Eastern District of Virginia
Press releases recorded for this federal judicial district.
Defendant Pleads Guilty to Email Extortion SchemeRead the Press Release
RICHMOND, Va. – Christopher J. Burruss, 37, of Toano, Virginia, pleaded guilty today to Interstate Threat to Injure the Reputation of Another, in violation of 18 U.S.C. § 875(d). Burruss faces a maximum of 2 years’ imprisonment, a fine of $250,000, and one year of supervised release when he is sentenced on January 21, 2015, by United States District Court Judge James R. Spencer.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge for the Federal Bureau of Investigation (FBI), Richmond Division, made the announcement after the guilty plea was accepted by Magistrate Judge David J. Novak.
According to court papers, the victim of the scheme, T.N., is an attorney who previously represented Burruss in an Eluding Police and Driving Under the Influence (First Offense) criminal case in New Kent County, Virginia. In November 2010, Burruss went to trial and was ultimately convicted on both offenses. In November 2012, Burruss filed a Habeas Corpus Petition in state court, alleging ineffective assistance of counsel by T.N. After a hearing on the matter, the Virginia Circuit Court with jurisdiction over the case rejected Burruss’s challenge. He appealed and, in early 2014, the case was pending before the Virginia Supreme Court with oral arguments scheduled for February 11, 2014.
As part of the plea, Burruss admitted that on September 12, 2013, he filed a Virginia State Bar complaint against T.N. Among other allegations, Burruss stated that he believed that T.N. had mishandled the New Kent County criminal case and had inappropriate communications and contact with Burruss’s friend, S.B., and another woman leading up to and after the criminal case that affected T.N.’s representation. Included with the complaint, Burruss attached several embarrassing email and text messages between T.N., S.B., and two other women. Also included were affidavits from S.B. and another woman detailing some of their interactions with T.N. before and after the New Kent County criminal case. These emails, text messages, and affidavits later served as the basis for Burruss’s extortionate threats against T.N.
From January 23, 2014, through January 26, 2014, Burruss, with the assistance of S.B., began a direct email exchange with T.N. in which Burruss communicated his extortionate demands. In a series of three emails, his demands evolved and required that to avoid disclosure of the embarrassing communications to the press, T.N. would have to submit an affidavit to the Virginia Supreme Court admitting to mishandling the New Kent County criminal case and repay almost $20,000 in legal fees incurred by Burruss in connection with the case. The one-count information charging Burruss is premised on the following extortionate communication sent by Burruss on January 24, 2014, in response to a series of questions from T.N.:
Hi [T.N.]-
In response to your letter this morning Chris is seeking that you write an affidavit to be submitted to the Supreme Court admitting that you mishandled the case. He is also seeking complete restitution, which would include your retainer and the $20,000 in legal fees since then. In the event that the DUI fine remains in effect he asks that you pay that, as well. Neither of the affidavits from [C.E.] or myself were submitted to the court. They are not yet public record, however Chris intends to move forward on Monday afternoon. As far as the Bar is concerned we all know they would prefer to keep all of this very quiet.
Best regards-
[S.B.]After receiving the final email on the afternoon of January 26, 2014, T.N. had no further communication with Burruss or S.B. T.N. reported this matter to federal and state authorities, which led to the current prosecution.
The case was investigated by the FBI’s Richmond office. Assistant United States Attorneys Michael Gill and Heather Hart are prosecuting the case on behalf of the United States
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-135.
Chesapeake Woman Sentenced to 15 Years for Her Role in Conspiracy to Produce Child PornographyRead the Press Release
NORFOLK, Va. – Shaniesta Kenay Banks, 22, of Chesapeake, Virginia, was sentenced today to 15 years in prison, followed by lifetime supervised release, for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Banks pleaded guilty on December 11, 2013. According to court documents, Banks became involved in the conspiracy when she was contacted by coconspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.” Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services. In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos. In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with several different women, including Banks. Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Banks complied in return for the promise of money. Specifically, Banks produced child pornography with a 4 year old child.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-164.
Registered Sex Offender Pleads Guilty to Destroying an iPad and Hard Drive that Contained Evidence of his Attempts to Collect Child PornographyRead the Press Release
ALEXANDRIA, Va. – David Michael Fioramonti, 42, of Purcellville, Virginia, pleaded guilty today to obstruction of justice related to evidence of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Joseph R. Price, Chief of the Town of Leesburg Police Department; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
According to documents filed with the Court, on December 31, 2013, several officers with the Leesburg Police Department observed Fioramonti in his car in the parking lot of a Sheetz gas station in Leesburg, Virginia. Fioramonti was using his iPad to access the Internet using Sheetz’s unsecured public WIFI. The officers determined that Fioramonti was a registered sex offender, and he was not allowed to access the Internet from an unapproved device. They approached Fioramonti and requested the iPad, but Fioramonti refused. He then began hitting the iPad on the gear shift of the vehicle, shattering the screen. He was arrested by the Leesburg Police Department and subsequently released. After failing to appear in court, an arrest warrant was issued for Fioramonti.
On February 11, 2014, Maryland State Police Officers encountered Fioramonti in a hotel room in Frederick, Maryland. Fioramonti barricaded himself in his hotel room and stated he had a weapon. While in the hotel room, Fioramonti removed the hard drive from his Toshiba laptop and destroyed it. The black hard drive had contained evidence of Fioramonti’s attempts to collect child pornography as well as information, such as screen names and IP addresses, of individuals who collect and share child pornography on the Internet.
Fioramonti was charged in a superseding information on October 17, 2014, with the obstruction of justice in violation. Pursuant to his guilty plea, he faces a maximum penalty of 20 years in prison when he is sentenced on February 6, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Town of Leesburg Police Department and the FBI’s Washington Field Office. Assistant U.S. Attorney Matt Gardner is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-309.
MS-13 Gang Members Indicted on Multiple Murder and Attempted Murder ChargesRead the Press Release
ALEXANDRIA, Va. – Thirteen members of the street gang, La Mara Salvatrucha, or MS-13, were recently indicted by a federal grand jury for their alleged roles in three murders and one attempted murder in Northern Virginia, among other charges. Court documents were unsealed today.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police of the Fairfax County Police Department; Earl L. Cook, Chief of Police of the Alexandria City Police Department; and Stephan M. Hudson, Chief of Police of the Prince William County Police Department made the announcement.
The 13 indicted defendants are currently in custody and awaiting further court proceedings. The defendants are: Pedro Anthony Romero Cruz, 28, residence unknown; Jose Lopez Torres, 25, of Falls Church, Virginia; Jaime Rosales Villegas, 30, of Richmond, Virginia; Juan Carlos Marquez Ayala, 21, of Falls Church; Omar DeJesus Castillo, 25, of Arlington, Virginia; Alvin Gaitan Benitez, 21, of Falls Church; Douglas Duran Cerritos, 18, of Falls Church; Christian Lemus Cerna, 18, of Falls Church; Araely Santiago Villanueva, 18, of Falls Church; Manuel Ernesto Paiz Guevara, 19, of Falls Church; Jose Del Cid, 18, of Alexandria; Jesus Alejandro Chavez, 24, of Alexandria; and Genaro Sen Garcia, 19, residence unknown.
According to the nine-count indictment, on or about October 7, 2013, in Fairfax County, Virginia, defendants Torres, Ayala, and Castillo, together with others known and unknown to the grand jury, knowingly and intentionally murdered Nelson Omar Quintanilla Trujillo. The three defendants, with the alleged assistance of Benitez, then buried the body of Trujillo.
The indictment also alleges on or about March 29, 2014, in Fairfax County, defendants Castillo, Benitez, Cerritos, Cerna, Villanueva, Guevara, and Del Cid, together with others known and unknown to the grand jury, knowingly and intentionally murdered Gerson Adoni Martinez Aguilar.
The indictment also alleges on or about June 19, 2014, in the City of Alexandria, defendants Del Cid, Chavez, and Garcia, together with others known and unknown to the grand jury, knowingly and intentionally murdered Julio Urrutia. The indictment alleges that Chavez killed Urrutia by shooting him with a firearm.
According to the indictment, from on or about September 29, 2013, through on or about October 1, 2013, in Woodbridge, Virginia, defendants Cruz, Torres, and Villegas, together with others known and unknown to the grand jury, knowingly and intentionally combined, conspired, confederated, and agreed together and with each other and others to murder an unnamed person.
Eleven of the defendants face the maximum penalty of death, or a mandatory sentence of life in prison. The remaining two defendants, Villegas and Cruz, face a maximum sentence of 10 years in prison on the attempted murder charge, in addition to a consecutive minimum sentence of 10 years in prison due to the possession of a firearm charge. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s Washington Field Office; Fairfax County Police Department; Alexandria City Police Department; Prince William County Police Department; and Homeland Security Investigations (HSI) Immigrations Customs Enforcement. Assistant U.S. Attorneys Stephen M. Campbell and Julia K. Martinez are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. All defendants are presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-306.Tweet
Former Owners and Employees of Hampton Pipe and Tobacco ArrestedRead the Press Release
NEWPORT NEWS, Va. – The former owner of Hampton Pipe and Tobacco, Jayson Mickle, along with nine others, were arrested yesterday and charged in a multi-count indictment relating to the distribution of controlled substance analogues, aka “Spice,” among other charges.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after initial court appearances took place in Norfolk, Virginia, before United States Magistrate Judge Tommy E. Miller. The defendants were all ordered held in custody pending a detention hearing in Newport News on October 20, 2014.
According to the indictment, the defendants ostensibly sold Blueberry Hedgehog, Cherry Hedgehog, Purp, Hampster Purp, Easta Pink and Yella to the public as “Aromatic Potpourri” and “Herbal Incense”, but they contained synthetic chemicals that mimic the effects of tetrahydrocannabinol (THC), the active ingredient in marijuana. The defendants intended each to be smokable products, and consequently were subject to Food and Drug Administration (FDA) laws and regulations. The FDA Office of Criminal Investigations considers these products as “street drug alternatives”, and as such, has concluded they pose a potential threat to public health.
The indictment includes the following charges, although individual defendant charges vary: Conspiracy to import and distribute controlled substance analogues (aka “Spice”), conspiracy to launder money, conspiracy to defraud the United States, distribution of controlled substance analogues, misbranding, mail fraud, importation of a controlled substance, smuggling goods into the United States, maintaining drug involved premises, possession of acetone with intent to manufacture a controlled substance, distribution of drug paraphernalia, use of a communication facility to commit a drug crime and money laundering. In addition to the criminal charges, the United States is seeking the forfeiture of 61 specific property items and a money judgment of nearly $13.15 million. According to the indictment, the charges arose from the individuals’ involvement with Hampton Pipe and Tobacco, a store formerly owned by Jayson Mickle, in the production and distribution of synthetic cannabinoids or “Spice”.
Jayson Mickle, 29, of Hampton, Virginia; Amanda Rowe, 30, of Hampton; Sandra Cooke, 52, of Hampton; Phillip Gibson, 45, of Hampton; Jake Pham, 29, of Newport News; David Jay Mickle, 52, of Hayes, Virginia; David Joseph Mickle, 31, of Hampton; Margaret Amber Phillips Cooper, 31, of Gloucester, Virginia; Jaime Wainwright, 24, of Hampton; Abigail Rose Phillips, 29 of Hampton; Christopher Ellis, 30, of Salt Lake City, Utah; and Justin Calderon, 32, of New York, New York; were charged in a multi-count indictment returned by a United States grand jury sitting in Newport News, Virginia.
