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14 July 2020
San Antonio Tax Preparer Indicted for False ReturnsRead the Press Release
A federal grand jury in Waco, Texas, returned an indictment today charging a San Antonio tax preparer with aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John F. Bash for the Western District of Texas.
According to the indictment, Telesa Hall operated Precision Efile Tax Services, a tax return preparation business located in San Antonio, Copperas Cove, and Killeen, Texas. From 2014 to 2017, Hall allegedly falsified clients’ tax returns by claiming business losses that her clients did not incur, in order to fraudulently increase their refunds. The indictment further alleges that from 2013 through 2016, Hall falsified her own tax returns by not reporting all of the income she earned from her tax preparation business.
If convicted, Hall faces a maximum sentence of three years in prison on each of the 23 counts in the indictment. She also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Bash commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Francesca Bartolomey and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Rocky Mount Tax Return Preparer Pleads Guilty to Conspiracy and Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – A Rocky Mount, NC woman pleaded guilty today to conspiracy to prepare and file false tax returns.
According to court documents, Priscilla Evans, 65 years old, conspired with others to file false tax returns for the 2013 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Evans and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. Evans pleaded guilty today to conspiracy to prepare and file false tax returns and faces up to five years imprisonment when she is sentenced during the court’s December 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-00077-2FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Richmond Hill man admits attempted child sexual coercionRead the Press Release
SAVANNAH, GA: A Bryan County man admitted in federal court to attempting to persuade a minor to engage in sex.
Michael Wilson, 37, of Richmond Hill, Ga., pled guilty in U.S. District Court to Attempted Coercion of a Minor to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to life in prison, along with substantial financial penalties and a minimum of five years of supervised release after completion of the prison sentence.
There is no parole in the federal system.
Previously, Wilson’s wife, Lori Wilson, a/k/a “Loretta Lightningbolt,” 35, also of Richmond Hill, pled guilty in U.S. District Court to Tampering with a Victim or Witness for attempting to persuade a victim to recant the accusations against Michael Wilson and withhold information from investigators. She awaits sentencing.
“The Wilsons represent a vile tag-team of abhorrent behavior that has no place in civilized society,” said U.S. Attorney Christine. “In coordination with our law enforcement partners, we will work relentlessly to protect potential victims from predators and their enablers.”
According to court documents and testimony, Michael Wilson admitted attempting to coerce a minor victim to engage in sexual activity from 2017 through early 2019. Michael Wilson, an active duty member of the military, also is charged with seven violations of the Uniform Code of Military Justice, Article 120(b), Rape and Sexual Assault of a Child. These charges are pending and relate to multiple minor victims.
“No sentence for this man will wipe away the scars left on the child he victimized,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Wilson harmed a defenseless child for life. Our only hope is that his punishment will act as a deterrent to anyone who contemplates preying on our most vulnerable citizens.”
The cases are being investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorneys Katelyn Semales and Jennifer G. Solari.
Retired Cadott Physician to Pay $70,000 to Resolve Controlled Substance Prescribing & Recordkeeping ViolationsRead the Press Release
MADISON, WIS. – United States Attorney Scott C. Blader announced that Clifford T. Bowe, M.D., a retired Cadott, Wisconsin physician, entered into a settlement agreement to pay $70,000 to resolve civil allegations that he violated the Controlled Substances Act (“CSA”) relating to his prescribing of controlled substances, including opioids, outside the usual course of professional practice, among other CSA violations.
Dr. Bowe owned and operated Cadott Medical Center (“CMC”) in Cadott. A majority of his patients went to CMC because they were suffering from opioid use disorder and other addictions. Dr. Bowe had received authorization to treat up to 100 opioid dependent patients for opioid use disorder with medication-assisted treatments, such as the FDA-approved Schedule III drug, buprenorphine (Suboxone). Buprenorphine, a partial opioid agonist, blocks the opiate receptors and reduces an individual’s urges to use opioids. According to the government’s allegations set forth in the settlement agreement, Dr. Bowe not only improperly prescribed buprenorphine along with other potent opioids, but he also counseled patients on how to fill these improper simultaneous prescriptions so as to avoid rejection by pharmacies or insurance payers. Moreover, the government alleged that Dr. Bowe prescribed Schedule II opioids to treat opioid use disorder, which is prohibited by CSA regulations.
According to the settlement agreement, the government alleged that Dr. Bowe also violated the CSA by prescribing emergency Schedule II controlled substances to a family member that failed to meet the regulatory requirements for such prescribing; by providing inaccurate directions for use on controlled substance prescriptions to maneuver-around pharmacies refusing to fill compounded prescriptions or insurance companies denying payment for such prescriptions; and by failing to maintain records regarding the receipt and dispensing of controlled substances, or to maintain an inventory of controlled substances on-hand at CMC. Dr. Bowe denies these allegations.
In enacting the CSA, Congress recognized the importance of preventing the diversion of drugs from legitimate to illegitimate uses. The CSA, in relevant part, deters the illegal distribution, possession, dispensing, and improper use of controlled substances, all of which have contributed significantly to the opioid epidemic over the past two decades. The CSA therefore regulates entities and practitioners that dispense controlled substances by establishing controls over all stages of the chain of distribution of controlled substances in the United States.
“Physicians who prescribe controlled substances, including opioids, outside the usual course of professional practice, abuse their prescription-writing privileges and contribute to the opioid crisis,” said United States Attorney Blader. “Controlled substance prescribing violations, in addition to the critical recordkeeping of controlled substances to ensure the system remains closed, will result in enforcement action in the Western District of Wisconsin.”
“DEA will continue to pursue civil actions against any registrant that violates the Controlled Substances Act by practicing outside of professional medical practice and issuing illegitimate controlled substance prescriptions. The overprescribing of opioids has played a large role in the national opioid addiction crisis that our country currently faces on a daily basis,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
According to public records, on February 15, 2012, the Wisconsin Medical Examining Board reprimanded Dr. Bowe for engaging in any practice or conduct that tended to constitute a danger to the health, welfare, or safety of patients or the public, and thus, unprofessional conduct, including the unjustified prescribing of Schedule II and other controlled substances. The Board ordered Dr. Bowe to attend a Comprehensive Pain Board symposium, which he later completed.
In 2017, DEA obtained an Administrative Inspection Warrant to conduct an inspection relating to Dr. Bowe and CMC. According to the settlement, after DEA informed Dr. Bowe of numerous allegations that he failed to comply with relating to the federal controlled substance requirements, Dr. Bowe voluntarily surrendered his DEA Registration Number. Without a DEA registration number, he could no longer prescribe or dispense controlled substances.
In 2016, the State of Wisconsin also opened cases into Dr. Bowe’s prescribing practices that led to the Wisconsin Medical Examining Board’s March 15, 2017 Order. According to the Board’s Order, to resolve the State’s claims, Bowe neither admitted nor denied engaging in unprofessional conduct, rather, he stated that due to his age and limitation on his ability to care for patients, he agreed to resolve the cases by voluntarily and permanently surrendering his Wisconsin license to practice medicine.
Assistant United States Attorney Leslie Herje represented the government in this matter. The DEA Milwaukee District Office primarily conducted the investigation, along with the United States Attorney’s Office Affirmative Civil Enforcement team. The settlement agreement states CSA allegations only; Dr. Bowe denies the allegations, except that he admits that, in violation of federal law, he pre-signed incomplete patient prescriptions on other than the date of issuance and placed them in patient charts.
Putnam County Man Indicted in Connection with Making Serious Threats of Violence Against Police Officers on SnapchatRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was indicted today by a federal grand jury sitting in Huntington for making threats of violence against law enforcement officers on social media, announced United States Attorney Mike Stuart. The one count indictment charges Silas Thornton King, 18, of Hurricane, with interstate communications containing a threat to injure the person of another.
The indictment alleges that on June 28, 2020, King posted threats to injure law enforcement on Snapchat, a social media platform. King was previously arrested on a federal criminal complaint which alleged that he posted a Snapchat video of himself as he verbally threatened serious physical violence against officers of the Milton Police Department.
“Today’s indictment of King is a testament to my sincere commitment to do everything in my power to protect and defend those in law enforcement - our Guardians of Justice - who serve bravely, selflessly, and courageously in defense of all our citizens. Threats of physical violence against law enforcement officers are abhorrent and something I will never tolerate,” said United States Attorney Mike Stuart.
"The FBI takes all threats seriously," said FBI Pittsburgh Special Agent in Charge Mike Christman. "We work very closely with our state and local partners when these types of threats come in. We want everyone to know posting anything of a threatening nature on social media will be taken seriously and it will be investigated."
If convicted, King faces up to five years in federal prison.
The investigation was conducted by the Federal Bureau of Investigation (FBI), the West Virginia State Police, the Milton Police Department and the Hurricane Police Department. Assistant United States Attorney Courtney Cremeans is handling the prosecution.
Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. The indictment and related court documents and information can be found on PACER by searching for Case No. 3:20-CR-00111.
Follow us on Twitter: SDWVNews and USAttyStuart
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Possessing Five Firearms Sends Felon to Federal Prison for over Six YearsRead the Press Release
A convicted felon who repeatedly possessed firearms while also using drugs was sentenced today to more than six years in federal prison.
George Raymond Bounds, age 49, from Cedar Rapids, Iowa, received the prison term after a December 23, 2019 guilty plea to one count of possession of a firearm by a felon and one count of possession of a firearm by a felon and a drug user.
Information disclosed during the case shows that Bounds is a three-time felon. He was previously convicted of burglary, kidnapping, and aggravated assault in Arizona in 1996. Between March 2018 and February 2019, Bounds possessed five different firearms on four separate occasions. Bounds repeatedly obtained firearms after officers had seized firearms from him. Testing showed his DNA was on all five firearms. Two of the firearms had altered or obliterated serial numbers.
Bounds was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bounds was sentenced to 80 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Bounds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-69.
Follow us on Twitter @USAO_NDIA.
Pittsburgh Parolee Sentenced for Drug Trafficking CrimeRead the Press Release
PITTSBURGH, PA – Quintine Scales was sentenced to 30 months in prison for fentanyl and heroin trafficking in September 2019 while on state parole and probation for prior heroin trafficking and gun crimes, United States Attorney Scott W. Brady announced today.
Scales, 35, of Pittsburgh, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab ordered Scales’s federal prison sentence to be served consecutively to any state parole or probation revocation sentence. Judge Schwab also ordered Scales to serve six years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the United States Marshals Service, and the Pennsylvania Office of Attorney General conducted the investigation leading to the conviction and sentence in this case. This case is being prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ohio man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Giovanni Geonard Ingersoll, of Akron, Ohio, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Ingersoll, age 28, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine.” Ingersoll admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral County.Ingersoll faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Robert W. Trumble presided.
Ninja Electronics Owner Charged with Conspiring to Sell Stolen Goods, Mail Fraud and Money LaunderingRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit mail fraud and money laundering, United States Attorney Scott W. Brady announced today.
The six-count Indictment named Milton I. Barr, age 33, of Pittsburgh, Pennsylvania.
According to the indictment, Barr was charged in six counts for conspiring with others to sell stolen goods through his business, called Ninja Electronics, which sold used electronics and a wide variety of drug store type health and beauty aids and over the counter medications over the internet. Barr was charged with a criminal conspiracy, a mail fraud scheme for delivering stolen goods through the mail, and money laundering with regard to his handling of the proceeds of the stolen goods.
The law provides for a maximum sentence of up to five years for the conspiracy count, up to 20 years on each wire fraud count and up to 10 years on each money laundering count. The statutes in question each also carry a fine provision of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the overall investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Myrtle Beach Man Sentenced to 12 Years in Federal Prison for Selling Drug that Caused Overdose DeathRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Darell Levon Curry, a/k/a “Rell,” 31, of Myrtle Beach, was sentenced via videoconference to 12 years in federal prison after pleading guilty to possession with intent to distribute fentanyl, cocaine, heroin, and crack cocaine. Evidence presented to the court at Curry’s guilty plea and sentencing showed that in addition to distributing significant quantities of these drugs in and around Horry County from 2016 through 2019, Curry sold a quantity of fentanyl on May 21, 2019, that led to two overdoses, one of which was fatal.
"As this case shows, those who push drugs that kill others will be dealt with swiftly and severely,” said U.S. Attorney McCoy. “This case would not be possible without the work of our joint federal, state, and local task force designed to disrupt and dismantle the flow of deadly opioids into the Myrtle Beach area. With these partners, we will continue to aggressively prosecute those who deal in illegal narcotics, especially those who distribute opioids that cause death and serious injury.”
