Middle District of Alabama
Press releases recorded for this federal judicial district.
U.S. Postal Service Mail Carrier Convicted for Involvement with Stolen Identity Refund Fraud ConspiracyRead the Press Release
Montgomery, Alabama - On July 3, 2013, a jury found Vernon Harrison, of Montgomery, Ala., guilty of one count of conspiring to file false claims, eight counts of mail fraud, eight counts of aggravated identity theft and six counts of embezzlement from the U.S. mail, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to the evidence presented at the trial, Harrison was a U.S. Postal Service mail carrier who was part of a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns from various locations, including houses and hotels around Birmingham, Ala. and Montgomery. They then had the fraudulently obtained tax refunds generated by those returns sent to debit cards which were subsequently mailed to addresses on Harrison’s postal route in Montgomery. In exchange for cash, Harrison stole the debit cards from the mail and provided them to a co-conspirator. Harrison stole, at a minimum, over 100 debit cards from the mail for his co-conspirators.
As was shown at trial, federal agents uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham, including over a hundred envelopes for debit cards that had been mailed to addresses on Harrison’s postal route. Soon after, agents also conducted surveillance on Harrison and observed him failing to deliver Turbo Tax cards that were in the mail.
“We trust our mail carriers to deliver, not steal our mail,” stated U.S. Attorney Beck. “Harrison abused that trust. Harrison and his criminal organization not only stole innocent people’s identities, filed fraudulent tax returns and received tax refunds not owed to them, but they used Harrison’s position as a mail carrier to steal these debit cards from the mail. This criminal behavior will not be tolerated and will be prosecuted to the fullest extent of the law.”
Harrison faces up to 10 years in prison for the conspiracy count, 20 years for each mail fraud count, five years for each mail embezzlement count, and a mandatory two-year sentence for the aggravated identity theft counts. In total, Harrison could be sentenced to up to 216 years in prison. Harrison also could be subject to fines, forfeiture, and mandatory restitution.
U.S. Attorney Beck commended the efforts of special agents of IRS - Criminal Investigation and the U.S. Postal Service, OIG, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case.
Additional information about the Justice Department’s 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) 223-7617Debt Collection Employee and Son-In-Law Convicted of Sophisticated Identity Theft SchemeRead the Press Release
Montgomery, Alabama - Quentin Collick and Deatrice Williams were each found guilty this week of one count of conspiring to defraud the United States by filing fraudulent federal income tax returns, three counts of wire fraud, and three counts of aggravated identity theft, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Collick was also convicted of three counts of theft of public money.
Based upon the evidence introduced at trial and court filings, Williams worked for a debt collection company located in Norcross, Georgia. As an employee, Williams had access to names, social security numbers, and dates of birth of individuals who owed medical debts. Williams accessed several files and handwrote the personal information. Williams provided the stolen information to Collick.
Collick and his co-conspirator, Corey Thompson, filed the false tax returns. Corey Thompson previously pleaded guilty and was sentenced to 30 months in jail. In 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access for customers. In order to perpetrate the conspiracy, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down and hijack his customers’ internet service. Thompson and Collick then filed false tax returns using the customers’ hijacked internet address, which made it appear as if the false tax returns were being filed by the customer. Thompson and Collick directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the United States Postal Service.
“These criminals not only stole innocent people’s identities, but used innocent victims’ internet service to continue this crime,” stated U.S. Attorney Beck. “Taking advantage of innocent victims will not be tolerated. Our office will continue to work to obtain justice for all victims.”
Collick and Williams currently await sentencing. Collick faces a maximum prison term of 106 years, and Williams faces a maximum prison term of 76 years.
This case was investigated by the IRS - Criminal Investigation Division and prosecuted by Tax Division Trial Attorneys Michael Boteler, Jason H. Poole and Alexander Effendi.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Corrections Officer Convicted of Federal Civil Rights Offenses and Obstruction of Justice for Beating Death of an Inmate at Ventress Correctional FacilityRead the Press Release
Montgomery, Alabama - Michael Smith, 38, a former corrections officer of the Alabama Department of Corrections and resident of Lee County, was convicted by a federal jury in the United States District Court for the Middle District of Alabama of two civil rights violations and five obstruction of justice-related violations in connection with the beating death of former inmate Rocrast Mack, United States Attorney George L. Beck, Jr., announced today.
On August 4, 2010, Smith, a lieutenant with supervisory authority over other officers on his shift, repeatedly beat Mack with a baton and stomped on Mack’s head while Mack was restrained and could not fight back. Mack died from his injuries the next day at a Montgomery, Alabama, hospital. The incident occurred at Ventress Correctional Facility in Clayton, Alabama. The jury found that Mack’s death resulted from the assaults and that Smith obstructed justice by trying to cover up the assaults. After Smith was found guilty, U.S. District Judge Myron H. Thompson remanded Smith to jail pending his sentencing.
Two former corrections officers have already pleaded guilty for their role in the assaults. Scottie Glenn pleaded guilty on November 18, 2011, to one count of violating the civil rights of Mack for his role in the beating incident and to one count of conspiring with other corrections officers to cover up the beatings. Matthew Davidson pleaded guilty on January 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings. Both Davidson and Glenn are scheduled to be sentenced on July 30, 2013. A third former corrections officer, Joseph Sanders, is scheduled for trial on July 8, 2013.
Smith’s sentencing hearing before U.S. District Judge Myron H. Thompson is yet to be scheduled. Smith faces a maximum potential penalty of life in prison.
“The majority of our correction officers are dedicated to protecting and serving the public. Sadly, Smith was not so dedicated,” said U.S. Attorney for the Middle District of Alabama, George L. Beck, Jr. “Smith savagely beat and stomped a restrained man. There is no excuse for such behavior. I hope that the verdict handed down today brings some sense of justice to the victim’s family and reinforces the notion that no one is above the law.”
“This investigation represents the FBI’s unwavering commitment to protect all citizens from those who violate and abuse their positions of trust,” stated Stephen F. Richardson, FBI Special Agent in Charge, Mobile Division. “Public servants are bound by their oath to serve and protect our communities and any violation of a person’s civil rights will be met with severe consequences.”
This case was investigated by the Federal Bureau of Investigation, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the U.S. Attorney’s Office for the Middle District of Alabama and Trial Attorney Patricia Sumner of the U.S. Department of Justice’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761710 People from the River Region Receive Large Sentences for Their Part in A Drug Trafficking OrganizationRead the Press Release
Montgomery, Alabama - Ten people were sentenced last week for their participation in a drug trafficking organization operating in Autauga, Elmore and Montgomery Counties, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. United States District Judge Keith Watkins sentenced the ten people after they were either convicted following a 2 ½ week trial in February 2013, or plea of guilty.
Evidence in this case showed that this drug trafficking organization was very sophisticated and sold many kilograms of powder cocaine. This large drug organization started with two smaller drug trafficking organizations that joined forces to saturate Autauga, Elmore and Montgomery counties with cocaine. According to the evidence, Mr. Willie Jerome Davis had at least $500,000 of illicit assets, including real and personal property. After establishing that Davis had very limited legitimate income, the jury was allowed to infer that his “wealth” came from illicit activity – drug trafficking.
The sentences for the ten are:
- Delmond Lemar Bledson, a.k.a “Two Face”, age 38 of Deatsville, Alabama was sentenced to 188 months imprisonment. Bledson was convicted of conspiracy and possession with intent to distribute cocaine hydrochloride in violation of Title 21 United States Code, Sections 841 and 846;
- Willie Jerome Davis, a.k.a “Moby” age 52 of Elmore, Alabama was sentenced to life imprisonment. Davis was convicted of conspiring to distribute cocaine hydrochloride, use of a communication facility to further the cocaine conspiracy and money laundering in violation of Title 21 United States Code, Sections 841, 846, 843(b) and Title 18 United States Code, Section 1956(a)(1)(B)(ii);
- Eulanda Lashade Trimble, a.k.a “Yo Yo” age 33 of Montgomery, Alabama was sentenced to 15 months imprisonment. Trimble was convicted of conspiring to distribute cocaine hydrochloride and use of a communication facility to further the cocaine conspiracy in violation of Title 21 United States Code, Sections 841, 846 and 843(b);
- Willie James Walker, a.k.a “Nicodemus”, age 60 of Montgomery, Alabama was sentenced to was sentenced to 72 months imprisonment. Walker was convicted of conspiring to distribute cocaine hydrochloride in violation of Title 21 United States Code, Sections 841 and 846;
- Clifton Pettus, a.k.a “Biscuit” age 33 of Montgomery, Alabama was sentenced to 188 months imprisonment. Pettus was convicted of conspiring to distribute cocaine hydrochloride and use of a communication facility to further the cocaine conspiracy in violation Title 21 United States Code, Sections 841, 846 and 843(b);
- Robert Marshall, a.k.a “Big Daddy” age 39 of Montgomery, Alabama was sentenced to 300 months imprisonment. Marshall was convicted of conspiring to distribute cocaine hydrochloride and use of a communication facility to further the cocaine conspiracy in violation Title 21 United States Code, Sections 841, 846 and 843(b);
- Tony Gardner, a.k.a “Rock” age 41 of Millbrook, Alabama was sentenced to 78 months imprisonment. Gardner was convicted of conspiring to distribute cocaine hydrochloride in violation of Title 21 United States Code, Sections 841 and 846;
- William James Reese, age 38 of Deatsville, Alabama was sentenced to 360 months imprisonment. William Reese was convicted of conspiring to distribute cocaine hydrochloride and use of a communication facility to further the cocaine conspiracy in violation Title 21 United States Code, Sections 841, 846 and 843(b);
- Eric Orlando Reese, age 38 of Montgomery, Alabama was sentenced to 240 months imprisonment. Eric Reese was convicted of conspiring to distribute cocaine hydrochloride and use of a communication facility to further the cocaine conspiracy in violation Title 21 United States Code, Sections 841, 846 and 843(b);
- Ger Derrick Moncrief, age 39 of Montgomery, Alabama was sentenced to 108 months imprisonment. Moncrief was convicted of conspiracy and possession with intent to distribute cocaine hydrochloride in violation of Title 21 United States Code, Sections 841 and 846;
“These long sentences should send a message: If you sell drugs in the Middle District of Alabama, you will go to jail and you will go to jail for a long time,” stated U.S. Attorney George L. Beck, Jr. “With the sentencing of these defendants, our community is a safer place to live.”
“The impact of this investigation, the lengthy prison sentences imposed and the collaborative efforts of our law enforcement colleagues should send a clear message that drug trafficking will not be tolerated in our communities, stated Clay Morris, DEA Resident Agent in Charge. “The combined efforts of law enforcement have removed a well-established drug trafficking organization from our neighborhoods and has made our communities a safer place for our children.”