Jayson Mickle, Rowe, Cooke, Gibson, Pham, David Jay Mickle, David Joseph Mickle, Margaret Amber Phillips Cooper, Jamie Wainwright, and Abigail Rose Phillips were arrested yesterday by federal, state and local law enforcement agents.
As the arrests were taking place, law enforcement agents also executed federal search warrants at Jayson Mickle’s home at 69 Chowning Drive in Hampton, and a business location associated with Angry Monkey Glass at 915 G Street in Hampton.
This investigation began more than two years ago in Gloucester County. The case was investigated by Homeland Security Investigations; FDA Office of Criminal Investigations; Gloucester County Sheriff’s Office; Internal Revenue Service – Criminal Investigations; U.S. Postal Inspection Service; Virginia State Police; Tri-Rivers and Peninsula Task Forces; U.S. Air Force Office of Special Investigations; Hampton Police Division; Newport News Police Department; U.S. Customs and Border Protection; Virginia Department of Emergency Services; Virginia Fusion Center; and the Virginia Marine Resources Police. Assistant U.S. Attorneys Eric M. Hurt and Kevin Hudson are prosecuting the case on behalf of the United States.
Indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14-cr-00053.Tweet
Virginia Beach Man Pleads Guilty to Production of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Michael John Baigert, Jr., 21, of Virginia Beach, Virginia, pled guilty today to four counts of production of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Magistrate Judge Douglas Miller.
Baigert was indicted on September 10, 2014, by a federal grand jury on four counts of production of child pornography. The penalty for Production of Child Pornography is a mandatory term of 15 years with a maximum penalty of 30 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Baigert will be sentenced on February 9, 2015, by U. S. District Court Judge Mark S. Davis.
In a statement of facts filed with the plea agreement, Baigert acknowledged that in August, 2013, he travelled from his home in Virginia Beach to York County, Va., to visit “Jane Doe 1” whom he met via an on-line messenger app called KIK. Baigert and “Jane Doe 1” entered a wooded area near her home where Baigert committed a number of sex acts on her. The victim reported to the York-Poquoson Sheriff’s Office that she had been sexually assaulted. Unbeknownst to the victim, Baigert recorded a portion of the sex acts on his iPhone. Detectives obtained a search warrant for the defendant’s home where they seized a number of items. Baigert admitted to detectives that he engaged in a number of sex acts with “Jane Doe 1” who he knew to be 14 or 15 years old. Further investigation revealed three other victims, age 16 or younger, with whom Baigert engaged in sexual activity. In each instance Baigert asked the victim if he could record their sexual activity and was told “no” each time. Following execution of the search warrant, numerous homemade videos depicting young females engaged in sexually explicit conduct were found on electronic devices recovered from Baigert’ s home. Baigert disputes that he asked any of the victims if he could record their sexual activity.
This case was investigated by the FBI’s Norfolk Division. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. : 4:14cr55
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Northern Virginia Company Agrees to Settle Claim for failure of Services to a Deaf PatientRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, announced yesterday a settlement under the Americans with Disabilities Act (ADA) with Associated Foot & Ankle Centers of Northern Virginia, P.C. (AFAC), to ensure that it provides appropriate auxiliary aids and services to individuals who are deaf or hard of hearing when providing medical services.
The investigation began with a complaint alleging that AFAC violated the ADA by failing to provide appropriate auxiliary aids and services to a patient who is deaf during critical interactions relating to the patient’s medical care. The complainant specifically alleged that AFAC failed to provide a sign language interpreter for multiple medical appointments and provided an individual who is not a qualified interpreter during other appointments.
“This settlement exemplifies our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients have complex interactions with medical providers,” said U.S. Attorney Boente.
The settlement agreement requires AFAC to pay $14,000 to the aggrieved individual and a $1,000 civil penalty to the United States; provide training to the podiatry practice’s staff on the requirements of the ADA; and adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who coordinates the Civil Rights Initiative for the U.S. Attorney’s Office, Eastern District of Virginia.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm, and publications specific to health care providers, HIV discrimination, and effective communication with people with hearing and vision disabilities, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov. The settlement in this case, along with other Barrier-Free Health Care Initiative settlements may be found at www.ada.gov/usao-agreements.htm. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
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Norfolk Man Pleads Guilty in Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 52, of Norfolk, Va., pleaded guilty yesterday to mail fraud and aggravated identity theft in connection with a scheme to defraud the Internal Revenue Service.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by United States Senior District Judge Henry Coke Morgan, Jr.
Chisholm waived indictment and was charged in a criminal information on October 6, 2014. Chisholm faces a maximum penalty of 22 years when he is sentenced on January 22, 2015.
In a statement of facts filed with the plea agreement, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks. The employee of the check cashing business identified Ronald Chisholm as the individual who cashed the treasury checks and indicated Chisholm paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2,273,119.52 in fraudulent income tax refunds.
This case was investigated by the Criminal Investigations division of the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.Tweet
Mexican National who resided in Richmond sentenced to 57 months in prison for role in Violent Criminal OrganizationRead the Press Release
RICHMOND, Va. – Freddy David Santos Campuzano, 32, a Mexican National who resided in Richmond, Virginia was sentenced to 57 months in prison for his role in a violent criminal organization that specialized in manufacturing and distributing fraudulent identification documents. Santos Campuzano previously pleaded guilty to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money. Because he is illegally within the United States, he faces deportation following the service of his prison sentence.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington, D.C., made the announcement after the sentence was handed down by Senior United States District Judge James R. Spencer. The Court granted the request of the United States for a variance, and sentenced the defendant above the calculated guideline range.
According to court papers, Santos Campuzano was connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted.
On February 16, 2012, Judge Spencer sentenced the overall leader, Israel Cruz Millan, to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
In connection with his guilty plea, Santos Campuzano admitted to helping the FDE restart its criminal activities in the United States following the 2010 arrests described above. Beginning at some time prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.Beneath Hidalgo Flores, Santos Campuzano served as the manager of the Cincinnati, Ohio cell. In general, within each cell, the manager was responsible for distributing the fraudulent documents using information obtained from clients by “runners.” The runners would recruit illegal alien clients who wished to obtain false identification documents, including counterfeit Permanent Resident Alien Cards (also known as “Green Cards”), Social Security Cards, out-of-state identification cards, and various international documents. The runners would relay identifying information and photographs from the client to the printer, who would create fraudulent identification documents for the client. Once the documents were complete, the runner would usually provide the documents to the client in exchange for United States currency.
A client would generally pay approximately $150 for a set of fraudulent identification documents (such as a Permanent Resident Alien Card and Social Security Card). Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. For example, Hidalgo Flores and other defendants connected to the Richmond cell admitted targeting a competitor in the Richmond, Virginia area on October 6, 2013. The group identified L.G., who was selling fraudulent documents in competition with the Richmond cell. A co-defendant posed as a customer and contacted L.G. about setting up a fraudulent documents transaction and then met with him at a designated location. At the same time, Hidalgo Flores, and other FDE members, were surveilling the transaction. The defendants planned to follow competitor L.G. after the transaction to find where L.G. produced fraudulent identification documents and intended to assault L.G. and steal his printing equipment with the intent to stop L.G. from selling fraudulent identification documents and to enhance the FDE’s control of the Richmond area fraudulent document market.Unbeknownst to the FDE members, law enforcement officers were also surveilling the October 6, 2013 transaction. Due to law enforcement intervention, L.G. was detained during a traffic stop and the FDE members fled the area. According to his plea documents, Hidalgo Flores admitted that absent law enforcement intervention, he and his cohorts would have carried out their plan against L.G.
To date, 42 members of this organization charged in the Richmond, Virginia federal cases have been convicted. Santos Campuzano is the final charged defendant to be sentenced in the case.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill is prosecuting the case on behalf of the United StatesA copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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Four Prosecutors Receive Attorney General Awards for Somali Pirates CaseRead the Press Release
ALEXANDRIA, Va. – Attorney General Eric Holder presented four Justice Department prosecutors with Attorney General Awards at a ceremony yesterday in Washington, D.C., in recognition of the team’s outstanding work in securing the convictions of multiple defendants for engaging in piracy off the coast of Somalia.
“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice—including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
“This prosecution demonstrates our commitment to obtaining justice for victims of piracy affecting the United States and the international community, and it sends a strong message that Somali pirates and their land-based leaders are not beyond the reach of U.S. and international law,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to commend the prosecution team, along with our investigative partners and legal support staff, for their ground-breaking work in securing these important convictions.”
The John Marshall Award for Trial of Litigation was presented to Managing Assistant U.S. Attorney Benjamin L. Hatch and Assistant U.S. Attorneys Joseph E. Depadilla and Brian J. Samuels of the Eastern District of Virginia, along with Trial Attorney Paul G. Casey from the Justice Department’s National Security Division, for their performance in prosecuting 14 sea-based Somali pirates and one land-based Somali pirate leader for their role in the capture and murders of four Americans onboard the sailboat Quest on Feb. 22, 2011.
These prosecutions resulted in two separate trials, one involving defendant Mohammad Saaili Shibin, followed by a two-month capital trial involving three defendants (Ahmed Muse Salad, Abukar Osman Beyle, and Shani Nurani Shiekh Abrar).
Shibin was the first Somali-based pirate leader ever brought to trial in the United States, and his case was the first time that U.S. piracy laws had ever been applied to a person who did not himself go onto the high seas to commit violent acts of piracy, but rather, facilitated those acts from the relative safety of Somalia. The prosecution team secured convictions on all counts and Shibin was sentenced to serve more than 12 life sentences.
In the second trial, all three defendants who were found guilty on 26 counts of the indictment. The district court subsequently imposed 19 consecutive life sentences, two concurrent life sentences, and a 30-year consecutive term in prison for each defendant.
These annual awards recognize Justice Department employees and other individuals for their dedication to carrying out the Department’s mission. The John Marshall Awards are the Department’s highest awards offered to attorneys, for contributions and excellence in specialized areas of legal performance.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
Fredericksburg Man Charged for Theft of Millions in Investments Promised for Development of Quantico Corporate Center and Other PropertiesRead the Press Release
RICHMOND, Va. – James Ashby Moncure, Jr., 42, of Fredericksburg, Va., was charged with five counts of Wire Fraud, one count of Mail Fraud, and two counts of Engaging in Unlawful Monetary Transactions. If convicted on all charges, Moncure faces up to 140 years in prison and a fine of $2,000,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the indictment was returned by the federal Grand Jury.
According to allegations in the indictment, Moncure, as a partial owner of Moncure Brothers LLC, partnered with The Silver Companies to develop property known as the Quantico Corporate Center (QCC). The QCC is a business park located in Stafford County, Va., along Interstate 95 and US 1, adjacent to Marine Corps Base Quantico. The indictment alleges that beginning prior to January 2010 and continuing through March 2014, Moncure solicited individuals for investment opportunities in exchange for short term promissory notes offering returns ranging from 10 percent up to 25 percent. In connection with those investments, the indictment charges, Moncure represented that the investment funds would be used for acquiring and developing land for the QCC or another specified property. The defendant also allegedly made misrepresentations about how the promised returns would be generated and about the security of investment funds.
