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Friday 21 February 2020
Parmelee Woman Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Jeni May Pearl Arcoren, age 32, was indicted on February 11, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 21, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that beginning on January 1, 2015, and continuing through February 11, 2020, in the District of South Dakota and elsewhere, Arcoren, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Arcoren is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Arcoren was released on bond pending trial. A trial date has not been set.
Parent Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A Chinese woman who resides in Canada agreed to plead guilty today in federal court in Boston to using bribery and other forms of fraud to facilitate her son’s admission to the University of California at Los Angeles (UCLA) as a purported soccer recruit.
Xiaoning Sui, 48, of Surrey, British Columbia, Canada, agreed to plead guilty to one count of federal programs bribery before U.S. District Court Judge Douglas P. Woodlock, who scheduled sentencing for May 19, 2019. Sui has been detained in Spain since her arrest there on Sept. 16, 2019. Sui was extradited to Boston for today’s plea hearing.
Sui agreed with William “Rick” Singer to pay $400,000 to facilitate her son’s admission to UCLA as a purported soccer recruit. During a phone call in August 2018, Singer explained to Sui that he would write Sui’s son application in a “special way” that would guarantee his admission to UCLA, in exchange for $400,000. Between September and October 2018, Singer facilitated the transfer of Sui’s son’s transcript to the head coach of men’s soccer at UCLA, who allegedly designated Sui’s son as a recruited student-athlete.
On Oct. 24, 2018, Singer instructed Sui to wire Singer $100,000 which would be “paid to the coach at UCLA” in exchange for a letter of intent from the UCLA soccer coach recruiting Sui’s son onto the soccer team. Two days later, Sui wired the $100,000 to a bank account in Massachusetts in the name of Singer’s sham charitable organization, Key Worldwide Foundation (KWF).
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 federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. According to the plea agreement, the parties will recommend a sentence of time served (approximately five months in prison), one year of supervised release, a fine and forfeiture. 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, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Palm Harbor Man Sentenced to Federal Prison for Receiving and Possessing Child Sex Abuse MaterialRead the Press Release
Tampa, Florida - U.S. District Judge Charlene E. Honeywell has sentenced Cody Robert Schoh (23, Palm Harbor) to 7 years and 11 months in federal prison for receiving and possessing child pornography. The court also ordered Schoh to forfeit the electronic devices he had used in the commission of the offense.
Schoh had pleaded guilty on August 16, 2019.
According to court documents, the FBI began an investigation after receiving a tip from the National Center for Missing and Exploited Children that someone at Schoh's Palm Harbor residence had uploaded 94 files depicting child pornography to an online cloud storage system. The FBI executed a search warrant at Schoh's residence and seized his electronic devices. A forensic analysis of the devices revealed that Schoh was in possession of child sex abuse images and videos. Forensic analysts also found that Schoh had used a web-based messaging application to engage in sexual conversations with numerous individuals who appeared to be minors. He also received, transmitted, and possessed child pornography via the internet.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Company Contracted to Wash Postal Vehicles Pleads Guilty to Violating Environmental LawRead the Press Release
Memphis, TN – Constance Pritchett, 59, has pleaded guilty to the federal offense of depositing of refuse in navigable waters. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to information presented in court, from January 1, 2015 through December 31, 2015, Pritchett, the owner of Pritchett, Inc. d/b/a Crossroads Mobile Service ("Crossroads") had a contract with the United States Postal Service to wash postal service vehicles and postal service locations throughout the Memphis, Tennessee area. The contract required Crossroads to collect all wastewater in accordance with federal law.
An investigation by the United States Postal Service Office of Inspector General determined that Crossroads employees failed to properly collect wastewater, which then entered the City of Memphis sewer system. The wastewater then entered the Mississippi River which is a navigable waterway of the United States.
"The U.S. Postal Service Office of Inspector General works closely with Postal Service procurement officials to help safeguard the contracting process. When contract irregularities arise, OIG special agents work aggressively to gather the facts and present relevant information to federal prosecutors. In this instance, contractual obligations related to important environmental matters were ignored altogether," said Special Agent in Charge Scott Pierce, Contract Fraud Investigations Division.
U.S. Attorney D. Michael Dunavant said, "The U.S. Attorney’s Office is a full-service federal prosecution office, and we have the ability and intention to charge any violations of federal law, no matter where or how they occur in the Western District of Tennessee. This prosecution demonstrates our commitment to upholding the rule of law, and to pursuing any cases that harm and impact our waterways and environment."
Sentencing is scheduled for April 10, 2020, before U.S. District Court Judge John T. Fowlkes Jr., where Pritchett faces up to one year imprisonment followed by one year supervised release.
This case was investigated by the United States Postal Service Office of Inspector General.
Special Assistant U.S. Attorney Jeremy S. Robbins is prosecuting this case on behalf of the government.
Orocovis Man Arrested in Massachusetts on Charges of Child PornographyRead the Press Release
SAN JUAN, P.R. – Jeremy Joel López, 20, from Orocovis, Puerto Rico, was arrested for coercion and enticement of a minor, transfer of obscene material and receipt of child pornography, following an investigation by the FBI Ponce Office and the Child Exploitation and Human Trafficking Task Force, the Police of Puerto Rico, and the Puerto Rico Department of Justice, District Attorney’s Office for the Region of Aibonito, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
According to the three-count indictment, from on or about 2018 through September 2019, López used a facility of interstate and foreign commerce to entice and coerce the female minor to engage in sexual activity and received child pornography via messaging applications on his cellular phone.