"This case should be taken as a stern warning, both for those who seek to use heroin and those who supply it laced with fentanyl,” said Jody Norris, Special Agent in Charge of the FBI. “The work of the FBI and our state and local partners will continue in an effort to find those that peddle in this poison.”
Evidence presented to the court in the case further showed that on May 21, 2019, the victims contacted Curry, who was one of their regular drug dealers, to obtain $20 worth of heroin. Curry fronted them a substance he called “China White,” a term that commonly refers to a light-colored type of heroin, with an understanding they would pay for the drugs later. The victims split the small amount of what was purported to be heroin between them, snorted it, and immediately overdosed. Records reflect that the two victims were located by their teenage children who called 911 and attempted to revive them with CPR until paramedics arrived. The paramedics administered Narcan to both victims. One responded and has since fully recovered, but Samuel Erny, of Horry County, died from his overdose. Toxicology results reflect that the drug ingested by the victims was fentanyl rather than heroin. Curry left the site of the overdose before authorities arrived and was arrested several days later on federal charges.
During the sentencing hearing, the court also heard evidence of the impact the overdose death has had on Erny’s family. Erny’s family described him as a hard-working husband who had struggled with addiction for several years. The court noted the great impact that the opioid crisis has had in South Carolina, and it observed that anyone who sells drugs such as heroin should know that they are selling a potentially deadly substance.
The court also found troubling Curry’s escalating and continuing pattern of criminal activity. His past convictions included carrying weapons on school property in 2004, possession of crack cocaine and resisting arrest in 2009, criminal domestic violence in 2010, possession of crack cocaine and marijuana and resisting arrest in 2010, possession with intent to distribute cocaine in 2013, third degree assault and battery in 2013, possession of cocaine in 2014, and third degree assault and battery in 2016. Records reflect Curry had been sentenced to sanctions ranging from fines and probation to four years in prison for these past convictions.
United States District Judge Donald C. Coggins, Jr. sentenced Curry to 145 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
The investigation was led by Task Force Officers of the Federal Bureau of Investigation, along with the Horry County Police Department, the Horry County Sheriff’s Office, the 15th Circuit Drug Enforcement Unit, and the 15th Circuit Solicitor’s Office.
Assistant United States Attorney Everett McMillian of the Florence office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Michigan City Man Sentenced to 115 Months in PrisonRead the Press Release
SOUTH BEND – Jeffrey Cooper, age 32, of Michigan City, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Cooper was sentenced to 115 months in prison followed by 3 years of supervised release.
According to documents filed in this case, Cooper led police on a car chase for over a mile that ended when he crashed into a car and then a telephone pole outside the Blue Chip Casino. Cooper ran away but police found a loaded pistol with a high capacity magazine in his crashed car. Cooper’s felony convictions include battery resulting in serious bodily injury, intimidation, and escape.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive with the assistance of the Michigan City Police Department, Long Beach Police Department, LaPorte County Sheriff’s Department, and LaPorte County Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Molly E. Donnelly.
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Mexican National with Convictions for Robbery and Kidnapping Pleads GuiltyRead the Press Release
RICHMOND, Va. – A Mexican national with previous convictions for robbery and kidnapping pleaded guilty today to illegally reentering the United States.
According to court documents, from 2002 to 2003, Aureliano Escorcia-Martinez, 37, illegally entered the United States on six separate occasions, was apprehended each time on the border by the U.S. Border Patrol, and then voluntarily returned to Mexico. Sometime after his last voluntary return to Mexico, he illegally re-entered the United States for a seventh time and made his way to Virginia and committed serious crimes. For example, in June 2006, Escorcia-Martinez was convicted in the Circuit Court for Henrico County for robbery (sentenced to 15 years) and abduction/kidnapping (sentenced to 10 years). All but two years and five months of the sentences were suspended.
“Over the past 18 years, Mr. Escorcia-Martinez has illegally entered or attempted to enter the United States at least eight times, has been convicted of robbery and kidnapping, and was in custody this time for drunk driving,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This recidivist behavior reflects a blatant disregard for our nation’s laws and borders, and represents a clear threat to public safety. The Department of Justice is committed to prioritizing criminal immigration enforcement, and this case reflects that continuing commitment.”
In December 2009, Escorcia-Martinez was physically removed from the United States. Sometime later, Escorcia-Martinez again illegally reentered the United States for an eighth time.
In March, Escorcia-Martinez was incarcerated in the Henrico County jail for Driving While Intoxicated, and immigration authorities learned of his illegal return. Escorcia-Martinez was then indicted on the instant federal charges.
“This man committed serious crimes in our community — burglary, robbery, and driving under the influence,” said Lyle Boelens, Acting Washington Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). “His repeated egregious disregard for the law, including immigration law, demonstrates he is a threat to the public. ICE is committed to identifying and removing individuals who break our immigration laws and pose a threat to public safety.”
Escorcia-Martinez pleaded guilty to illegal reentry, and faces a maximum penalty of 20 years in prison when sentenced on November 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle Boelens, Acting Washington Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-65.
Massachusetts Man Charged After Getting Caught with Nearly 60 Pounds of MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Daren Lewis, 39, of Quincy, MA, was arrested and charged by criminal complaint with possessing with intent to distribute 500 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that on July 10, 2020, Homeland Security Investigations (HSI) in Flagstaff, Arizona received an alert regarding a suspicious cargo shipment, originating in California and destined for Tonawanda, NY. The shipment was manifested as personal effects and the phone number provided by the shipper was not a working number.
HSI Buffalo, the Erie County Sheriff's Office, and the Niagara County Drug Task Force began investigating the shipment on July 13, 2020, after its arrival in Tonawanda. On that day, a U.S. Customs and Border Protection (CBP) K-9 showed interest in the vent of the container, but did not make a final positive alert to the presence of controlled substances. However, an Erie County Sheriff's Office K-9 ran to the suspicious shipment container without command and indicated a positive alert to the presence of a narcotic odor near the same vent and area of the container at which the CBP K-9 showed interest.
At approximately 1:45 p.m. on July 13, 2020, the defendant Daren Lewis arrived at an area cargo terminal in a U-Haul rental truck. After going inside the office, the defendant returned to the truck and backed the U-Haul up to the container holding the suspicious shipment. Lewis opened the locks on the container and positioned the doors of the U-Haul truck to obscure the area between the truck and the container before going into the container.
After a short time, he was observed in the cab of the truck and appeared to be using a telephone. After closing the doors on the back of the U-Haul truck and driving away from the cargo terminal, the defendant was stopped on Sheridan Drive in Tonawanda by Erie County Sheriff's Deputies. The defendant and the U-Haul truck were transported to an Erie County Sheriff's Office. A search warrant was executed on the U-Haul. Inside, investigators discovered two cardboard boxes containing shrink wrapped packages. One of the packages was opened and found to contain a bag of a white crystal substance, which field tested positive for methamphetamine. The shipment contained a total of 59.5 pounds of suspected methamphetamine. The estimated street value of the suspected methamphetamine is $2,700,000. Lewis was arrested.
“While we often speak of the potentially deadly consequences of heroin and fentanyl use, methamphetamine can be just as dangerous, just as addictive, and in the end, just as deadly,” stated U.S. Attorney Kennedy. “The coordinated efforts by Homeland Security and our partners in local law enforcement have resulted in one of the largest seizures of methamphetamine ever in the Western District of New York and prevented this massive batch of poison from reaching our streets and wreaking havoc in our community.”
“Drug trafficking organizations clearly have the false perception that they can act with impunity during the current crisis,” said Kevin Kelly, HSI Buffalo Special Agent-in-Charge. “This arrest and significant seizure sends an unequivocal message that we will continue to hold criminals accountable.”
The defendant will make an initial appearance on July 15, 2020, at 10:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The criminal complaint is the culmination of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Niagara County Drug Task Force, under the direction of Niagara County Acting Sheriff Michael Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Maryland man and West Virginia woman admit to firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two people have admitted to participating in a firearms trafficking conspiracy, U.S. Attorney Bill Powell announced.
Brayan Mengou, of Hagerstown, Maryland, pled guilty to one count of “Aiding and Abetting Illegal Transportation or Receipt in State of Residency of Firearms Purchased or Acquired Outside of State of Residency.” Mengou, age 21, worked with others to transport several firearms from Berkeley County to Maryland in October 2019.
Amber Nicole Downing, of Hedgesville, West Virginia, pled guilty to one count of “False Statement During Purchase of Firearms.” Downing, age 35, admitted to purchasing firearms, stating the firearms were for her personal use, when she wasn’t the true purchaser of the firearms.
Mengou faces up to five years of incarceration and a fine of up to $250,000. Downing faces up 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Defense Contractor Facing Federal Indictment for Procurement FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, on federal charges of wire fraud, false claims, and aggravated identity theft in connection with his companies’ performance on federal contracts. The indictment was returned on July 8, 2020, and was unsealed at his initial appearance yesterday.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Special Agent in Charge John Salazar of the Naval Criminal Investigative Service, Washington Field Office.
According to the indictment, in June 2014 Sanders formed Sandtech LLC, a Maryland limited liability company whose business was the sale of video teleconference equipment to the Department of Defense and other agencies of the federal government. Sanders was the sole owner, agent, and president of Sandtech. As detailed in the indictment, Sanders obtained contracts with federal agencies for Sandtech to provide telecommunications equipment and services. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech conracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
The indictment alleges that from February 10, 2015 through June 6, 2018, Sanders engaged in a scheme to defraud the government by allegedly entering into contracts with federal agencies which required Sandtech and Cycorp Technologies to provide new telecommunications equipment which was still under warranty. The indictment alleges that in his communications with federal agency contracting officers Sanders provided false information about the delivery, source, warranty, and/or condition of the electronic equipment provided by his companies, including misrepresentations that the equipment was new and protected by the manufacturer’s warranty, when Sanders knew that the equipment was not new, or was new but not under warranty, or was procured through unauthorized channels.
Further, the indictment alleges that Sanders provided contracting officials with false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies. Sanders allegedly provided fabricated and forged documents falsely certifying Cycorp Technologies’ status as an “authorized partner” of two large national telecommunications equipment manufacturers, which would have authorized Cycorp Technologies to buy directly from those companies and/or distribute their new and warrantied products. One of the documents included the forged name and signature of an official at one of the manufacturers. In addition, Sanders allegedly submitted invoices on behalf of Sandtech and Cycorp Technologies so that contracting government agencies would pay for deficient or non-existent performance by electronic deposit into business bank accounts.
If convicted, Sanders faces a maximum sentence of 20 years in federal prison for each of nine counts of wire fraud; a maximum of five years in federal prison for each of two counts of false claims; and a mandatory two years in federal prison, consecutive to any other sentence, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At Sanders’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge J. Mark Coulson ordered that Sanders be released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the Department of Labor – OIG, the NCIS, and the other federal law enforcement agencies involved for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew J. Maddox and Joyce K. McDonald, who are prosecuting the case.
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Man Sentenced for Illegally Straw Purchasing Multiple FirearmsRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to one year in prison for aiding and abetting the illegal straw purchase of five firearms.
According to court documents, Manuel Christopher Thomas, 28, and Paul Laurence Chambers, 21, aided and abetted the straw purchase of five firearms from federal firearm licensees in the Eastern District of Virginia by providing Joni Maria Metcalf, 35, money and explicitly directing her as to which firearms to illegally purchase on their behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from Thomas 11 days after it was straw purchased.
Previously, Chambers, also from Maryland, was sentenced to 9 months in prison for his role in this coordinated scheme to illegally straw purchase firearms.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Liam O'Grady. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Benjamin Kringer prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-019.
Local Methamphetamine Dealer Sentenced to 324 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — Jonathan Collins, 41 years old, was sentenced on July 10, 2020, to serve 324 months’ imprisonment by U.S. District Judge Paul L. Maloney. Collins pled guilty in December 2019 to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Upon his release, Collins will be subject to 5 years of supervision.
Marquette City Police pulled over Collins’s vehicle in November 2018. During that encounter, investigators found approximately 50 grams of methamphetamine in the car and a double-edged dagger concealed in the driver-side support handle. The Upper Peninsula Substance Enforcement Team (UPSET) then took over the investigation and learned that Collins had been making frequent trips to the Grand Rapids area and had brought ounces of crystal methamphetamine back to the Upper Peninsula for redistribution. After being charged by the Marquette County Prosecuting Attorney’s Office and being released on bond, Collins conspired to obtain additional methamphetamine and made threats against a co-conspirator. The U.S. Attorney’s office charged Collins in August 2019.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including Collins’s obstructing justice by posting a statement online calling a co-conspirator a “snitch” and attaching a copy of the co-conspirator’s statement to police. Judge Maloney concluded a substantial term of incarceration was necessary because of Collins’s actions toward the co-conspirator and the damage crystal methamphetamine is doing to Michigan and the Upper Peninsula more specifically.