The indictment alleges that Moncure misappropriated the overwhelming majority of the more than $9 million in investment funds he received, using them for payment of returns to earlier investors, transfers to investment trading accounts from which the defendant day-traded stocks and options, and other unauthorized purposes. The indictment charges several transactions where the defendant received investment funds, followed by the defendant’s immediate wire transfer of those same funds to his Options Express, Inc., or Fidelity Investments trading accounts.
This case was investigated by FBI’s Fredericksburg Field Office, Internal Revenue Service-Criminal Investigations, and U.S. Postal Inspection Service. Assistant U.S. Attorney Michael Gill is prosecuting the case on behalf of the United States.This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the EasternDistrict of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
New Jersey Man Pleads Guilty to Traveling with the Intent to Engage in Sexual Activity with A MinorRead the Press Release
ALEXANDRIA, Va. – Rolando Feliciano, 49, of Elizabeth, New Jersey, pleaded guilty today to charges relating to engaging in sexual activity with a 13-year old girl from Fairfax County, Va.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler, Jr., Chief of Police of the Fairfax County Police Department; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
According to documents filed with the court, in July 2013, Feliciano used the website Facebook to contact the 13-year old girl. Between July 2013 and March 2014, he had nearly daily contact with her using Facebook, Skype, and Facetime. During their conversations, Feliciano repeatedly requested that she send him sexually explicit photographs and videos. In addition, on three occasions Feliciano drove from New Jersey to Virginia to meet with the girl. On two of those occasions he picked her up at her middle school, drove to a nearby park and engaged in sexual activity with her.
Feliciano was charged in a Superseding Information on October 7, 2014 with travel with intent to engage in illicit sexual contact with a minor, and receipt of child pornography. Feliciano faces a maximum penalty of 30 years in prison when he is sentenced on January 9, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Fairfax County Police Department, and FBI’s Washington Field Office. Assistant U.S. Attorney’s Matt Gardner and Whitney Russell are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-261.
Former Virginia Beach Probation Officer and Husband Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
NORFOLK, Va. – Katherine M. Kephart, 31, of Norfolk, Va., was sentenced today to 78 months in prison for conspiracy to distribute and possess with intent to distribute five (5) grams or more of methamphetamine, commonly known as “ice.” Kephart’s husband, Charles M. Kephart, 43, of Norfolk, Va., was sentenced on January 23, 2014 to 78 months in prison for conspiracy to distribute and possess with intent to distribute five (5) grams or more of methamphetamine, commonly known as “ice.”
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.
Katherine Kepart previously waived indictment and pled guilty on August 13, 2013. According to court documents, in November of 2012, a cooperating source informed the FBI that Katherine Kephart and her husband were involved in methamphetamine trafficking. The Kepharts were alleged to be obtaining quantities of methamphetamine from sources in the Ashville, North Carolina area and distributing in Virginia. They regularly used methamphetamine and associated with known methamphetamine traffickers. Katherine Kephart, who was a Virginia state probation and parole officer employed by the Virginia Beach Probation Office during this time, utilized her office facilities to further her husband’s drug trafficking activities. She also traveled with her husband to North Carolina to procure methamphetamine and distributed methamphetamine on multiple occasions. On February 28, 2013, Charles Kephart was arrested after he purchased 14 grams of methamphetamine during a controlled sale with the undercover officer. The FBI then executed a federal search warrant on the Kepharts’ residence in Norfolk. The search yielded drug paraphernalia, including at least seven small plastic bags or baggies, a piece of aluminum foil, four glass pipes, a spoon, two straws, a razor blade and an electronic scale. Many of these items later tested positive for methamphetamine residue.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Darryl J. Mitchell is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Portsmouth Man Sentenced to 170 Months in Prison for Heroin DistributionRead the Press Release
NORFOLK, Va. –Shawn Butler, a/k/a “Dickie,” 39 , of Portsmouth, Virginia, was sentenced today to 170 months in prison, followed by 8 years of supervised release for heroin distribution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
According to court documents, Butler is the leader of a heroin trafficking organization out of Portsmouth, Virginia. Butler, who has been dealing narcotics since 2005, began selling heroin in 2008. In 2008, he began referring customers to other dealers whom he was supplying. Butler and his co-conspirators distributed use amounts of cocaine and heroin to multiple individuals in the Tidewater area between 2008 and 2013. Butler had a courier who transported heroin from New Jersey to the Tidewater area. He also used multiple street level dealers to push his product out into location communities.Butler was indicted by a federal grand jury on January 9, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin on May 12, 2014.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-11.
This case was investigated by the Drug Enforcement Administration. Special Assistant U.S. Attorney Amy Cross prosecuted the case on behalf of the United States.Tweet
Centerville Woman Sentenced in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Lorene Chittenden, 57, of Centreville, Va., was sentenced today to 42 monthsin prison, followed by three years of supervised release, for conspiracy to commit bank fraud and related charges arising from a multi-million dollar mortgage fraud scheme.
The amounts in restitution and forfeiture that Chittenden will pay will be determined at a later hearing. More than $1 million dollars in bank accounts belonging to Chittenden were seized by law enforcement agents when the charges were first filed.Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Fred W. Gibson, Principal Deputy Inspector General for the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Chittendenwas found guilty after a six-day jury trial on May 7, 2014. According to court documents, Chittenden and her co-conspirators were responsible for over $15 million in losses to various lending institutions that purchased fraudulent loans that Chittenden originated as a loan officer at George Mason Mortgage, a subsidiary of federally-insured Cardinal Bank. The defendant and her co-conspirators from Manassas, Va., real estate firm Vilchez & Associates, fraudulently inflated the income and assets of their clients to obtain mortgage loans in amounts that the clients were wholly unqualified for. Chittenden earned hundreds of thousands of dollars in loan commissions from the fraud, while ringleader Rosita Vilchez pocketed millions of dollars in real estate commissions. The Vilchez conspiracy targeted hundreds of non-English-speaking members of the northern Virginia Hispanic community who were not able to read the loan applications and closing documents they were asked to sign. Often the amount of the monthly mortgage payments was unknown or even misrepresented to the borrowers. Vilchez was recently arrested in Peru where she had been a fugitive. Her brother, Armando Pino, who was also a realtor at Vilchez & Associates, was arrested in Peru in December 2012. Both Vilchez and Pino are fighting extradition to the United States to face charges.
This case was investigated by the FBI’s Washington Field Office and the FDIC Office of Inspector General. Assistant U.S. Attorneys James P. Gillis and Julia K. Martinez prosecuted the case on behalf of the United States.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cr-00394.
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Virginia Man Pleads Guilty to Using Cellular Phone to Entice Minors from Across the Country to Produce Child PornographyRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, 25, of King George County, Va., pled guilty today to using the internet on his cellular phone to entice or attempt to entice at least 6 minors to produce child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by United States District Judge John A. Gibney.
Mihlon was charged in a criminal information on October 2, 2014, with a single count of enticement of a minor, in violation of 18 U.S.C. § 2422(b). He faces a maximum penalty of life imprisonment when he is sentenced on January 14, 2015.
In a statement of facts filed with his plea agreement, Mihlon admitted to contacting 6 juvenile females through various cellular phone applications and enticing or attempting to entice them to produce sexually explicit pictures of themselves and send them to him over the internet. His victims ranged in age from 12 to 16 years old and were located across the country. On one occasion, Mihlon convinced a 15 year old victim living in Oregon to produce and send him over the internet at least five sexually explicit pictures.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-098.
Norfolk Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NORFOLK, Va. – Kevin D. Jackson, age 35, of Norfolk, Va., pleaded guilty yesterday to receipt of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Douglas Miller.
A Norfolk federal grand jury indicted Jackson on June 19, 2014, on four counts relating to child pornography. As a result of his guilty plea, Jackson faces a mandatory minimum sentence of five years of incarceration when he is sentenced on February 2, 2015.
According to the statement of facts filed with the plea agreement, Jackson had sought out images of child pornography via the internet for a number of years. A forensic examination confirmed that Jackson retained on his computer 54 videos and 189 pictures of child pornography.
This case was investigated by the FBI. Assistant United States Attorney Randy Stoker is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Colombian Man Sentenced to Three Years in Prison for Burglary SpreeRead the Press Release
ALEXANDRIA, Va. – Roger Mina-Cuero, 29, a Colombian national, was sentenced today to three years in prison, followed by three years of supervised release, for interstate transportation of Stolen Property and Illegal Reentry to the United States by a removed alien. Mina-Cuero’s sentence also included restitution in the amount of $371,760 and forfeiture in the amount of $311,340.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Mina-Cuero pleaded guilty on June 23, 2014. According to court documents, Mina-Cuero was part of aColumbian burglary crew based in Houston, Texas, that traveled as far as Virginia and Maryland to conduct at least 12 residential burglaries in which they stole jewelry, cash and electronic items. The co-conspirators cased neighborhoods to identify residences where no one was home, then broke windows in the rear of the houses to gain entry. Mina-Cuero and his co-conspirators brought stolen jewelry and cash from the burglaries back to Houston for sale and forwarded some of the proceeds of the burglaries to Columbia.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations directorate in cooperation with police departments in Montgomery County and Howard County, Maryland; and Loudon County, Virginia. Assistant U.S. Attorney Kimberly Riley Pedersen and Special Assistant United States Attorney Christopher Van Horne prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-131.
Portsmouth Woman Sentenced to 15 Years for Her Role in Conspiracy to Produce Child PornographyRead the Press Release
NORFOLK, Va. – Nina Renee Calderon, 23, of Portsmouth, Virginia, was sentenced today to 15 years in prison, followed by lifetime supervised release, for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Calderon pleaded guilty on May 7, 2014. According to court documents, Calderon became involved in a conspiracy to produce child pornography when she was contacted by coconspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.” Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services. In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos they had created for the promise of additional money. In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with several different women, including Calderon. Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Calderon complied in return for the promise of money. Specifically, Calderon produced child pornography with a 2 year old female child.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-164.
Norfolk Man Sentenced to 54 Months for Wire Fraud and False ClaimsRead the Press Release
NORFOLK, Va. –Travis Hager, 24, of Norfolk, Virginia, was sentenced today to 54 months in prison, followed by five years of supervised release, following his guilty plea on June 4, 2014, for wire fraud and false claims against the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Thomas J. Kelly, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigations, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
According to court documents, Travis Hager, along with his co-conspirator Donte Demus, stole the identities of individuals and used them to file false federal income tax returns. While incarcerated in a Virginia Beach jail, Hager stole the identities of a number of fellow inmates and provided them to Demus by using the jail’s phone system. Demus then provided the identities to a third unidentified accomplice who filed the false returns. The conspirators would request the tax refund be loaded on a prepaid debit card and mailed to Norfolk, Virginia where Demus would retrieve them and spend the funds. In total, Hager, Demus, and their accomplice claimed fraudulent tax refunds from the U.S. Government in the amount of $163,953.
Donte Demus pleaded guilty on September 3, 2014 and is scheduled to be sentenced on December 4, 2014.
This case was investigated by Internal Revenue Service-Criminal Investigations. Assistant U.S. Attorney Joseph Kosky prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-43.
Five Army National Guard Officials and One Civilian Charged with BriberyRead the Press Release
WASHINGTON – Four retired and one active-duty Army National Guard officials and one civilian have been charged for their alleged participation in bribery schemes related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts. Two of the retired Army National Guard officials and the civilian pleaded guilty for their roles in the schemes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.