This case was investigated by the Drug Enforcement Administration in Montgomery, with the assistance from DEA Atlanta, DEA New York, Montgomery HIDTA Task Force, Federal Bureau of Investigation, U.S. Marshal Service, Central Alabama Drug Task Force, Office of the Attorney General, Elmore County Sherriff's Office, Wetumpka Police Department, Montgomery Police Department, Millbrook Police Department, Montgomery County Sherriff's Office, Prattville Police Department, Autauga County Sherriff's Office, Alabama State Troopers, Alabama Beverage Control, Alabama Bureau of Investigation, Chilton County Sherriff's Office, and the Alabama National Guard.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Postal Shooter Pleads Guilty to Using A Gun to Attempt to Assault Two Postal EmployeesRead the Press Release
Montgomery, Alabama - Arthur Lee Darby, Jr., 30, of Montgomery, pled guilty yesterday to attempted assault of two postal employees with a gun, discharging a gun during a crime of violence, and possession of a firearm in a federal facility, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
On December 1, 2011, at approximately 6:30 p.m., Darby, a part-time mail handler at the Main Post Office located at 6701 Winton Blount Boulevard in Montgomery went to work and opened fire on two postal employees. Fortunately, no one was shot.
“Our community will not stand for someone coming into a public place, including a post office, and shooting a gun around innocent people,” stated U.S. Attorney, George L. Beck, Jr.. “People have the right to be safe in their workplace and this man endangered the lives of all of the postal workers who were simply doing their jobs. My office will continue to work hard to keep those criminals who endanger people’s lives off of our streets.”
“One of the key tenets of the Postal Inspection Service’s mission is to provide a safe working environment for Postal Service employees through its criminal investigative efforts,” stated Keith Morris, Postal Inspector in Charge of the Atlanta Division. “This case demonstrates that workplace violence can occur anywhere and at any time. We are extremely fortunate that this incident did not end in tragedy for one or more of our employees, despite the true intentions of Mr. Darby. Yesterday’s guilty plea is yet another testament to the dedication that the Postal Inspection Service, the U.S. Attorney’s Office, and our local law enforcement partners have to ensuring that the Postal Service and its employees are free from violence.”
A sentencing date has yet to be set. However, Darby faces a possible sentence of life in prison when sentenced.
This case was investigated by the United States Postal Service and the Montgomery Police Department. This case was prosecuted by Assistant U.S. Attorney Susan Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Houston, Texas Area Men Convicted in $68 Million FraudRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, announced today that:
- Steven P. Mock, age 69, of Houston, Texas, and Frank J. Teers, age 50, of Montgomery, Texas, were convicted on June 4, 2013 of federal conspiracy, wire fraud, and bank fraud charges after a two-week jury trial.
- Paul Hulse, Sr., age 65, of Kingwood, Texas, pled guilty to an information charging interstate transportation of property obtained by fraud.
The recent convictions of Hulse Sr., Mock, and Teers follow the June 5, 2012 guilty plea of Paul Hulse, Jr. to an information charging conspiracy to make a false statement to a bank.
According to court filings, Paul Hulse, Sr. (“Hulse”) was a director of H&H Worldwide Financial Service, Inc., Paul Hulse, Jr. (“Hulse Jr.”) was H&H’s president, Steven P. Mock was an attorney in the Houston area, and Frank J. Teers was a bond broker employed by Tri-Star Financial Services in Houston. Beginning in 2003, Hulse began soliciting various persons and businesses for loans based on the false representation that he controlled a large portfolio of bonds—the amount ranged from tens to hundreds of millions of dollars—that could be used as collateral for the loans. Mock and Teers made false statements to the prospective lenders that supported Hulse’s claim that he owned a substantial bond portfolio. In fact, Hulse did not have a bond portfolio. None of the solicited institutions, which included Western National Bank of Midland, Texas, MetLife, UBS Securities, and Jefferies and Co. agreed to make a loan to Hulse or H&H.
In February 2005, Hulse began soliciting loans from the Federal Land Bank of South Alabama (the “Bank”) in Montgomery, Alabama. During the course of the discussions:
- Hulse falsely represented that he had a large bond portfolio that could serve as collateral for the loans to H&H and submitted documents that concealed Hulse’s plan to use approximately half the loan proceeds to purchase the bonds that were going to serve as collateral for the loans.
- Mock falsely claimed that he was Hulse’s “senior trust officer” and that the “trust agreements” permitted the use of $15 million of trust bonds in connection with the proposed loan.
- Teers falsely represented that he managed a significant bond portfolio for Hulse, provided documents to Hulse that Hulse used to support his claim of ownership, signed documents that represented that bonds were on account at Tri-Star, and failed to disclose to the Bank and to Tri-Star that he had been interviewed by IRS criminal investigators about Hulse’s fraudulent activities.
The Bank made two loans to H&H totaling $68.5 million in August and December 2005. H&H used more than half the money to buy the bonds that were to serve as collateral for the loan. A significant amount of the loan proceeds were used for the personal benefit of Mock, Hulse, and members of the Hulse family. Teers made more than $600,000 in commissions from the buying and selling of bonds on behalf of H&H. By Spring of 2007, the relationship between H&H and the Bank had deteriorated. In an effort to convince the Bank to allow the principal of the bonds to be used to make the quarterly loan payment, on June 28, 2007, Mock, Hulse, and Hulse Jr. sent a letter to the Bank that (a) falsely claimed that H&H was on the “doorstep” of obtaining a loan from Wells Fargo that would allow the Bank to be paid in full, and (b) described how the loan proceeds had been used without disclosing the fact that more than half the loan proceeds had been used to buy the bond collateral.
“Protecting the people who entrust their money in our banks, credit unions and other financial institutions is essential to a healthy economy,” stated U.S. Attorney George L. Beck, Jr.. “My office will continue work diligently to protect the people who entrust their money to these banks and credit unions. Those criminals who commit frauds and attempt to commit frauds on the banks in the State of Alabama will be prosecuted to the fullest extent of the law.”
“The FBI will continue to ensure that those in a fiduciary position who solicit and handle other people’s money exercise their duties based on legal parameters and obligations, not fraudulently with an intent to illegally profit from their illegal schemes and deceit,” stated Stephen Richardson, FBI Special Agent in Charge, Mobile Field Division.
Mock and Teers face a statutory maximum sentence of 30 years imprisonment per count. Hulse Sr. faces a maximum prison sentence of 10 years; Hulse Jr. faces up to five years. Hulse Jr.’s sentencing is set for August 6, 2013. Sentencing for Mock, Teers, and Hulse Sr. has been scheduled for August 21, 2013.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorneys Andrew O. Schiff and Denise O. Simpson. Assistance was also provided by the Internal Revenue Service, Criminal Investigations in Houston, Texas.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Employee Pleads Guilty to Providing Names for A Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - On May 30, 2013, Lea’Tice Phillips pleaded guilty to one count of wire fraud and one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, announced United States Attorney George L. Beck, Jr.
According to the court documents, Lea’Tice Phillips worked for an Alabama State agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Lea’Tice Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery, Alabama. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. The Defendants recruited individuals to purchase prepaid debit cards and to provide the cards to the Defendant and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
Sentencing has not yet been scheduled. Phillips faces between two and twenty-two years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Djonret was previously sentenced to 144 months in prison.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Woman Pleads Sentenced to 10 Years in Prison for Identity Fraud – Tax Refund ScamRead the Press Release
Montgomery, Alabama - Rhashema Deramus, 23 of Montgomery, Alabama was sentenced today to 10 years in prison for her part in an identity theft/tax refund scam, announced U.S. Attorney George L. Beck, Jr.. Deramus and those working for her stole people’s identities and used those stolen identities to file fraudulent tax returns and obtain tax refunds that were not owed to them. As part of her sentence, United States District Judge Mark E. Fuller ordered Deramus to pay $1,198,063 in restitution.
On August 29, 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. Deramus was the leader of a ring of individuals who stole people’s names, dates of birth and social security numbers. 881 of these identities were stolen from the Troy Regional Medical Center. Deramus used these stolen information to file fraudulent tax returns. Deramus then directed the fraudulently-obtained tax refunds generated from these tax filings to be placed on pre-paid debit cards. Deramus, and others at her direction, took those debit cards and cashed them out at various ATMs. When she received the money from the tax refunds, she spent it on herself; admitting that her sole source of income during this period was illegally obtained tax refunds.
In March 2011, as a result of numerous suspicious withdrawals from local ATMs, law enforcement agents ultimately identified a vehicle associated with those withdrawals. During a traffic stop of that vehicle, which was occupied Rhashema Deramus and two other members of her ring and which had been stolen, officers found 165 prepaid debit cards issued in other people’s names. Other items, including a computer, containing stolen personal identifying information were also located in the vehicle. Agents then obtained a search warrant for Deramus’ residence and during the execution of that warrant, agents located 276 more debit cards, computers, and thousands of pieces of personal information belonging to other people. Later, in November 2011, agents discovered another 88 prepaid debit cards in Deramus’ possession. Ultimately, the investigation revealed Deramus’ ring possessed, at a minimum, 520 prepaid debit cards, on which $1,198,063 in fraudulently-obtained tax refunds had been placed, and over 7,000 stolen names and personal identifiers of other people.
At the sentencing hearing, one of the victims, testified that he lost his defense contracting job, making around $100,000 a year, as a result of financial problems from the theft and misuse of his personal information. Items containing his personal information were located during the execution of the search warrant at Deramus’ residence, along with thousands of other stolen identities. This victim’s financial issues severely impacted his credit and as a result his security clearance was suspended, and later revoked. Because his security clearance was suspended, he lost his job as a defense contractor. Further, as a member of the Air National Guard, his military duties and hours have been scaled back because of his security clearance issues. He now works at a fast food restaurant and teaches computer classes part-time at a technical college. The lack of income has severely affected his family; for example, his wife had to quit nursing school. His children have also suffered from these financial problems. Two Montgomery County Sheriff’s Office employees also testified that they had been financially impacted by the theft and use of the personal information of their children.
Additionally, the Chief Executive Officer (CEO) of Troy Regional Medical Center testified at Deramus’ sentencing hearing. She told the Court that a contract employee, Angeline Austin, had access to all of Troy Medical Center’s patients’ information. Austin was a member of Deramus’ ring and was sentenced earlier this year to 65 months in federal prison for stealing personal information of Troy Medical Center patients and providing them to Deramus and her ring. The CEO further explained to Judge Fuller that Troy Medical Center has been operating at a loss for years and that the hospital was very concerned that it may be fined over $1.5 million dollars for violations of Federal and State of Alabama health care privacy laws stemming from Austin stealing the patients’ identities and providing them for use by Deramus’ ring. This fine could severely impact the capability to operate the only hospital in Troy.
“This sentence show the government’s commitment to stopping those criminals who attempt to profit from stealing people’s identity,” stated U.S. Attorney Beck. “In order to stop these scammers, we must all work together to protect the identities, to investigate those that steal the identities and to vigorously prosecute those scammers. This office will not let up on these thieves. We will continue to vigorous prosecute them to the fullest extent of the law.”
