susie Michelle Strength, a registered nurse from Clanton, Alabama was indicted by a federal grand jury for tampering with a vial of Morphine Sulfate pain medication while working as a registered nurse at Prattville Baptist Hospital, announced U.S. Attorney George L. Beck, Jr..
The one-count indictment filed in U.S. District Court charges Strength, 35 years old, with tampering with a consumer product, in violation of federal law. Specifically, the indictment charges that Strength removed some of the Morphine from a vial, replaced it with saline solution, and returned the vial to the drug administration machine known as a Pyxis machine at the hospital. Moreover, the indictment alleges that Strength acted with reckless disregard or extreme indifference to the risk that her actions might cause bodily injury to another person.
“The nature of the relationship between nurses and their patients is a special one which cannot be allowed to be compromised by horrendous conduct such as diluting pain medications intended for patients,” stated U.S. Attorney Beck. “These patients are often in severe pain and need this pain medication. To dilute the Morphine, puts a patient in more pain and could be life threatening. Anyone who engages in such behavior deserves to be aggressively prosecuted. I also want to thank Prattville Baptist Hospital for bringing this matter to our attention.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The tampering charge carries a maximum punishment of 10 years in prison and a $250,000.00 fine.
This case is being investigated by the Food and Drug Administration’s Office of Criminal Investigations. Assistant U.S. Attorneys Bob Anderson and Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Opelika Doctor Indicted for Selling Misbranded Intrauterine DevicesRead the Press Release
Montgomery, Alabama - Dr. Yashica Robinson-White, 38 of Opelika, Alabama was indicted by a federal grand jury for health care fraud totaling over $60,000.00 and for introducing misbranded drugs into interstate commerce, announced U.S. Attorney George L. Beck, Jr..
The six-count indictment filed in U.S. District Court charges Yashica Robinson-White, an Opelika doctor, with committing health care fraud through her ob-gyn practice which provided birth control services to patients in the area.
The indictment charges that Robinson-White committed health care fraud by falsely billing claims to Medicaid for birth control devices known as intrauterine devices (“IUDs”). Robinson-White purchased these IUDs from a company in Great Neck, New York. Because the IUDs were made outside the United States and because the IUDs were not labeling in English, they are considered misbranded drugs under the Food, Drug and Cosmetic Act. The IUDs are treated as misbranded drugs under the law because they release the birth control drug, levonorgestrel. Further, because the IUDs were misbranded, Robinson-White obtained them cheaper than a lawful IUD.
Alabama Medicaid pays ob-gyn doctors like Robinson-White for birth control services such as inserting the IUDS. However, Robinson-White submitted false claims to Medicaid by failing to disclose that she was utilizing the cheaper misbranded IUDs she had purchased from a company in Great Neck, New York. The indictment alleges that from November 2010 through April 2012, Robinson-White billed Alabama Medicaid approximately $60,300.00 for these misbranded IUDs.
“The Medicaid Program is designed to help those families and women in need,” Beck said. “But when Medicaid pays for those services, it expects that the patients will receive legitimate, legal drugs and products. When a doctor uses unapproved drugs and products, the doctor interferes with the ability of the Alabama Medicaid Agency to deliver quality health care to the public. This office will continue to investigate and prosecute health care fraud of this kind aggressively and thoroughly.”
Beck pointed out that this case was brought to the attention of his office by the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) following a search of the offices of the company in Great Neck, New York, known as Pharmalogical, Inc., doing business as Medical Device King. “FDA-OCI identified more than 1,000 doctors and clinics across the country who had been receiving these misbranded drugs and products. We appreciate their close monitoring of drugs and medical devices being placed into commerce throughout the nation,” Beck noted.
Each count of the health care fraud scheme carries a maximum punishment of 10 years in prison and a $250,000.00 fine, while the misbranding count carries a maximum punishment of one year in prison and a $100,000.00 fine. Assistant U.S. Attorney Bob Anderson, who serves as Health Care Fraud Coordinator for the District, and Assistant United States Attorney Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Prescription Drug Take-Back to be held Saturday, April 26, 2014Read the Press Release
Montgomery, Alabama - On April 26 from 10 a.m. to 2 p.m., local law enforcement and the Drug Enforcement Administration (DEA) will give the public its eighth opportunity in three years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Citizens are encouraged to bring their prescription pills to a disposal site, but they should note that the DEA cannot accept liquids, needles, or “sharps,” only pills or patches. The service is free and anonymous, there will be no questions asked. To locate a disposal site near you, go to www.deadiversion.usdoj.gov
Citizens may also ask their local police departments and sheriff’s offices for disposal locations. The DEA may be able to locate convenient disposal sites for you by calling 1-800-882-9539.