Assistant United States Attorneys Ginette Milanes and Nicholas W. Cannon, Deputy Chief of the Immigration, Cybercrime, and Child Exploitation Unit, are in charge of the prosecution of the case. If convicted, the defendant faces a mandatory minimum sentence of ten (10) years imprisonment, and a statutory maximum sentence up to life incarceration. An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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Ord Man Convicted Again for Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Reamonn C. Seaman, 25, of Ord, Nebraska, was sentenced today in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard for receipt and distribution of child pornography. Seaman was sentenced to 276 months in prison and will also serve 20 years on supervised release. There is no parole in the federal system.
Seaman was convicted of Possession of Child Pornography and Enticement by Electronic Device, both felony offenses, in the District Court of Buffalo County, Kearney, Nebraska in January of 2018. In June of 2018, while on state probation, authorities became aware that he had contacted a minor female via the internet. Seaman then admitted to his probation officer that he had relapsed. His electronic devices were seized at that time and found to contain child pornography.
In February of 2019, the probation officer contacted Seaman at his residence and found he had once again obtained computer equipment and wireless adapters in violation of his probation. Seaman admitted he had relapsed again and had sent nude photographs and videos to additional minor victims. An examination of those devices also revealed child pornography. Seaman also admitted to making physical contact with minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Omaha Man Sentenced to 26 Years for Possessing a Firearm while Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Jayson Yanes, 40, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Conspiracy to Distribute Methamphetamine and Possession of a Firearm During a Drug Trafficking Crime. United States District Court Judge Robert F. Rossiter, Jr. sentenced Yanes to 26 years’ imprisonment. Yanes faced a mandatory minimum 25-year sentence due to a prior federal conviction for Possession of a Firearm During a Drug Trafficking Crime. There is no parole in the federal system. After completing his term of imprisonment, Yanes will be required to serve a 5-year term of supervised release.
On August 1, 2018, Omaha Police Officers executed a search warrant at Yanes’ South Omaha residence. Officers recovered drug paraphernalia, approximately 11 grams of actual methamphetamine, and a firearm within arm’s reach of the methamphetamine. Yanes admitted that the firearm and the methamphetamine were his and that he had been selling methamphetamine for the previous 6 months.
This case was investigated by the Omaha Police Department.
Ohio Doctor Pleads Guilty to Unlawful Distribution of OpioidsRead the Press Release
An Ohio physician who owned a Dayton-area medical practice pleaded guilty today for illegally distributing opioids.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David DeVillers of the Southern District of Ohio, Special Agent in Charge Keith Martin of the Drug Enforcement Administration’s (DEA) Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge William C. Hoffman of the FBI’s Cincinnati Field Office made the announcement.
Morris Brown, M.D. 75, of Dayton, pleaded guilty to one count of unlawful distribution of controlled substances before U.S. District Judge Walter Rice of the Southern District of Ohio. Brown is scheduled to be sentenced by Judge Rice on May 8.
As part of his guilty plea, Brown admitted that he prescribed controlled substances to patients in amounts and for lengths of time that were outside the scope of legitimate medical practice. Brown also admitted that he routinely prescribed controlled substances to patients even though various “red flags” suggested that he should stop writing those prescriptions, change the prescriptions and/or counsel patients accordingly. Further, Brown admitted that he prescribed dangerous combinations of drugs known to heighten the risk of overdose and death.
Brown owned the building in which his practice operated, and leased space in the building to a pharmacy named Dayton Pharmacy through which the vast majority of his prescriptions were filled. Brown admitted to distributing approximately 73.5 kilograms of opioids by converted drug weight.
Brown no longer maintains a DEA registration.
Brown was charged along with Ismail Abuhanieh, 50, of Phoenix, Arizona; Mahmoud Elmiari, 44, of Bellbrook, Ohio; Yohannes Tinsae, 48, of Beavercreek, Ohio; and Mahmoud Rifai, 50, of Detroit, Michigan in April 2019. All four of Brown’s co-defendants were charged for their roles in agreeing to obtain controlled substances for Dayton Pharmacy by fraud or misrepresentation. Elmiari and Tinsae have entered guilty pleas and are scheduled for sentencing on May 13, 2020. Abuhanieh is scheduled for a change of plea on March 10, 2020. Rifai is the subject of an active arrest warrant.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Office, Ohio Bureau of Worker’s Compensation and Ohio Board of Pharmacy investigated the case. Trial Attorneys Chris Jason, Tom Tynan and Leslie Garthwaive of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Northeast Ohio priest charged with child pornography, child exploitation and juvenile sex traffickingRead the Press Release
Robert D. McWilliams, 29, was charged by criminal complaint today with receiving or distributing child pornography, sexual exploitation of children and sex trafficking of a minor.
According to the affidavit in support of the complaint, McWilliams pretended to be a female on social media applications which he used to make contact with minor male victims. Allegedly, certain of McWilliams’s victims were young boys McWilliams knew because he served as a priest in parishes with which these children and there families were affiliated. Posing as the female, McWilliams allegedly enticed the minor male victims to send sexually explicit photographs and videos, sometimes threatening to expose embarrassing information McWilliams already knew about the victims if they did not send such images. At times, McWilliams is alleged to have threatened to send those photographs to family and friends if the minor male victims did not send additional photographs and videos. McWilliams is also alleged to have followed through on this threat by sending the mothers sexually explicit photographs he received from minor male victims.
The affidavit also alleges that McWilliams was in possession of, received or distributed child pornography, to include a video file of a nude infant boy bound and raped by an adult male, approximately 1,700 images and videos of child pornography, and approximately 150 files of child pornography in a Dropbox cloud storage account.