“As long as methamphetamine distribution continues to be a problem in the Upper Peninsula, my office will continue to work with our federal and local law enforcement partners to prosecute those who would otherwise go undeterred and keep bringing this terrible drug into our northernmost communities,” said U.S. Attorney Andrew Birge.
The U.S. Attorney’s Office, Marquette County Prosecuting Attorney’s Office, UPSET, and Marquette City Police Department worked together to ensure Collins was brought to justice
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Lexington Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. - A Lexington, Ky., man, Kenneth Mitchell, 27, pleaded guilty in federal court on Tuesday, before Chief U.S. District Judge Danny Reeves, to being a convicted felon in possession of a firearm.
According to Mitchell’s plea agreement, on December 9, 2019, officers responded to a firearm being discharged at an apartment complex in Lexington, where officers located Mitchell and a female victim. Mitchell admitted that prior to police arriving, he had taken the firearm to a nearby fence line to hide it, where law enforcement later recovered it. Mitchell further admitted that he knowingly possessed the firearm and that he was prohibited from possessing it, as a convicted felon.
Mitchell was indicted in February 2020. Mitchell had previously been convicted, in May 2019, of Wanton Endangerment, in Fayette County Circuit Court.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos II.
Mitchell faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Last Conspirator Pleads Guilty in $5 Million Fraud over Hurricane Michael Cleanup in Lynn HavenRead the Press Release
PANAMA CITY, FLORIDA – The last remaining defendant indicted in a $5 million fraud against the City of Lynn Haven has pled guilty to a charge stemming from the Hurricane Michael-related scheme. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced that David Wayne Horton, who was the city’s Community Services Director at the time of the fraud, entered a guilty plea to wire fraud. The charge stemmed from a 35-count federal indictment that included the former Lynn Haven city manager.
The indictment, handed down by a federal grand jury, alleged that in the wake of Hurricane Michael, the City of Lynn Haven entered into contracts for debris removal. The indictment alleged that ECS and Greenleaf submitted invoices that were false and fraudulent, but then-City Manager Michael White approved them and directed city employees to immediately pay ECS and Greenleaf for those invoices. The other defendants took various actions to advance the conspiracy, which defrauded Lynn Haven of approximately $5 million.
In entering his guilty plea, Horton admitted to signing and certifying fraudulent time sheets that purported to show how various individuals had performed hurricane cleanup work for the city. According to a Statement of Facts entered with Horton’s plea, when he was interviewed by federal agents in 2018, Horton made false statements to agents claiming that he had signed and certified the time sheets and that the number of workers on the time sheets had actually provided the services represented.
“With today’s guilty plea, everyone who has been indicted thus far has admitted to their role in a shameless scheme to defraud the taxpayers. These individuals violated the public trust, and now they will pay the consequences. The plea closes this chapter of our ongoing investigation, but our Public Trust Unit will continue to pursue those involved in similar conduct within Bay County and throughout the Northern District,” U.S. Attorney Keefe said.
Four of the five defendants named in the indictment last November had previously pled guilty. They are former Lynn Haven City Manager Michael Edward White, ECS owner David Mitchelle White, Shannon Delores Rodriguez, a/k/a Shannon Delores Harris, and Joshua Daniel Anderson, owner of Greenleaf Lawn Care of Bay County, all of Panama City.
"The citizens of Florida are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and the individuals who pay them bribes," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI is committed to aggressively pursuing those who violate the trust placed in them by the public, and holding them accountable for their actions."
As a result of his guilty plea, Horton faces a maximum of 20 years in prison, three years of supervised release, a $250,000 fine, and a $100 special monetary assessment to be paid prior to sentencing. He also agreed to pay full restitution to his victims and to forfeit all property derived from the proceeds of the fraud or used to facilitate it. Sentencing hearing is scheduled for September 29, 2020, at 3:00pm at the United States Courthouse in Tallahassee.
"I am pleased that those that took advantage of us in the aftermath of Hurricane Michael will be held accountable," Sheriff Tommy Ford said. "I look forward to our continuing investigation with the Federal Bureau of Investigation and the U.S. Attorney's Office."
The Federal Bureau of Investigation and Bay County Sheriff’s Office conducted the investigation. The case has been prosecuted by Assistant U.S. Attorney Stephen M. Kunz.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - David HortonKimberly Man Pleads Guilty to Mailing Threatening Letter to Twin Falls County Deputy ProsecutorRead the Press Release
BOISE – Nathaniel Michael West, 23, of Kimberly, Idaho, pleaded guilty to mailing threatening communications, U.S. Attorney Bart M. Davis announced today. West was indicted by a federal grand jury in Boise on January 14, 2020. Sentencing is set for October 7, 2020 before U.S. District Judge Winmill at the federal courthouse in Boise.
According to court records, West admitted that on August 22, 2019, he knowingly sent a threatening letter through the United States Postal Service to a Twin Falls County Deputy Prosecutor. This prosecutor had previously prosecuted West for crimes he committed. West stated in the letter that he was going to get out of prison and the kill the prosecutor and her family. West also threatened to kill a witness from a prior prosecution.
After the prosecutor received the letter, law enforcement officers interviewed West. During the interview, West confessed to sending the letter using the United States Postal Service. West claimed he sent it out of anger and that he wanted scare the threatened parties. West sent the letter from an Idaho Department of Correction facility, where he is currently housed for other crimes.
The charge of mailing threatening communications is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
This case was investigated by the Ada County Sheriff’s Office.
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Kemah Man Guilty of Liberty County Attempted Bank RobberyRead the Press Release
BEAUMONT, Texas – A 59-year-old Kemah, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Jimmy James Mamoth, Jr., pleaded guilty to attempted bank robbery before U.S. District Judge Thad Heartfield on July 13, 2020.
According to information presented in court, on Sep. 27, 2019, a witness observed Mamoth approach the entrance to the Texas First Bank in Hull, Texas, wearing a dark hooded jacket, gloves, a Halloween-style mask on his face, and carrying a duffle bag. The witness honked his vehicle’s horn to draw attention to Mamoth, who subsequently fled into the nearby woods. Law enforcement was able to locate and arrest Mamoth, and from him recovered an Airsoft-style replica gun meant to resemble a Beretta 9mm pistol. Mamoth was indicted by a federal grand jury on Oct. 9, 2019.
As part of his plea agreement, Mamoth admitted his participation in a string of other robberies and attempted robberies, specifically, the robbery of the Arbor 8 movie theater in Austin, Texas, on March 17, 2019; an attempted robbery of the Benchmark Bank in West Lake Hills, Texas, on June 4, 2019; the robbery of the Broadway Bank in Wimberley, Texas, on June 19, 2019; and the robbery of the First National Bank of Hughes Springs in Kilgore, Texas, on June 28, 2019. Mamoth further agreed to pay restitution for the above crimes.
This case is being investigated by the Federal Bureau of Investigation, the Liberty County Sheriff’s Office, the Austin Police Department, the West Lake Hills Police Department, the Hays County Sheriff’s Office, and the Gregg County Sheriff’s Office and is prosecuted by Assistant U.S. Attorneys Christopher Rapp and Rachel Grove.
Jewelry Wholesaler Indicted for $200 Million Ponzi SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Gregory Altieri, the president of LNA Associates, with one count of wire fraud for allegedly running a two-year, $200 million Ponzi scheme based on nonexistent wholesale jewelry deals and false promises of inflated returns. Altieri was arrested today and will be arraigned this morning via video conference before United States Magistrate Judge James Orenstein.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.
According to the indictment, beginning in August 2017, Altieri solicited between $75 million to $85 million from over 80 investors from Queens, Staten Island, Long Island and elsewhere, allegedly to purchase jewelry at “closeout” prices and resell it at a high profit. Altieri promised returns of between 30 and 70 percent in a matter of months. While Altieri initially purchased some jewelry with investors’ money, in approximately May 2018 he began to use new investors’ money to pay earlier investors, representing to the latter group that they were receiving returns on their investments. These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates, by “rolling over” their investments into new investments based on false promises to use this money to purchase additional jewelry. By January 2020, when Altieri stopped making paybacks to investors, he owed them approximately $200 million based on the falsely inflated promised returns.
“As alleged, Altieri defrauded investors, including retirees living off their pensions, by representing that he was buying and reselling jewelry for big profits, which was a lie,” stated Acting United States Attorney DuCharme. “This Office is committed to protecting the investing public from con artists who would prey upon our community.”
“Stealing millions based on false promises made to retirees who rely on their pensions is contemptible. We allege Mr. Altieri knew he was going to have problems paying off his first round of investors, but he kept his con going anyway. As a result of his actions, the FBI has provided him with stainless steel jewelry for his wrists today, and a guarantee of working to hold him and others who commit similar frauds accountable for their behavior,” stated FBI Assistant Director-in-Charge Sweeney.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Altieri faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by EDNY Special Agent Martin Sullivan.
The Defendant
GREGORY ALTIERI
Age: 53
Melville, New YorkE.D.N.Y. Docket No. 20-CR-249 (BMC)
Jail Inmate Charged with Failing to Update His Sex Offender RegistrationRead the Press Release
ERIE, Pa. - An inmate at the Pamunkey Regional Jail in Hanover, Virginia, has been indicted by a federal grand jury in Erie on a charge of failure to register under SORNA, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jeremy Christopher Ester, 40, as the sole defendant.
According to the Indictment presented to the court, Ester knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Henderson Man Sentenced to 14 Years for Drug DistributionRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 168 months in prison for drug conspiracy and distribution offenses.
According to court documents, Steven Lamar Cooke, 38, managed a drug distribution conspiracy in 2017 that distributed heroin, cocaine, and fentanyl in the Henderson community. The drug-trafficking organization distributed primarily from a trailer on Brown Hills Road where customers sometimes had to wait in line for their turn to purchase drugs from Cooke or his associates. Cooke also pled guilty to personally distributing a quantity of heroin during the conspiracy time frame. Cooke had a history of other drug distribution-related offenses at the state level.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The North Carolina State Bureau of Investigation, Warren County Sheriff’s Office and the Franklin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Lucy Brown prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:19-CR-2-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Four Sentenced to Federal Prison for Federal Firearms ConspiracyRead the Press Release
Charles Westfall, Jr, age 32, from Clarion, Iowa, Donald Rundall III, age 42, from Stratford, Iowa, Jami Stupka, age 29, from Ames, Iowa and Leah Hanson, age 32, from Cedar Rapids, Iowa, received prison terms, ranging from over 8 years to time served for their roles in a conspiracy to steal, possess, and traffic firearms.
Donald Rundall III and Leah Hanson were each convicted of one count of conspiracy to possess a stolen firearm, one count of possession of a stolen firearm and one count of possession of a firearm by a prohibited person. Jami Stupka was convicted of one count of conspiracy to possess a stolen firearm, and Charles Westfall, Jr., was convicted of one count of possession of a stolen firearm.
Evidence presented by the United States in court revealed before on or about June 17, 2017, Donald Rundall, III and Leah Hanson identified M.C.’s home to Charles Westfall, Jr. and Jami Stupka as containing valuables including firearms. On or about June 17, 2017, defendant Donald Rundall, III, using a crowbar broke into M.C.’s Humboldt County home and garage. Defendants, Charles Westfall, Jr., Donald Rundall, III, Jami Stupka, and Leah Hanson stole valuables including a Mossberg 535 12 gauge shotgun. The weapon and other valuables were concealed at Livermore Mini Storage Units, Leah Hanson’s home as well as other places. Defendants, Charles Westfall, Jr. and Jami Stupka, took a stole TV and the stolen firearm to be bartered, sold, and dispose of to B. H. in exchange for methamphetamine. Charles Westfall, Jr. and Jami Stupka, paid Donald Rundall, III and Leah Hanson in methamphetamine because they expected to obtain methamphetamine in exchange for the TV and firearm. B.H. subsequently sold the firearm to a felon, who could not have lawfully purchased a firearm.
Rundall was sentenced on May 1, 2020, Hanson was sentenced on July 8, 2020, Westfall was sentenced on June 26, 2020, and Stupka was sentenced on June 19, 2020, in United States District Court in Sioux City by United States District Court Chief Judge Leonard T. Strand. Rundall was sentenced to 96 month’s imprisonment, Westfall was sentenced to 104 months’ and 29 days’ imprisonment, and Stupka and Hanson were each sentenced to time served. Rundall, Hanson, Westfall, and Stupka each must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Westfall and Rundall are being held in the United States Marshal’s custody until they can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Humboldt County and Wright County Sheriff’s Offices, and the Eagle Grove, Iowa Police Department. The case was prosecuted by Assistant United States Attorneys Mikala M. Steenholdt and Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3024.