Last October, Americans turned in 324 tons (over 647,000 pounds) of prescription drugs at over 4,114 sites operated by the DEA and its thousands of state and local law enforcement partners. When those results are combined with the seven previous Take Back events, DEA and its partners have taken in over 3.4 million pounds—more than 1,700 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash— pose potential safety and health hazards.
“This Take Back day is one way that citizens can help combat the growing threat of prescription drugs,” stated U.S. Attorney Beck. “We ask all of our citizens to use this day to help make their homes a safer place for their family and friends.”
“Take Back is an important step in ridding our country of lethal, illegal drugs,” stated DEA Assistant Special Agent in Charge Clay Morris. “The amount of drugs that we have disposed of in the past speaks volumes about the need to develop a convenient way to rid homes of unwanted or expired prescription drugs. Until such laws are passed, Law Enforcement is the only entity citizens can legally and safely dispose of these drugs.”
The DEA is in the process of approving new regulations that implement the Safe and Responsible Drug Disposal Act of 2010, which amends the Controlled Substances Act to allow an “ultimate user” (that is, a patient or their family member or pet owner) of controlled substance medications to dispose of them by delivering them to entities authorized by the Attorney General to accept them. The Act also allows the Attorney General to authorize long term care facilities to dispose of their residents’ controlled substances in certain instances.
Each collection site will be supervised by a law enforcement officer due to the involvement of controlled substances.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Six Arrested in Drug Raid Involving Correctional FacilitiesRead the Press Release
Montgomery, Alabama - A drug distribution operation that involved inmates and a correction officer has been dismantled and six people have been arrested due to the joint efforts of the Drug Enforcement Administration and the Alabama Department of Corrections, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Joyce White Vance, U.S. Attorney for the Northern District of Alabama. This investigation included multiple State of Alabama correctional facilities and would not have been possible without the extraordinary assistance of Commissioner Kim Thomas and his staff at the Department of Corrections.
A federal grand jury in Montgomery, Alabama returned an indictment against Stephanie Auban, 41 years old, of Cullman; Phillip Burgin, 23 years old, of Montgomery; William Thomas Crane II, 36 years old, of Crossville; and Alberto Trejo who is presently incarcerated in Bullock County Correctional Facility in Union Springs, Alabama for conspiracy to distribute methamphetamine. Phillip Burgin was a correction officer at Kilby State Prison in Montgomery.
A federal grand jury in Birmingham, Alabama returned an indictment against Miguel Calles-Gutierrez, 42 years old, of Birmingham, and Gumaro Calles, 24 years old, presently in Staton Correctional Facility in Elmore, Alabama for distribution of methamphetamine. Along with the arrests, law enforcement searched the two prisoner’s personal areas, one in Bullock County Correctional Facility and one in Staton Correctional Facility.
“Drug dealers spread poison for profit,” stated U.S. Attorney Beck. “They addict children for profit, they destroy families for profit, and they infect communities for profit. There are countless victims of drug dealing. We need to remember and attempt to help these victims and need to continue to do all that is possible under the law to punish these poison pushers. I want to thank Kim Thomas and his staff for their unwavering commitment to stopping these criminals from dealing drugs from inside our state prisons.”
“Some of these defendants worked from prison to distribute a harmful and illegal substance in the Northern District of Alabama," stated U.S. Attorney Vance. "Methamphetamine dealers need to know they will be tracked — wherever they are — and prosecuted. The state Department of Corrections and the DEA are to be commended for working collaboratively to bring about these arrests."
“Drug trafficking and dealing are dangerous to society, and that type of behavior will not be tolerated by the Department of Corrections,” Corrections Commissioner Kim Thomas said. “We have joined forces with our federal law enforcement community to make our streets and our prisons safer. The illegal activity of one correction officer is not a representation of the hard work of the almost 3,000 correctional staff working in our facilities. We will not allow these illegal acts to tarnish the professional reputation of the hard working correctional professionals at the Department of Corrections. It is our responsibility to act, and these arrests are proof of our action with our federal partners to stop illegal activity in prison and protect the public safety. The Department of Corrections will continue to partner with law enforcement across this state to aggressively target criminal activity and stop the network of drug distribution activity from inside our prisons and that harm our communities.”