“As captured by its motto, the Army National Guard is ‘always ready, always there’ for the American people,” said Assistant Attorney General Caldwell. “Unfortunately, today’s charges expose National Guard officials who were ‘always ready’ to pocket bribes and ‘always there’ to take kickbacks. In return, the charged officials allegedly subverted the open bidding process and illegally steered millions of taxpayer dollars to the bribe-payers through marketing and advertising contracts. Corruption should know no place in American government, but least of all in the military that so honorably serves our country. The Criminal Division is committed to rooting out corruption wherever we find it, including in the military, so that we can ensure that no one is putting the public’s trust up for sale.”
“These criminal charges and guilty pleas reflect our continued commitment to rooting out public corruption wherever it occurs,” said U.S. Attorney Boente. “The public contracting process should be one of integrity and fairness, and these cases should send a strong message that public corruption will be vigorously prosecuted in the military as well as other areas of government.”
“This investigation has sadly reminded us that even some members of our military are willing to trade on the trust their country placed in them to line their pockets with the profits of corrupt activities,” said U.S. Attorney Lynch. “We and our law enforcement partners will constantly guard against and root out such corruption wherever we find it.”
Charles Sines, 56, of Stafford, Virginia, a retired colonel from the United States Army National Guard; Wesley Russell, 48, of Albany, Indiana, a retired lieutenant colonel from the Indiana Army National Guard; and Jason Rappoccio, 39, of Hampton, South Carolina, an active-duty sergeant first class from the Army National Guard are charged with conspiracy to solicit bribes and the solicitation of bribes. Russell and Rappoccio allegedly asked for and received bribes, and Sines allegedly provided bribes.Robert Porter, 50 of Columbia, Maryland, a retired colonel from the Army National Guard, and Timothy Bebus, 44, of Forest Lake, Minnesota, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC, each pleaded guilty in the Eastern District of Virginia in September 2014 to conspiracy to commit bribery and bribery of a public official. Julianne Hubbell, 45, of Brooklyn Park, Minnesota, a civilian who partnered with her brother, Bebus, as the vice president of operations of Mil-Team, also pleaded guilty in September 2014 to conspiracy to commit bribery. Sentencing hearings for Bebus and Hubbell are scheduled for Jan. 23, 2015, and for Porter on Jan. 30, 2015.
“The alleged steering of large government contracts is offensive to active duty, reserve and retired members of the National Guard Bureau who took an oath to support and defend the Constitution,” said FBI Assistant Director in Charge McCabe. “It is also offensive to average American citizens who trust their government and its contractors to use taxpayer money wisely. We urge anyone who has knowledge of corruption and abuse in federal government contracting to contact the FBI.”
“The Department of Defense places special trust and confidence in its service members, particularly those in positions to influence the expenditure of taxpayer dollars,” said DCIS Special Agent in Charge Craig. “Guardsmen hold a unique position in our society, representing both their state and military service. The alleged behavior uncovered in this investigation was a disservice to both, but in no way typical of those honorable women and men that serve in our Army and Air National Guard. Identifying and investigating fraud and public corruption remains the highest of priorities for the Defense Criminal Investigative Service. Alongside our law enforcement partners, we will continue to aggressively pursue allegations of fraud impacting Department of Defense resources.”
“We have highly-trained, Army CID special agents who are extremely talented and very capable of rooting out this type of corruption within our ranks,” said Army-CID Director Robey. “People must realize, both in and out of uniform, that fraud will not be tolerated within the Army and Department of Defense, and greed cannot and will not trump duty and honor.”
As set forth in the indictments and other publicly-filed documents, the National Guard Bureau is a joint activity of the U.S. Department of Defense (DOD), state Army National Guard units and the Departments of the Army and Air Force. The National Guard Bureau, located in Arlington, Virginia, oversees the distribution of federal funding provided to the Army National Guard and its state units.
The DOD provides millions of dollars of federal funds to the Army National Guard for, among other things, advertising, marketing and sponsorships in order to recruit new members. The National Guard Bureau uses these funds to promote the Army National Guard by entering into advertising, marketing and sponsorship contracts. For example, through advertising, marketing and sponsorship contracts, the National Guard was an official sponsor of Dew Tour, Warrior Dash, and American Motorcycle Association Supercross’s events, where recruiters handed out promotional items and recruited new members. The National Guard also had a contract to sponsor Michael Jordan’s AMA Superbike team.
The National Guard Bureau can avoid a competitive bid process by awarding these federally-funded marketing contracts to Small Business Administration (SBA) certified 8(a) companies, which are minority-owned businesses. The National Guard Bureau also provides a portion of the federal funds to the state units to allocate.
The indictments allege that Sines and Rappoccio evaded the competitive bid process by using 8(a) companies to award contracts in exchange for bribes.
According to allegations in the indictment against him, Sines founded a company, Financial Solutions, after retiring from the Army National Guard as a colonel. Sines allegedly paid Porter, a then-active-duty colonel in the Army National Guard, a percentage of all contracts that Porter steered to Financial Solutions through 8(a) companies. As the director of the National Guard Bureau’s Guard Strength Directorate, Porter had substantial influence over the awarding of National Guard Bureau contracts, and allegedly steered approximately $4.5 million worth of contracts to Sines and Financial Solutions.
The indictment against Russell alleges that, while on active duty as a lieutenant colonel in the Indiana Army National Guard, Russell demanded 15 percent of all profits that a private marketing company would receive from state Army National Guard units. In return for his 15 percent cut of the profits, Russell allegedly promoted and encouraged state Army National Guard units to purchase the marketing company’s products.
The indictment against Rappoccio, an active-duty sergeant first class in the Army National Guard, alleges that Bebus and Hubbell paid Rappoccio a $30,000 bribe for steering a contract worth approximately $3.7 million to an 8(a) company chosen by Bebus. In pleading guilty, Bebus and Hubbell admitted to paying this bribe. In an effort to conceal the bribe payment, Bebus, Hubbell and others allegedly arranged for the payment of $6,000 in cash to Rappoccio, and the remaining $24,000 was allegedly routed from a business account controlled by Hubbell to an account controlled by Bebus and Hubbell’s brother-in-law, and then provided to Rappoccio in the form of a cashier’s check to Rappoccio’s wife.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.
Allegations of bribery or corruption within the National Guard Bureau’s retention and recruitment contracting can be reported to the FBI’s Washington Field Office at (202) 278-2000 or the FBI’s Northern Virginia Public Corruption Hotline at (703) 686-6225.
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Pakistani Man Indicted for Selling “Stealthgenie” Spyware AppRead the Press Release
WASHINGTON – A Pakistani man has been indicted in the Eastern District of Virginia for allegedly conspiring to advertise and sell StealthGenie, a spyware application (app) that could monitor calls, texts, videos and other communications on mobile phones without detection. This marks the first-ever criminal case concerning the advertisement and sale of a mobile device spyware app.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office made the announcement.
“Selling spyware is not just reprehensible, it’s a crime,” said Assistant Attorney General Caldwell. “Apps like StealthGenie are expressly designed for use by stalkers and domestic abusers who want to know every detail of a victim’s personal life – all without the victim’s knowledge. The Criminal Division is committed to cracking down on those who seek to profit from technology designed and used to commit brazen invasions of individual privacy.”
“StealthGenie has little use beyond invading a victim’s privacy” said U.S. Attorney Boente. “Advertising and selling spyware technology is a criminal offense, and such conduct will be aggressively pursued by this office and our law enforcement partners.”
“This application allegedly equips potential stalkers and criminals with a means to invade an individual’s confidential communications,” said FBI Assistant Director in Charge McCabe. “They do this not by breaking into their homes or offices, but by physically installing spyware on unwitting victim’s phones and illegally tracking an individual’s every move. As technology continues to evolve, the FBI will investigate and bring to justice those who use illegal means to monitor and track individuals without their knowledge.”
According to allegations in the indictment, Hammad Akbar, 31, of Lahore, Pakistan, is the chief executive officer of InvoCode Pvt Ltd, the company that advertises and sells StealthGenie online. Akbar and his co-conspirators allegedly created the spyware, which could intercept communications to and from mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry. StealthGenie was undetectable by most users and was advertised as being untraceable.
Akbar was charged in the indictment with conspiracy, sale of a surreptitious interception device, advertisement of a known interception device and advertising a device as a surreptitious interception device. He was arrested in Los Angeles on Sept. 27, 2014, and is expected to appear before a magistrate judge in the Central District of California later today.StealthGenie was hosted at a data center in Ashburn, Virginia. On Sept. 26, 2014, a federal judge in the Eastern District of Virginia issued a temporary restraining order authorizing the FBI to temporarily disable the website hosting StealthGenie.
The indictment alleges that StealthGenie’s capabilities included the following: it recorded all incoming/outgoing voice calls; it intercepted calls on the phone to be monitored while they take place; it allowed the purchaser to call the phone and activate it at any time to monitor all surrounding conversations within a 15-foot radius; and it allowed the purchaser to monitor the user’s incoming and outgoing e-mail messages and SMS messages, incoming voicemail messages, address book, calendar, photographs, and videos. All of these functions were enabled without the knowledge of the user of the phone.
Akbar and his co-conspirators allegedly programmed StealthGenie to synchronize communications intercepted by the app with the customer’s account so that the customer could review intercepted communications almost immediately from any computer with access to the Internet. To install the app, a purchaser needed to obtain physical control over the phone to be monitored for only a few minutes. The purchaser could then review communications intercepted from the monitored phone without ever again having physical control over the phone. Akbar and others alleged designed SteathGenie to be undetectable to users of the phone.
According to allegations in the indictment, the business plan for the development, sale and advertisement of StealthGenie stated that the target population for the marketing of the app was “[s]pousal cheat: Husband/Wife of (sic) boyfriend/girlfriend suspecting their other half of cheating or any other suspicious behaviour or if they just want to monitor them.” Language and testimonials on the StealthGenie website focused significantly on potential purchasers who did not have any ownership interest in the mobile phone to be monitored, including those suspecting a spouse or romantic partner of infidelity. The indictment alleges that Akbar and his co-conspirators fabricated the testimonials.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI’s Washington Field Office, and prosecuted by Trial Attorneys William A. Hall Jr. and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay V. Prabhu of the Eastern District of Virginia.
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Washington, D.C., Felon Sentenced for Using Straw Purchaser to Illegally Acquire FirearmsRead the Press Release
ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm. According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a federal firearms dealer in Northern Virginia. Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf. Following the purchase, Gaither took possession of both firearms.
Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells. After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia. Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both. Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.
This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.
Washington, D.C., Felon Sentenced for Using Straw Purchaser to Illegally Acquire FirearmsRead the Press Release
ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm. According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a firearms dealer in Northern Virginia. Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf. Following the purchase, Gaither took possession of both firearms.
Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells. After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia. Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both. Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.
This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.
Virginia Man Sentenced to 24 Years for “Sextortion” of Minors on FacebookRead the Press Release
RICHMOND, Va. – Cameron Scot Bivins-Breeden, 21, of King George County, Virginia, was sentenced today to 288 months in prison, followed by a life term of supervised release, for using Facebook to entice and attempt to entice 38 minor victims to produce sexually explicit photographs of themselves and send to him over the internet. In multiple instances, Bivins-Breeden used the threat of sending the sexually explicit images to friends and family of the victims to extort additional pictures from the victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark Herring, Commonwealth of Virginia Attorney General; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Bivins-Breeden pled guilty on June 23, 2014, to one count of production of child pornography, in violation of 18 U.S.C. § 2251, and one count of enticement of a minor, in violation of 18 U.S.C. § 2422. In a Statement of Facts submitted in support of his pleas, Bivins-Breeden admitted that he contacted 38 juvenile females across the country, ranging in age from 11 to 17 years old, via Facebook on his iPhone. Posing as a juvenile female, he enticed or attempted to entice them to send him sexually explicit pictures of themselves. When the victims refused to produce additional child pornography images for him, Bivins-Breeden threatened to send the previously obtained images to the victims’ friends, family, and schoolmates on Facebook. In total, Bivins-Breeden admitted to sending 95 child pornography images in an effort to convince victims he was in fact a juvenile female and caused victims to produce 45 child pornography images.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert and Commonwealth of Virginia, Office of the Attorney General, Assistant Attorney General and Special United States Attorney Samuel Fishel prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-57.