Additionally, McWilliams is alleged to have used the social networking website Grindr.com to make contact with a minor male victim for the purpose of engaging in commercial sex. McWilliams allegedly met the victim on multiple occasions and, in exchange for sex, paid the 15 year old boy approximately $100 per act.
Anyone with knowledge of McWilliams’s contact with children should contact Homeland Security Investigations at (216) 749-9602.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This investigation is being conducted by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Geauga County Prosecutor’s Office and Ohio Internet Crimes Against Children (“ICAC”) Task Force. The case is being prosecuted by Assistant U.S. Attorneys Carol M. Skutnik and Bridget M. Brennan.
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North Hollywood Man Sentenced to Nine Years in Federal Prison for Smuggling Cocaine in Household Products Shipped to AustraliaRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 108 months in federal prison for smuggling more than 80 pounds of cocaine – concealed and suspended in grease – in household products that were mailed to Australia.
Vardges Markosyan, 47, of North Hollywood, was sentenced by United States District Judge Cormac J. Carney.
Markosyan – who also was known as “David Petrosov,” “Giani Oncho,” and “Laram Narman” – pleaded guilty in November 2019 to one count of conspiracy to distribute cocaine and one count of conspiracy to engage in money laundering.
Between December 2014 and October 2016, Markosyan was involved in a drug conspiracy that procured approximately 40 kilograms (88.2 pounds) of cocaine and shipped it to Australia. The cocaine was suspended in grease and placed in empty household products such as log splitters, air compressors, tankless water heaters, lampstands, and air conditioners. The wholesale value of this cocaine was at least $7 million in Australia, court papers state.
The shipped packages were sent via commercial carrier to Australia, where the drugs were distributed. Markosyan conducted “test runs” of drug shipment methods by sending packages of household products by commercial carrier to Australia to evaluate whether the drugs could be shipped without detection inside similar packages. For example, in March 2015, a co-conspirator used FedEx to send 9.87 kilograms (21.76 pounds) of cocaine hidden in a log splitter to Australia. In advance of this package, Markosyan sent a similar log splitter in a “test run” to Australia.
Markosyan also conspired with his sister, Iren Markosyan, 41, of North Hollywood, to launder the proceeds of drug trafficking and fraudulent activity. From May 2014 until January 2019, Markosyan used his sister’s name – with her knowledge – to buy properties in North Hollywood and Studio City. Markosyan and his sister obtained hard-money loans secured against these properties, and spent the net proceeds of these loans after transferring them to various accounts. In December 2018, Markosyan received $234,442 from the sale of the North Hollywood property. Markosyan also obtained, with his sister’s assistance, Medi-Cal benefits by falsely stating that he had no income, according to court documents.
“Because these loans essentially liquidated the illicit proceeds that were used to purchase these homes, there was never an intent to pay these loans back,” prosecutors wrote in their sentencing memorandum. “In total, (Markosyan) laundered up to $3.5 million in this manner.”
Markosyan has agreed to forfeit to the U.S. government his interest in the Studio City property, held in his sister’s name, as well as a 1996 Carver 38 boat and a 2005 Caribe boat also held in her name.
Iren Markosyan pleaded guilty in May 2019 to one count of conspiracy to launder monetary instruments. She will face a statutory maximum sentence of 20 years in federal prison at her sentencing hearing later this year.
This matter was investigated by the FBI, IRS Criminal Investigation, the Glendale Police Department, and the California Department of Health Care Services Investigations Branch, in conjunction with the Organized Crime Drug Enforcement Task Force (OCDETF). The United States wishes to thank its foreign partners -- the New South Wales Police Force, the New South Wales Crime Commission, and the Australian Federal Police -- for their assistance in the investigation.
This case is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar of the International Narcotics, Money Laundering, and Racketeering Section, and Katharine Schonbachler of the Asset Forfeiture Section.
Nicholson Man Sentenced to over 15 years for being a Felon in Possession of Firearm and an Armed Career CriminalRead the Press Release
Gulfport, Miss. – Ronald Christopher Dressner, 41, of Nicholson, was sentenced on February 21, 2020, by U.S. District Judge Sul Ozerden to 184 months in federal prison, followed by five years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). Dresser was also ordered to pay a $7,500 fine.
On May 20, 2019, interdiction officers with the South Mississippi Metro Enforcement Team attempted a traffic stop on a vehicle driven by Dressner for a stolen tag. When the officer attempted to stop the vehicle, Dressnerfled. Dressner eventually stopped his vehicle and a passenger in the vehicle advised officers that she saw Dressner throw a silver and black handgun out of the passenger window. Officers returned to the location and discovered a Smith & Wesson, .40 caliber pistol loaded with five live rounds. When Dressner was interviewed, he ultimately admitted to throwing the firearm out of the window during the pursuit. Dressner had previous felony convictions for possession of a controlled substance in the Circuit Court of Pearl River County for which he was sentenced to serve 16 years in the custody of the Mississippi Department of Corrections.
Dressner was charged in a federal criminal indictment and pled guilty before Judge Ozerden on November 13, 2019.
The Jackson County South Mississippi Metro Enforcement Team and The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
New York Man Admits Role in Defrauding Banks in $9 Million Shotgun Loan SchemeRead the Press Release
NEWARK, N.J. – A Freeport, New York, man today admitted participating in a conspiracy to carry out a $9 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a scheme known as “shotgunning,” U.S. Attorney Craig Carpenito announced.