“The sentencing of Ms. Deramus is the result of a concerted effort by the U.S. Attorney’s Office, the Internal Revenue Service Criminal Investigative Division, Local and State law enforcement and the U.S. Secret Service to vigorously investigate and prosecute federal tax fraud involving identity theft, stated Clayton Slay, Resident Agent in Charge of the U.S. Secret Service in Montgomery, Alabama. “Deramus was the mastermind behind this scheme which not only costs the U.S. Government, but also local retailers and business who negotiated the fraudulently obtained checks, over 1.5 million dollars . The biggest tragedy though are the approximately 7,000 victims whose lives have been turned upside down through the theft of their personal identifiers and the effect it has on their credit history and ability to file a legitimate tax return. Hopefully, the sentencing of Deramus and other defendants in this case will serve as a warning sign to other individuals involved in any type of identity theft. The U.S. Secret Service, along with the IRS criminal investigators, will remain proactive in the investigation of individuals and groups associated with these types of crimes.”
"This sentence is a message to others that there are consequences for stealing and using other individual's personal identifying information”, stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. "Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers."
This case was investigated by the United States Secret Service, Internal Revenue Service, and the Montgomery Police Department, with the help of the United States Marshal’s Service. Assistant United States Attorney Todd Brown prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Man Pleads Guilty for Involvement in A Large Scale Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - Glenn Powell, Jr., pleaded guilty yesterday in the Middle District of Alabama to his role in a large scale stolen identity refund fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
On April 17, 2013, a federal grand jury in Montgomery, indicted Powell on conspiracy and theft of government money charges. According to court documents, Powell opened two bank accounts on which he was the only authorized signer. Between August 2009 and February 2011, at least 49 false federal income tax refunds totaling approximately $95,926 were directed to Powell’s bank accounts. Powell was able to withdraw approximately $46,423.71 in false tax refunds before the IRS stopped him. The overall scheme Powell participated in is alleged to have involved over $500,000 in false refunds.
As a result of his plea, Powell faces a maximum potential sentence of 10 years in prison. This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Women Receives Four Years in Prison in A Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Larreka Jackson was sentenced to 48 months in prison for her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Jackson was also ordered to pay restitution in the amount of $721,519.12. In January 2013, Jackson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
On August 15, 2012, a federal grand jury in Montgomery returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to court documents, Jackson and Chiquanta Davis operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson and Davis used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson and Davis unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.
Chiquanta Davis was previously sentenced to 66 months in prison for her role in the conspiracy.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler 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 justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Elmore County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Montgomery, Alabama - Joshua Ray Parton, age 25, of Elmore County, Alabama, was sentenced on Friday, May 10, 2013, to serve 30 years in federal prison for producing child pornography, U.S. Attorney George L. Beck, Jr., announced. Between 2007 and 2012, Parton raped two minor boys—a twelve-year-old and a nine-year-old—on multiple occasions, using his cell phone camera to capture images of his molestation of the children. Statements by the families of the victims reflected the severe and long-lasting suffering that the children had been through and continued to cope with. In handing down the 30-year prison sentence, Judge Myron Thompson noted the immeasurable trauma that Parton’s actions had wreaked in the lives of his child victims and their families.
“The actions of this defendant were revolting and despicable,” said United States Attorney George L. Beck, Jr. “We hope that this sentence will send a message to others who would prey upon children. We will not tolerate it and they will be prosecuted to the full extent of the law.”
“Sadly, but unfortunately true, these types of sexual assaults continue to plague not only our county, but other locations across the country,” stated Elmore County Sheriff Bill Franklin. “Hopefully, Mr. Parton will have an opportunity to reflect on the behavior he has exhibited while in jail, which I believe everyone hopes is a significant amount of time.”
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc. For more information about internet safety education, please visit justice.gov/psc/resources.
This case was investigated by the Alabama Bureau of Investigation and the Elmore County Sheriff’s Office with the assistance of the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Jared H. Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Prattville Man Defrauds Air ForceRead the Press Release
Montgomery, Alabama - James Robert Whitaker, 60, of Prattville, Alabama was sentenced today to 5 years’ probation, $5,000 fine; and $90,356.00 restitution, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Whitaker was a retired Air Force Officer and a civil service employee, of Prattville, Alabama.
On October 16, 2012, Whitaker pled guilty to one count of participating in an act which affected a personal financial interest. Whitaker, while working at the Air Force Legal Operating Agency, directed Air Force JAG officers to stay at local hotels at a higher monetary rate, when housing was available on Maxwell Air Force Base at a much lower rate. As a result, Whitaker received a total of 587,282 Marriott reward points. Whitaker also received an additional 100,000 reward points for other room arrangements. The U.S. Air Force suffered a loss of $90,356.00.
According to U.S. Attorney Beck, “The law is in place to ensure proper handling of government funds and prevent government employees from making transactions based on benefitting themselves instead of the government. My office will prosecute those who use their position with the government to profit illegally.”
This case was investigated by the Air Force Office of Special Investigations at Maxwell Air Force Base, Alabama and prosecuted by Assistant U.S. Attorney Don Valeska.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617State of Alabama Employee Pleads Guilty to Providing Names in A Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - On May 7, 2013, Chequila Motley pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft for her role in an identity theft tax refund scheme, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, Motley was an employee of an Alabama state government agency and as part of her employment had access to databases containing personal identification information. In August 2011, Motley conspired with Veronica Temple and Yolanda Moses to provide them with means of identification for use in the filing of false tax returns in exchange for money.
Sentencing has not yet been scheduled. Motley faces between two and twelve years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Veronica Temple and Yolanda Moses already pleaded guilty to various charges and each was sentenced to 57 months in prison.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States 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) 223-7617Internet Installer Who Hijacked Customer’s Internet to Steal People’s Identities in Order to File False Taxes Gets 30 Months in PrisonRead the Press Release
Montgomery, Alabama - Corey Thompson was sentenced yesterday to30 months in prison for his involvement in a sophisticated stolen identity refund fraud conspiracy, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. In July 2012, Thompson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
According to court documents from the first case, in January 2012, Corey Thompson and his co-conspirators filed at least 27 fraudulent 2011 tax returns that requested a total of $91,304 in refunds. Thompson and his co-conspirators obtained the means of identification from a prison guard and from an employee at a debt collection agency.
Court documents also state that in 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access. While installing cable and internet service at people’s houses, Thompson hijacked the internet service of customers for whom he had performed work. From his home, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down the customer’s internet and then take over that customer’s internet. Thompson would then file false tax returns using the hijacked internet which made it appear as if the false tax returns were being filed by the customer. Thompson directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the United States Postal Service.
The case was investigated by Special Agents of the IRS - Criminal Investigation and Postal Inspectors of the United States Postal Service. Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler of the Justice Department's Tax Division and Assistant United States Attorney Jared Morris prosecuted 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) 223-7617Alabama Man Indicted for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - Clarence Donya Hicks was arraigned today on a federal indictment charging him with using stolen identities to file false federal income tax returns, the Justice Department and the Internal Revenue Service (IRS) announced. The indictment, which was returned by a federal grand jury on January 20, 2012, was unsealed following Hicks’s arrest in California after which he was ordered detained by a federal court and transferred to Alabama. In Alabama, Hicks faces charges of filing false claims, wire fraud, aggravated identity theft, and lying to federal agents.
According to the indictment, from 2009 until 2010, Hicks filed false tax returns using stolen identities. In 2010, he lied to federal agents about working with another individual to file tax returns and allowing that person to file tax returns using the same tax filing number that Hicks was using.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Hicks faces a potential maximum sentence of five years imprisonment for each false claims count, 20 years in prison for each wire fraud count, and a mandatory two-year sentence for each aggravated identity theft count. He also faces up to five years in prison for making false statements to federal agents and is subject to fines and mandatory restitution if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Justin Gelfand of the Justice Department’s Tax Division 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) 223-7617Alabama Women Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Alabama, returned an indictment charging Shatoubrioune Hare George, who is also known as “Tobie”, for conspiring to cash fraudulently obtained federal tax refund checks, the Department of Justice, United States Attorney George L. Beck, Jr., and the Internal Revenue Service (IRS) announced today. The 6-count indictment charges George with conspiracy to commit theft of public funds and with theft of public funds.
According to the indictment, George and others obtained U.S. Treasury tax refund checks that were issued due to the filing of fraudulent tax returns. George and others cashed seventy-seven fraudulently obtained U.S. Treasury tax refund checks that totaled approximately $137,016.24 by bringing them to a bank teller who worked for a bank in Wetumpka, Alabama.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, she faces 5 years imprisonment for the conspiracy count and faces 10 years imprisonment for each theft of public funds count. She is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Charles Edgar, Jr. and Michael Boteler of the United States Department of Justice, Tax Division, and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Resident Indicted in Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Bridgette Rivers, a resident of Montgomery, Ala., was indicted by a federal grand jury on charges of conspiracy and theft of government funds related to her participation in a scheme to use stolen identities to file fraudulent tax returns, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
According to the indictment, Rivers provided identity information to co-conspirators, who then used the stolen identities, among other identities, to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers is also alleged to have recruited another individual to provide her bank account information for use in the conspiracy. Fraudulently obtained tax refunds allegedly went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rivers faces a maximum potential sentence of 10 years in prison for the conspiracy charge and each theft of public funds charge. She would also be subject to fines and mandatory forfeiture and restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant United States Attorney Todd Brown.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Residents Indicted for Tax Refund FraudRead the Press Release
Montgomery, Alabama - Several residents of Montgomery, Ala., were indicted by a federal grand jury for their involvement in a conspiracy to receive fraudulent tax refunds into their bank accounts, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Tarrish Tellis, Bobby Joe Means, Delancy Tolliver, Tracey Montgomery, and Glenn Powell, Jr. were indicted on various charges, including conspiracy and theft of government money. Tarrish Tellis was also indicted on five counts of aggravated identity theft.
According to the indictment, Tarrish Tellis obtained the means of identification of individuals, including their names, dates of birth, and Social Security numbers for the purpose of filing false federal income tax returns. Bobby Joe Means, Delancy Tolliver, Tracey Montgomery, and Glenn Powell, Jr. provided Tellis with bank account numbers that were to receive the false federal income tax refunds. Tellis would then use the bank account numbers and means of identification to cause to be prepared and filed false federal income tax returns with the Internal Revenue Service. After the false refunds were deposited, Means, Tolliver, Montgomery, and Powell would withdraw the funds. The bank accounts received at least $500,000 in false tax refunds.
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 of the Defendants face a maximum potential sentence of 5 years in prison for the conspiracy charge, up to 10 years in prison on each theft of government funds charges. Tellis also faces a mandatory two-year sentence for the aggravated identity theft counts. They will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney's Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Man Indicted for Multi-Million Dollar Scheme to Useprisoner Identities to Obtain False Tax RefundsRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, AL, returned an indictment charging Harvey James for using stolen identities to file false tax returns, announce George L. Beck, Jr, U.S. Attorney for the Middle District of Alabama. The 34-count indictment charges James with mail fraud and aggravated identity theft.
According to the indictment, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file false federal and state tax refunds. James directed some of the false refunds to be sent to either prepaid debit cards or issued via check. He directed some of the prepaid debit cards and state tax refund checks to be mailed to various addresses on a U.S. Postal Service mail carrier’s route which was located in Montgomery, Alabama. Between 2010 and 2012, James and others filed over 2,000 federal and state income tax returns that claimed over $2.5 million in fraudulent tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces 20 years imprisonment for each mail fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the United States Department of Justice, Tax Division, and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Prescription Drug Take-Back to Be Held Saturday, April 27, 2013Read the Press Release
Montgomery, Alabama - Prescription Drug Take-Back Day will be held on Saturday, April 27, 2013, at locations throughout the State, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Clay Morris, Drug Enforcement Administration Assistant Special Agent in Charge for Alabama.