Chinese National Sentenced for Skimming Customers’ Credit Card Numbers at Loudoun County RestaurantvRead the Press Release
ALEXANDRIA, Va. – Yaoliang Gao, 23, of Flushing, New York, was sentenced today to 30 months in prison, followed by three years of supervised release for one count of possessing 15 or more unauthorized access devices.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kathy Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Terry Sheffer, Detective for Loudoun County Sheriff’s Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Gao pled guilty on July 3, 2014. According to court documents, from March 11, 2014 to April 8, 2014, Gao was employed as a waiter at Moca Asian Bistro in Chantilly, Virginia. When customers gave Gao their credit cards to pay for their meals, the defendant swiped the customer’s card through a credit card skimming device, which captured the customer’s card information from the magnetic strip. Prior to beginning his employment, Gao met an individual who gave him the skimmer and agreed to pay him $50 for every credit and debit card number he captured.
On April 8, 2014, Gao was caught in the act by a customer who observed him using the skimming device to illegally obtain his credit card information. Loudoun County Sheriff’s Deputies were dispatched to the location and took possession of the device, which was discovered to contain 598 unique credit card numbers. As a result of Gao’s actions, financial institutions lost $8,429. In addition, Gao, who is a Chinese citizen, overstayed his F-1 Student Visa.
The investigation was conducted by the U.S. Secret Service’s Washington Field Office, with assistance from the Loudoun County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer Ballantyne prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-218.
Virginia Beach Concert Promoter Sentenced to 41 Months for Fraud SchemeRead the Press Release
RICHMOND, Va. – Kensey Lamonte Wright, 43, of Virginia Beach, Virginia, was sentenced today to 41 months in prison, followed by 3 years of supervised release, for wire fraud. Wright was also ordered to pay $940,600 in restitution to his victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Joseph Morrison, Assistant Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior United States District Judge James R. Spencer.
Wright pled guilty on June 10, 2014. According to court documents, between January 2007 and December 2013, he acted as a representative of Fifth Degree Tours #1, Inc., Fifth Degree Records, Inc., and Turnwright Enterprises, Inc. In that capacity, Wright solicited individuals in Virginia and elsewhere to invest in concerts, tours, and similar entertainment events to be held throughout the United States.Wright promised returns as high as 100% within just two weeks to two months, and represented to investors that their funds would be used to produce and promote entertainment events, including ones featuring Prince, Beyoncé, Jay Z, R Kelly, and TLC, among others. Rather than use the investment funds as he had promised, Wright used the vast majority of the funds for his personal benefit, including for gambling and other expenses at various casinos.
As a result of Wright’s ongoing scheme to defraud, investors lost $940,600.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:13CR143.
Colombian Nationals Convicted of Conspiring to Import Cocaine into the United StatesRead the Press Release
NORFOLK, Va. – German Dario Brand Piedrahita, 48, of Medellin, Colombia, pleaded guilty yesterday to conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States. Today, Sonia Cruz Quiceno, 48, of Calarca, Colombia, was sentenced to 168 months in prison, followed by five years of supervised release, for her involvement in the same conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office, made the announcements after Cruz Quiceno’s sentencing by U.S. District Judge Raymond A. Jackson.
Brand Piedrahita and Cruz Quiceno were indicted on October 23, 2013 by a federal grand jury on charges stemming from their roles in a cocaine importation, firearms, and narco-terrorism conspiracy. According to court documents, both Brand Piedrahita and Cruz Quiceno were associates of the Bacrim Los Urabeños, a transnational narco-trafficking organization operating in Colombia.
In a statement of facts filed with his plea agreement, Brand Piedrahita, admitted to his role in the production of large quantities of cocaine in Colombia on behalf of the Bacrim Los Urabeños, and the subsequent transport of the cocaine to other members of the conspiracy for the eventual importation into the United States. Within the conspiracy, Brand Piedrahita was involved in purchasing cocaine base, constructing a jungle laboratory for the production of cocaine from cocaine base, transporting the cocaine to the coast of Colombia, and collecting payment for various cocaine loads. All told, Brand Piedrahita was involved in the production and shipment of hundreds of kilograms of cocaine throughout the life of the conspiracy. He will be sentenced on January 7, 2015.
Cruz Quiceno pleaded guilty on March 19, 2014. According to court documents, Cruz Quiceno was responsible both for negotiating cocaine sales and moving money on behalf of the Bacrim Los Urabeños. She is responsible for the movement of millions of U.S. dollars back into Colombia from the sale of cocaine in the United States.
This case was investigated by the Norfolk Resident Office and Bogota, Colombia Country Office of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Colombian National Police. Assistant U.S. Attorneys V. Kathleen Dougherty, Kevin M. Comstock, and Joseph E. DePadilla are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-122.
Alexandria Woman Convicted of EmbezzlementRead the Press Release
ALEXANDRIA, Va. – Julissa Rauhut, 45, formerly of Springfield, Virginia, was convicted today on five counts of wire fraud after embezzling over $186,000 from her employer from 2009 to 2011.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Earl L. Cook, Alexandria Chief of Police, made the announcement after the verdict was accepted by U.S. District Judge James C. Cacheris.
Rauhut was indicted on May 22, 2014 by a federal grand jury on the wire fraud charges. According to court records and evidence at trial, between December 2008 and August 2011, Rauhut worked as a personal assistant at a law firm in Alexandria. While there she stole 120 checks and 64 money orders that were intended as payments to her employer and deposited them into her personal checking account at Bank of America. In total, Rauhut embezzled $186,178.93.
Rauhut faces a maximum penalty of 20 years in prison for each count when she is sentenced on Dec. 18, 2014. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service Metro Area Fraud Task Force (MAFTF), which includes agents from the U.S. Secret Service and the Alexandria Police Department. Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Della Sentilles prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-186.
Richmond Man Sentenced for Massive Tax Fraud and Obstruction of JusticeRead the Press Release
RICHMOND, Va. – Billy Gene Jefferson, Jr., 52, of Richmond, was sentenced today to 20 years in prison for engaging in a nearly $13 million tax fraud scheme involving the rehabilitation of historic properties in Richmond, trying to hide and spend millions in ill-gotten gains to avoid paying back his victims after he was charged and pleaded guilty in federal court, and stealing his brother’s identity and trying to flee the country to avoid justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after the sentence was handed down by U.S. District Judge John A. Gibney, Jr.
On Dec. 19, 2013, Jefferson pleaded guilty to conducting a major fraud against the United States and engaging in unlawful monetary transactions for his role in orchestrating a multimillion dollar rehabilitation tax credit scheme between 2009 and 2012. During that time, Jefferson applied for and received millions in state and federal historic tax credits in connection with the rehabilitation of a former tobacco manufacturing plant in the Manchester Industrial Historic District of Richmond (referred to as the TABAC Project), followed by the rehabilitation of ten historic buildings located in the Fan District of Richmond (referred to as the River City Renaissance Projects). Jefferson then sold many of those tax credits to corporate investors. However, Jefferson grossly inflated the rehabilitation costs on the properties at issue, and as a result, he fraudulently obtained millions in state and federal tax credits. The loss in federal tax credits was $5,754,616, and the loss in state credits was $7,193,270, for a combined total of approximately $12,947,886.
After Jefferson pleaded guilty on Dec. 19, 2013, he was released on bond, allowing him to gather funds to repay his victims before sentencing. While awaiting sentencing, however, law enforcement discovered Jefferson was stealing and spending funds that could have been used to repay his victims, including orchestrating hundreds of covert transactions designed to spend and conceal over $7 million. At a hearing held on September 9, 2014, the United States presented evidence that Jefferson had illegally amassed up to $2.5 million for a cash hoard, stole over $2.15 million in assets during a month-long trip to Las Vegas, and opened a new bank account and conducted several financial transactions to evade a pretrial release bond requirement to report any transactions over $25,000 to the IRS. Investigators also discovered that Jefferson had created a PVC pipe vault designed to hold his cash hoard. After his arrest, Jefferson asked a friend to throw the pipe away. Instead, on Feb. 28, 2014, the friend led FBI and U.S. Postal Inspection Service investigators to the empty pipe which was later presented as evidence against the defendant.
In addition to hiding and spending down his assets, Jefferson engaged in a thwarted attempt to flee the United States to avoid sentencing and further prosecution. As part of this effort, Jefferson created a false Arkansas driver’s license in the name of his brother, but with a picture of himself, and Jefferson then used the false ID while attempting to charter a one-way flight to Cranfield, England. Jefferson later pleaded guilty on June 4, 2014, to unlawfully transferring a false identification document and aggravated identity theft for using his brother’s identity.
Judge Gibney consolidated both cases for today’s sentencing hearing. As part of his plea agreement, Jefferson has agreed to pay full restitution for the tax credit scheme, which could range between $9.6 million up to $12.9 million. Due to issues in identifying the final amount of restitution and the victims, the court continued the restitution hearing for 60 days.
This case was investigated by IRS-CI, FBI’s Richmond Field Office, U.S. Postal Inspection Service, and Virginia State Police, with assistance from the Virginia Department of Historic Resources. Assistant U.S. Attorneys Michael Gill and Wingate Grant and Senior Assistant Attorney General and Special Assistant United States Attorney Patrick Dorgan Patrick Dorgan are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:13CR212 and 3:14CR066.
Maryland Man Sentenced to Seven Years in Prison for Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Taofik Gbadamosi, 42, of Bowie, Maryland, was sentenced on Friday to seven years in prison, followed by four years of supervised release, for supervising a bank fraud and identity theft scheme in the Washington, D.C. metro area. Gbadamosi also was ordered to pay restitution and forfeiture of approximately $781,697.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Gbadamosi pleaded guilty on May 29, 2014 to conspiracy to commit bank fraud and aggravated identity theft. According to court documents, Gbadamosi and his co-conspirators opened business accounts at banks in the Washington metro area, including in the Eastern District of Virginia, and the group funded the accounts through stolen and counterfeit checks and unauthorized wire transfers.
Gbadamosi was a manager and supervisor in the conspiracy, driving other conspirators from bank to bank and directing them to withdraw stolen funds. Gbadamosi gave false identification documents to his co-conspirators, who would then enter the banks and use the IDs to cash checks drawn on the fraudulently funded accounts. These IDs contained the names and birthdates of real people who did not know their identities had been stolen. On at least one occasion, Gbadamosi gave the real driver’s license of an individual to a co-conspirator, whom Gbadamosi then directed to make unauthorized withdrawals from that individual’s bank account.
Gbadamosi is the second co-conspirator to be sentenced in the case. On March 14, 2014, Samuel Goines was sentenced to five years in prison and three years of supervised release. Gbadamosi managed and supervised Goines during his participation in the conspiracy.