Yorce Yotagri, 53, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an indictment charging him with one count of conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
Yotagri was a business partner of Jorge Flores of Oakdale, New York, and Jose Piedrahita of Freeport, two conspirators also charged in the indictment. From 2010 through February 2018, Yotagri, Flores, Piedrahita, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In August 2016, Yotagri lived at a property in Freeport. A quitclaim deed was prepared that facilitated the transfer of ownership of the property to Yotagri and Piedrahita even though Piedrahita did not own the property.
In September 2016, with the Freeport property now in the names of Yotagri and Piedrahita, the conspirators applied for a $290,000 HELOC from a victim bank in Yotagri’s and Piedrahita’s names using the property as collateral. Piedrahita’s contact information appeared on the HELOC application on the Freeport property, which also contained inflated income and assets for Piedrahita. On Dec. 2, 2016, based on the false representations contained in the application, the victim bank issued a HELOC to Piedrahita for $290,000. Piedrahita then disbursed the $290,000 to himself, Yotagri, and Flores. The HELOC funds were never repaid.
In January 2017, Flores called another victim bank and applied for a second HELOC in Piedrahita’s name for $250,000 – again using the Freeport property as collateral. This time Flores’ email address and phone number appeared on the HELOC application on the Freeport property. To demonstrate to the second victim bank that the property was unencumbered by any senior mortgages, Flores and Piedrahita sent several fraudulent documents to the victim bank to conceal the existence of or amounts owed on senior mortgages. The false documents the defendants submitted included a series of false payoff letters and fake checks from other banks, all submitted to deceive the victim bank into believing that the remaining value of the senior mortgages on the Freeport property was far less than what was actually owed.
On March 22, 2017, the second victim bank issued a HELOC to Piedrahita for $250,000. Piedrahita then disbursed nearly the entirety of the HELOC funds to himself and Yotagri. The funds obtained by Piedrahita and Yotagri from the HELOC were not repaid and were overdrawn, causing losses to the second victim bank totaling approximately $290,000.
At the time the applications for the two HELOCS were made, there was not sufficient equity in the Freeport property to support the $540,000 in HELOC applications made by Flores, Piedrahita, and Yotagri.
The overall scheme, which included HELOC loans for approximately 17 different properties, resulted in over $9 million in losses to the victim banks.
Yotagri faces a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 25, 2020.U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Steven Perez in Newark; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.The charges and allegations against Yotagri’s co-defendants contained in the indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Randy Scott Zelin Esq., New York
New Orleans Man Sentenced to 60 Months in Prison for Being in Receipt of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that defendant PRENTISS CRAFT, 29 years of age, of New Orleans, Louisiana, was sentenced on Thursday, February 20, 2020 by U.S. District Court Chief Judge Nannette Jolivette Brown to being in receipt of a firearm while under indictment.
CRAFT pled guilty on November 14, 2019, to being in receipt of a firearm while under indictment, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D).
Judge Nannette Jolivette Brown sentenced CRAFT to 60 months in the Bureau of Prisons, as well as 3 years supervised release following the term of imprisonment.This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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.
U. S. Attorney Strasser praised the work of the New Orleans Police Department, Jefferson Parish Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorney Liz Privitera.
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New Orleans Man Pleads in Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JEFFERY JOSEPH, age 25, a resident of New Orleans, pleaded guilty on February 20, 2020 before U.S. District Judge Barry W. Ashe to charges related to his participation in a credit card fraud ring.
According to court documents, JOSEPH and the other defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own bank accounts. Court documents also detail how JOSEPH took flights with several other co-conspirators to perform fraudulent credit card transactions in various cities in the United States, including St. Louis, Missouri; Richmond, Virginia; Nashville, Tennessee; Portland, Oregon; Milwaukee, Wisconsin; and Cincinnati, Ohio. JOSEPH was also arrested in Minnetonka, Minnesota, and Franklin, Tennessee, while committing credit card fraud.
Federal agents located social media posts by JOSEPH that further established the fraud. For example, a July 2018 Instagram post showed JOSEPH sitting on the hood of a Mercedes with the caption, “I’m living proof that crime do pay.” Another post by JOSEPH in September 2018 showed him in Atlanta with the caption “only ducking indictments,” just six days after two of JOSEPH’S co-conspirators had been arrested. In his plea documents, JOSEPH admitted that he caused between $250,000.00 and $550,000.00 in losses through his own conduct and that of his co-conspirators.
JOSEPH pleaded guilty to three counts of the Third Superseding Indictment. He pleaded to one count of conspiracy to commit access device fraud, for which he faces a maximum penalty of five years of imprisonment. He pleaded to one count of aggravated identity theft, for which he must be sentenced to two years of imprisonment to be served consecutively with any other count. He also pleaded to one count of possession of access device-making equipment, which carries a maximum sentence of fifteen years in prison. Each count also carries a maximum fine of $250,000.00, or twice the gross gain or gross loss caused by this scheme. Sentencing is set for May 28, 2020, before Judge Ashe.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
Nebraska Woman Indicted for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Valentine, Nebraska, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Mareca Rodriquez, age 28, was indicted on February 11, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on November 1, 2019, and continuing through February 4, 2020, in the District of South Dakota and elsewhere, Rodriquez, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Rodriquez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Rodriquez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Narcotics Trafficker who Distributed Heroin Mixed with Fentanyl Sentenced to 20 Years in Prison for Multiple Gun and Drug OffensesRead the Press Release
PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that Matt “Mack” Jones, 37, of Bensalem, PA, was sentenced to 240 months’ imprisonment and eight years’ supervised release by Senior United States District Court Judge R. Barclay Surrick. Jones was convicted at trial in October 2019 on charges of distribution of heroin and possession of firearms by a convicted felon.