Alabamians will have the opportunity to turn in their old prescription drugs at drop-off sites throughout the State on Saturday, April 27. A list of collection sites is available online at the Drug Enforcement Administration (DEA) website, deadiversion.usdoj.gov, or citizens may inquire at their local police departments and sheriff’s offices. The DEA may also be contacted by calling the toll free number at 1-800-882-9539.
Prescription drug abuse has become an enormous problem in our society. According to the Partnership for a Drug Free America:
- 1 in 6 teenagers have used a prescription drug in order to get high or change their mood.
- Only 6 percent of parents of teens say they have a child who abused medicine. However, 10 percent of teens admit to misusing/abusing medicines in the past 6 months.
- Two thirds of teen who abuse pain relievers say they get them from family members and friends.
- Only 2 percent of parents of teens admit giving their child medication not prescribed for them. Yet 22 percent of teens say they were given a prescription medicine not meant for them by their parents.
- More Americans die from drug overdoses than in car crashes.
- One person dies every 19 minutes from a drug overdose in the Unites States.
- Opioid pain relievers are responsible for more overdose deaths than cocaine and heroin combined.
Clearly, this is an enormous problem for our youth as well our adult citizens. Keeping prescription drugs after they are no longer needed may entice a teen to try the drug. However, if you safely dispose of your medicine, you will keep it away from teens or others that may abuse the drugs. The Alabama Department of Public Health has cited prescription drug abuse as an emerging public health issue and the nation’s fastest-growing drug problem.
In addition to concerns of potential abuse or overdose, it is also important environmentally that medicines be disposed of in a proper manner rather than simply being thrown into garbage, flushed away, or poured down drains, as they could contaminate water supplies and cause an environmental hazard. Also, expired drugs may have lost their effectiveness and therefore no longer be a safe and adequate treatment for the conditions for which they were prescribed.
“This drug Take Back Day allows us to rid our medicine cabinets of these potentially lethal 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. “When the results of the five previous Take-Back Days were combined, the DEA, and its state, local, and tribal law-enforcement and community partners have removed 1,483,580 pounds (742.5 tons) of medication from circulation. This 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 that citizens can use to legally and safely dispose of these drugs.”
Each collection site will be supervised by a law enforcement officer because the program involves controlled substances.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Assistant U.S. Attorney Donald Valeska Receives Award for Service to Victims During National Crime Victims’ Rights WeekRead the Press Release
Montgomery, Alabama - Assistant U.S. Attorney Donald Valeska was honored for outstanding service to crime victims in an awards ceremony hosted by the Wiregrass Angel House V.O.C.A.L. on April 23, 2013, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. This award was presented to Assistant U.S. Attorney Valeska for his unwavering support and demonstrated commitment on behalf of children, victims and law enforcement.
This award was presented in conjunction with the observance of National Crime Victims’ Rights Week, April 21-27. This year’s theme, “New Challenges. New Solutions,” celebrates the spirit that will advance the progress these heroes achieved. It also captures the spirit and highlights the need for us to assist and serve each and every victim in need of hope and help.
“The U.S. Attorney’s Office is deeply committed to assisting victims of federal crimes, ensuring they are afforded their rights under the Crime Victims’ Rights Act, protecting them from further harm, and helping them reshape their futures,” said U.S. Attorney George Beck, Jr. “This week is a time to raise awareness about the rights and needs of crime victims, the challenges victims face in the recovery process, and the positive impact of those who provide services and support to victims.”
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The Middle District of Alabama has a dedicated Victim Witness Unit that serves federal crime victims across the District’s 23 counties. Members of this unit notify victims of significant case events through the Department of Justice’s (DOJ) Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. According to Department of Justice Statistics, in Fiscal Year (FY) 2012, the U.S. Attorneys’ offices provided notice of over 12.2 million case events, including notices regarding criminal charges filed, plea hearings, bond hearings and sentencing hearings.
Notification of significant case events leads to increased victim participation in court proceedings. Court accompaniment helps ensure that victim participation in court proceedings is meaningful as Victim-Witness personnel can answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the Middle District of Alabama’s Victim Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
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) 223-7617Alabama Man Sentenced to Federal Prison for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., was sentenced today to 51 months in federal prison, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
In January 2013, Blackmon pleaded guilty to aggravated identity theft and access device fraud. According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. He admitted to acquiring names and Social Security numbers, to using that identity information on false tax returns, and to directing fraudulent tax refunds onto debit cards. Blackmon also admitted to possessing at least fifteen Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.
In addition to prison time, Blackmon was ordered to pay $197,839 in restitution to the IRS and to serve three years of supervised release following his release from federal custody.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and United States Attorney for the Middle District of Alabama George L. Beck, Jr., commended the efforts of IRS – Criminal Investigation special agents in investigating the case, Tax Division Trial Attorneys Justin Gelfand and Jason Poole in prosecuting the case, and the Alabama Department of Pardons and Paroles, the Gwinnett County Sheriff’s Department in Georgia and the United States Marshal Service in assisting federal authorities with the investigation.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck, Jr., and Drug Enforcement Administration ASAC Clay Morris will jointly hold a press conference to kick off the campaign on the most recent Prescription Drug Take Back/Medical Abuse Program. A press release will be provided at the conference. The press conference will be held on Wednesday, April 24, 2013, at 10:30 a.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Dothan Man Convicted in Securities Fraud SchemeRead the Press Release
Edward Lincoln Forehand Caused $3 Million in Losses to 87 Investors
Montgomery, Alabama - Edward Lincoln Forehand, age 68, of Dothan, Alabama, was convicted yesterday on charges of securities fraud, mail fraud, wire fraud, and money laundering, announced the U.S. Attorney’s Office for the Middle District of Alabama and the Alabama Securities Commission (ASC).
Between 2006 and November 2009, Forehand, used the business name “USA Marketing,” to solicit investments from people, mainly in South Alabama and the Florida Panhandle. Forehand told investors that he had a relationship with an individual, Vicky Yeager. Yeager had a business, Elite Marketing (“Elite”), which had agreements with colleges and universities to sell them cookware. Forehand solicited investments in Elite from his victims. He promised the victims extraordinarily high rates of return on their investment in Elite (up to 700%).
Rather than sending the all of the investor’s money to Elite, Forehand used large amounts of the money to pay prior investors and to buy property and other items for himself. In particular, during the period from 2006 to November 2009, Forehand received $6.2 million from investors but only sent $1,605,790 to Elite. Meanwhile, Forehand promised to pay out to investors over $19 million.
Forehand also failed to disclose that in August 2009, six checks from Elite to USA Marketing totaling $600,000 bounced, that Elite never made good on the checks, and that from that point forward, Forehand stopped sending any investor money to Elite. Forehand also concealed Yeager’s true identity and the fact that Yeager had two prior criminal convictions for fraudulent conduct.
On November 10, 2009, Yeager died. After Yeager’s death, Forehand paid no further funds to investors, and 87 investors lost $2,991,654 of the monies they had given Forehand to invest in Elite.
“Justice was accomplished,” stated Louis V. Franklin, Criminal Chief at the U.S. Attorney’s Office. “This conviction sends a message to all scam artists that stealing victim’s hard earned money from unsuspecting victims will not be tolerated and will be prosecuted to the full extent of the law.”
Alabama Securities Commission Director Borg said, "This Commission is proud to be able to combine our efforts and resources with those of the U.S. Attorney's Office, Middle District of Alabama, and the FBI, to achieve a just and strong conviction against Forehand. Hopefully, this verdict will provide some relief to the hundreds of victims involved in this case and send a strong message to financial scamsters or to anyone thinking of cheating Alabamians out of their hard-earned dollars."
Forehand’s sentencing hearing is set for August 2, 3013. Each of the eight mail and wire fraud counts carries a statutory maximum sentence of 20 years imprisonment. Each of the four money laundering counts carries a maximum 10 year sentence, and each of the two securities fraud counts carries a maximum 5 year sentence.
The case was investigated by Special Agents of the Alabama Securities Commission, the FBI and by the Dothan Police Department with special help from the United States Marshal Service. The case was prosecuted by Special Assistant United States Attorneys Steve P. Feaga and Gregory M. Biggs of the Alabama Securities Commission, and Assistant United States Attorneys Jared Morris and Tommie B. Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Man Sentenced in Bank Robbery CaseRead the Press Release
Montgomery, Alabama - Darrin Joseph Bell, 35, of Montgomery was sentenced yesterday to more than 7 years for the October 5, 2011 armed robbery of the Community Bank and Trust (CB&T) on the Eastchase Parkway in Montgomery, Alabama.
United States District Court Judge W. Keith Watkins sentenced Bell to 90 months in the Bureau of Prisons, 3 years of Supervised Release, a $200 court assessment fee, and $1524 in restitution to the bank.
When Bell pled guilty on January 4, 2013, he admitted that on October 5, 2011, he entered the business wearing a motorcycle helmet, jacket, gloves, dark blue jeans and black shoes and approached the teller with a blue book bag. Bell pulled a silver semi-automatic handgun out of the backpack, showed it to the teller with instructions to “fill it up”. The teller handed Bell over $1,500 dollars, and placed the money and the gun in the book bag. Bell then escaped on a motorcycle.
The Montgomery Police Department, in conjunction with the Federal Bureau of Investigation, developed Bell as a suspect, got a search warrant for his home and, upon searching the residence, located the motorcycle, helmet, gloves and jacket worn by the bank robber. Bell initially denied any involvement in the bank robbery and attempted to provide an alibi which law enforcement quickly refuted.
“Bank robbery is a crime that endangers innocent bank workers and innocent bank customers,” stated U.S. Attorney Beck. “Often these victims are incredibly traumatized. People deserve to feel safe in their workplace and at their bank. We will continue to vigorously prosecute those criminals who use guns to unfairly put the public in danger.”
The case was investigated by the Federal Bureau of Investigation and the Montgomery Police Department with assistance from the United States Marshal’s Service and the Montgomery County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Susan R. Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Convicted Sex Offender from Chilton County Sentenced to Thirty-Seven Months in Federal Prison and Ten Years of Supervision for Failing to RegisterRead the Press Release
Montgomery, Alabama - Anthony Carl Roberson, a resident of Chilton County, Alabama, age 42, was sentenced to thirty-seven months in federal prison for a federal felony conviction for failing to register as a sex offender, United States Attorney George L. Beck, Jr., announced today.
A federal grand jury indicted Roberson in October, 2012, 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. Roberson was convicted of one count of aggravated sodomy in Georgia in 1996. Due to this conviction, Roberson was sentenced to a term of imprisonment of ten years with the Georgia Department of Corrections and required to register as a sex offender. On January 3, 2013, Roberson pled guilty to failing to register as a sex offender. During his guilty plea hearing, he admitted that he knew, as a convicted sex offender, he was required to register and that if he moved to another state he must register in that state no later than 72 hours after his arrival to the new state. Further, Roberson admitted that he traveled from Georgia to Alabama in August 2012 and relocated to Chilton County, but he did not register as a sex offender in the State of Alabama.