This case was investigated by the FBI’s Washington Field Office, U.S. Secret Service, and Alexandria Police Department. Assistant U.S. Attorney Kosta S. Stojilkovic and Special Assistant U.S. Attorney William E. Johnston prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-161.
Washington, D.C. Man Sentenced for Role in 2013 String of Armed Bank RobberiesRead the Press Release
ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, pleaded guilty yesterday to engaging in the sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after the plea was accepted by U.S. District Judge T. S. Ellis, III.
In a statement of facts filed with the plea agreement, Weeks admitted that he met a 14-year-old girl at the Braddock Road Metro Station and eventually took the girl to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with her. Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged the girl to do so. The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and something to the effect of “You might as well get paid for something most girls do for free.”
The victim eventually contacted the police and allowed the police to use her Facebook account. While posing as the victim, police personnel told Weeks about a fictitious girl named “Alisha,” who purportedly wanted to be prostituted. A Fairfax County Police detective posed as “Alisha” and called Weeks on the telephone. Weeks described to “Alisha” how the prostitution would work. Weeks also informed “Alisha” that she and the victim would perform sex acts with the same customer because customers would pay more for this simultaneous service.
On a few occasions, Weeks and “Alisha” discussed the unlawfulness of prostituting underage girls, and Weeks conceded to “Alisha” that his prostitution of the victim and “Alisha” could result in imprisonment for many years. Weeks also informed a friend that he intended to prostitute underage girls, and the friend told Weeks that such conduct would constitute “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned. Weeks responded that he did not think the police would catch him.
Weeks faces a maximum penalty of life in prison when he is sentenced on Dec. 12, 2014. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Fairfax County Police Department, the FBI’s Washington Field Office, and the Alexandria Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-313.Washington, D.C. Man Sentenced for Role in 2013 String of Armed Bank RobberiesRead the Press Release
ALEXANDRIA, Va. – James Link, 57, of Washington, D.C., was sentenced today to 35 years in prison, followed by five years of supervised release for two counts of brandishing a firearm during a crime of violence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
According to court records, the FBI identified Link and co-defendants James McNeal, 63, of Hyattsville, Maryland, and Alphonso Stoddard, 59, of Forest Heights, Maryland, as possible suspects in a string of bank robberies in late 2013. On Dec. 27, 2013, Link, McNeal and Stoddard were followed by law enforcement agents as they cased two banks in Arlington, Virginia. One of the banks the defendants were seen casing was a Wells Fargo branch on South George Mason Drive.
On Dec. 31, 2013, McNeal left his residence in Hyattsville and picked up Link and Stoddard before returning to the Wells Fargo branch in Arlington. At approximately 1:15 p.m., Stoddard and Link entered the bank. Inside the bank, Link brandished a firearm while Stoddard removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to the vehicle where McNeal was waiting. The FBI and Arlington police officers arrested the defendants shortly after exiting the Wells Fargo branch. A handgun and cash were found in the vehicle.
A search of McNeal’s house led to the discovery of an additional firearm believed to be used in earlier bank robberies, cash and gloves. Stoddard admitted to his involvement in armed robberies at a Wells Fargo in Rockville, Maryland on Oct. 29, 2013 and the Bank of Georgetown in Vienna, Virginia on Oct. 30, 2013. Link admitted he was involved in the Bank of Georgetown robbery and an armed robbery at a Wells Fargo in Arlington on Nov. 25, 2013.
Link pleaded guilty to two counts of brandishing a firearm during a crime of violence and admitted his involvement in four bank robberies. Stoddard was convicted at an August 2014 trial on charges involving three separate bank robberies, and McNeal was convicted for his involvement in one bank robbery. Stoddard faces a mandatory life sentence because of prior convictions for armed bank robberies, and McNeal faces a mandatory minimum sentence of seven years and a maximum sentence of life in prison. Stoddard and McNeal will be sentenced on Nov. 7, 2014.
The investigation was conducted by the FBI’s Washington Field Office, with assistance from FBI’s Baltimore Division and the Arlington County and Fairfax County police departments. The U.S. Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Special Assistant U.S. Attorney Jennifer A. Clarke is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-76.
Alexandria Man Pleads Guilty to Sex Trafficking 14-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, pleaded guilty yesterday to engaging in the sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after the plea was accepted by U.S. District Judge T. S. Ellis, III.
In a statement of facts filed with the plea agreement, Weeks admitted that he met a 14-year-old girl at the Braddock Road Metro Station and eventually took the girl to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with her. Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged the girl to do so. The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and something to the effect of “You might as well get paid for something most girls do for free.”
The victim eventually contacted the police and allowed the police to use her Facebook account. While posing as the victim, police personnel told Weeks about a fictitious girl named “Alisha,” who purportedly wanted to be prostituted. A Fairfax County Police detective posed as “Alisha” and called Weeks on the telephone. Weeks described to “Alisha” how the prostitution would work. Weeks also informed “Alisha” that she and the victim would perform sex acts with the same customer because customers would pay more for this simultaneous service.
On a few occasions, Weeks and “Alisha” discussed the unlawfulness of prostituting underage girls, and Weeks conceded to “Alisha” that his prostitution of the victim and “Alisha” could result in imprisonment for many years. Weeks also informed a friend that he intended to prostitute underage girls, and the friend told Weeks that such conduct would constitute “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned. Weeks responded that he did not think the police would catch him.
Weeks faces a maximum penalty of life in prison when he is sentenced on Dec. 12, 2014. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Fairfax County Police Department, the FBI’s Washington Field Office, and the Alexandria Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-313.
Mother and Daughter Plead Guilty in Student Aid Fraud InvestigationRead the Press Release
RICHMOND, Va. – Donnica Crossland, of Washington, D.C., pleaded guilty today to making false statements to federal agents in connection with an investigation of student aid fraud. Her daughter, Jamanda Crossland, pleaded guilty today to making false statements on student financial aid applications.
Dana J. Boente, United States Attorney for the Eastern District of Virginia;and Mark A. Smith, Special Agent in Charge of the Technology Crimes Division of the Department of Education Inspector General’s Office, made the announcement after the pleas were accepted by United States District Judge Henry Hudson.Donnica and Jamanda Crossland each face a maximum penalty of 5 years in prison, a fine of up to $250,000, and full restitution when they are each sentenced on December 12, 2014, by United States District Judge Henry Hudson.
In separate statements of fact filed by each defendant with their written plea agreements, Donnica and Jamanda Crossland admitted that Jamanda Crossland attended Virginia Commonwealth University (VCU), in Richmond, Virginia, as a student from 2009 to 2013. Between 2009 and 2013, Jamanda Crossland was awarded $69,788 in U.S. Federal Education grants or loans, and $43,400 in tuition grants from the D.C. Office of the State Superintendent of Education, Government of the District of Columbia (“OSSE”) that were used to pay costs associated with attending VCU. For each year Jamanda Crossland attended VCU between 2008 and 2013, she filed a Free Application for Federal Student Aid (FAFSA) with the U.S. Department of Education and reported her mother Donnica Crossland had no income. During that same period, Jamanda Crossland filed applications for education grants with the D.C. OSSE, and in those applications stated her mother Donnica Crossland was not employed and received no income. Jamanda Crossland also submitted a Federal Student Aid Verification worksheet containing false information to VCU and provided additional false documents in support of the worksheet, including: fraudulent copies of Form 1040 for her father, a forged letter from her father regarding his marital status, and a fake utility bill with a false address for her mother.
To facilitate her daughter Jamanda Crossland obtaining the OSSE grants for use at VCU, and another daughter obtaining the OSSE grants for use at a North Carolina college, on five separate occasions Donnica Crossland affirmed and signed these OSSE applications falsely stating that she was not employed and received no income, which were then submitted to the OSSE. In fact, for each year during the period from December 2006 through December 2012, Donnica Crossland had a substantial income from employment at the U.S. Department of Transportation (“USDOT”), earning a total of $521,819 from her employment at the USDOT for that time period.
In 2013, the U.S. Department of Education’s Office of the Inspector General commenced an investigation of the Crossland aid applications and supporting documents. On July 30, 2013, Department of Education Inspector General agents interviewed Donnica Crossland. During the interview, attempting to conceal her involvement, Donnica Crossland knowingly and falsely stated that she had filled out some of Jamanda Crossland’s paperwork during the summer prior to her first year of college, but she had nothing to do with their financial aid applications thereafter.
On November 7, 2013, Department of Education Inspector General agents again interviewed Donnica Crossland. During the interview, attempting to conceal her involvement, Donnica Crossland knowingly and falsely stated that she had no knowledge of any of the financial assistance applications submitted by Jasmine Crossland and Jamanda Crossland after 2007.For restitution and sentencing purposes, Donnica and Jamanda Crossland stipulated that the loss amount resulting from their false statements and filings is $78,688.00.
This case was investigated by the U.S. Department of Education’s Office of the Inspector General. Assistant U.S. Attorney S. David Schiller is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:14-cr-115 and 116.Law Enforcement Team Receives ADL SHIELD Award for Prosecuting Leaders of Jihadist WebsitesRead the Press Release
ALEXANDRIA, Va. – Federal prosecutors and members of law enforcement were honored yesterday with the Anti-Defamation League’s SHIELD Award for their role in the investigation and prosecution of three men who conspired to use the “Revolution Muslim” websites as a platform to solicit murder and promote violent extremism.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, accepted the award on behalf of the U.S. Attorney’s Office, and he was joined at the ceremony by Principal Deputy Assistant Attorney General Mary McCord of the Justice Department’s National Security Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Sergeant Kevin Branzetti of the New York City Police Department’s (NYPD) Intelligence Bureau.
According to court records, Jesse C. Morton and Yousef Mohamid Al-Khattab founded the Revolution Muslim websites in 2007 to encourage followers to terrorize perceived enemies of Islam. Zachary A. Chesser, formerly of Fairfax, Virginia, joined Revolution Muslim in 2010 as a site administrator.
Morton, Chesser, al-Khattab and their associates used the organization’s Internet platforms to encourage adherents to support Usama bin Laden, Anwar Awlaki, al-Qaeda, the Taliban and others engaged in or espousing jihad. In spring 2010, Morton and Chesser used Revolution Muslim’s online forums to solicit the murder of the South Park television show’s writers and a Seattle, Washington cartoonist for an alleged insult to Islam. Chesser also used Revolution Muslim to promote what he called “Open Source Jihad” by posting information on the manufacture and use of explosives against civilians, law enforcement authorities and U.S. military forces at home and abroad.
In 2011, Chesser pleaded guilty to soliciting murder and attempting to support Al-Shabaab, a designated foreign terrorist group based in Somalia, and he was sentenced to 25 years in prison on Feb. 24, 2011. In 2012, Morton pleaded guilty to soliciting murder, and he was sentenced to nearly 12 years (138 months) in prison on June 22, 2012. In 2013, Al-Khattab pleaded guilty to using the Internet to place others in fear of serious bodily injury or death, and he was sentenced to 30 months in prison on April 25, 2014.
The cases were prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg, Thomas H. McQuillan, Tracy McCormick, Karen L. Dunn, and Special Assistant U.S. Attorney Allison Ickovic, with the assistance of Management Analyst Loraine McNeill of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorneys John T. Gibbs and Mazen Basrawi from the Justice Department’s National Security Division and Civil Rights Division, respectively.