In January 2018, the Philadelphia Division of the Drug Enforcement Administration, New Jersey State Police, and the Philadelphia Police Department began a joint investigation of the defendant and other co-conspirators. Officers learned that the defendant was a heroin supplier, and that he supplied two female associates with bags of heroin and directed them to deliver the bags to customers in New Jersey and the Philadelphia area.
Investigators conducted several controlled buys of heroin from the defendant and his co-conspirators with the assistance of a cooperating witness at the Cherry Hill Mall in Cherry Hill, New Jersey, and the Philadelphia Mills Mall (formerly Franklin Mills Mall) in Philadelphia. Laboratory analysis of the seized material confirmed the presence of heroin mixed with fentanyl. In July 2018, officers searched the defendant’s home and found firearms, including a Colt .38 handgun and a 12 gauge shotgun, ammunition, half a kilogram of heroin, cocaine, marijuana, drug packaging paraphernalia and more than $100,000 cash.
“Jones and other members of this drug organization pumped huge quantities of deadly drugs into our community for years,” said Deputy U.S. Attorney Lappen. “Drug trafficking is a serious federal offense which will earn those convicted of it serious time behind bars, as this sentence demonstrates. Our Office is determined to investigate and convict these criminals to keep the streets of our communities safer.”
The case was investigated by the Drug Enforcement Administration, the Philadelphia Police Department, the New Jersey State Police, the Bensalem Township Police, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Christopher E. Parisi.
Multi-Convicted Felon Sentenced to Prison on Firearms ViolationRead the Press Release
PITTSBURGH, PA - A former resident of Penn Hills, Pennsylvania, was sentenced in federal court to 48 months’ imprisonment and three years’ supervised release on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed sentence on Christian Burrus, 38.
According to information presented to the court, on July 23, 2018, Burrus unlawfully possessed a Ruger 9 millimeter pistol and ammunition, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include one conviction for possession with intent to deliver a controlled substance and three convictions for firearms violations. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Specifically, Burrus was a passenger during a July 23, 2018 traffic stop by the Penn Hills police. During the stop, he was sweating, would not make eye contact, and appeared very nervous. After Burrus provided his name, the Penn Hills police determined that there was an active warrant for Burrus’s arrest, and while patting Burrus down incident to arrest, found a loaded, stolen firearm in Burrus’s waistband.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The Federal Bureau of Investigation along with the Penn Hills Police Department conducted the investigation that led to the prosecution of Burrus. The case was brought as part of Project Safe Neighborhoods. 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.
Missouri Woman Pleads Guilty to Assaulting Infant Child and Misleading Law EnforcementRead the Press Release
A Missouri woman pleaded guilty today in the Western District of Missouri for assaulting her infant child while living overseas in Germany as the dependent of an enlisted member of the U.S. Army, and repeatedly lying to law enforcement during the course of the subsequent federal investigation.
Baillie Rachelle Dickenson, aka Baillie Hannah, 29, pleaded guilty to one count of assault resulting in serious bodily injury and one count of making a false statement to a federal law enforcement officer before U.S. Magistrate Judge Lajuana M. Counts. Sentencing will be set once a U.S. District Judge accepts the plea.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Tim Garrison of the Western District of Missouri, Christopher Grey of the U.S. Army Criminal Investigation Command (CID) and Special Agent in Charge Timothy R. Langan of the FBI’s Kansas City Field Office made the announcement.
According to admissions made as part of her plea, in March 2016, Baillie Dickenson lived in Kaiserslautern, Germany with her then-husband Derreck Dickenson and their two minor children. Baillie Dickenson and her children were dependents of Derreck Dickenson, who was at that time an active duty member of the U.S. Army stationed in Germany. In March 2016, the victim, D.D., was about two months old.
On March 12, 2016, Baillie Dickenson and Derreck Dickenson brought D.D. to the emergency room at Landstuhl Regional Medical Center (LRMC), an overseas U.S. military hospital, where medical personnel observed numerous bruises on D.D.’s face and body. Further examination of D.D. at LRMC and a local German hospital revealed that D.D. had suffered a massive brain injury, numerous broken bones that were in various stages of healing and many retinal hemorrhages.
Baillie Dickenson and Derreck Dickenson told medical personnel they suspected that their elder child, 16-month-old B.D. had fallen onto D.D. while both children were napping, likely causing D.D.’s injuries. Baillie Dickenson repeated these statements in subsequent interviews and written statements to personnel and CID special agents even though she knew they were untrue and had the potential to affect CID’s investigation. On May 30, 2017, the FBI interviewed Baillie Dickenson about D.D.’s injuries. During this recorded interview, Baillie Dickenson admitted that on a date prior to March 12, 2016, she squeezed D.D. into her chest too hard causing his rib fractures.
On Dec. 11, 2019, Derreck Dickenson pleaded guilty to one count of obstruction and one count of false statements. He is awaiting sentencing.
Army CID and the FBI conducted the investigation. Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Teresa Moore of the Western District of Missouri are handling the prosecution.
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.
Missoula man sentenced for meth traffickingRead the Press Release
MISSOULA—A Missoula man was sentenced to today to 10 years in prison and five years of supervised release for conviction on methamphetamine trafficking charges after law enforcement found two safes containing the drug in a vehicle he was driving, U.S. Attorney Kurt Alme said.
David Edward Holcomb, 36, pleaded guilty to possession with intent to distribute meth in November.
U.S. District Judge Donald W. Molloy presided.
The prosecution said in court records that law enforcement made a traffic stop of a vehicle Holcomb was driving on Feb. 16, 2019 in Missoula. Officers found two safes in the vehicle during a search and got a search warrant for the safes. The safes contained meth and drug paraphernalia. The investigation also determined that Holcomb confirmed to an individual there was meth in the safe and that he planned to distribute it.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Mission Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Patrick Red Bird, age 36, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 27, 2019, Red Bird did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and inflicted bodily injury upon the officer.