Chief United States District Judge W. Keith Watkins sentenced Roberson to thirty-seven (37) months imprisonment to be followed by ten (10) years of supervised release. Roberson remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
This case was investigated jointly by the United States Marshals Service and Chilton County Sheriff’s Office. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761715 People Arrested in Drug RaidRead the Press Release
Montgomery, Alabama - Law enforcement arrested 15 people, executed five federal search warrants and seized over a pound of “ice” methamphetamine, over 30 firearms, nearly $13,000 in cash and several vehicles that were being used to transport illegal drugs, through a joint effort by federal, state and local authorities.
Six of the 15 people arrested were arrested by the federal government for conspiracy to distribute methamphetamine. Those arrested federally were Mark “Mighty Whitey” Elliott, 50 years old, of Deatsville; William “Bill” Elliott, 57 years old, of Deatsville; Wendell “Cain” Gaskin, 40 years old, of Deatsville; Willie C. Moody, 64 years old, of Montgomery; William Christopher Moody, 36 years old, of Montgomery; and Mark Allen Vinson, 43 years old, of Elmore. Mark “Mighty Whitey” Elliott, William “Bill” Elliott, Wendell “Cain” Gaskin, and Mark Vinson were all detained without bond pending trial. Willie C. Moody and Christopher Moody were allowed a bond while awaiting trial.
During this raid, nine of the 15 people were arrest by the State of Alabama for various drug crimes. Those arrested on State of Alabama charges were: Brandon Fuller, of Wetumpka, arrested for unlawful possession of controlled substance and given a $5,000 bond; Faye Diane Allen of Wetumpka, arrested for three counts of unlawful distribution of controlled substance, and given a $30,000 bond; Bobby Roten of Millbrook, arrested for three counts of unlawful distribution of controlled substance, and given a $30,000 bond; Paul Bryant of Montgomery, arrested for two counts of unlawful distribution of controlled substance, and given a $20,000 bond; Caleb Elliott of Deatsville, arrested for trafficking of methamphetamine, and given a $1,000,000 bond; Brandon Horton of Wetumpka, arrested for two counts of unlawful distribution of controlled substance, and given a $20,000 bond; Lindsey Lawrence of Deatsville, arrested for trafficking of methamphetamine, and given a $250,000 bond; Haley Dallas Hamrac of Deatsville, arrested for trafficking of methamphetamine, unlawful possession of controlled substance, and unlawful possession of drug paraphernalia, and given a $1,500,000 bond; and Michael Lee Smith of Atmore, arrested for trafficking of methamphetamine, unlawful possession of controlled substance, and unlawful possession drug paraphernalia, and given a $515,000 bond.
Along with the arrests, law enforcement executed five federal search warrants, two in Montgomery, two in the Deatsville area of Autauga County, and one in the Central community in Elmore County. During the search warrants, law enforcement found lots of evidence of drug dealing including methamphetamine, firearms, cash and other items indicative of drug dealing.
According to the search warrant affidavit, Mark “Mighty Whitey” Elliott is 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. Also, several individuals in this case have used violence, threats of violence and intimidation to further its drug dealing and to collect money.
“This investigation highlights the importance of our law enforcement partnerships,” stated Clay X. Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration. “Without the combined efforts of the law enforcement agencies involvement in the investigation, this organization would have continued to distribute pound quantities of methamphetamine throughout central Alabama. This investigation should send a clear and resounding message that we will not allow our communities to be poisoned by drugs or hate.”
“This investigation is more evidence that ATF’s commitment to combating violent crime is unwavering,” stated ATF Special Agent in Charge Jeff Fulton. “We will utilize every resource to make our communities safer places to live.”
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty. However, if convicted, the six federal arrestees are facing a minimum of ten years in jail and a maximum prison term of life. In the federal system, there is no parole.
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) 223-7617Three Sentenced in Alabama Stolen Identity Refund Fraud ConspiracyRead the Press Release
Montgomery, Alabama - Mary Bennett, of Wetumpka, Narendrakumar Patel of Millbrook, of and Eugenia Burks, of Montgomery, were sentenced for their roles in an identity theft and tax fraud scheme. Bennett was sentenced today to 75 months in prison, Patel was sentenced yesterday to 24 months in prison, and Burks was sentenced yesterday to 18 months in prison. Bennett had previously pleaded guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft, while Burks also had pleaded guilty to conspiracy. Patel pleaded guilty to forging state securities. Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting United States Attorney for the Middle District of Alabama Sandra J. Stewart, the U.S. Secret Service, and the Internal Revenue Service (IRS) made the announcement.
According to court documents, the defendants were part of a conspiracy to fraudulently obtain both federal income tax refunds as well as state income tax refunds from several different states by using stolen identities to file false tax returns. Fraudulently obtained refund checks were mailed to various addresses used by the conspiracy, while other refunds were obtained through direct deposits into numerous bank accounts controlled by the conspiracy. Bennett admitted to being the one responsible for actually filing the false tax returns and also to storing stolen identity information at her home. Some of the checks obtained by the scheme were cashed by Patel, the former owner of a check-cashing business, who admitted that he knowingly cashed the forged checks and shared in the proceeds.
“This case is another example of the punishment that will result from stealing people’s identities and fraudulently filing tax returns,” stated Acting U.S. Attorney Sandra Stewart. “If you steal people’s identities and file fraudulent tax returns, you will be caught and you will be punished.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Special Agent in Charge, Veronica Hyman-Pillot, IRS Criminal Investigation. “As the defendants in this case have learned, stealing from the American people will not be tolerated and you will be held accountable.”
The case was investigated by special agents of the United States Secret Service and the IRS - Criminal Investigation with the help of the Alabama Alcohol Beverage Control Board. Tax Division Trial Attorney Jason H. Poole and Assistant United States Attorney Todd Brown prosecuted 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) 223-7617Inmate Sentenced for Filing False Tax Returns While in Alabama Federal PrisonRead the Press Release
Montgomery, Alabama - David Marrero, a federal inmate in the custody of the Bureau of Prisons, was sentenced today to 46 months in prison for tax fraud committed while in prison, announced U.S. Attorney George L. Beck. Twenty-four months of the sentence imposed will run concurrent with Marrero’s current 10 year federal sentence, and 22 months will run consecutive to his 10 year sentence. Marrero pleaded guilty in December 2012 to filing false claims.
According to court documents, while serving his federal sentence in Montgomery County, Ala., Marrero began sending various false documents to the IRS and to the federal judge who had sentenced him in Florida. Among the documents Marrero sent were fake money orders and false tax returns making claims for refunds, including one tax return claiming a $2,719,438 refund—the amount of restitution Marrero had been ordered to pay following his conviction in Florida. In the false tax returns, Marrero lied that he had various companies. He also lied that these companies had withheld substantial amount of federal taxes from him when, in fact, the companies had withheld nothing. Marrero also used financial documents he had stolen from other people, as supporting documentation for his fraudulent claims.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Justin Gelfand, who prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Self-Proclaimed “President” of Sovereign Citizen Nation Convicted of Federal Tax CrimesRead the Press Release
Montgomery, Alabama - After a five-day trial, a federal jury in Montgomery, Ala., found James Timothy Turner, 57, also known as Tim Turner, of Skipperville, Alabama guilty of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service (IRS), failing to file a 2009 federal income tax return, and falsely testifying under oath in a bankruptcy proceeding, announced Sandra J. Stewart, Acting U.S. Attorney for the Middle District of Alabama.
The FBI began an investigation after Turner and three other individuals sent demands to all fifty governors in the United States ordering each governor to resign within three days or be “removed.” The FBI’s investigation revealed that Turner was the self-proclaimed “President” of the so-called sovereign citizen group “Republic for the united States of America” (“RuSA”). As “President,” Turner traveled the country in 2008 and 2009 teaching others how to defraud the IRS by preparing and submitting fictitious “bonds” to the United States government in payment of federal taxes. Witnesses at trial testified that Turner used special paper, financial terminology, and elaborate borders in an effort to make the fake bonds look “real” and thus, more likely to succeed in defrauding the IRS.
Turner was convicted of sending a $300 million “bond” in his own name and of aiding and abetting others in sending fifteen other “bonds” to the Treasury Department to pay taxes and other debts. The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious “bonds.” Turner himself actually filed a purported $17.6 billion maritime lien in Montgomery County, Alabama, Probate Court against another individual.
“The jury’s verdict in this case sends a message that defrauding the government and others through the use of bogus financial documents will not be tolerated,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “Disagreement with the law is no excuse for the real harm caused by these self-interested tax defiers.”
“These sovereign citizen groups use these retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens, stated Acting U.S. Attorney Sandra J. Stewart. It is only the hard work of law enforcement that can stop these criminals from using these financial weapons. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice.”
"The prosecution of individuals who intentionally impede the IRS by submitting fictitious and frivolous documents, in an attempt to avoid paying federal taxes, is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict today will send a message to other individuals like Turner, that this conduct will not be tolerated.”
“This joint investigation exemplifies the government’s commitment to investigate and prosecute those, who through tax schemes, attempt to cheat and steal from the government,” stated Stephen Richardson, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division.
Turner remains in federal custody pending sentencing. Turner faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000, and mandatory restitution.
This case was investigated by special agents of the FBI and IRS – Criminal Investigation, and is being prosecuted by Tax Division Trial Attorney Justin Gelfand and Middle District of Alabama Assistant U.S. Attorney Gray Borden.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Convicted Sex Offender Sentenced to Thirty Months in Federal Prison for Failing to RegisterRead the Press Release
Montgomery, Alabama - Samuel P. Wadsworth, 41, a resident of Houston County, Alabama, was sentenced to federal prison for a federal felony conviction for failing to register as a sex offender, United States Attorney George L. Beck, Jr., announced today.
A federal grand jury indicted Wadsworth in June 2012, for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act. Back in 2005, Wadsworth was convicted of one count of sexual abuse first degree in Russell County, Alabama. Due to this conviction, Wadsworth is required to register in Alabama and keep his registration current. During Wadsworth’s guilty plea hearing he admitted that he knew he was required to register, that from 2008 to 2011 he registered as a sex offender in Alabama, and that prior to moving to another state he must notify the Houston County Sheriff’s Office of his intention to move. Further, Wadsworth admitted that he traveled from Alabama to Florida and failed to update his sex offender registry in Alabama.
Chief United States District Judge W. Keith Watkins sentenced Wadsworth to thirty (30) months imprisonment to be followed by five (5) years of supervised release. Chief Judge Watkins noted that Wadsworth had not only failed to register but also attempted to rob a store, attempted to rob a bank, and robbed a bank while he was unregistered. Wadsworth remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
This case was investigated jointly by the United States Marshals Service and Houston County Sheriff’s Office. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Monroeville Man Sentenced in Aggravated Assault CaseRead the Press Release
Montgomery, Alabama - A federal judge sentenced Marcus Dupree Hurry, 22, of Monroeville, to seven years in prison for his assault on a Deputy United States Marshal in February, 2012, announced George L. Beck, United States Attorney for the Middle District of Alabama.