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Fort Wayne Man Sentenced to 121 Months in PrisonRead the Press Release
FORT WAYNE – Juan Salas, age 31, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his plea of guilty to distributing fentanyl, announced U.S. Attorney Kirsch.
Salas was sentenced to 121 months in prison followed by 8 years of supervised release and was ordered to forfeit $22,839.00 and to pay $2,802.53 in restitution.
According to documents presented in this case, on May 30, 2019, Salas distributed over 40 grams of fentanyl. Salas has a 2010 conviction for possession with intent to distribute cocaine.
The case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets and Gang Task Force with the assistance of the Indiana State Police, the Allen County Sheriff’s Department and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
Former supervisor in DeKalb County’s Tax Commissioner’s Office pleads guilty to bribery and blackmailRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in the DeKalb County Tax Commissioner’s Office, has pleaded guilty to accepting bribe payments from customers to unlawfully register vehicles and then trying to blackmail a bribe payer by threatening to inform on her to the FBI.
“By repeatedly accepting bribe payments, Harris peddled his honor for money and in doing so sold out the citizens of DeKalb County – sometimes for as little as $100 per car,” said U.S. Attorney Byung J. “BJay” Pak. “By then attempting to blackmail one of bribe payers, Harris showed his seemingly limitless greed.”
“Harris’s blatant disregard for the law and abuse of his position help to erode the public's trust in government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We continually work hard with our partners in law enforcement to regain that trust by seeking justice for those who choose their own financial interest over the taxpayers they serve.”
“I applaud the swift effort of the U.S. Attorney's Office, the FBI and other law enforcement agencies in bringing this case to a quick resolve. The DeKalb County Tax Commissioner's Office remains committed to safeguarding the trust of DeKalb's taxpayers and weeding out individuals who act unlawfully in any way,” said DeKalb County Tax Commissioner Irvin J. Johnson.
According to U.S. Attorney Pak, the charges, and other information presented in court: The DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia responsible for the billing and collection of property taxes, processing of homestead exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner - North Office’s clerks who processed motor vehicle registrations and renewals for customers.
From approximately mid-2018 to November 2019, Harris accepted bribe payments from customers to unlawfully register vehicles or renew vehicle registrations. For example, Harris accepted bribe payments:
- To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
- To register vehicles that did not have the required accompanying documentation (such as: titles or Forms MV-1 title/tag application), typically in exchange for $500 to $1,000 per vehicle; and
- To renew vehicles that had not passed emissions tests by falsely entering that the vehicles had emissions exemptions, typically in exchange for $100 per vehicle.
In total, Harris is alleged to have accept at least $30,000 in bribe payments.
In addition to accepting bribe payments, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. On November 18, 2019, DeKalb County Tax Commissioner’s Office fired Harris for accepting bribe payments (as fully detailed above). On the same date, Harris admitted to the FBI that he had accepted thousands in bribe payments in exchange for illegally registering/renewing vehicles for several people, including a person identified as Individual-1.
On December 12, 2019, Harris met with Individual-1 at an Atlanta, Georgia, gas station. During the meeting, Individual-1 (who did not know that Harris had been fired) gave Harris registration documentation so that Harris could register four vehicles. Indvidual-1 gave Harris checks and cash to cover the costs of the required fees and taxes for each vehicle. Given that Harris no longer worked for the DeKalb County Tax Commissioner’s Office, Harris obviously could not register the four vehicles for Individual-1. Nevertheless, Harris accepted and kept the money from Individual-1.
Then on December 17, 2019, Individual-1 sent a series of text messages to Harris requesting that Harris return the registration documentation and money. On December 17 and 18, 2019, Harris sent a series of text messages to Individual-1 where Harris stated that: (a) he was under investigation by the FBI, (b) the FBI has a video of Harris and Individual-1 meeting, (c) “[a]ll of us can be in trouble,” (d) Harris needed to know “how much” money will he be paid not to give information to the FBI, and (e) Harris is “not going to prison empty handed. It’s that simple.”
Based on the conduct set forth above, on February 28, 2020, the U.S. Attorney charged Gerald D. Harris, 51, of Fulton County, Georgia, in a criminal information with one count each of federal program bribery and blackmail. Harris pleaded guilty to both counts.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Nicholas Hartigan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
Former VA Hospital Nursing Assistant Admits to Murdering Seven Veterans and Assault with Intent to Commit Murder of an EighthRead the Press Release
U.S. Attorney Bill Powell announces a plea in the murders of 8 veteransCLARKSBURG, WEST VIRGINIA – A former nursing assistant pled guilty today in federal court here to murder and assault charges in the deaths of eight veterans at the Veterans Affairs Medical Center (VAMC) in Clarksburg, West Virginia, U.S. Attorney Bill Powell announced.
Reta Mays, 46, of Harrison County, West Virginia, pled guilty today to seven counts of second degree murder in the deaths of veterans Robert Edge, Sr., Robert Kozul, Archie Edgell, George Shaw, W.A.H., Felix McDermott, and Raymond Golden. She pled guilty to one count of assault with Intent to commit murder” involving the death of veteran R.R.P.
“In today’s plea agreement, the defendant has admitted to actions that ended the lives of several military veterans who served our country honorably. Our investigation never lost sight of each of these lives and the sacrifices these men made for their country. The investigative work and the time it took to do it was always done with an eye towards honoring these men. Though we can’t bring these men back because of her evil acts, we hope the conclusion of the investigation and guilty plea helps ease the pain of the victims’ families,” said Powell. “I want to thank the incredible work by the FBI, the VA-OIG, the West Virginia State Police, the Greater Harrison Drug & Violent Crimes Task Force and our prosecution team. I also want to especially thank Attorney General Barr, and the families of the victims who never wavered in their support of this investigation. We look forward to the conclusion of this matter at the sentencing, where we will be seeking the maximum penalty.”
Mays was employed as a nursing assistant at the VAMC, working the night shift during the same period of time veterans in her care died of hypoglycemia while being treated at the hospital. Nursing assistants at the VAMC are not qualified or authorized to administer any medication to patients, including insulin. Mays admitted to administering insulin to several patients with the intent to cause their deaths.
“These cases are tragic and heart breaking,” said Veterans Affairs Inspector General Michael J. Missal. “I thank the VA OIG agents and our law enforcement partners who worked tirelessly to ensure justice was served and that the victims’ families have some measure of closure. They are in our thoughts and prayers as we work with VA to help prevent anything like this from ever happening again.”
“When you break the trust you’re given as a medical professional and break the law, there are consequences,” said FBI Special Agent in Charge Michael Christman. “This was a lengthy and thorough investigation with hundreds of interviews, extensive medical and administrative records to review and forensic testing that needed to be done. These eight Veterans deserved respect and honor. They served our country and we all owe them a debt of gratitude. They didn’t deserve to die at the hands of a nursing assistant who intentionally inflicted pain on them and their families. I commend the work of my agents and our law enforcement partners with the Veterans Affairs Office of Inspector General.”
Mays faces up to life in prison for each count of second-degree murder. Mays faces up to 20 years in prison for assault with intent to commit murder.” Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod J. Douglas and Brandon S. Flower are prosecuting the case on behalf of the government. The Veterans Affairs Office of Inspector General and the FBI investigated. The West Virginia State Police and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, assisted.
U.S. District Judge Thomas S. Kleeh presided.
View the announcement here: https://www.youtube.com/watch?v=kvGG23_mZQg
Former State Senator Sentenced for Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that today WESLEY T. BISHOP, age 52, of New Orleans was sentenced to 4 (four) years of probation, before U.S. District Judge Greg Guidry, for making a false statement, a crime punishable by up to five years’ imprisonment. BISHOP admitted to knowingly and willfully making a false, material statement to the United States Department of Housing and Urban Development (“HUD”) in connection with rental property that he owned. As explained by FBI New Orleans Special Agent in Charge Bryan Vorndran, “Former State Senator Bishop made false statements on HUD paperwork which resulted in Bishop receiving a forgivable $188,000 loan under the “road home” program.”
Pursuant to the plea agreement, BISHOP has agreed to pay restitution of $188,000 to the State of Louisiana, Division of Administration, Office of Community Development, which administers the subject Small Rental Property Program on behalf of HUD. In addition to probation, BISHOP has been ordered to pay a $100.00 special assessment fee.
U.S. Attorney Strasser praised the work and tireless efforts of the HUD Office of Inspector General and the FBI in investigating, and of Assistant United States Attorney Andre J. Lagarde in prosecuting this matter.
Former Pearl Resident Sentenced for Dog FightingRead the Press Release
Jackson, Miss. – Antoine Clayborne, 42, formerly of Pearl, Mississippi, was sentenced today by Senior U.S. District Judge David Bramlette III to 36 months’ probation for his participation in a pit bull dog fighting venture, announced U.S. Attorney Mike Hurst and Dax Roberson, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General. Clayborne was also ordered to pay a $1,500 fine.
Clayborne pled guilty before Judge Bramlette on March 5, 2020, admitting that he trained pit bulls to fight to the death. Clayborne admitted that he entered one of his pit bulls in a dog fight outside the State of Mississippi, his pit bull won the fight, and as a result Clayborne won a substantial amount of money. Law enforcement discovered Clayborne’s dog-fighting activities as a result of a tip from a citizen concerned about the condition of the pit bulls at Clayborne’s house. After investigating the tip, law enforcement officers obtained a search warrant for Clayborne’s residence and seized eleven adult pit bulls and eight pit bull puppies. Law enforcement also seized a variety of equipment commonly used to train pit bulls to fight, including weighted vests, collars and harnesses, a slat mill used to force the dog to walk, two treadmills with boxes built onto them to hold the dog and force it to walk, heavy chains, hanging scales, flirt poles and break/bite sticks. Clayborne’s cell phone contained gruesome videos of dogs fighting until one dog killed the other, text messages with photos of dogs Clayborne had used for dog fights, invitations to enter animals in fights, and financial receipts of wire transfers related to dog fighting ventures.
The case was investigated by the U.S. Department of Agriculture - Office of Inspector General and the Rankin County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Carla J. Clark.
Former Director of Chabad of Poway and Several Co Defendants Plead Guilty to Multi Million-Dollar Tax Evasion and FraudRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorneys Emily W. Allen (619) 546-9738, Andrew Young (619) 546-7981, and Oleksandra Johnson (619) 546-9769
SAN DIEGO – Rabbi Yisroel Goldstein, former director at Chabad of Poway, and five of his associates pleaded guilty in federal court today and Monday to fraud charges, admitting that they participated in a complex, years-long, multi-million dollar tax-evasion scheme and other financial deceptions involving theft of public money.
According to his plea agreement, while Rabbi Goldstein was director of the Poway synagogue, he received at least $6.2 million in phony contributions to the Chabad and affiliated charities and secretly refunded up to 90 percent of the donations to the “donors.” After Rabbi Goldstein provided these donors with fake receipts, they illegally claimed huge tax deductions for these nonexistent donations, and the rabbi kept about 10 percent – more than half a million dollars over the course of the fraud - for himself. Tax losses to the IRS were more than $1.5 million. At least 20 taxpayers were involved in this and related tax-evasion schemes.
This case was under investigation for more than two years before Rabbi Goldstein was shot and wounded during the April 27, 2019 attack on worshippers at the Chabad. In that case, federal civil rights and hate crimes charges are pending against John T. Earnest of Rancho Peñasquitos.
The rabbi was aware of the investigation at the time of the shooting. FBI and IRS agents had searched his home in October of 2018, and he began cooperating with the investigation shortly after that time.
According to his plea agreement, Rabbi Goldstein has agreed to cooperate with ongoing investigations of uncharged co-conspirators and to forfeit $1 million in proceeds and pay restitution of $2.5 million.
“This case has brought us all a great deal of anguish because of the attack on Chabad of Poway,” said U.S. Attorney Robert Brewer. “But whatever a defendant’s dire personal circumstances, or stature in the community, we will always seek justice, first and foremost. We cannot, and will not, sweep serious criminal conduct under the rug. We cannot look the other way because a perpetrator of crime has suddenly become a victim of crime.”
“This case shows the FBI’s dedication to untangling the web of fraud in a complex, multi-million dollar charitable donation scheme that violated the trust of the Chabad of Poway and defrauded the United States government," said FBI San Diego Acting Special Agent-in-Charge Omer Meisel. “The FBI is committed to holding those accountable who use their position and stature in the community as a disguise to commit fraud. All the defendants in this case, including Rabbi Yisroel Goldstein, have admitted their guilt in these fraudulent schemes and will no longer be able to use deceit and lies to cheat those who were intended to receive charitable funds and taxpayer dollars.”