The charge is merely an accusation and Red Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Red Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Milford Woman Sentenced to 24 Months for Drug TraffickingRead the Press Release
CONCORD - Melissa Babian, 40, of Milford, was sentenced to 24 months in federal prison for drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October of 2018, members of the Hillsborough County Sherriff’s Task Force together with the Milford Police Department, investigated Babian for selling heroin andfentanyl in Milford. On October 29, 2018, a cooperating individual working at the direction of law enforcement purchased fentanyl from Babian.
“Fentanyl trafficking continues to cause great damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “Through Operation S.O.S., we are working with our law enforcement partners to identify, prosecute, and incarcerate the fentanyl traffickers who choose to do business in Hillsborough County.”
This matter was investigated by the Milford Police Department and the Hillsborough County Sherriff’s Task Force. The case is being prosecuted by Assistant U.S. Attorney Joachim Barth with assistance from the Milford Police Prosecutor, Karinne Brobst, Esq.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Miami Tire Importers Indicted for Excise Tax Conspiracy and Tax EvasionRead the Press Release
Miami, Florida -- A federal grand jury returned an indictment yesterday charging the owners of a Miami, Florida tire import business with conspiracy to defraud the government and tax evasion, announced Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division.
According to the indictment, Marco Parra and Eira Luces-Parra, a married couple, owned and operated Road Tire Plus, Corp (Road Tire), a tire importer located in Miami, Florida. From 2013 through 2016, the Parras allegedly conspired with others in the tire industry to evade paying federal excise taxes on tires.
Truck tires marked for highway use are subject to excise taxes. A tire importer is liable for the excise tax when the truck tires are sold. Tire importers typically pass on the cost of the excise tax to the tire retailers (their customers) and collect the excise taxes from them. But if the tires are later exported rather than sold domestically, the law provides for a credit for the excise taxes paid.
From 2013 through 2016, the Parras sold taxable truck tires to various tire retailers in South Florida. According to the indictment, the Parras collected from some customers the excise taxes that were due, but did not remit those taxes to the Internal Revenue Service (IRS) and did not file tax returns reporting the tire sales as they were obligated to do.
For other customers, the Parras allegedly never collected the federal excise taxes due on the tire sales. Instead, the Parras allegedly obtained from these coconspirators false bills of lading claiming that the tires were exported, so that the Parras could obtain an excise tax credit even though they knew the tires were not exported.
If convicted, the Parras face a maximum sentence of five years in prison for each count. They also face 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.
U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended IRS-Criminal Investigation, who conducted the investigation. Assistant U.S. Attorney Kevin Larsen, Tax Division Trial Attorney Mara Strier, and Tax Division Assistant Chief Greg Tortella are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami Tire Importers Indicted for Excise Tax Conspiracy and Tax EvasionRead the Press Release
A federal grand jury returned an indictment yesterday charging the owners of a Miami, Florida, tire import business with conspiracy to defraud the government and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the indictment, Marco Parra and Eira Luces-Parra, a married couple, owned and operated Road Tire Plus Corp (Road Tire), a tire importer located in Miami, Florida. From 2013 through 2016, the Parras allegedly conspired with others in the tire industry to evade paying federal excise taxes on tires.
Truck tires marked for highway use are subject to excise taxes. A tire importer is liable for the excise tax when the truck tires are sold. Tire importers typically pass on the cost of the excise tax to the tire retailers, their customers, and collect the excise taxes from them. But if the tires are later exported rather than sold domestically, the law provides for a credit for the excise taxes paid.
From 2013 through 2016, the Parras sold taxable truck tires to various tire retailers in South Florida. According to the indictment, the Parras collected from some customers the excise taxes that were due, but did not remit those taxes to the Internal Revenue Service (IRS) and did not file tax returns reporting the tire sales as they were obligated to do.
For other customers, the Parras allegedly never collected the federal excise taxes due on the tire sales. Instead, the Parras allegedly obtained from these coconspirators false bills of lading claiming that the tires were exported, so that the Parras could obtain an excise tax credit even though they knew the tires were not exported.
If convicted, the Parras face a maximum sentence of five years in prison for each count. They also face 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 Fajardo Orshan commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Mara Strier and Assistant Chief Greg Tortella of the Tax Division and Assistant U.S. Attorney Kevin Larsen, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Mexican National Pleads Guilty to Drug Conspiracy in MaderaRead the Press Release
FRESNO, Calif. — Francisco Alcantar-Miranda, aka Paquin, 31, of Mexico, pleaded guilty today to conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Alcantar assisted in manufacturing methamphetamine and storing large quantities of other drugs at an unoccupied house in Madera. At the end of Jan. 2019, detectives executed a search warrant at the house and found Alcantar with co‑defendants Oscar Rene Marrot-Garcia, 27, of Chowchilla, and Jose Monge-Ponce, 31, of Mexico. The detectives also found over 10 pounds of methamphetamine, 1 pound of heroin, 1 pound of cocaine, and 25 pounds of marijuana. As part of the plea agreement, Alcantar will forfeit a handgun and approximately $18,000 in cash, which were found during the search of the house.