On February 28, 2012, the United States Marshals Service Gulf Coast Regional Fugitive Task Force received information that Leslie McMillian, who was wanted for murder was residing in Prattville, Alabama. McMillan was supposed to be at the Sweet Water Apartment complex in Prattville, Alabama. Law enforcement set up surveillance at the apartment complex and saw McMillian and an unknown black male, later discovered to be Marcus Dupree Hurry, get into a Chevy Impala, with Hurry driving. Investigators began following the vehicle East on Highway 14. Approximately one to one and a half miles later, officers began to suspect that McMillian and Hurry realized they were being followed.
Shortly thereafter, Hurry did an abrupt U-turn and began speeding away, crossing under Interstate 65. After officers activated the lights and sirens on their vehicles, Hurry ran through a red light and collided with another vehicle. Hurry then drove away from the collision, into the grass and up an embankment toward I-65. When Hurry could not get the vehicle up the embankment, he shifted it into reverse and sped towards the federal officers who had exited their vehicles. One U.S. Deputy Marshal was in the direct path of the vehicle. The Deputy Marshal was standing outside of his vehicle in clothing that clearly identified him as a law enforcement officer. As the vehicle came toward the Deputy, he shot Hurry in the arm in an attempt to prevent injury or death to himself and other officers. Hurry and McMillian were then removed from the car, arrested, and searched.
“Law enforcement officers valiantly risk their lives every day to protect our citizens,” stated U.S. Attorney Beck. “We must do all we can to keep them safe from those criminals that try to do them harm. This case should serve as a warning to those who attempt to harm law enforcement officers in order to further their criminal activity. Those criminals will be vigorously prosecuted to the full extent of the law.”
“This is prime example of the dangerous work Deputy United States Marshals perform every day,” stated Arthur D. Baylor, United States Marshal for the Middle District of Alabama. “The United States Marshals Service will remain vigilant in our efforts to track down federal and state fugitives that flee from justice.”
United States District Court Judge Mark E. Fuller sentenced Hurry to seven years in the Bureau of Prisons, followed by two years of supervised release and a $100 court assessment fee. A hearing to determine restitution owed to the victim who was injured when Hurry collided with his/her vehicle while fleeing from law enforcement will be held within the next 90 days.
The case was investigated by the Alabama Bureau of Investigation, and the United States Marshal’s Service, with the aid of the Monroe County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Phenix City Man Guilty of Drug TraffickingRead the Press Release
Montgomery, Alabama - A federal jury found Shedrick D. Hollis, 40, of Phenix City, guilty of drug trafficking and weapons possession charges, George L. Beck, U.S. Attorney for the Middle District of Alabama announced today.
Testimony at trial established that in late February, 2011, the United States Marshal’s Gulf Coast Regional Fugitive Task Force (GCRFT) received a request from the United States Marshal’s Southeast Regional Fugitive Task Force, Atlanta Division, requesting assistance in locating and arresting Hollis for violations of his parole on Distribution and Trafficking of Cocaine out of Georgia. The GCRFT contacted the Phenix City Police Department to aid in the search for Hollis. Law enforcement developed information that Hollis was in a rented vehicle which was located at an address in Phenix City. On March 1, 2011, the GCRFT went to the residence, saw the car and, while identifying themselves as law enforcement, knocked on the door. Officers saw Hollis through a window and ordered Hollis to open the door. When Hollis did not comply, the front door of the residence was breached and Hollis was taken to the ground when he refused commands to go to the ground. While conducting a protective sweep of the residence to ensure that no dangers to the safety of the officers were in the residence, officers located a shotgun and rifle, both loaded, under the bed in the north bedroom, as well as a plastic bag containing a large amount of marijuana and scales. Hollis was arrested and the Metro Narcotics Task Force was contacted and responded to the scene. After receiving a search warrant from Russell County Circuit Judge Al Johnson, Task Force Officers located a blue children’s backpack, containing a large amount of cocaine powder in a plastic zip lock bag, bags of pills which were later determined to be BZP, a club drug similar to Ecstasy, multiple plastic bags of powder and crack cocaine, and marijuana, scales containing cocaine and marijuana residue, and $5,000 in $100 and $20 denominations, all in addition to the items found in the earlier protective sweep.
Hollis faces life in prison when he faces United States District Judge W. Keith Watkins in approximately three months.
The case was investigated by the Drug Enforcement Administration and the Metro Narcotics Task Force, with assistance from the Russell County Sheriff’s Department and the Phenix City Police Department. The case was prosecuted by Assistant U.S. Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Owner of Tax Preparation Business Sentenced to Federal PrisonRead the Press Release
Montgomery, Alabama - Bruce King, the founder and operator of Premier Tax, was sentenced yesterday to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, George L. Beck, U.S. Attorney for the Middle District of Alabama announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.
According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients’ tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced.
“This case should serve as a warning to all of those criminals that file or attempt to file false tax returns to get increased tax refunds,” stated U.S. Attorney Beck. “We will continue to use our resources to investigate and prosecute those criminals and will work diligently to ensure that they receive the stiff prison sentences that they deserve.”
This case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Justin Gelfand of the Justice Department’s Tax Division and Assistant United States Attorney Jared Morris are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Home Health Care Company Techota, LLC, to Pay United States $150,000 to Resolve False Claims AllegationsRead the Press Release
Montgomery, Alabama - Techota, LLC has agreed to pay the United States $150,000 to resolve claims in a federal qui tam lawsuit that it violated the False Claims Act by making false claims for payment to Medicare for home health care services, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Techota, LLC, based in Nashville, Tennessee, provides home health care services in Alabama under the names CV Home Health of Bibb County and CV Home Health Services. The settlement resolves claims in the federal lawsuit that Techota, LLC, billed Medicare for home health services that were not eligible for reimbursement because the services were not medically reasonable and necessary or were not provided under a valid plan of care. Under the terms of a global settlement, Techota, LLC, will also enter into a Corporate Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services (“HHS-OIG”).
“Our office is grateful to the law firm of Frohsin and Barger who represented Ms. McDonald and brought this injustice to our attention,” stated U.S. Attorney Beck. “Our country needs those with knowledge about the fraud and false claims to realize that if they bring these injustices to our attention, we will diligently work to cure the injustice.”
“False claims for medically unnecessary services drain both the Medicare program and the taxpayers’ pockets,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “The provider has agreed to Federal monitoring and reporting requirements to avoid problems in the future.”
This case was initially filed in the United States District Court for the Middle District of Alabama by Veronica McDonald, a former Techota employee, under the qui tam, or whistleblower provisions, of the False Claims Act. Pursuant to these provisions, a private citizen can bring suit on behalf of the United States and share in any recovery. Ms. McDonald will receive $22,500 as her share of the government’s recovery in this matter.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
This case was handled by Assistant United States Attorney James J. DuBois from the United States Attorney’s Office for the Middle District of Alabama and Natalie J. Priddy from the Civil Division of the United States Department of Justice, in conjunction with the United States Department of Health and Human Services, Office of Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Autauga County Man Sentenced to 60 Months for $6.2 Million TheftRead the Press Release
Ricky Nelson Dawson, a U.S. Department of Agriculture Employee, Converted Checks Payable to the Government
Montgomery, Alabama - Ricky Nelson Dawson, age 54, of Autauga County, was sentenced today by United States District Judge Myron H. Thompson to a prison term of 60 months based on his conviction for wire fraud arising out of his theft of approximately $6.2 million in checks payable to the federal government, U.S. Attorney George L. Beck, Jr., announced today.
According to court records, Dawson, a United States Department of Agriculture (“USDA”) employee, had served since 2000 as director of the Bay Minette and Camden offices of USDA’s Rural Development programs. One of those programs was the Rural Utilities Service, which provided loans and grants to local water authorities and electric utilities (the “Authorities”).
Between March 2007 and May 2012, Dawson received checks—all payable to “Rural Development” or a variation thereof—from various Authorities representing funds intended as payment to USDA. Dawson embezzled the checks by depositing them into an account in the name “Ryal Development Farm” that he had opened at First Community Bank, in Chatom. On some of the checks, Dawson hand wrote the letter “y” over the “ur” in “Rural” to make it appear as if “Ryal” Development was the payee of the checks. The following chart summarizes Dawson’s activities:
Date Deposited
Amount ($)
Payor
March 22, 2007
149,838.29
East Central Baldwin County
28,000
Hobson Water System
April 4, 2008
106,246.29
Mexia Water System
November 3, 2008
24,841.77
Mexia Water System
December 8, 2008
21,464.60
Town of Autaugaville
February 18, 2009
75,000
St. Stephens Water System
August 21, 2009
400,000
Southern Pine Electric Cooperative
January 4, 2010
5,000
Freemanville Water System
January 22, 2010
35,000
Freemanville Water System
April 21, 2010
90,000
Freemanville Water System
September 28, 2010
70,000
Freemanville Water System
November 22, 2010
500,000
Perry County Water Authority
March 1, 2011
190,534
East Central Baldwin County
April 14, 2011
995,000
Perry County Water Authority
July 1, 2011
779,263.73
Autauga County Water Authority
December 9, 2011
799,172.79
West Dallas Water Authority
April 18, 2012
999,000
City of Thomasville Water Works and Sewer Board
May 4, 2012
957,559.29
City of Thomasville Water Works and Sewer Board
TOTAL
$6,225,920.76
After depositing the checks, Dawson transferred the funds into his accounts at Regions Bank and E*TRADE Securities. He also used the funds from later thefts to make payments (a) to Authorities that were the payors of checks Dawson had previously converted, and (b) to USDA. The net amount taken by Dawson after the “repayments” came to approximately $3.8 million. A hearing to determine restitution will be scheduled within 90 days.
Dawson has been free on a $25,000 unsecured bond. He was ordered to report to prison on May 31, 2013.
The case was investigated by the FBI and by USDA’s Office of Inspector General and was prosecuted by Assistant U.S. Attorneys Andrew O. Schiff and Tommie B. Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Man Arrested for Bomb ThreatsRead the Press Release
Montgomery, Alabama - Franklin Otis Boiner, 58, of Montgomery, Alabama was arrested today for calling in a bomb threat to a Montgomery courthouse yesterday, announced George L. Beck, United States Attorney for the Middle District of Alabama.
According to the complaint filed in federal court, on March 5, 2013, at approximately 7:49 a.m., the Montgomery 911 Call Center received a telephone call from a male stating that there would be two bombs going off at the District Court at 9:30 a.m. Because there is a district court in both the federal and state courthouses, both courthouses were evacuated. Bomb technicians and bomb detection dogs were used to clear the courthouses before anyone was allowed to return to the buildings. Through call tracing and fingerprint analysis, law enforcement was able to determine that Boiner placed the phone call. According to the complaint, Boiner was scheduled to be at a court hearing in the Montgomery County Courthouse at 8:00 a.m. on March 5, 2013, the same day he called in the bomb threat.