According to a media advisory issued by the Anti-Defamation League, the SHIELD Awards were created to honor law enforcement for “major achievements in the fight against hate crimes, domestic and international terrorism, and for protecting civil rights. . . . The award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.”
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the U.S. District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:10-cr-395 (Chesser), 1:12-cr-35 (Morton), and 1:13-cr-418 (Al-Khattab).
Second Colombian National Pleads Guilty to Kidnapping and Murder 0f DEA Agent Terry WatsonRead the Press Release
WASHINGTON – A second Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Andrés Álvaro Oviedo García, 22, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing is scheduled for Dec. 12, 2014.
In a statement of facts filed with the plea agreement, Oviedo García admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed. Oviedo García admitted that he was part of the group of individuals that targeted Special Agent Watson, but his taxi encountered mechanical issues. Oviedo García remained with the disabled taxi while the other conspirators continued with the group’s plan to conduct the “millionaire’s ride” robberies. Shortly thereafter, Special Agent Watson was targeted and picked up in a taxi outside a restaurant in Bogotà. Soon after, two conspirators entered the taxi carrying Special Agent Watson, and one used a stun gun to shock Special Agent Watson and the other stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
Six other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Gerardo Figueroa Sepúlveda, 39; Omar Fabiàn Valdes Gualtero, 27; Édgar Javier Bello Murillo, 27; and Héctor Leonardo López, 34, are each charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Wilson Daniel Peralta Bocachica, 31, was charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
On Sept. 3, 2014, Julio Estiven Gracia Ramírez, 31, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing for Gracia Ramírez is scheduled for Dec. 5, 2014. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
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New York Man Involved in Israeli Counterfeiting Ring Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Johnny Elegante Lee, 45, of Roosevelt, New York, who was one of 13 alleged members of a criminal counterfeiting operation that manufactured, produced and distributed millions of dollars up and down the eastern United States, pleaded guilty yesterday to participating in a racketeering conspiracy.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kathy Michalko, U.S. Secret Service Special Agent in Charge, Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
Lee was indicted on Aug. 7, 2014, by a federal grand jury. In a statement of facts filed with his plea agreement, Lee admitted that from 2004 through his arrest in June 2014, he was a member of a criminal enterprise that manufactured, produced, distributed and uttered millions of high-quality counterfeit $100 Federal Reserve Notes that were manufactured in Israel and the United States. The counterfeit U.S. currency was printed on off-set printing presses and sold to dealers such as Lee, and then uttered at retail establishments throughout the eastern United States, resulting in loss to merchants and individuals who provided goods and services in exchange for counterfeit $100 bills. Lee also admitted that his previous counterfeiting conviction in Richmond, Virginia in 2004 was part of his participation in this enterprise.
He faces a maximum penalty of 20 years in prison when he is sentenced on January 9, 2015. The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Kimberly R. Pedersen and Gordon L. Kromberg are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-00206.
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Medicaid Provider and Wife Convicted of Health Care FraudRead the Press Release
NORFOLK, Va. – W. Wayne Perry, Jr., 55, and his wife, Angela Perry, 52, formerly of Suffolk, Va., were convicted after a three-week trial late yesterday afternoon by a federal jury of one count of conspiracy to commit health care fraud, four counts of health care fraud, eight counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Virginia Attorney General Mark R. Herring and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today. The verdicts were accepted by United States District Judge Mark S. Davis.
W. Wayne Perry, Jr. and Angela Perry each face a maximum penalty of ten years in prison for conspiracy to commit health care fraud, ten years in prison for each count of health care fraud, five years on each of the false statement counts, twenty years for alteration of records, and two years on each of the aggravated identity theft counts when they are sentenced on January 8, 2015.
W. Wayne Perry, Jr. and Angela Perry were indicted on charges of conspiracy to commit health care fraud and seventeen other counts of related charges by a federal grand on February 5, 2014. According to court records and the evidence presented at trial, W. Wayne Perry, Jr. was the owner and operator of Community Personal Care, a business located in Norfolk, Va. that was authorized to provide home health care services that are reimbursable by Medicaid, including personal care and respite care services. Angela Perry was an officer and agent of the company. Between January 2009 and December 2012, Wayne Perry and Angela Perry orchestrated a false billing scheme where numerous fraudulent claims were submitted to the Virginia Medicaid program, falsely representing that personal care and respite care services had been provided to Medicaid recipients by Community Personal Care. A forfeiture provision in the superseding indictment asserts that the amount of the fraud is approximately $1.3 million dollars. In order to conceal the fraudulent payments, Wayne Perry and Angela Perry altered the company’s office records, including time sheets. This was done with the assistance of Allison Hunter-Evans, a former employee in the administration department of the Virginia Medicaid program, who previously pled guilty on May 14, 2014 and is scheduled to be sentenced on October 16, 2014.
This case was investigated by the FBI and the Virginia Attorney General’s Medicaid Fraud Control Unit, with the assistance of the Virginia Department of Medical Assistance Services. Assistant United States Attorneys Alan M. Salsbury and Melissa E. O’Boyle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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Tax Preparer Pleads Guilty to Identity TheftRead the Press Release
NORFOLK, Va. – Sherry R. Kelley, age 41, of Exmore, Va., pleaded guilty today to engaging in aggravated identity theft.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations Washington Field Office; Clark Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after the plea was accepted by Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Kelley on June 18, 2014 on ten counts of aggravated identity theft and ten counts of using others' social security numbers. As a result of her guilty plea to count one of the indictment, Kelley faces a mandatory penalty of two years of incarceration when she is sentenced on January 20, 2015.
As reported in a statement of facts filed with the plea agreement, Kelley previously owned and operated four H & R Block tax franchise stores located in Belle Haven, Onley, Melfa, and Cheriton on Virginia's Eastern Shore. While overseeing the operation of these stores, Kelley gained access to and misused the identity information of approximately 20 tax clients. Unbeknownst to her clients or H & R Block, Kelley electronically applied for and obtained lines of credit from H & R Block Bank in her clients' names and forged her clients' signatures to account paperwork. Then, using debit cards issued with the approved credit lines, Kelley made thousands of dollars in purchases and ATM cash withdrawals against the fraudulently obtained accounts, before later repaying the sums taken.
This case was jointly investigated by agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the Virginia State Police. Assistant United States Attorney Robert J. Krask is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Florida Pastor Sentenced for Insurance Fraud ScamRead the Press Release
RICHMOND, Va. – Nathaniel A. McNeil, 46, of Pensacola, Florida, was sentenced today to 68 months in prison, followed by a three year termof supervised release, for engaging in a life insurance scheme with at least 1,249 victims. McNeil was also ordered to pay $32,835 in restitution to identified victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
McNeil pleaded guilty to conspiracy to commit mail fraud on June 12, 2014. According to court documents, he was the founder and president of an entity called Life Transformation Ministries International (or “LTMI”), which purported to be a non-profit, religious organization. From 2009 through August 2011, McNeil, with the help of his co-conspirator Trudi Batiste, promised LTMI members a universal life insurance policy in exchange for a one-time fee of approximately $25. To further his scheme, McNeil also attempted to defraud several insurance companies by misrepresenting in insurance applications the net worth of his ministry and that applicants were actually his employees. Ultimately, McNeil and Batiste obtained nearly $240,000 from at least 1,249 victims across the country. None of the individuals that paid the fee ultimately obtained a life insurance policy. Instead, McNeil and Batiste used the money for their own personal purposes.
Batiste pled guilty to the mail fraud on May 8, 2014, and is scheduled to be sentenced before Judge Hudson on September 30, 2014.
This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Katherine Lee Martin prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-43.
Former Defense Contractor Sentenced to Prison for Theft of Employee Payroll Taxes and 401(k) ContributionsRead the Press Release
ALEXANDRIA, Va. – The former head of a Virginia-based defense contracting company was sentenced today to serve 18 months in prison for failing to collect and pay more than $2.2 million in employee payroll taxes and engaging in theft of more than $186,000 from an employee pension plan.
U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Deputy Assistant Attorney General Ronald Cimino for the Justice Department’s Tax Division; Special Agent in Charge Thomas J. Kelly for the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C. Field Office; and Assistant Secretary Phyllis C. Borzi of the U.S. Department of Labor-Employee Benefits Security Administration made the announcement after sentencing.
William P. Danielczyk Jr., 53, formerly of Oakton, Virginia, was ordered to serve three years of supervised release after his prison sentence and to pay more than $1.6 million in restitution to the IRS. U.S. District Judge James C. Cacheris imposed the sentence, and it will be served consecutively to the 28 months in prison the defendant is already serving for committing campaign finance violations during the 2008 presidential primary and a 2006 U.S. Senate campaign.
Danielczyk pleaded guilty on June 10, 2014. According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, which acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, and later in Fairfax, Virginia.
From mid-2009 through the end of 2011, Danielczyk was responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss during this time period was $2,232,781.
According to court documents, Innovative’s employees were allowed to contribute money from their bi-weekly paychecks to a qualified pension plan that was administered by an asset custodian (initially Prudential Bank & Trust and later Fidelity Investments). Under the 401(k) plan, Innovative withheld its employees’ elected contribution amounts from their regular paychecks and the employee withholdings were to be sent to Prudential or Fidelity. Danielczyk was the person responsible for authorizing payments to the asset custodian, and he failed to send these payments over the course of three years. From 2009 through 2011, this conduct led to a total loss of $186,263.
According to court records, instead of paying Innovative’s employment taxes and pension plan contributions, Danielczyk made a variety of purchases from company accounts. Those purchases included $505,871 for the use of an executive suite in the FedEx Field football stadium in Landover, Maryland, along with $40,000 to sponsor the Virginia Gold Cup, a series of Steeple Chase horse races held in northern Virginia.
Danielczyk was sentenced in Alexandria federal court on May 31, 2013 to serve 28 months in prison for engaging in a campaign finance scheme in which he conspired to illegally reimburse more than $186,000 in contributions to the senate and presidential campaign committees of a candidate for federal office, engaged in obstruction of justice, and caused the candidate’s campaign committee to unwittingly file Federal Election Commission reports that contained false information. Court records show that Danielczyk continued to fail to pay Innovative’s employee taxes and pension plan contributions even after he was indicted in the campaign finance case in February 2011.
The tax and pension fraud case was investigated by IRS-CI and the U.S. Department of Labor-Employee Benefits Security Administration’s Philadelphia Regional Office. Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia and Trial Attorney Tracy L. Gostyla of the Tax Division prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the U.S. District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-146.
Clinton, Maryland Man Sentenced to 120 Months for Transporting A Minor Across State Lines for ProstitutionRead the Press Release
RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was sentenced today to 120 months in prison, followed by 5 years of supervised release, for transporting a minor from Maryland to Virginia for prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after sentencing by United States District Judge Payne.Muhammad was found guilty by a federal jury on June 24, 2014. Evidence at trial established that Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message. Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution. The juvenile provided Muhammad some of the money she made from prostitution. In March 2014, Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia. Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution. A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad. The deputy then arranged to meet the juvenile and discovered that she was a 16-year old runaway.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office. Assistant United States Attorney Heather L. Hart prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-55.
Black P-Stones Gang Member Sentenced to 21 Years in Prison for Racketeering Conspiracy and Firearm ChargesRead the Press Release
NORFOLK, Va. – Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, was sentenced today to 255 months in prison, followed by five years of supervised release, for engaging in numerous criminal activities as a member of the Black P-Stones gang, including participating in a shooting that targeted a rival gang member, trafficking marijuana, and lying to a federal grand jury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentencing by U. S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Enrique Omar Hinton (a.k.a. “Rico”), admitted that he was a “foot soldier” in a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News, and its members engaged in various criminal activities, including murders, robberies, drug trafficking, and obstruction of justice.