This case is the product of an investigation by Madera County Sheriff’s Office Narcotic Enforcement Team (MADNET)and High Intensity Drug Trafficking Area (HIDTA) High Impact Investigation Team (HITT), consisting of agents of Homeland Security Investigations; California Department of Justice; California Highway Patrol; Fresno, Tulare, and King Counties Sheriffs’ Offices; and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Alcantar is scheduled for sentencing on May 15. He faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison, and a fine up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Marrot-Garcia and Monge-Ponce are scheduled for a jury trial on June 16. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Menominee Man Indicted for Possession of Child Pornography on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on February 19, 2020, a federal grand jury returned a one-count indictment against Kelly L. Turney (age: 23), of Zoar, on the Menominee Indian Reservation. The indictment charged Turney with Possession of Child Pornography in Indian Country, in violation of Title 18, United States Code, Section 2252A.
If convicted, Turney faces up to ten years in prison and a fine up to $250,000. He also faces at least five years and up to a lifetime on supervised release, and a mandatory special assessment of $100.
The Menominee Tribal Police Department, Wisconsin Department of Justice – Division of Criminal Investigation’s Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice.
Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For Additional Information Contact: Public Information Officer Kenneth Gales 414-297-1700
McAlester Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Charles P. Hendricks, age 32, of McAlester, Oklahoma, entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00 or both.
The Indictment alleged that from in or about April, 2017, the exact date being unknown to the Grand Jury, and continuing until on or about June 26, 2019, within the Eastern District of Oklahoma and elsewhere, the Defendant, did knowingly and intentionally combine, conspire, confederate and agree with others, known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1) & 841(b)(1)(A), as follows: to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Massachusetts Man Charged with Assaulting a Border Patrol AgentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Michael Scaduto, 33, of Littleton, Massachusetts, pleaded not guilty on February 20, 2020, in United States District Court in Burlington, to a charge of assaulting a Border Patrol Agent. U.S. Magistrate Judge John M. Conroy released Scaduto on conditions pending trial, which has not been scheduled.
On February 13, 2020, a federal grand jury in Burlington returned a one-count indictment charging Scaduto with knowingly and intentionally forcibly assaulting, resisting, opposing, impeding, intimidating and interfering with a Border Patrol Agent of the United States Department of Homeland Security, Customs and Border Protection, while the Border Patrol Agent was engaged in and on account of the performance of his official duties.
United States Attorney Christina E. Nolan stated: “The U.S. Attorney’s Office will not tolerate assaults on those who protect, serve, and put themselves in harm’s way to make Vermont safer. Those who commit such offenses against federal agents will find themselves in federal court. We thank our brave men and women in uniform at all levels of law enforcement for their daily sacrifices in the name of public safety.”
The United States Attorney emphasizes that the indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty. If convicted, Scaduto faces a maximum possible term of imprisonment of eight years and a fine of $250,000.00.
The matter is being investigated by the Federal Bureau of Investigation, with assistance from the U.S. Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Andrew Gilman. Scaduto is represented by Mark Kaplan, Esq.
Martinsburg man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dehaven Darnell Craig, of Martinsburg, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Craig, age 34, pled guilty to one count of “Unlawful Possession of Firearm.” Craig, prohibited from having a firearm because of a prior conviction, admitted to having a .380 caliber pistol in April 2018 in Jefferson County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Craig faces up to 10 years 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 K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.U.S. Magistrate Judge Robert W. Trumble presided.
Market owners who redeemed more than $10M in food stamp, WIC benefits charged in fraud conspiracyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Hassan and Abdurahim Nuriso, owners of the Somali specialty market Towfiq Market on Sullivant Avenue, with conspiring to commit food stamp and WIC fraud. The brothers redeemed more than $10 million in SNAP and WIC benefits at their store between 2010 and 2019.
As part of the alleged conspiracy, brothers Hassan and Abdurahim Nuriso converted illegally obtained food stamp benefits, WIC coupons and WIC electronic benefits into money, in order to use the money for other purposes.
The five-count indictment filed today also alleges the defendants allowed SNAP and WIC beneficiaries to purchase items that were not redeemable through the food stamp or WIC programs.
In total, Hassan and Abdurahim Nuriso are alleged to have redeemed in excess of $8 million of SNAP benefits and nearly $2.1 million in WIC benefits at Towfiq Market between 2010 and November 2019. The government alleges a majority of those redemptions were fraudulent.
The government is seeking to forfeit more than $200,000 in this case. Approximately $18,650 in cash was seized during a federal search and seizure warrant at one of the Nuriso brother’s homes in Grove City in November 2018.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General, announced the charges. Assistant United States Attorney David J. Bosley is representing the United States in this case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Mandaree, ND Man sentenced to 40 years in Federal Prison for Aggravated Sexual Abuse of a ChildRead the Press Release
BISMARCK – United States Attorney Drew H. Wrigley announced that on February 21, 2020, United States District Judge Daniel L. Hovland sentenced Kelly Shayne Mason, age 38, Mandaree, ND, for multiple counts of sexual abuse of children under the age of 12. On November 1, 2019, Mason pled guilty to three counts of Aggravated Sexual Abuse of a Child. Judge Hovland sentenced Mason to serve 40 years in prison for all three counts to run concurrently, followed by lifetime of supervised release. Mason was also ordered to pay $ 300 special assessment to the Crime Victims’ Fund.
"The defendant heartlessly stole the security and innocence from three children’s lives," said United States Attorney Drew H. Wrigley, "and the investigative team has brought the defendant to his reckoning. The sexual exploitation of these children is over, and justice has been served."
In 2017, one of three child victims in this case told police that Mason had sexually abused her on Spirit Lake Reservation approximately a decade earlier. The report launched a full investigation, during which investigators learned that Mason had victimized three children. Each of the three child victims were then interviewed by the Northern Plains Children’s Advocacy Center in Minot, ND. All three victim girls were under the age of 12 at the time that Mason sexually abused them. On multiple days between September 2006 and August 2010, Mason sexually abused the girls while inside their Fort Totten, ND home.