“Due to the combined efforts of the Drug Enforcement Administration (DEA) and the Alabama Department of Corrections (DOC), a large-scale drug trafficking organization was identified, investigated and ultimately dismantled,” stated Clay Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration. “Without the invaluable assistance from the Alabama Department of Corrections, the success of this investigation would not have been possible. The partnership between DEA and AL DOC was critical in keeping substantial amounts of methamphetamine from being distributed in our communities. I can’t thank Commissioner Thomas and Alabama DOC enough for their assistance.”
An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted Ausban, Burgin, Crane, Miller and Trejo face a sentence of at least 10 years in prison and a maximum prison term of life. Miguel Calles-Gutierrez and Gumaro Calles face a sentence of no more than 20 years in prison. In the federal system, there is no parole.
This case was investigated by the Drug Enforcement Administration and the State of Alabama Department of Corrections. This case is being prosecuted by Curtis Ivy, Assistant U.S. Attorney in the Middle District of Alabama and an Assistant U.S. Attorney in the Northern District of Alabama.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Four Organizations Honored by U.S. Attorney’s Office During National Crime Victims’ Rights WeekRead the Press Release
Montgomery, Alabama - In recognition of National Crime Victims’ Rights Week (April 6-12, 2014), the United States Attorney’s Office for the Middle District of Alabama is honoring four organizations for their support and service to communities affected by crime, announced U.S. Attorney George L. Beck Jr. The Alabama Crime Victims’ Compensation Commission, the Family Sunshine Center, and the One Place Family Justice Center, all in Montgomery, along with the Wiregrass Angel House in Dothan, received letters of appreciation from U.S. Attorney Beck on April 9, 2014 to recognize their commitment to serving individuals whose lives have been devastated by crime.
This year’s theme—30 Years: Restoring the Balance of Justice—presents a perfect opportunity to salute these organizations and their long-term commitment to aiding crime victims. As we celebrate three decades of defending victims’ rights, we are reminded of how far we have come, and how much work is yet to be done.
Only 30 years ago, crime victims had virtually no rights and no assistance. Today, the nation has made dramatic progress in securing rights, protections, and services for victims. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country. In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering. Financed not by taxpayers but by fines and penalties paid by offenders, the Crime Victims Fund supports victim services, such as rape crisis and domestic violence programs and victim compensation programs that pay many of victims’ out-of-pocket expenses from the crime, such as counseling, funeral expenses, and lost wages.
Crime can have a lasting physical, emotional, or financial impact on people of all ages and abilities, and of all economic and social backgrounds. In addition to these challenges, crime victims face a criminal justice system that often does not have the resources or expertise to help them deal with the remnants of crime.
Thankfully, many organizations in the Middle District have recognized the need for additional services and have made excellent progress in assisting crime victims. The Family Sunshine Center, the One Place Family Justice Center, and the Wiregrass Angel House provide a comprehensive set of services to crime victims in an effort to promote their safety, well-being, and recovery. The Alabama Crime Victims’ Compensation Commission seeks to ease the financial hardships encountered by victims by offsetting some of the lingering and significant expenses of crime.
“I am pleased to honor these organizations for the superb work they have done for crime victims in our communities,” said U.S. Attorney George L. Beck Jr. “They share a commitment to reaching every victim of crime and providing them with the services they desperately need. Although the U.S. Attorney’s Office must focus primarily on the prosecution of offenders, we recognize that nearly every crime we prosecute has a victim, and we want them to know they are not alone.”
Further information about National Crime Victims’ Rights Week is available at ovc.ncjrs.gov/ncvrw.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - The United States Attorney’s Office will hold a press conference to announce the takedown of a drug distribution operation that involves two federal judicial districts and is the result of the joint efforts of the Drug Enforcement Administration and the Alabama Department of Corrections.