“I would like to commend Sheriff Marshall and his office for their efficient, yet thorough investigation and arrest in this bomb threat case, stated U.S. Attorney Beck. Law enforcement’s quick response and arrest should serve as a warning that threats such as this one will be taken seriously. The rule of law has to be administered by the court system. Therefore, we have to be vigilant in protecting our court system.”
Special Agent in Charge of Alcohol, Tobacco and Firearms (ATF), Jeffrey L. Fulton, stated: “This investigation culminated as a result of the collaborative effort to ATF’s commitment to public safety.”
An arrest warrant and complaint merely allege that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Boiner faces a maximum potential sentence of 5 years in prison. He is also subject to fines and a period of supervised release if convicted.
The case was investigated by the Federal Bureau of Investigation, the Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montgomery County Sheriff’s Department and the Montgomery Police Department. Assistant United States Attorney Denise Simpson is prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Bank Robber Pleads GuiltyRead the Press Release
Montgomery, Alabama - On March 6, 2013, Gerrard Dixon, entered a plea of guilty to armed bank robbery and conspiracy to commit an armed bank robbery.
On Friday, November 4, 2011, at approximately 11:42 a.m., Dixon and another individual entered the BancorpSouth Bank located in Fort Deposit, Alabama, and robbed it at gunpoint. The bank surveillance video shows Dixon and another individual, Lee Williams, enter the bank and while Williams holds a customer and employees at gunpoint, Dixon jumps over the counter and takes over $9000 in assorted U.S. currency from two teller drawers. Dixon and Williams then make their escape by a waiting car.
On December 7, 2011, Dixon and Williams entered into an agreement to rob the same BancorpSouth Bank and in furtherance of the conspiracy, obtained guns, an automobile, and returned to Fort Deposit to "case" the bank. Fort Deposit police officers, who had increased patrol on area banks, noticed Dixon, who was operating the vehicle, and Williams, who was the passenger, behaving suspiciously. When the officers attempted to stop them, Dixon fled, taking police on a high-speed pursuit. Dixon eventually crashed his vehicle in Montgomery, and the two fled on foot, but were quickly apprehended by the Montgomery Police Department. Two loaded firearms were recovered near the crash site.
“Those that rob banks put tellers, customers and the public at large in serious danger,” stated U.S. Attorney Beck. “These innocent victims are often traumatized by these bank robberies. My office will continue to prosecute those people who intentionally hurt the public for their own monetary gain.”
Dixon, who is currently serving a sentence of 30 years for the Attempted Murder of a convenience store employee in Montgomery, faces a possible sentence of incarceration of not more than 25 years for the bank robbery and not more than 5 years for the conspiracy, a fine of not more than $250,000, and a term of supervised release of not more than 5 years.
Williams entered an earlier plea to similar charges and is awaiting sentencing at this time.
The case is being investigated by Federal Bureau of Investigation, the Fort Deposit Police Department, the Montgomery Police Department and the Montgomery County Sheriff's Office. 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) 223-7617Six Convicted in Cocaine Trafficking ConspiracyRead the Press Release
Evidence Gathered from Federal Wiretaps Uncovers Sophisticated Cocaine Enterprise
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, announced that six people were convicted by a jury in federal district court of conspiring to distribute powder cocaine and cocaine base. Defendant William Jerome Davis was also found guilty of money laundering. The six defendants convicted are:
Willie Jerome Davis, a.k.a. “Mobey”, age 52, of Elmore, Alabama;
Eulanda Lashade Trimble, a.k.a. “Yo Yo”, age 33, of Montgomery, Alabama;
Clifton Pettus, a.k.a. “Biscuit”, age 33, of Montgomery, Alabama;
Robert Marshall, a.k.a. “Big Daddy”, age 39, of Montgomery, Alabama;
William James Reese, age 38, of Deatsville, Alabama; and
Eric Orlando Reese, age 38, of Montgomery, Alabama.All defendants were found guilty after a two and half week trial before Chief United States District Judge W. Keith Watkins.
Evidence introduced at trial showed a sophisticated drug trafficking conspiracy involving multi-kilograms of powder cocaine. This conspiracy ranged from Autauga, Elmore, and Montgomery counties. Prosecutors introduced evidence gathered from four judicially authorized wiretaps initiated in February 2012 and running through May 2012. These wiretaps uncovered two drug trafficking cells that had joined forces to saturate Autauga, Elmore and Montgomery counties with cocaine. In addition to drug evidence gathered from wiretaps, prosecutors showed evidence of money laundering and unexplained wealth. According to the evidence, Mr. Willie Jerome Davis had at least $500,000 of illicit assets, including real and personal property. After establishing that Davis had very limited legitimate income, the jury was allowed to infer that his “wealth” came from illicit activity – drug trafficking.
United States Attorney George L. Beck, Jr. stated, “I want to thank local law enforcement for the tremendous help they provided to DEA. It is with the cooperation and assistance of local law enforcement, such as the Millbrook Police Department, the Wetumpka Police Department, the Montgomery Police Department and through the Central Alabama Drug Task Force and HIDTA Task Force areas that we are able to prosecute individuals who prey on the weak and feed the drug culture that has become so prevalent in America. In addition to severe prison sentences, our office will seek the forfeiture of cash, personal property and any homes used as means to sell drugs.”
U. S. Attorney Beck specifically would like to acknowledge the hard work and dedication of Assistant U. S. Attorneys Verne H. Speirs, Gray M. Borden and Tommie Brown Hardwick.
DEA Resident Agent in Charge W. Marshall Simons remarked, “These guilty verdicts are a culmination of superior collaborative efforts by DEA Montgomery, the Middle District of Alabama United States Attorney’s Office, the High Intensity Drug Trafficking Area Task Force, FBI, and our other, federal, state and local counterparts. This case sends an undeniable message to drug dealers in the greater Montgomery, Alabama area: your illegal activities are not welcomed here. The verdicts in this case represent the collective and symbolic voice of the fine citizenry in this community who have resolved to partner with us to take back their streets. The men and women of DEA remain steadfast in our commitment to this endeavor.”
At sentencing, some defendants will face mandatory minimum terms of incarceration, including life imprisonment. Other defendants could be sentenced to as much as twenty years’ imprisonment. A sentencing date has yet to be set by the Court.
The following local, state, and federal agencies assisted with this investigation: DEA’s Montgomery Regional Office, the High Intensity Drug Trafficking Area program, Birmingham District Office, DEA Atlanta, DEA New York, DEA’s Special Operations Division, Organized Crime Drug Enforcement Task Force Financial Investigation Team (Atlanta, Ga.), FBI, United States Marshals, Central Alabama Drug Task Force, Office Of The Attorney General, Elmore County Sherriff's Office, Wetumpka Police Department, Montgomery Police Department, Millbrook Police Department, Montgomery County Sherriff's Office, Prattville Police Department, Autauga County Sherriff's Office, Alabama State Police, Alabama Beverage Control, Alabama Bureau of Investigation, Chilton County Sherriff's Office, and The Alabama National Guard.
The case was prosecuted by Assistant U. S. Attorneys Verne H. Speirs, Gray M. Borden, and Tommie Brown Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Opelika Man Is Sentenced to 35 Years in Prison for Making Child PornographyRead the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck, Jr., announced today that Kevin Darcy Golden, age 45, of Auburn, Alabama, was sentenced yesterday to 35 years in federal prison for making child pornography. If Golden is released from prison, he will be on supervised release for the remainder of his life.
Between at least April and December of 2011, Golden produced numerous videos of female children engaging in sexually explicit conduct. On some occasions Golden secretly filmed the children removing their clothing while at his residence, and on other occasions Golden filmed himself engaging in sexually explicit conduct with the children while they were unconscious.
“Performing sexual acts on children is one of the most despicable things a person can do,” stated U.S. Attorney Beck. “We will not tolerate it and will work feverishly to stop this horrific conduct.”
“Cases related to the exploitation of children are of the most important investigations we shoulder in the FBI, stated Steve Richardson, FBI Special Agent in Charge, Mobile Field Division. “Our ability to investigate and prosecute these activities is enhanced when we work with our local and federal partners.”
“We appreciate the hard work of the US Attorney’s office and the FBI in helping us make our community a safer place by bringing those to justice that would exploit our children,” stated Auburn Police Chief Tommy Dawson. “This case is another example of what can be accomplished by law enforcement working together.”
This case is being investigated by the Opelika field office of the Federal Bureau of Investigation and the Auburn (Alabama) Police Department. The case is being prosecuted by Assistant United States Attorney Jared H. Morris and Nathan D. Stump.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc. For more information about internet safety education, please visit justice.gov/psc and click on the tab “Resources.”
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Woman Gets 12 Years in Prison for Running Sophisticated Million Dollar Identity Theft Tax SchemeRead the Press Release
Montgomery, Alabama - Antoinette Djonret was sentenced today to 12 years in prison for her involvement in two separate tax fraud schemes, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Djonret was also ordered to pay $1,291,658 in restitution. In October 2012, Djonret had pleaded guilty to charges in the two cases. In the first case, Djonret pleaded guilty to charges of conspiracy and aggravated identity theft. She pleaded guilty to filing false tax returns in the second case.
According to court documents from the first case, between October 2009 and April 2012, Antoinette Djonret and her co-conspirators used stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret and her co-conspirators filed most of these tax returns from her residence in Montgomery, Ala.
According to court records, Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money, recruiting a number of individuals to purchase prepaid debit cards for use in the scheme. The individuals Djonret recruited would often, in turn, recruit yet more individuals to purchase the debit cards. The fraudulent tax refunds obtained by the conspiracy were directed to these prepaid debit cards and Djonret and her co-conspirators would then use the cards to obtain the proceeds. Three of the co-conspirators she recruited have also pleaded guilty and are currently awaiting sentencing.
Documents introduced as part of the sentencing established that Djonret was also involved in a separate tax fraud scheme. Prior to beginning her identity theft scheme, Djonret worked at a tax return preparation business called Premier Tax, where she prepared false tax returns for clients of the business.
“Sophisticated Stolen Identity Refund Fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “Sentences like the one handed down today are a warning to criminal enterprises that there are severe penalties for committing these types of tax crimes.”
“These identity thieves are becoming more devious, creative, and conniving,” said George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. “They steal our identities, steal government money, and prey upon our citizens. However, my office is unrelenting. These criminals must be and will continue to be prosecuted in order to obtain justice for our victims from the Middle District of Alabama as well as justice for our nation.”
“Today’s announcement exemplifies IRS Special Agents’ intense focus on the rigorous pursuit of identity theft and refund fraud,” said Richard Weber, Chief IRS Criminal Investigation. “Djonret perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable.”