“The Chabad of Poway, which has served its community for decades, was used by Rabbi Yisroel Goldstein and the five co-defendants to evade over $1.5 million in taxes over the last 8 years,” said Ryan L. Korner, Special Agent in Charge of the IRS’s Criminal Investigation Division. “The Chabad was further victimized in April 2019 when a shooter attacked its worshippers, and we recognize the pain that terrible event has caused for the Chabad, Rabbi Goldstein, and the community. Ultimately, the financial fraud schemes uncovered during this multi-year, multi-defendant investigation were egregious and IRS Criminal Investigation has a responsibility to bring to justice those who exploit and manipulate non-profit and religious organizations in order to benefit themselves. The IRS is responsible for protecting honest taxpayers and serving the public by ensuring the integrity of our tax system, which funds our nation’s critical infrastructures and vital programs, including supporting our citizens and small businesses during the ongoing pandemic. The hard work of our Special Agents will not stop despite the ongoing challenges posed by Covid-19. We will continue to work alongside our law enforcement partners, and this week’s six guilty pleas demonstrate our collective efforts to continue to enforce the law and ensure the public trust.”
Five others who participated in the scheme with Rabbi Goldstein also entered guilty pleas in federal court this week, admitting that they knowingly participated by concealing their donations through the Chabad and making false deductions on their tax forms, or by recruiting new taxpayers to participate in the scheme. One taxpayer, defendant Bruce Baker, admitted that he began participating in this scheme with Rabbi Goldstein in the 1980s, and made millions of dollars in fictitious donations over the years.
Rabbi Goldstein admitted today that in one instance in late 2017, he attempted to disguise the source of more than $1.1 million in fraudulent donations by purchasing gold coins worth approximately $1 million. He then delivered the gold to the phony donor.
CLICK HERE - Press Presentation Graphics
There were many schemes within the broader tax-fraud and kickback scheme, dating back to 2010 or earlier and continuing through 2018.
Rabbi Goldstein admitted he defrauded three different Fortune 500 companies by tricking them into matching supposed charitable donations of their employees. Working with the employees, Rabbi Goldstein fabricated fake receipts and then secretly returned their fake “donations.” This allowed the employees to claim tax deductions for the completely fabricated donations, and allowed Rabbi Goldstein to collect the companies’ matching funds—including some that matched double their employees’ donations. Rabbi Goldstein helped to orchestrate this scheme with at least six taxpayer-employees and two other associates who helped recruit new donors or conceal the true recipient of the funds. In total, Rabbi Goldstein defrauded the companies out of at least $134,000, and helped the taxpayer-employees to claim nearly as much in fictitious tax-deductible charitable contributions to the IRS.
Rabbi Goldstein admitted that he also helped an individual conceal more than $700,000 in income by allowing the individual to use Chabad bank accounts to deposit his income, thereby hiding it from the IRS. As his cut, Rabbi Goldstein kept 10 percent of this individual’s income—more than $70,000.
Separate and apart from the tax evasion scheme, Rabbi Goldstein and defendant Alexander Avergoon, who also pleaded guilty today, used false information and fabricated invoices and other records to pretend to be eligible for emergency funds, grants or donations, and private loans. These frauds on the Federal Emergency Management Agency (FEMA), the California Governor’s Office of Emergency Services (Cal OES), and private foundations resulted in losses to these programs of at least $875,000. Rabbi Goldstein and Avergoon have agreed to pay restitution to recoup these losses and reimburse these programs.
The rabbi also admitted in his plea agreement that he defrauded San Diego County courts by falsely certifying that co-conspirators and associates had performed volunteer work at the Chabad or its affiliated entities, so that those associates could submit fake reports to the courts that they had fulfilled sentencing requirements for criminal offenses showing dozens or even hundreds of community service hours. Finally, Rabbi Goldstein admitted that, along with Avergoon, he fraudulently obtained loans from banks and mortgage lending businesses by submitting false information in loan applications that they verified for one another.
“Sadly, the facts of this case show a willful, devious effort to deceive on the part of a trusted community leader,” Brewer said. “Evading taxes causes harm not just to the government, but also to one’s fellow citizens, who are forced to bear a heavier burden. Members of the Chabad of Poway are also victims of this crime, for those fake donations certainly did not benefit their congregation.
“There is no doubt that Rabbi Goldstein was the victim of a heinous hate crime that terrorized him and Chabad congregants,” Brewer said. “This is a mitigating factor, but this is no excuse. We acknowledge the rabbi’s cooperation and his community leadership in the wake of the shooting. But this illegal conduct had been going on for many years, and it cannot be ignored.”
U.S. Magistrate Judge Karen S. Crawford presided over today’s arraignment and guilty plea. Rabbi Goldstein is next scheduled to appear at a sentencing hearing on October 19, 2020 at 9 a.m. before U.S. District Judge Cynthia Bashant.
The five related guilty pleas involve a series of fraud and tax evasion schemes by Rabbi Goldstein’s co‑defendants:
1. Defendant Alexander Avergoon
Avergoon admitted that from 2010 to 2015, he recruited at least nine taxpayers who made more than $275,000 in fraudulent “donations” to the Chabad, then used Avergoon as a conduit to secretly return 90 percent of the money to the purported “donors.” He also admitted that he joined Rabbi Goldstein in the grant fraud scam in which they obtained hundreds of thousands of dollars in misappropriated grant funds.
As part of the government benefits fraud scheme, Avergoon used shell companies, including “Imagination Construction Company,” to create fictitious and backdated invoices for services like carpet installation, repairs to the Chabad of Poway’s HVAC system, and replacing damaged books and other supplies—even though Avergoon had never performed these services. In some cases, Avergoon would give Goldstein several fake bids from different shell companies, so that Rabbi Goldstein could trick the grant program administrators into believing he had complied with their competitive bidding requirements. Avergoon and Goldstein pretended that the government grant funds would be used for facilities upgrades, security systems, and community programs. But in reality, the money often went straight to Goldstein’s and Avergoon’s pockets; other times they used portions of it to pay contractors who had in fact charged much lower prices than reflected on Avergoon’s phony paperwork.
Apart from his fraudulent partnership with Rabbi Goldstein, Avergoon also admitted to participating in separate real estate Ponzi schemes from 2010 to 2016, in which he cheated retirement investors out of a total of $12 million. Avergoon was a San Diego-based real estate agent, and he used his industry knowledge and reputation to target trusting victims who would invest in what they thought was the purchase of rental property. Avergoon promised monthly dividends that would be paid from rental income. He created written investment materials like prospectus and projected income and expenses calculations, designed to give investors the false impression that their money would be safely tucked away in passive-income retirement investments. But in truth, instead of using investors’ money to buy rental properties as he promised, Avergoon spent the money himself and just pretended that he had purchased the apartment buildings and office space he advertised. In true Ponzi fashion, for a time, Avergoon made the promised dividend payments—but rather than using rent income, he funded those payments using new investor money.
Avergoon deceived more than a dozen unwitting investors, and convinced them to part with at least $5 million. When an investor would ask to cash out, he encouraged them to re-invest, and at one point he pretended to “roll over” their retirement investments to purchase a multi-million dollar commercial building. In reality, he bought that building with a loan, not with investor money, and again diverted their money to his own personal use. He created fake partnership agreements, false purchase documents and deeds, and other fictitious records, and forged the signatures of his investors to conceal the fraud—then laundered the proceeds in order to disguise the true source and ownership of the money.
Avergoon did not stop there. He convinced investors to part with another $5 million or more by pretending to use their money to fund short-term, low-risk loans supposedly secured by the borrowers’ high-end San Diego homes. But in reality, there were no “borrowers”—Avergoon used his real estate connections to identify homes he could pose as collateral, and he simply doctored up fake loan agreements and forged the borrowers’ signatures. In some cases, the individuals he claimed were the borrowers did not even own the homes that were purportedly used as collateral. Avergoon made fake loan agreements, Deeds of Trust, mortgage Notes, and other official-looking documents, and he even created fake notary stamps and San Diego County Recorder’s Office markings to make the paperwork appear legitimate. Once again, Avergoon used new investor money to make occasional payments to his victims, to make it appear that the “loans” were performing. But in truth, he diverted the money to his own use and the “investments” were worthless.
Avergoon was indicted in August 2019 and apprehended in Latvia. He was extradited to the United States in November 2019 and has remained in custody since his extradition and initial appearance in federal court in San Diego. U.S. Magistrate Judge Barbara L. Major presided over his change of plea hearing today. Avergoon is next scheduled to appear at a sentencing hearing on October 19, 2020 at 9 a.m. before U.S. District Judge Cynthia Bashant.
2. Defendant Bruce Baker
Bruce Baker pleaded guilty to conspiring with Rabbi Goldstein to defraud the IRS and file false tax returns beginning as early as the mid-1980s. For three decades, Baker admitted that he used fabricated records from Goldstein to fraudulently reduce his tax liabilities by pretending he was eligible for tax deductions for millions of dollars in nonexistent “gifts to charity” he reportedly made to the Chabad. In reality, Goldstein secretly returned 90 percent of Baker’s donations, and kept a 10 percent fee.
This part of the scheme was especially complex and intricate. Rather than simply paying cash or returning Baker’s money in direct payments, Goldstein would pay Baker’s creditors, make large purchases on his behalf, give money to Baker’s relatives, or pay off bills on behalf of his family. To disguise the repayments, Rabbi Goldstein delivered the money in clandestine ways by, for example, paying:
- around $200,000 to Baker’s business partner to buy the partner’s share of their business assets on Baker’s behalf;
- more than $420,000 in tuition and fees for Baker’s son to attend dental school and a post-doctoral residency in dentistry;
- at least $90,000 to a construction company for Baker’s benefit, another $200,000 directly to a building contractor working for Baker and $129,000 to a home builder, and more than $300,000 to Baker’s account at a construction and building supply company; and
- $200,000 from the proceeds of the sale of Goldstein’s property paid directly to Baker’s son.
Over the years, Baker admitted that he “donated” at least $2.6 million to Chabad of Poway, with at least $2.4 million secretly funneled back from Goldstein to Baker. In total, Baker’s and Goldstein’s scheme cost the IRS around $644,000 in tax losses.
Separate from his dealings with Rabbi Goldstein, Baker also admitted that he engaged in a similar tax evasion scheme with the director of a separate religious congregation and community organization in San Diego. In 2006, that individual offered Baker and his family an arrangement where they would pretend to make an “in-kind” donation to the religious organization of an ancient Iranian Torah—although no such Torah existed and the “in-kind” donation was a hoax. This other director provided Baker with a fraudulent appraisal that valued the Torah at $1.2 million. Baker and his family used the fake paperwork to claim exorbitant tax deductions, and gave the co-conspirator a 10 percent fee—or $120,000—in return. On top of that, the director charged Baker $20,000 for the fake appraisal.
U.S. Magistrate Judge Karen S. Crawford presided over Baker’s arraignment and guilty plea on July 13, 2020. Baker is scheduled for sentencing on October 19, 2020, at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to make full restitution to the IRS including all unpaid taxes, penalties, and interest.
3. Defendant Bijan Moossazadeh
Bijan Moossazadeh began participating in the tax evasion scheme with Rabbi Goldstein as early as 2012. As he admitted in his plea agreement, between 2012 and 2018 he pretended to “donate” a total of around $290,000 to Chabad of Poway. But instead of using the money for charitable purposes, Goldstein secretly funneled back 90 percent of the funds to Moossazadeh. Even so, Goldstein generated fraudulent donation receipt letters for Moossazadeh, so he could fraudulently verify that the money was indeed a “gift to charity.” Moossazadeh fraudulently reduced his tax liability—or intended to, before he learned of this investigation in 2018—by more than $91,500.
Goldstein concealed his repayments by giving Moossazadeh large cash payments that would be difficult to trace. And he communicated in code when he had cash available, referring to his cash supplies as “challah” and his supplier as “the baker.” In 2016, for example, Goldstein texted Moossazadeh to tell him he had cash: “I got a call from the Baker today he’s preparing for Friday how many Chalah do you need?” Moossazadeh answered, “22”—by which he meant, $22,000. The next day, Goldstein followed up: “Good morning[.] The baker came in earlier and has today 22 challa ready for pickup[.] Let me know what time?” Moossazadeh met Rabbi Goldstein at the Chabad on March 16, 2016, where he delivered a $22,000 check made payable to the Chabad (with “Contribution” written in the memo line), and in exchange Goldstein gave him $20,000 in cash (keeping the remaining $2,000). Goldstein also gave Moossazadeh a fraudulent donation receipt thanking Defendant for his “generous tax deductible donation.”