The press conference will be held on Thursday, April 10, 2014 at 1:30 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited. A press release will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - n commemoration of National Crime Victims’ Rights Week (April 6-12, 2014), U.S. Attorney George L. Beck, Jr. will hold a press conference/reception to recognize organizations that have demonstrated an extraordinary commitment to supporting victims and providing victim services. The following organizations will be recognized:
- Alabama Crime Victims’ Compensation Commission, Montgomery, AL
- Family Sunshine Center, Montgomery, Alabama
- One Place Family Justice Center, Montgomery, Alabama
- Wiregrass Angel House, Dothan, Alabama
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Sheriff’s Investigator Pleads Guilty to Assaulting Handcuffed Man at Macon County JailRead the Press Release
Montgomery, Alabama - J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office, pleaded guilty in federal court today to assaulting a handcuffed man at the county jail, resulting in bodily injury.
McCray, 41, of Tuskegee, Ala., was at his home on July 4, 2013, when the victim, a door-to-door salesman, spoke with McCray about purchasing an alarm system. McCray indicated that he was not interested in purchasing a system. As the victim began to leave McCray’s property, McCray unlawfully seized the victim at gunpoint and took him to the Macon County Jail. During the plea hearing, defendant McCray admitted that at the jail, he struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
McCray pleaded guilty to one felony count of deprivation of rights under color of law. At sentencing, McCray faces a maximum sentence of ten years in prison and a $250,000 fine.
“The defendant attacked an innocent citizen who was simply trying to earn a living on the day of the incident. When he assaulted the defenseless victim, he violated the trust put in him by the community as well as the law,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “The Department will continue to hold accountable those who engage in such actions.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. “We entrust them to protect and serve our communities. While most members of law enforcement serve honorably, McCray breached this trust and must be held accountable. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617New Federal Law on Animal FightingRead the Press Release
U.S. Attorney’s Office, The Humane Society of the United States Applaud Animal Fighting Spectator Prohibition Act
Montgomery, Alabama - George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and the Humane Society of the United States are raising public awareness of the newly enacted federal animal fighting law that makes it a felony to knowingly bring a child under the age of 16 to an animal fight and a misdemeanor to knowingly attend an animal fight.
Since 2008, it has been a federal felony to sponsor, exhibit, buy, sell, deliver, possess, train or transport an animal for participation in an animal fighting venture. This crime is punishable by a term of imprisonment of five years and a fine of $250,000.
The newly enacted Animal Fighting Spectator Prohibition Act, which was included in the final 2014 Farm Bill, makes it a federal felony to knowingly bring a minor under the age of 16 to a dogfight or cockfight, punishable by up to three years in prison and a $250,000 fine, and a federal misdemeanor to knowingly attend a fight as a spectator, punishable by up to one year in prison and a $100,000 fine. The HSUS and the U.S. Attorney’s Office, who worked together in the second-largest dogfighting raid in U.S. history, praise these upgrades, which provide law enforcement with additional tools to put an end to organized dogfighting and cockfighting.
George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, said: “Animal fighting is a cruel activity, it is not a sport. No one should have to watch such brutality, but it is particularly outrageous to expose children to these fights because it desensitizes them to violence and brutality. Criminals also use these animal fights to sell drugs and hide illegal profits. The enactment of this new law gives us additional law enforcement tools to crack down on this barbaric activity and the other crimes that go along with it.”
Wayne Pacelle, president and CEO of The Humane Society of the United States, said: “The recent upgrades to the federal animal fighting law mean that the entire cast of characters involved in these criminal enterprises is subject to arrest and prosecution, and these people face a brighter future if they give up their cruel hobby. We commend the U.S. Attorneys’ Office for taking on the scourge of organized animal fighting, and we look forward to providing whatever assistance federal law enforcement needs to uproot that criminal underworld.”
In August 2013, The Humane Society of the United States and the ASPCA ® (The American Society for the Prevention of Cruelty to Animals), at the request of the United States Attorney's Office and the Federal Bureau of Investigation, assisted in seizing 367 dogs in coordinated raids across Alabama, Mississippi and Georgia. Thirteen people have been arrested as a result of these raids and trial is scheduled for May 2014.