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant United States Attorney Jared Morris, who prosecuted the two cases.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Woman Is Sentenced to 65 Months for Stealing Identities for Tax RefundsRead the Press Release
Montgomery, Alabama - Angeline Austin, 41, of Montgomery, Alabama, was sentenced by U.S. District Judge Myron Thompson to 65 months in federal prison for one count of conspiring to defraud the Government regarding claims, one count of fraud in connection with identification documents, a count of fraud in connection with computers, and of aggravated identity theft, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Between June 13, 2010 and March 25, 2011, Austin worked for Southern Records Management, Inc., a company that contracts with other companies to manage their business data. As an employee for Southern Records Management, Austin worked at the Troy Regional Medical Center records office. While working at Troy Hospital, Austin stole over 800 names, Social Security numbers, dates of birth, and other personal information from current and former patients of the Troy Hospital. Austin then sold that information to another person for between $6500 and $8000. These stolen identities were then used to file fraudulent tax returns. The IRS, believing the tax refunds were legitimate, deposited the tax refunds from those fraudulent tax returns on pre-paid debit cards, and sent them to people working with Austin. Those people then cashed out the debit cards at various ATM machines.
At the sentencing hearing, one of the victims, whose identity Austin stole, testified that he used to work at a defense contracting company making over $100,000 a year. His job at the defense contracting company required him to maintain a top secret security clearance. As a result of Austin stealing his identity, his credit was severely impacted and his security clearance was suspended. Because his security clearance was suspended, he was fired from his job. He now works at a fast food restaurant making minimum wage. Further, a member of the Air National Guard, his military duties have been scaled back because of the suspended security clearance. The lack of income has severely affected the his family; for example, his wife had to quit nursing school; his daughter, who sings in her school choir, couldn’t go on several choir trips where the family had to pay for the trips; and, his son had to decrease his trips with his sport’s teams.
The Chief Executive Officer (CEO) of Troy Regional Medical Center also testified at Austin’s sentencing hearing. She told the Court that Austin had access to all of Troy Medical Center’s patients’ information because Austin’s job was to provide patients, and other authorized individuals, copies of their medical records. Although Austin was employed by the hospital as a contractor, Troy Medical Center trained her, as they did all hospital employees, about Federal and States laws requiring the protection of patients’ privacy and personal information. The CEO further explained to Judge Thompson that Troy Medical Center has been operating at a loss for years and that the hospital was very concerned that it may be fined over $1.5 million dollars for violations of Federal and State of Alabama health care privacy laws stemming from Austin stealing the patients’ identities. This fine could severely impact the capability to operate the only hospital in Troy.
“These identity thieves are becoming more bold,” said U.S. Attorney Beck. “However, my office is unrelenting, and we will not let up on these criminals. We cannot, and will not, allow these criminals to continue to prey on our citizens.”
"Identity thieves come in all forms, a complete stranger or a neighbor down the street,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica Hyman-Pillot. “Whatever their background, IRS Criminal Investigation and the United States Attorney’s Office are dedicated to identifying, investigating and vigorously prosecuting those individuals who choose to victimize and steal from honest individuals.”
“Identity theft is an ongoing problem in the United States and the Montgomery, Alabama area, unfortunately, is in the top ten of cities where the stolen identities are being used to file fraudulent tax returns,” stated Resident Agent in Charge Clayton Slay, U.S. Secret Service in Montgomery, Alabama. Slay continued by saying, “Austin’s sentencing is the most recent in this case which involved numerous defendants who stole identities from, not only Troy Hospital, but local Montgomery high schools and other hospitals in Montgomery, Alabama, and the Atlanta, Georgia, areas through collusive employees, security guards, and U.S. Postal delivery personnel and resulted in approximately $1.6 million dollars in loss to legitimate tax payers. With the 2013 tax filing season approaching, the U.S. Secret Service, along with the Internal Revenue Service Criminal Investigative division will remain proactive in the investigation of individuals and groups associated with these types of crimes, especially individuals like Austin who abuse positions of trust to commit crimes and ruin the lives of innocent citizens.”
The United States Attorney thanked the United States Secret Service and the Internal Revenue Service, the agencies that investigated the case, and, Todd A. Brown, the Assistant United States Attorney who represented the United States at the sentencing of Austin.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Convicted Sex Offender from Montgomery County Sentenced to Twenty-Five Months in Federal Prison for Second Federal Failure to Register ConvictionRead the Press Release
Montgomery, Alabama - Kevin H. Chambliss, of Montgomery, Alabama, was sentenced to twenty-five months in federal prison for failing to register as a sex offender, United States Attorney George L. Beck, Jr., announced today.
A federal grand jury indicted Chambliss in July 2012, 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, Chambliss was convicted of one count of unlawful sexual activity with a minor in 2003 in Florida. Due to this conviction, Chambliss is required to register as a sex offender. During Chambliss’s guilty plea hearing in October 2012, he admitted that he was registered as a sex offender in Alabama and relocated to Florida. Chambliss further admitted that, after relocating to Florida, he knowingly failed to update his sex offender registration in Alabama.
This failure to register conviction marks Chambliss’s second federal conviction for failing to register. Court records indicate that Chambliss was convicted for the federal felony of failing to register in 2009. That conviction was based upon Chambliss relocating from Florida to Alabama and failing to register in Alabama. Chambliss was sentenced to ten (10) months in federal prison and five years of supervised release. While on supervised release, in 2012, Chambliss violated the terms of his supervision and was sentenced to eight (8) months in federal prison.
United States District Judge Myron H. Thompson sentenced Chambliss to twenty-five (25) months in federal prison to be followed by five years of supervised release. This twenty-five months sentence was ordered to run consecutive to the eight months sentence discussed above. Chambliss remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
This case was investigated jointly by the United States Marshals Service and United States Probation Office. Assistant United States Attorney Jerusha T. Adams prosecuted the case..
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Family Members Sentenced in $1.9 Million Dollar Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Several family members were sentenced Friday in the Middle District of Alabama for their involvement in a $1.9 million dollar stolen identity refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced. Barbara Murry, Veronica Temple, and Yolanda Moses each received a sentence of 57 months of incarceration and ordered to pay restitution in the amount of $1,908,659. Douglas Murry received a sentence of 24 months of incarceration and was ordered to pay restitution in the amount of $142,038. Almetta Johnson received a sentence of eight months home detention. Lee Moses, Jeffrey Temple, and Courtney Johnson each received a sentence of probation.
On April 25, 2012, Barbara Murry, Douglas Murry, Yolanda Moses, Lee Moses, Veronica Temple, Jeffrey Temple, Almetta Johnson, and Courtney Johnson were charged in a multi-count indictment by a federal grand jury on a variety of charges relating to an identity theft and tax fraud scheme. According to court documents, between January 2006 and April 2012, the defendants and their co-conspirators directed over 900 false tax refunds claiming in excess of $1.9 million to several bank accounts controlled by the defendants and their co-conspirators. The conspiracy consisted of two parts. First, the defendants received false tax refunds into their bank accounts and provided a portion of the funds to the third-party preparers. None of the defendants obtained the identities or prepared the tax returns in this part of the conspiracy.
According to court documents, the second part of the conspiracy centered on B & B Weaving Shop and B & B Tax Service. Barbara Murry owned and operated B & B Weaving Shop, located in Montgomery, Alabama. B& B Weaving Shop was located in the same building as B & B Tax Service. Barbara Murry’s daughters, Yolanda Moses and Veronica Temple, ran B & B Tax Service. Veronica Temple and her sister, Yolanda Moses, obtained stolen identities from multiple sources. Veronica Temple, Yolanda Moses, and others filed false tax returns from both B & B Tax Service and their homes and directed the tax refunds to numerous bank accounts controlled by the defendants and their co-conspirators. Veronica Temple, Yolanda Moses, and Barbara Murry recruited individuals, including Douglas Murry, to open bank accounts in furtherance of the scheme. Many of the identity victims were 16 and 17 year-old minors.
“The Justice Department will investigate and prosecute stolen identity refund fraud crimes, whether they are committed by a single thief, or a ring of thieves,” said Assistant Attorney General Kathryn Keneally. “The prison sentences handed down today demonstrate that such invasions of personal privacy and theft of public monies will not be tolerated.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Richard Weber, Chief, IRS Criminal Investigation. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant United States Attorney Jared Morris, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Woman Pleads Guilty in A Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Larreka Jackson pleaded guilty yesterday to her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
On August 15, 2012, a federal grand jury in Montgomery, Alabama, returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to the indictment, Jackson operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler 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 justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - The press conference scheduled for Wednesday, January 30, 2013, at 1:00 p.m., by George L. Beck, Jr., United States Attorney for the Middle District of Alabama, Veronica Hyman-Pillot, Internal Revenue Special Agent in Charge, and Clayton Slay, U.S. Secret Service Resident Agent in Charge, has been moved to Thursday, January 31, at 1:30 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama. The press conference will announce the government’s continued crackdown on identity theft and fraudulent tax preparers. Since this is the beginning of the tax filing season for 2012 taxpayers, it is a perfect time to warn taxpayers about these fraudulent tax preparers and identity theft. Press release and other handouts will be provided at the conference. The media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617State of Alabama Employee Indicted for Providing Stolen Identies to A Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - A federal grand jury returned an indictment charging Lea’Tice Phillips for conspiring to file false tax returns using stolen identities, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. The thirty-seven count indictment charges Phillips with conspiracy to file false claims, wire fraud, computer fraud, and aggravated identity theft.
According to the court documents, Lea’Tice Phillips worked for an Alabama State agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Lea’Tice Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery, Ala. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to Djonret and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
On August 9, 2012, a federal grand jury in Montgomery, Ala., returned a superseding indictment charging Antoinette Djonret, Angelique Djonret, Tabitha Stinson, Melba Wilson, Chantresa Hayes, and Corey Means for their roles in the same conspiracy.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Phillips faces 10 years imprisonment for the conspiracy to file false claims, 20 years for each wire fraud count, 10 years imprisonment for each computer fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. She is also subject to fines, mandatory restitution, and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Woman Indicted for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Ala., returned an indictment charging LaQuanta Clayton with aggravated identity theft and theft of government money, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama
According to the indictment, Clayton used stolen identity information to facilitate the theft of federal tax refunds. As alleged, Clayton used the stolen identity information to open bank accounts at the bank where she was working and then stole federal tax refunds that were deposited into the bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Clayton faces a maximum potential sentence of 10 years in prison for each of the 15 theft of government money counts and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Woman Indicted for Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - A federal grand jury returned an indictment charging Scottie Alice Johnson of Montgomery with a conspiracy to commit theft of public funds and to defraud the IRS, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
According to the indictment, between 2006 and 2012, Scottie Johnson conspired with others to defraud the IRS and commit theft of public funds. Co-conspirators filed false federal income tax returns with stolen identities and had refunds directly deposited into several bank accounts, including bank accounts in the name of Scottie Alice Johnson and another individual. The bank accounts associated with the conspiracy received at least $1.3 million in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces 5 years imprisonment for the conspiracy count and 10 years imprisonment for each theft of public funds count. Johnson is also subject to fines, mandatory restitution, and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department's Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, Veronica Hyman-Pillot, Internal Revenue Special Agent in Charge, and Clayton Slay, U.S. Secret Service Resident Agent in Charge, will hold a press conference to announce the government’s continued crackdown on identity theft and fraudulent tax preparers. Since January 30, 2013, is the first day of the tax filing season for 2012 taxpayers, it is a perfect time to warn taxpayers about these fraudulent tax preparers and identity theft. Press releases and other handouts will be provided at the conference. The press conference will be held on Wednesday, January 30, 2013, at 1:00 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617