They followed a similar pattern in 2018, when Goldstein again used coded text messages to alert Moossazadeh that he did not have cash ready and available: “Just got a call the baker is not baking challah this Friday-will be back next Friday and have the full order.” A week later, Goldstein followed up: “Cook just finished . [] Come and pickup[.]” Moossazadeh admitted in his plea agreement that he met Goldstein at the Chabad the next day and delivered a check for $33,000, made payable to the Chabad (again with “Contribution” written in the memo line). In exchange, Goldstein gave Moossazadeh $30,000 in cash (keeping the remaining $3,000), along with another fraudulent donation receipt.
In August 2018—just at the time that court documents show Goldstein had offered to launder cash proceeds for an individual who he only later discovered was an undercover federal agent--—Rabbi Goldstein let Moossazadeh know he had more cash available. He texted Moossazadeh: “I have a new baker who can bake many more challah almost unlimited[.] Let Joe [SHEMIRANI] know that a new baker came to town and to let me know how many challah to bake ? Can do as many as you need .. unlimited[.]” But just a few months later in October 2018, Moossazadeh learned that Rabbi Goldstein was under investigation. He did not attempt to deduct any of his 2018 purported donations to the Chabad.
U.S. Magistrate Judge Karen S. Crawford presided over Moossazadeh’s arraignment and guilty plea on July 13, 2020. He is scheduled for sentencing on October 19, 2020, at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to make full restitution to the IRS including all unpaid taxes, penalties (including a 75 percent fraud penalty), and interest.
4. Defendant Yousef Shemirani
Yousef Shemirani admitted in his plea agreement that he participated in the tax scheme from 2011 to 2016, and in total he pretended to “donate” $137,650 to Rabbi Goldstein and the Chabad of Poway. In return, Goldstein secretly funneled approximately 90 percent of the “donations” back to Shemirani, keeping 10 percent (around $13,765). Shemirani’s participation in the scheme resulted in a tax loss to the IRS of more than $39,000.
As with Moossazadeh, Rabbi Goldstein used coded language to discuss the scheme with Shemirani, and he concealed his return of the “donations” by returning Shemirani’s payments in large amounts of cash. As Shemirani admitted in his plea agreement, Goldstein texted him in June 2015 to alert him that he would have cash available: “The baker will be back in July and will have all the Chalah you need :)” In July 2015, he followed up: “I just got a call from the Baker he may be in this Friday do you still need Chalah?” A year later, Goldstein continued the disguise, alerting Shemirani: “The Baker came today and actually be a nice amount of fresh Chalah – you can come by today and pick it up.”
Shemirani heard from Rabbi Goldstein again on October 20, 2018, when Goldstein appeared unannounced at Shemirani’s door. As Shemirani admitted, Goldstein warned that he was under investigation and that his home and office had been searched by federal agents. He alerted Shemirani that the next time they saw each other, Goldstein might be “wearing a wire.” Shemirani understood this was a warning, and he took steps to amend his fraudulent tax returns in response.
Shemirani was arraigned and entered a guilty plea on July 13, 2020, before U.S. Magistrate Judge Karen S. Crawford. His sentencing is scheduled on October 19, 2020, at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to make full restitution to the IRS including all unpaid taxes, penalties (including a 75 percent fraud penalty), and interest.
5. Defendant Boris Shkoller
Boris Shkoller admitted that from 2015 to 2016, he “donated” $122,000 to Chabad of Poway and secretly received 90 percent—or $109,800—back from Goldstein. Shkoller used Alexander Avergoon as a conduit to make the payments and receive the kickbacks. Avergoon also passed along fraudulent and backdated donation receipt letters that fraudulently verified Shkoller’s “generous tax deductible donation[s].” Shkoller admitted that he filed fraudulent tax returns for both years, resulting in tax losses to the IRS of more than $36,000.
Shkoller was arraigned and pleaded guilty today before U.S. Magistrate Judge Karen S. Crawford. His sentencing is scheduled on October 19, 2020 at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to pay $53,772 in restitution to the IRS for his tax underpayment, penalties, and interest.
U.S. Attorney Brewer commended the excellent work of prosecutors Emily Allen, Andrew Young and Oleksandra Johnson as well as case agents from the FBI and IRS.
DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prisonAlexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prisonAggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prisonMoney Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prisonBruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prisonBijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prisonYousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prisonBoris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prisonINVESTIGATING AGENCIES: Federal Bureau of Investigation, Internal Revenue Service
CLICK HERE - Avergoon Indictment CLICK HERE -Goldstein Plea Agreement CLICK HERE - Avergoon Plea Agreement CLICK HERE - Shkoller Plea Agreement CLICK HERE - Goldstein Information CLICK HERE - Baker Information CLICK HERE - Moossazadeh Information CLICK HERE - Shemirani Information CLICK HERE - Shkoller Information
Former Atomwaffen Division Leader Pleads Guilty to Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former leader of the white supremacist group Atomwaffen Division pleaded guilty today to charges related to his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a historic Virginia church, and a former cabinet official.
According to court documents, John Cameron Denton, 26, of Montgomery, Texas, is a former leader of the Atomwaffen Division in Texas. From October 2018 to at least April 2019, Denton and several others conspired together to conduct “swatting” calls. Swatting is a harassment tactic that involves deceiving dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address.
“Swatting is a dangerous act with potentially tragic consequences,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Sending law enforcement and emergency responders rushing to an individual’s home, business, or place of worship, in an effort to target individuals because of their race or religious affiliation or simply to create chaos shows both criminal behavior and a complete disregard for public safety. This office is committed to locating and investigating individuals responsible for such threats, and when appropriate, will seek federal charges.”
According to court documents, Denton participated in a conspiracy that conducted three swatting calls that occurred here in the Eastern District of Virginia: a former Cabinet official living in Northern Virginia on Jan. 27, 2019; Old Dominion University on Nov. 29 and Dec. 4, 2018; and Alfred Street Baptist Church on Nov. 3, 2018.
Additionally, Denton chose at least two targets to “swat”: the New York City office of ProPublica, a non-profit newsroom that produces investigative journalism; and an investigative journalist that produced materials for ProPublica. Denton chose the two targets because he was furious with ProPublica and the investigative journalist for publishing his true identity and discussing his role in Atomwaffen Division.
“The FBI takes swatting seriously because it can have harmful consequences and puts innocent people and first responders at risk,” said James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division. “Putting the lives of others in danger by swatting is senseless and criminal. The FBI's Washington Field Office will continue to work with our partners to locate and apprehend those who are responsible for such threats.”
During the investigation, Denton unknowingly met with an undercover law enforcement officer and told the undercover officer about his role in the swatting conspiracy. Denton stated that he used a voice changer when he made swatting calls, and admitted that he swatted the offices of ProPublica and the investigative journalist. He also stated that it would be good if he was “raided” for the swatting because it would be viewed as a top tier crime, and he felt that his arrest could benefit Atomwaffen Division.
Denton pleaded guilty to conspiracy to commit an offense against the United States, interstate threats to injure. He faces a maximum sentence of five years in prison when sentenced on November 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-154.
Five Charged as Cocaine Pipeline to Rhode Island ShutdownRead the Press Release
PROVIDENCE – An alleged drug trafficking pipeline that U.S. Postal Inspection Service agents believe may have been responsible for the shipment through the U.S. Mail of upwards of 100 kilos of cocaine into Rhode Island from Puerto Rico was shut down today when five individuals were charged in U.S. District Court in Providence and more than a dozen firearms were seized.
U.S. Postal Inspection Service (USPIS) agents and law enforcement agents and officers from the Rhode Island High Intensity Drug Trafficking Area Task Force culminated an investigation of the alleged drug trafficking organization with the execution of federal court-authorized search warrants at four locations in Woonsocket, seizing 16 firearms, multiple military style bullet proof vests, ammunition, cross bows, a kilogram of cocaine, a cocaine press, and other items used in the distribution of cocaine.
Also today, USPIS agents intercepted and seized three packages sent from Puerto Rico to addresses in Woonsocket. A federal court-authorized search of the packages resulted in the seizure of eight kilos of cocaine.
According to information presented to the court, 15 unsecured firearms, many of which were loaded, to include handguns, shotguns and rifles, including a modified AK-47, were seized from a Woonsocket residence. The firearms were discovered by members of law enforcement out in the open and within reach of a 6-year-old child who was in the residence at the time. Luis Alvarez, 25, was arrested, charged by way of a federal criminal complaint with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony.
A loaded firearm was also seized from another Woonsocket residence searched today by law enforcement, where William Lugo, 29, was arrested, charged by way of a federal criminal complaint with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony. According to court documents, Lugo is currently on state probation related to a 2016 firearm conviction.
According to court documents, a USPIS investigation identified approximately 55 Priority Mail packages alleged to contain one or more kilograms of cocaine that were shipped from different post offices in Puerto Rico to various addresses in Woonsocket since January 2019. Often times, multiple packages were mailed on the same day. The investigation showed that the parcels’ sender names were not associated with the listed return address, and similarly, the listed recipients were not associated with the Rhode Island addresses to which the parcels were sent. Many of the parcels had similar weights, and some bear similar handwriting.
It is alleged that several individuals worked together to track the shipments through the U.S. Postal Service, retrieve the Priority Mail parcels, and deliver them to other members of the drug trafficking organization at the locations searched today by law enforcement.
Also arrested today, charged by way of federal criminal complaints with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony, were Natasha Belardo, 27, of Woonsocket, and Hector G. Rios, 37, of Cranston.
An arrest warrant has been issued for a fifth person, Victor L. Casanova, 26, of Woonsocket. Casanova is charged by way of federal criminal complaint with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The investigation and today’s arrests and seizures are announced by United States Attorney Aaron L. Weisman, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
United States Attorney Aaron L. Weisman acknowledges and thanks the Woonsocket Police Department for their assistance today in the execution of the search warrants and in the arrest of Alvarez, Lugo, and Belardo.
The Rhode Island HIDTA Task Force is managed by the Rhode Island State Police and is comprised of law enforcement agents and officers from the Rhode Island State Police, Lincoln Police Department, Providence Police Department, North Providence Police Department, Middletown Police Department, West Warwick Police Department, Bristol Police Department, ATF, DEA, Homeland Security Investigations, ACI Special Investigative Unit, and Rhode Island National Guard Counterdrug Program.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell and Denise M. Barton.
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Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Revised Filing Deadline ArrivesRead the Press Release
CHICAGO — With the upcoming arrival of Tax Day on July 15, the U.S. Attorney’s Office and IRS Criminal Investigation Division in Chicago remind taxpayers to accurately file their returns and promptly pay any money owed.
The new deadline to file and pay 2019 income taxes and estimated taxes is Wednesday, July 15, 2020. The federal government and state of Illinois postponed the original filing deadline of April 15 due to the COVID-19 pandemic.
Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Taxes are how governments provide essential services,” said U.S. Attorney Lausch. “Tax offenses are neither victimless nor without consequence. Our office strives to preserve the integrity of the federal tax system through vigorous enforcement of the internal revenue laws.”
“As the tax filing deadline quickly approaches, I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” said Special Agent-in-Charge Enstrom. “We all pay when others cheat the government. IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
Several Chicago-area defendants have recently been prosecuted in federal court for a variety of tax violations, exemplifying the serious nature of the offense.
MOHAMMAD KHATIB and his wife, LISA KHATIB, pleaded guilty to filing false tax returns. The couple concealed more than $2.2 million in taxable income from their business in south suburban Harvey, leading to a total tax loss of at least $822,266. U.S. District Judge Sharon Johnson Coleman sentenced Mohammad Khatib to two years in federal prison, and Lisa Khatib to six months of home confinement. The government was represented by Assistant U.S. Attorney Sean J.B. Franzblau.
SAMANTHA RILEY, of Oak Park, pleaded guilty to stealing federal tax refunds in other taxpayers’ names and directing the money to be deposited into her personal bank accounts. Riley used the illegal proceeds to purchase clothing at Gucci and to make a down payment on a Porsche Cayenne. U.S. District Judge Virginia M. Kendall sentenced Riley to five years of probation and ordered her to pay $77,726 in restitution to the IRS. The government was represented by Assistant U.S. Attorney Sean K. Driscoll.