The federal Animal Fighting Spectator Prohibition Act had the bi-partisan support of Congress and was enacted into law as part of the Farm Bill in February. Since 2002, the federal law on animal fighting has been upgraded four times.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Army Corps of Engineers Employee Charged with Bribery of a Public OfficialRead the Press Release
Montgomery, Alabama - A former employee of the United States Army Corps of Engineers made his initial appearance in federal court Wednesday, March 5, 2014, after being indicted by a grand jury for bribery of a public official, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to the indictment, Dennis Fails, Jr., 55, of Mobile, Ala., solicited a bribe from Kenneth Hornsby, the President and Chief Executive Officer of HCS Group P.C., a firm located in Montgomery, Ala. HCS Group was contracted with the United States Army Corps of Engineers to perform work in Peru. It is alleged that Fails instructed Hornsby to submit billing for nearly $25,000 worth of work that had not been performed. Fails would then ensure the bill was approved for payment and they would split the money between them. After being approached by Fails, Hornsby contacted law enforcement. At their direction, Hornsby submitted the billing which was certified by Fails. Fails later met Hornsby at a rest stop and received $12,000 in cash. Fails was then arrested.
An indictment merely alleges that a crime has been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum potential sentence of 15 years in prison. He will also be subject to a fine of up to $250,000.00 and mandatory restitution if convicted. A trial date for Mr. Fails has not yet been scheduled.
This case was investigated by Special Agents with the United States Army Criminal Investigative Command and the Department of Defense Criminal Investigative Service. Assistant United States Attorney Kevin Davidson is prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Two Plead Guilty to Wire and Mail Fraud in A Debt Elimination SchemeRead the Press Release
Montgomery, Alabama - Bradford Lamar Daley, of Phenix City, Alabama, and Terril Yarham, of Missouri, pled guilty before United States Magistrate Judge Charles S. Coody, for engaging in a conspiracy to commit wire fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Daley also pled guilty to money laundering and tax fraud.
According to court documents, between 2005 and 2011, Daley and Yarham solicited individuals who were heavily burdened by debt to pay them between $2500 and $5000 for debt elimination services. In exchange for the payment, Yarham promised to assume and eliminate the victims’ unsecured debt, including credit card debt, signature loans, business loans, student loans and personal loans. These debts were not eliminated as promised. During the course of this conspiracy, records show that Daley and Yarham profited over $5 million dollars. As part of the plea agreement, Daley agreed to forfeit to the United States over $5 million dollars, a beach house in Florida, almost 40 acres of land in Georgia, vehicles, and two UPS stores located in Georgia.
“Since our founding in 1772, postal inspectors have sought to ensure the U.S. Mail is not used for illegal gain,” said Robert Wemyss, United States Postal Inspector in Charge, Houston Division. “When criminals use the mail to commit fraud, postal inspectors will not hesitate to ensure they are brought to justice.”
"Daley exploited unsuspecting individuals by perpetrating a scheme that was based entirely on lies," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. "In addition, Mr. Daley concealed the income and failed to pay taxes on the income. IRS Criminal Investigation is committed to addressing financial fraud at every level and is proud to have worked with our law enforcement partners in this case."
“I want to thank the U.S. Postal Inspection Service and the IRS for their tireless work on this case,” stated George L. Beck, U.S. Attorney. “This district is lucky to have such capable agencies protecting the victims of financial crimes. What these defendants did was deplorable and their pleading guilty is justice served.”
A sentencing date has not been set, but Daley and Yarham face a maximum sentence of 20 years in prison, five years supervised release and a fine of $250,000.
The case was investigated by the Inspectors at the United States Postal Inspection Service and the Special Agents of the IRS - Criminal Investigation. U.S. Attorney George L. Beck, Jr. and Assistant U.S. Attorney Donald Valeska are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Fort Benning Employee Steals Military Identities to Commit a Multi-Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - Tracy Mitchell, of Phenix City, Alabama, was indicted by a federal grand jury for her involvement in a stolen identity refund fraud scheme, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division.
Mitchell was charged with several counts of wire fraud and aggravated identity theft. According to the indictment, Mitchell worked at the hospital at Fort Benning, Georgia. As a hospital employee, Mitchell had access to the identification data of military personnel, including soldiers who were deployed to Iraq and Afghanistan. Mitchell stole these service member’s identities and used their information to file false tax returns. Mitchell filed over 1,000 false returns claiming over $2.2 million from her home in Phenix City, Alabama. During the investigation, federal agents executed a search warrant at Mitchell’s residence in Phenix City and found over $300,000 in cash stored in a safe.