According to the statement of facts, Hinton joined the gang in 2005, and as a foot soldier, he sold marijuana for the gang, carried firearms, attended gang meetings, and planned and participated in the gang’s criminal activities. Additionally, on Dec. 10, 2008, Hinton and others retaliated against a rival gang member who exhibited disrespect toward the girlfriend of a Black P-Stones member. Approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the living room and front door while two people were inside.
Hinton also admitted that on July 13, 2009, he testified falsely before a federal grand jury to obstruct the investigation of the Black P-Stones and the Dec. 10 shooting.Hinton was charged in a superseding indictment on Dec. 9, 2013, and he pleaded guilty on March 28, 2014 to one count of racketeering conspiracy and one count of discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. This case is being prosecuted by Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-96.Tweet
Virginia Business Owner Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
<RICHMOND, Va. – Richard A. Long, age 58, of Midlothian, Virginia, pleaded guilty to failing to truthfully account for and pay over employment taxes. He faces up to five years in prison and a $250,000 fine when he is sentenced by United States District Judge John A. Gibney on January 7, 2015.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the plea.
According to a Statement of Facts filed with the plea agreement, Long acknowledged that he owned, operated, and was the president of Mercedes-Volvo Service Center, a Virginia-based automotive repair business specializing in high-end vehicles. He was the person responsible for collecting, truthfully accounting for, and paying federal income, Social Security, and Medicare taxes for his employees. Long admits that from 2007 through the first quarter of 2013 he paid employees of Mercedes-Volvo Service Center net wages subject to federal taxes totaling $1,334,418.54. Instead of making the required $328,952.21 in estimated tax payments to the IRS with the federal taxes that he had withheld from employees’ paychecks, he kept the funds and failed to pay the IRS the taxes due. Even though Long never paid these federal taxes to the IRS, he annually issued himself and his employees IRS Forms W-2 that reflected the federal tax withholdings.
This case is being investigated by special agents of IRS – Criminal Investigation and is being prosecuted by Special Assistant United States Attorneys Rebecca Perlmutter and Todd Kostyshak, both of whom are trial attorneys with the DOJ Tax Division, and with the assistance of the U.S. Attorney’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-117. More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Former Piedmont Jail Supervisor Sentenced for Conspiracy, False Tax Returns, and Bank FraudRead the Press Release
RICHMOND, Va. – William A. Coles, Jr., of Pamplin, Va., was sentenced today to 50 months in prison, 2 years of supervised release, and ordered to pay $1,035,014 in restitution for his role in a conspiracy to defraud the United States through the preparation and filing of false federal income tax returns and bank fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the sentence that was imposed by District Court Judge Henry E. Hudson.
Coles was indicted on seven counts by a federal grand jury on March 4, 2014. The indictment alleged that Coles conspired with his wife, Sybil Coles, from January 2008 until March 2012 to prepare and file fraudulent federal income tax returns for themselves and several other individuals. The indictment also charged William Coles with five counts of assisting in the preparation of fraudulent federal income tax returns and one count of bank fraud.
A jury convicted Coles on all counts on May 22, 2014. Evidence at trial established that Coles, a supervisor at the Piedmont Regional Jail, solicited colleagues at the Jail to have their federal income tax returns prepared by his wife. Several of those co-workers testified that Coles claimed his wife knew of secret law enforcement loopholes to get larger tax refunds. Believing these tax return strategies were legal, the co-workers provided Coles with their tax documents and fees for the preparation of their returns. Unbeknownst to those colleagues, however, these returns were fraudulently prepared.
The evidence at trial also showed that William and Sybil Coles electronically deposited checks generated from these fraudulent federal and State of Virginia returns into student bank accounts in the name of their college-age daughter. The Coles spent this money on personal living expenses, including mortgage and car loan payments and family vacations. In addition, William Coles was interviewed by Special Agents with the Internal Revenue Service Criminal Investigation and failed to disclose the use of the multiple bank accounts where tax refunds and cash were deposited, but admitted that he knew his wife was filing false tax returns and that he had solicited clients from the Jail.
In addition, the trial evidence included multiple sworn claims by William Coles of inflated income and corroborating false documents, including false W-2s and paystubs for him and his wife, that were submitted to the Bank of America and finance companies to obtain a home refinance loan and two car loans.
Sybil Coles pled guilty on January 28, 2014, to a criminal information charging her with aiding and assisting in the preparation of false tax returns and with aggravated identity theft. Judge Hudson sentenced her on May 12, 2014 to five years’ imprisonment.
The case is being prosecuted by Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney, Rebecca Perlmutter, and Assistant Attorney General and Special Assistant United States Attorney Michael Jagels. IRS-Criminal Investigation in Richmond, Virginia investigated the case.Owners of Spice and Bath Salts Store Sentenced to Ten Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – The owners of a Gloucester, Virginia store that sold synthetic marijuana and amphetamines were each sentenced yesterday to ten years in prison, followed by three years of supervised release, and were ordered to forfeit $425,000 as proceeds of their drug distribution activities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the sentences were imposed by U.S. District Judge Raymond A. Jackson.
Daniel Bray, 34, and Rachel Webb-Harvey, 25, both of Gloucester, pleaded guilty in September 2013 to conspiracy to distribute, and possess with intent to distribute, analogue drugs as the owners of the store “A Lil’ of This, a Lil’ of That” on George Washington Highway in Gloucester. According to court records, from January to July 2012, the defendants sold a variety of analogue drugs commonly referred to as “Spice,” the generic street name for synthetic cannabinoids that mimic the physical effects of marijuana, and “Bath Salts,” which contain substituted cathinones that have effects similar to amphetamines.
Five other defendants were sentenced previously for their roles in the conspiracy. Those defendants include Jose N. Alvarado, who was sentenced to seven years in prison; Sandra A. Webb, who received 56 months; Shawn R. Woodlen, who received 50 months; Jeromy L. Hawk, who received ten months; and Jeffery A. Fowlkes, who received five months in prison.
This case was investigated by Homeland Security Investigations, IRS-Criminal Investigation, the U.S. Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces, the U.S. Air Force Office of Special Investigations, and the Gloucester County Sheriff’s Office. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-45.Tweet
Guatemalan Pseudoephedrine Trafficker Sentenced to 11 Years for Importing Pills for Meth ProductionRead the Press Release
ALEXANDRIA, Va. – Erick Estrada Reyes, 31, of Guatemala, was sentenced today to 11 years in prison, followed by three years of supervised release, for conspiring to import several thousand pseudoephedrine pills into the United States for the production of methamphetamine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert W. Patterson, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Estrada Reyespleaded guilty on June 6, 2014 to conspiracy to unlawfully import pseudoephedrine and aiding and abetting the manufacture of methamphetamine. According to court records, Estrada Reyes was involved in the sale of nearly 5,000 pseudoephedrine pills to a person he believed was involved in a methamphetamine production operation based in Houston, Texas. This individual was, in reality, a DEA cooperating witness. Estrada Reyes, along with his father, Edgar Estrada Morales, and his cousin, Victor Estrada Paredes, negotiated the sale of equipment used to extract pseudoephedrine from pill form for use in the manufacture of methamphetamine. They also discussed working for the DEA cooperator’s fictitious U.S.-based methamphetamine trafficking organization. According to the indictment, Estrada Reyes worked for his father’s operation, which sold pseudoephedrine to groups that sold methamphetamine in the United States, including the “La Familia” Mexican drug cartel.
Estrada Reyes, along with his father and cousin, were indicted on Feb. 3, 2011 by a federal grand jury for their involvement in this operation. Edgar Estrada Morales was sentenced to 14 years in prison on Aug. 2, 2013, and Victor Estrada Paredes was sentenced to 11 years in prison on July 19, 2013.
This case was investigated by the DEA’s Special Operations Division. Assistant U.S. Attorney Michael P. Ben’Ary is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:11-cr-62.
Caribbean-based Investment Advisor Sentenced for Using Offshore Accounts to Launder and Conceal FundsRead the Press Release
WASHINGTON – Joshua Vandyk, an investment advisor, was sentenced today to serve 30 months in prison for conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced.
Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, were indicted by a grand jury in the U.S. District Court for the Eastern District of Virginia on March 6, and the indictment was unsealed March 12 after the defendants were arrested in Miami. Vandyk, 34, pleaded guilty on June 12, St-Cyr, 50, pleaded guilty on June 27, and Poulin, 41, pleaded guilty on July 11. St-Cyr and Poulin are scheduled to be sentenced on Oct. 3.
According to the plea agreements and statements of facts, Vandyk, St-Cyr and Poulin conspired to conceal and disguise the nature, location, source, ownership and control of property believed to be the proceeds of bank fraud, specifically $2 million. Vandyk, St-Cyr and Poulin assisted undercover law enforcement agents posing as U.S. clients in laundering purported criminal proceeds through an offshore structure designed to conceal the true identity of the proceeds’ owners. Vandyk and St-Cyr invested the laundered funds on the clients’ behalf and represented that the funds would not be reported to the U.S. government.
According to court documents, Vandyk and St-Cyr lived in the Cayman Islands and worked for an investment firm based there. St-Cyr was the founder and head of the investment firm, whose clientele included numerous U.S. citizens. Poulin, an attorney at a law firm based in Turks and Caicos, worked and resided in Canada as well as Turks and Caicos. His clientele also included numerous U.S. citizens. Vandyk, St-Cyr and Poulin solicited U.S. citizens to use their services to hide assets from the U.S. government, including the IRS. Vandyk and St-Cyr directed the undercover agents to create an offshore corporation with the assistance of Poulin and others because they and the investment firm did not want to appear to deal with U.S. clients. Vandyk, St-Cyr and Poulin used the offshore entity to move money into the Cayman Islands and used Poulin as a nominee intermediary for the transactions.According to court documents, Poulin established an offshore corporation called Zero Exposure Inc. for the undercover agents and served as a nominal board member in lieu of the clients. Poulin transferred approximately $200,000 that the defendants believed to be the proceeds of bank fraud from the offshore corporation to the Cayman Islands, where Vandyk and St-Cyr invested those funds outside of the United States in the name of the offshore corporation. The investment firm represented that it would neither disclose the investments or any investment gains to the U.S. government, nor would it provide monthly statements or other investment statements to the clients. Clients were able to monitor their investments online through the use of anonymous, numeric passcodes. Upon request from the U.S. client, Vandyk and St-Cyr liquidated investments and transfered money, through Poulin, back to the United States. According to Vandyk and St-Cyr, the investment firm would charge clients higher fees to launder criminal proceeds than to assist them in tax evasion.
The case was investigated by special agents of the IRS-Criminal Investigation. Trial Attorney Todd Ellinwood and Assistant Chief Caryn Finley of the Justice Department’s Tax Division and Assistant U.S. Attorney Kosta Stojilkovic for the Eastern District of Virginia are prosecuting the case. The Justice Department and the IRS would like to thank the Royal Canadian Mounted Police, the Royal Cayman Islands Police Service and the Royal Turks and Caicos Islands Police Force for their assistance in this investigation.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
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Former Virginia Governor and Former First Lady Convicted on Public Corruption ChargesRead the Press Release
RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and four of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the prosecutors, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts, and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.