Another recent tax prosecution resulted in a term of imprisonment for a Chicago business owner for filing a false tax return. PATRYK TRYNDA, the sole owner of Kitchen and Bath Design Inc., failed to report $4.03 million of gross receipts for 2015 and 2016, resulting in tax losses of $345,091. Trynda also employed at least eleven individuals but failed to pay payroll taxes to the IRS for the years 2015, 2016, and 2017, causing $166,617 in additional tax losses. U.S. District Judge Andrea R. Wood sentenced Trynda to a year and day in federal prison and ordered him to pay a fine of $10,000. The government was represented by Assistant U.S. Attorney Jordan Matthews.
A federal prison sentence was also handed down to ROBERT S. WAKSMUNDZKI, of Chicago and Palos Hills, on conspiracy and false tax return charges. For several years Waksmundzki significantly underreported income he received from operating multiple websites, including Torrentz, through which visitors were re-directed via links to other sites where they could download motion picture content without the authority of lawful copyright holders. U.S. District Judge Edmond E. Chang sentenced Waksmundzki to a year and a day in federal prison and ordered him to pay $194,166 in restitution to the IRS. The government was represented by Assistant U.S. Attorney Sean K. Driscoll.
RICHARD T. DAVIS, the owner of a McHenry County tooling and plastics business, pleaded guilty to diverting nearly $500,000 in business receipts into his personal checking account and failing to report the income on his personal tax return. U.S. District Judge Philip G. Reinhard sentenced Davis to two years of probation and ordered him to pay restitution of $113,845 to the IRS. The government was represented by Assistant U.S. Attorney Michael Love.
For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website at https://www.irs.gov/newsroom/irs-tax-tips. Taxpayers facing hardships due to COVID-19 may also find assistance by visiting the official IRS website at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments.
Federal Judge Sentences Serial Bank Robber to over 10 YearsRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced John Howard Johnson, 65, to 130 months in prison followed by three years of supervised release, in connection with a series of armed bank robberies he committed in 2019, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Judge Cogburn also ordered Johnson to pay $8,569 as restitution.
According to filed court documents and today’s sentencing hearing, between July 3, 2019, and August 23, 2019, Johnson robbed four banks in North and South Carolina. Court records show that on July 3, 2019, Johnson entered a BB&T bank located at 174 Meeting Street, in Charleston, S.C., and passed a demand note written on an envelope to a teller that read, “I have a gun. Give me $100s and $50s.” According to court records, Johnson lifted his shirt and exposed what appeared to be a firearm and threatened to shoot the teller. The teller placed $1,800 into an envelope and gave it to Johnson, who then fled the scene in a vehicle.
According to court records, the second bank robbery occurred on July 23, 2019. On that date, Johnson entered the First Bank located at 201 Market Street, in Wilmington, N.C., and, similar to the first robbery, Johnson passed a demand note to the teller, threatening to kill the teller and asking for cash. After the teller handed Johnson the money, Johnson again fled in his vehicle. The next bank robbery occurred on July 31, 2019, at the BB&T bank located at 150 S. Main Street, in Mount Holly, N.C. As with the prior robberies, Johnson entered the bank, passed a demand note written on an envelope to a teller that read, “I have a gun in my shorts. Give me all of your 50s and 100s. Don’t make me kill you. Don’t make me shoot you.” After the teller put the cash into an envelope and gave it to Johnson, the defendant fled in the same vehicle.
According to court records, on August 23, 2019, Johnson entered the TD Bank located at 535 Greenville Highway, in Hendersonville, N.C., and again passed a demand note to the teller that read, “This is not a joke, I have a gun, I will kill you.” Johnson took the money the teller handed him and left the bank in his vehicle.
Law enforcement arrested Johnson in Charleston in September 2019. On February 3, 2020, he pleaded guilty to bank robbery charges. Johnson is in federal custody and will be transferred into custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney thanked the FBI, the Mt. Holly Police Department, the Hendersonville Police Department, the Wilmington Police Department, the Charleston Police Department and the Sever County Police Department for investigation of this case.
Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Federal Grand Jury in Waco Indicts Killeen Woman in Connection with the Disappearance of U.S. Army Specialist Vanessa GuillenRead the Press Release
In Waco today, a federal grand jury indicted 22-year-old Cecily Aguilar in connection with the disappearance of U.S. Army Specialist Vanessa Guillen, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and U.S. Army Criminal Investigative Command (USACID) Special Agent in Charge Vanessa Neff at Fort Hood.
The federal grand jury indictment charges Aguilar with one count of conspiracy to tamper with evidence and two substantive counts of tampering with evidence. Aguilar faces up to 20 years in federal prison for each count upon conviction.
According to court records, U.S. Army Specialist Aaron Robinson told Aguilar that he killed a female soldier by striking her in the head with a hammer while on Ft. Hood on April 22, 2020. Robinson further admitted to Aguilar that he transferred the woman’s body off of Ft. Hood to a remote site in Bell County. Subsequently, Robinson enlisted the help of Aguilar in disposing of the victim’s body. At a later time Aguilar recognized the deceased, whom she helped Robinson mutilate and dispose of, as Vanessa Guillen.
The indictment alleges that from April 22, 2020, through July 1, 2020, Aguilar conspired with Robinson to corruptly alter, destroy, mutilate and conceal evidence, including the victim’s body in order to prevent Robinson from being charged with and prosecuted for any crime. The indictment also alleges that on April 23, 2020, and on April 26, 2020, Aguilar tampered with evidence in this case, including the victim’s body, to impair its integrity and availability for use in an official proceeding.
During a previously scheduled court hearing in Waco today, U.S. Magistrate Judge Jeffrey C. Manske arraigned Aguilar on the indictment now pending against her. A not-guilty plea was entered by Aguilar’s counsel. Judge Manske also ordered that Aguilar remain in federal custody until further notice. No further court dates have been scheduled.
Agents and investigators from USACID, FBI, Texas Rangers, Bell County Sheriff’s Office, Killeen Police Department, Belton Police Department, Texas Parks and Wildlife and the U.S. Marshals Service are continuing to investigate this case. Assistant U.S. Attorneys Mark Frazier and Greg Gloff are prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fannin County Woman Sentenced for Tax FraudRead the Press Release
SHERMAN, Texas – A 40-year-old Honey Grove, Texas woman has been sentenced to federal prison for tax fraud in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Kristi Michelle Finney, also known as Kristi Michelle Fry, pleaded guilty on Aug. 29, 2019 to five counts of tax fraud. On July 2, 2020, U.S. District Judge Amos Mazzant sentenced Finney to 33 months in federal prison. Finney was also ordered to pay restitution of $359,733 to the Internal Revenue Service.
According to information presented in court, from 2013 to 2018, Finney offered tax services from her home, where she would complete and file tax returns for others at a fee of around $200. An IRS investigation linked 147 suspicious tax returns to Finney, many of which contained false employment, income, and expense information. Specifically, Finney would claim large financial losses for businesses that never existed, resulting in a larger tax refund for her clients than they would otherwise be entitled to. Finney would then divert portions of the fraudulent tax refund to herself by placing the refunds on prepaid debit cards. Finney concealed her involvement by falsely claiming that the fraudulent returns were personally prepared by her clients, rather than her. The IRS was ultimately able to identify Finney as the filer of these returns through internet protocol addresses and email addresses associated with the electronic returns, as well as through witness interviews.
This case was investigated by the Internal Revenue Service, Criminal Investigation, and prosecuted by Assistant U.S. Attorney Wes Wynne.
Erie Felon Charged with Illegally Possessing a FirearmRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named William Anthony Eldridge, 56, as the sole defendant.
According to the Indictment presented to the court, on or about May 18, 2020, Eldridge possessed a firearm while being a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Erie Police Department and the Erie Law Enforcement Crime Task Force-Gun Working Group conducted the investigation leading to the indictment in this case. The Erie Law Enforcement Crime Task Force-Gun Working Group is a multi-agency taskforce consisting of federal, state, county and local law enforcement partners and agencies that formed in 2015 to combat gun violence in the Erie area.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
EOIR Announces Disciplinary Action Under Rules of Professional ConductRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced that it has ordered Phoenix Attorney Jose A. Bracamonte suspended for 45 days from practice before the Board of Immigration Appeals, the immigration courts, and the Department of Homeland Security (DHS), effective July 15, 2020.
“EOIR will continue to pursue disciplinary actions to address the misuse and manipulation of the asylum process by immigration practitioners. Such actions detract from the timely processing of legitimate asylum claims and undermine the overall integrity of the asylum system,” said EOIR Director James McHenry. Adjudicating Official Irene C. Feldman issued the decision and final order on July 1, 2020, between Bracamonte and EOIR Disciplinary Counsel Paul A. Rodrigues and DHS Disciplinary Counsel Catherine M. O’Connell.
On Nov. 3, 2016, DHS and EOIR jointly initiated disciplinary proceedings against Bracamonte based on complaints that he filed affirmative asylum applications with U.S. Citizenship and Immigration Services for the sole purpose of causing DHS to issue Notices to Appear (NTAs) to his clients, without any intention to pursue asylum or related forms of relief. DHS and EOIR alleged that Bracamonte’s conduct violated the Rules of Professional Conduct (8 C.F.R. § 1003.102). Specifically, Bracamonte made false statements of material fact, and engaged in frivolous behavior, conduct lacking competence, and conduct prejudicial to the administration of justice.
Pursuant to the settlement agreement, Bracamonte acknowledged that his conduct was an abuse of the asylum system. Bracamonte admitted that he engaged in unprofessional and improper conduct when he filed affirmative asylum applications without an indicated basis for asylum or an indication as to any asylum claim, cancelled or otherwise advised clients to fail to appear for asylum interviews before DHS, and did not demonstrate a clear intention to pursue an asylum claim, in order to cause DHS to issue an NTA and place his clients in removal proceedings before EOIR.
Complaints about professional misconduct by private attorneys or accredited representatives may be sent to the EOIR Disciplinary Counsel through Form EOIR-44.
Durable medical equipment company owner admits participation in kickback schemeRead the Press Release
SAVANNAH, GA: A Florida man who operated a durable medical equipment company has admitted participating in a Medicare kickback and telemedicine fraud scheme.
Patrick Wolfe, 48, of Belleair Beach, Fla., the operator of Wilmington Island Medical Inc., which does business as WI Medical Inc., a Georgia company, entered a guilty plea in U.S. District Court to one count of Conspiracy as charged in an Information, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Wolfe admits paying kickbacks in return for “leads,” which were in actuality signed orders from physicians and nurse practitioners, and then billing those orders to Medicare Part B and Medicare Part C using WI Medical.
The financial total for orders facilitated through this scheme is alleged to be in the millions of dollars. Medicare beneficiaries were located in the Southern District of Georgia and elsewhere.
The charge carries a sentence of up to five years in prison, plus substantial financial penalties and forfeitures, followed by three years of supervised release upon completion of any prison sentence. There is no parole in the federal system.
“When the delivery of health care turns from providing comfort to patients to padding the pockets of greedy criminals, our office and those of our law enforcement partners will be there to protect our federal treasury,” said U.S. Attorney Christine.
This prosecution, arising out of the related “Operation Brace Yourself” and “Operation Double Helix,” together with 25 other cases, involve the largest fraud operation in the history of the Southern District of Georgia. Those charged in this string of cases include eight physicians, two nurse practitioners, three operators of different telemedicine companies, three brokers of patient data, and several other owners of durable medical equipment companies. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the country, including throughout the Southern District of Georgia.
The combined $480 million in fraud charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has included allegations involving billions of fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“Wolfe's admission of guilt is the first step in accountability for the damage he caused to Medicare and the tax payers of this country,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We must send the message that the FBI and our federal partners are dedicated to protecting the health care needs of deserving Americans that our government-subsidized programs provide.”
“It’s an outright crime when health care decisions are based on illegal kickbacks instead of what’s in the best interest of the patient,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We will continue to work with our law enforcement partners to safeguard both the Medicare Trust Fund, as well as the health of our nation’s senior citizens.”
“Our nation’s healthcare system cannot tolerate kickbacks to physicians and pharmacies while criminals line their pockets with taxpayer-funded healthcare dollars, particularly in light of our nation’s current struggles with the COVID-19 pandemic,” said Resident Agent in Charge Glen M. Kessler, U.S. Secret Service. “Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies.”
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, particularly during the COVID-19 pandemic, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, including COVID-19 fraud, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by FBI - Savannah, the Department of Health and Human Services Office of Inspector General, and the United States Secret Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
District Man Indicted on Federal Charges for Vandalizing the Lincoln Memorial During ProtestsRead the Press Release
WASHINGTON – Micah Avery, 26, of Washington, D.C., was indicted today in federal court on charges of destruction of federal property for spray-painting the Lincoln Memorial last month, announced Acting U.S. Attorney for the District of Columbia Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The federal grand jury returned an indictment that alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below). Avery fled as the officers approached him. After a chase, officers apprehended and handcuffed Avery. Officers attempted to put the defendant into a patrol car, but he resisted their attempts. A crowd converged on the officers and began pushing and striking the officers. During this melee, Avery broke free and ran away. One of the officers sustained an injury to his hand. A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.