“Identity theft is a horrible crime, but stealing identities from those who are serving our country is absolutely deplorable,” stated U.S. Attorney Beck. “While the defendant is presumed innocent, my office will vigorously prosecute those who prey on our military.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum potential sentence of 20 years in prison for each wire fraud count and a mandatory two-year sentence for the aggravated identity theft counts. The defendant is also subject to fines, forfeiture, and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the United States Army – Criminal Investigation Division. Trial Attorney Michael Boteler of the Department's Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Four Montgomery Residents Sentenced for Conspiracy to Defraud the United States Department of EducationRead the Press Release
Montgomery, Alabama - On February 21, 2014, Bobbie Jean Chilsom, Shawn A. Johnson, Sharon Johnson, and Sara Chilsom, all from Montgomery, were sentenced by United States District Judge Myron S. Thompson for their involvement in a conspiracy to defraud the United States Department of Education, and various colleges and universities of financial aid money, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama.
Bobbie Chilsom was sentenced to 24 months of imprisonment followed by three years supervised release for mail fraud and was ordered to pay $276,734.27 in restitution. Shawn A. Johnson was sentenced to five years of probation, 12 months home confinement, and 10 weekends in jail for mail fraud, and was ordered to pay $222,068.41 in restitution. For her role in the conspiracy, Sharon Johnson was sentenced to five years of probation, 12 months home confinement, and 3 weekends in jail for conspiracy to commit to defraud the United States. She was also ordered to pay $397,963.22 in restitution. Finally, Sara Chilsom was sentenced to three years of probation for mail fraud and was also ordered to pay $10,845 in restitution.
As a part of this conspiracy, from September 2008, to September 2012, the defendants defrauded the United States Department of Education and colleges and universities of approximately $1,152,994 in Federal Student Assistance (FSA) money. FSA must be used by a student for tuition, fees charged by the institution, books, supplies, transportation, or other educational and living expenses.
The defendants, as well as other individuals they recruited for the scheme, applied for financial aid despite not having a high school diploma or a general education development (GED) certificate. To enable admission to the schools, a false diploma or GED certificate was provided during the enrollment process. As a result of the fraudulent applications for financial aid, the Department of Education paid tuition, enrollment fees, and living expenses for the defendants and other individuals that were not lawful.
Afterwards, the recruited individuals would pay the leaders of the conspiracy a percentage of the funds reserved for living expenses by mailing them debit refund cards or debit refund checks. Evidence further showed that the defendants or the recruited individuals would either not attend or would minimally attend their courses, and would minimally participate in completing or would not complete their course work. Ultimately, the financial aid funds they received were used for non-educational purposes such as the purchase of personal items or to pay for personal expenses.
Including the four defendants sentenced on February 21, 2014, a total of thirteen defendants were involved in this conspiracy. Previously sentenced were, Telvin Brown, Sunquesha Gaston, Philanthia Roberts, Printice Johnson, Shirley Johnson, Samuella McMillian, Edmond Lewis Harris, Jr., and Richard Jamar Pinkston, Jr. for mail fraud. Dennis Coleman was sentenced for conspiring to defraud the United States. All defendants are from Montgomery.
The case was investigated by the Department of Education-Office of Inspector General, the United States Secret Service, and the FBI. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Alabama Bank Employee Sentenced to Prison for Role in Tax Refund FraudRead the Press Release
Montgomery, Alabama - LaQuanta Clayton, a resident of Montgomery, Ala., and a former bank teller employed by the Community Bank and Trust, was sentenced on February 19, 2014 to serve 21 months in prison to be followed by three years of supervised release for participating in a fraudulent tax refund scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Clayton previously pleaded guilty to theft of government property in July 2013.
According to court documents and statements made in open court, Clayton used her position as a bank teller to open bank accounts in the name of another individual without his knowledge and bank accounts in the name of fictitious individuals for the purpose of receiving fraudulent tax refunds. It is further alleged that Tarrish Tellis, also from Montgomery, directed Clayton to open multiple bank accounts in order to receive electronic deposits of fraudulent tax refunds. Clayton would facilitate the withdrawal of this money and would give the money deposited into these accounts to Tellis and other individuals involved in the scheme. A final disposition concerning Mr. Tellis’ involvement in this case is still pending.
Clayton opened a total of at least five bank accounts at Community Bank and Trust, which she used to receive fraudulent tax refunds. Approximately $452,225 in fraudulent tax refunds were directed to be deposited into these accounts and the Internal Revenue Service (IRS) paid approximately $185,730 in fraudulent refunds, which were deposited into accounts Clayton opened and controlled. At her sentencing, Clayton was also ordered to pay restitution in this amount.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar, Jr. of the Justice Department’s Tax Division, and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617