An indictment is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
“Defacing one of our country’s national monuments will not be tolerated,” said Acting U.S. Attorney Michael R. Sherwin.
In announcing the indictment, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.
Couple arrested for laundering over $400,000 on behalf of India-based phone scammersRead the Press Release
ATLANTA – Federal agents have arrested husband and wife Mehulkumar Manubhai Patel and Chitali Dave for laundering over $400,000 on behalf of India-based phone scammers.
“Criminal India-based call centers sought to prey on vulnerable members of our community and steal from them by misleading them over the phone,” said U.S. Attorney Byung J. “BJay” Pak. “Those, like Patel and Dave, who allegedly launder money in the United States on behalf of foreign-based fraudsters, are the linchpins of those schemes.”
“I commend the Department of Justice and Social Security’s Office of the Inspector General for their aggressive work to fight fraudsters who target Americans through various phone scams,” said Andrew Saul, Commissioner of Social Security. “People who receive suspicious calls should just hang up, and never give out their personal information. They should go online to oig.ssa.gov to report these Social Security scams.”
“This arraignment is a bold statement that we will aggressively pursue overseas phone scammers—and their facilitators in this country—who are stealing Americans’ hard-earned money,” said Inspector General Ennis. “I want to thank the U.S. Attorney’s Office in the Northern District of Georgia for bringing these charges, and our law enforcement partners for their efforts in investigating these scams and bringing the perpetrators to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Criminal India-based call centers defraud U.S. residents, including the elderly, by misleading victims over the telephone utilizing scams such as Social Security and tech support scams.
As part of their Social Security scam, India-based callers pose as federal agents in order to mislead victims into believing their Social Security numbers were involved in crimes. Callers threatened arrest and the loss of the victims’ assets if the victims did not send money. The callers directed victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
As part of the tech support scam, callers allegedly induced victims to send money in exchange for supposed technical support for their computers. The callers then provided nothing in return. At times, callers misled the victims into providing remote access to their computers and the callers would access the victims’ bank accounts. The callers routinely misled the victims by making it appear as though the caller added money to the victims’ bank accounts. The callers then instructed the victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
Based on misrepresentations made during the calls, the victims, including a number of Georgia residents, mailed money to a network of individuals that allegedly laundered funds on behalf of the overseas fraud network. From on or about May 2019, to on or about January 2020, Patel and Dave allegedly laundered over $400,000 sent by at least twenty-four victims of the scams.
On June 9, 2020, Mehulkumar Manubhai Patel, 36, and Chitali Dave, 36, both of Lexington, South Carolina, were charged by a federal grand jury with money laundering conspiracy and money laundering. Patel was arraigned on June 19, 2020 before U.S. Magistrate Judge Christopher C. Bly. Defendant Dave was arraigned on July 14, 2020 before U.S. Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
Separately, on July 9, 2020, the U.S. District Court Judge William M. Ray, II sentenced defendant Joish Patel to over two years in prison by for his role in a criminal India-based phone scam. In 2017, Patel picked up over $140,000 dollars in victim funds using fake IDs. Some victims in that case sent money to aliases used by Joish Patel in response to an IRS scam where callers claimed they owed taxes or would be arrested. Other victims were tricked into believing that they needed to send money in order to qualify for loans.
The Social Security Administration - Office of the Inspector General is investigating the Mehulkumar Manubhai Patel and Chitali Dave case, with the assistance of the U.S. Secret Service, Aiken Department of Public Safety (South Carolina), Naperville Police Department (Illinois), Lexington County Sheriff’s Department (South Carolina), Rocky River Police Department (Ohio), and Henrico County Police Division (Virginia). The U.S. Treasury Inspector General for Tax Administration (TIGTA) investigated the Joish Patel case.
Northern District of Georgia Elder Justice Coordinator and Assistant U.S. Attorney Jolee Porter and Special Assistant U.S. Attorney Diane Schulman are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
California Couple in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – A California couple pleaded guilty today to conspiracy charges in connection with agreeing to pay $250,000 to secure the fraudulent admission of their daughter to the University of Southern California (USC) as a purported athletic recruit.
Diane Blake, 55, and Todd Blake, 54, both of Ross, Calif., pleaded guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud. Todd Blake also pleaded guilty to one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Nov. 17, 2020.
Beginning in 2017, the Blakes conspired with William “Rick” Singer and others to facilitate their daughter’s admission to USC as a purported athletic recruit. Specifically, Singer had an athletic profile of their daughter created and sent to the USC athletic admissions committee, allegedly through co-conspirator Donna Heinel, then a USC athletics administrator. As a result, their daughter was allocated an athlete admission spot even though she was not actually recruited and did not play on the USC women’s volleyball team. The Blakes paid $50,000 to USC women’s athletics and $200,000 to Singer’s non-profit charity, The Key Worldwide Foundation, as a quid pro quo for the admission spot. The Blakes concealed this deal from USC personnel.
Under the terms of Diane Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of six weeks in prison, a $125,000 fine and two years of supervised release with 100 hours of community service. Under the terms of Todd Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of four months in prison, a $125,000 fine and two years of supervised release with 100 hours of community service.
Diane and Todd Blake are the 27th and 28th parents to plead guilty in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
PITTSBURGH, PA -- A resident of Sewickley, PA, has been sentenced in federal court in Pittsburgh, Pennsylvania, following his guilty plea on charges of tax evasion, United States Attorney Scott W. Brady announced today.
According to the information presented to the court, Mark Stanford evaded payment of both his personal income taxes and the employer and employee portions of Social Security and Medicare taxes that he should have paid by virtue of owning and operating a cleaning business during the period 2009 through 2013. At the same time he was evading the payment of his tax obligations he made large personal expenditures (such as Bentley and Mercedes Benz automobiles).
United States District Court Judge Cathy Bissoon sentenced Stanford to two years (24 months) in prison, a $4000 fine, three years of supervised release (upon his release from prison) and Stanford was ordered to pay more than $330,000 in back taxes.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment, plea and sentence in this case.
Buffalo Man Going to Prison for More Than 7 Years for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Torri McCray, 41, of Buffalo, NY, who was convicted of possessing with intent to distribute and distributing fentanyl and 10 grams of more of buytryl fentanyl was sentenced to serve 90 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that on four dates between June and August of 2017, the defendant distributed controlled substances, including heroin, fentanyl, U-47700, butyryl fentanyl, and furanyl fentanyl. On August 16, 2017, the Drug Enforcement Administration arrested McCray and recovered from him a quantity of heroin that he intended to distribute.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan, New York Field Division.
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Baltimore Felon Sentenced to Eight Years in Federal Prison for His Role in a Southwest Baltimore Drug Shop that Distributed Heroin, Fentanyl, and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Raheem Benjamin, age 27, of Baltimore Maryland, to eight years in federal prison, followed by three years of supervised release, for conspiracy to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from February 2018 through May 7, 2019, Benjamin and other co-conspirators agreed to distribute and possess with intent to distribute 400 grams or more of fentanyl for a drug trafficking organization (DTO) known as “Lex Luthor.” The Lex Luthor DTO operated 24 hours a day, 7 days a week as an open-air drug shop in southwest Baltimore, typically selling gel capsules containing a mixture of heroin, cocaine, and fentanyl. Benjamin’s responsibilities as a member of the DTO included distributing packs of these gel capsules to street-level distributors—who would then sell the gel capsules to paying customers—and collecting drug proceeds from those distributors in exchange for the packs.
On October 17, 2018, while monitoring surveillance from a pole camera, law enforcement saw Benjamin pull out a firearm. Officers with the Baltimore Police Department responded to arrest Benjamin, who fled, discarding the loaded firearm. Police immediately recovered the gun, a revolver loaded with six .22-caliber cartridges. Officers apprehended Benjamin shortly thereafter. Benjamin had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
As a result of the Benjamin’s day-to-day activities obtaining and supplying street-level distributors with narcotics, as well as from his conversations with other co-conspirators and general familiarity with the drug shop’s operation, Benjamin knew that members of the DTO would take possession of and distribute more than 400 grams of fentanyl.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who prosecuted the case.
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Audubon County Resident Sentenced for being a Drug User in possession of firearmRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 8, 2020, Brandon Michael Barringer, age 36, of Audubon, was sentenced to two years in prison followed by two years of supervised release by United States District Court Senior Judge James E. Gritzner for being a drug user in possession of a firearm. Barringer pleaded guilty to the offense on March 6, 2020.
The sentencing was the result of an incident in Audubon on November 15, 2019. Barringer removed a .40 caliber rifle from his car and threatened an individual with the rifle after a domestic disturbance. Barringer then left Audubon and was located by law enforcement in Carroll County, where the rifle was recovered along with ammunition. Barringer is a long time user of methamphetamine.
The case was investigated by the Audubon Police Department, Audubon County Sheriff’s Office, Carroll Police Department, Carroll County Sheriff’s Office, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Attorney Sentenced to Federal Prison for Obstruction of Justice OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Nelson Israel Alfaro (49, Miami) to 14 months in federal prison for conspiring to defraud the United States, obstruction of justice, and making false statements to federal law enforcement officers. The court also ordered Alfaro to forfeit $117,500 to the United States, the proceeds of his related crimes.
Alfaro had pleaded guilty on December 13, 2019.
According to court documents, Alfaro was an attorney who represented criminal defendants in Florida federal and state courts, including the United States District Court for the Middle District of Florida. From early 2017 to August 2019, Alfaro and his former client, Gilberto De Los Rios, concocted a scheme to charge an already-sentenced federal defendant tens of thousands of dollars for information that they then falsely and fraudulently presented to the United States as the defendant’s “cooperation” and “substantial assistance,” in order to trigger a sentence reduction for the defendant.
To achieve this sentence reduction, Alfaro concocted a plan to purchase information that would be of interest to law enforcement, which the federal defendant could falsely claim as his own cooperation. Alfaro planned to charge the federal defendant $50,000 as Alfaro’s personal fee for this effort, and an additional $30,000 to pay for the information that would earn the federal defendant substantial assistance credit. Alfaro’s scheme required him to enlist the aid of another person known to him, but unknown to the federal defendant—De Los Rios, whom Alfaro had represented regarding Florida state criminal charges in 2010-2011.
Over time, Alfaro’s plan transformed into a plot to earn the federal defendant substantial assistance credit by paying De Los Rios to cooperate on behalf of the federal defendant. In doing so, Alfaro fabricated a story about the relationship between De Los Rios and the federal defendant, about which he repeatedly lied and provided false and fraudulent information to federal law enforcement agents.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Another Houston man charged with COVID relief fraudRead the Press Release
HOUSTON - A local man has been taken into custody on allegations he fraudulently obtained more than $1.1 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Joshua Thomas Argires, 29, Houston, is charged in a criminal complaint with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
Argires allegedly perpetrated a scheme to file two fraudulent loan applications seeking more than $1.1 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Argires submitted two fraudulent PPP loan applications to federally insured banks. One of these applications was submitted on behalf of an entity called Texas Barbecue; the other was filed on behalf of a company called Houston Landscaping. Argires allegedly claimed these two companies had numerous employees and hundreds of thousands of dollars in payroll expenses.
According to the complaint, neither Texas Barbecue nor Houston Landscaping has employees or pays wages consistent with the amounts claimed in the PPP loan applications. The complaint further asserts that both of these loans were funded, but that none of the funds were used for payroll or other expenses authorized under the PPP. Rather, the funds received on behalf of Texas Barbecue were invested in a cryptocurrency account, while the funds obtained for Houston Landscaping were held in a bank account and slowly depleted via ATM withdrawals, according to the charges.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Federal Housing Finance Agency - Office of the Inspector General (OIG), SBA - OIG and U.S. Postal Inspection Service’s Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister for the Southern District of Texas are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Albany Felon Pleads Guilty to Possessing a HandgunRead the Press Release
ALBANY, NEW YORK – Saul McDuffie, age 33, of Albany, pled guilty today to being a felon in possession of a firearm. The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Chief Eric Hawkins of the Albany Police Department.
In pleading guilty, McDuffie admitted to possessing a loaded Taurus handgun, which he placed on the tire of a car parked on North Swan Street in Albany, on October 28, 2019. McDuffie has multiple prior felony convictions, including two convictions for drug offenses, for which he was sentenced to a total of over six years in prison, and a burglary conviction, for which he was sentenced to two to six years in prison.
At sentencing, McDuffie faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Albany Police Department and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel L. Williams.