This case was investigated by the Federal Bureau of Investigation and Three Affiliated Tribes Police Department, and was prosecuted by Assistant United States Attorney Jake Rodenbiker.
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Man from Sunland Park, New Mexico sentenced to 25 years in federal prison for child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. - Luis Moreno, 40, of Las Cruces, New Mexico, was sentenced on Feb. 18 in federal court in Las Cruces, New Mexico to 25 years in prison for production of a visual depiction of a minor engaging in sexually explicit conduct.
Moreno previously pleaded guilty to this offense on Nov. 13, 2019. According to public court documents, Moreno admitted using a video camera on his mobile phone to record a 12-year-old child engaged in sexual explicit acts.
Moreno must also serve a three-year term of supervised release after completing his sentence and pay $30,000 in restitution.
Homeland Security Investigations and the Sunland Park Police Department investigated this case. Assistant U.S. Attorneys Marisa A. Ong prosecuted this case as part of the Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center tip line at (575) 526-3437.
Man Sentenced to Prison for Straw Purchasing 35 FirearmsRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 18 months in prison for straw purchasing 35 firearms, including guns that were recovered by law enforcement after being used in violent crimes in Washington, D.C. and Maryland.
“Juan Zimmerman illegally straw-purchased 35 firearms, including guns that were used in a homicide and a domestic violence shooting,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Only six of the firearms have been recovered, and the whereabouts of the remaining 29 firearms are unknown. Zimmerman’s conduct in this case is the quintessential definition of firearms trafficking, and is precisely the type of criminal conduct we are pursuing with Project Guardian-DMV. I want to commend the tremendous work of our investigative partners at ATF for their outstanding efforts on this important case.”
According to court documents, Zimmerman, 26, used a fraudulently obtained Virginia identification card to purchase 35 firearms from various Federal Firearms Licensees throughout the Eastern District of Virginia between June and August 2018. After purchasing the firearms, Zimmerman transferred the firearms to others, including his cousin, who trafficked the firearms across state lines to Maryland and Washington, D.C. to other individuals. Four of the firearms Zimmerman illegally purchased have been recovered by law enforcement after being used in a number of violent crimes, including at least one homicide and one domestic violence shooting.
“This investigation demonstrates how individuals criminally abuse the process of purchasing firearms,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Anyone engaged in straw purchasing and trafficking firearms threatens the safety of our communities. ATF will continue to work tirelessly with our partners, both law enforcement and prosecutors, to ensure that these offenders are caught and held accountable.”
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 T.S. Ellis III. Assistant U.S. Attorney Nicholas U. Murphy and Special Assistant U.S. Attorney Jason Trigger 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. 1:19-cr-265.
Ludington Man Charged with Stealing from the SS Badger Ferry CompanyRead the Press Release
Paul Patrick Piper faces federal bank fraud and tax charges
GRAND RAPIDS, MICHIGAN — Paul Patrick Piper, 57, of Ludington, Michigan, was charged with bank fraud and federal income tax offenses today in a felony information filed in the United States District Court in Grand Rapids, Michigan.
According to the felony information, Piper served for many years as the financial controller for Lake Michigan Carferry, the company operating the SS Badger ferry between Ludington, Michigan, and Manitowoc, Wisconsin. As detailed in the felony information, Piper defrauded various financial institutions and the company in an amount of at least $550,000.00, by overriding normal accounting systems and writing checks directly to himself and to two of his affiliated businesses, Piper Tax & Accounting and Piper Group. Piper either forged the signatures of company owners on these checks or used a signature stamp without the authorization of the owners. Piper hid these transactions in the accounting system by booking these checks to an insurance expense code and by otherwise making false entries to balance company accounts. Additionally, Piper filed false personal income tax returns with the Internal Revenue Service because he knowingly failed to include the income he stole from the Carferry, and other income earned from his tax business, on his federal income tax returns.
If convicted, Piper faces a maximum term of imprisonment of 30 years for the bank fraud offense and a maximum term of imprisonment of 3 years for filing a false tax return. Piper will also be ordered to pay restitution to his victims and to forfeit certain assets obtained with the proceeds of his criminal offenses.
The charges in a felony information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Lower Brule Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Kristy Andrews, age 27, was indicted on February 11, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 23, 2019, Andrews assaulted two federal law enforcement officers while they were engaged in the performance of their official duties, and the assaults did involve physical contact.
The charge is merely an accusation and Andrews is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Andrews was released on bond pending trial. A trial date has not been set.
Little Rock Men Plead Guilty in Wire Fraud ConspiracyRead the Press Release
LITTLE ROCK— Two Little Rock men have pleaded guilty to conspiracy to commit wire fraud after ordering cell phones through their employer, paying for them with the employer’s money, and selling the phones online. Daniel Burdick, 40, and Brian Lamb, 41, pleaded guilty on Friday before Chief United States District Judge D. Price Marshall, Jr. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced the guilty pleas.
Burdick and Lamb worked for the Center for Toxicology and Environmental Health (CTEH), a North Little Rock company that assists in environmental cleanups. Part of Burdick’s and Lamb’s responsibilities at CTEH was ordering new phones for CTEH employees and subcontractors. The phones would be used during environmental spills and cleanups.
In November of 2017, CTEH discovered that Burdick and Lamb were ordering cell phones without CTEH authorization or knowledge. Once they received the phones, Burdick and Lamb sold the cell phones via the internet. At that time, Burdick had worked at CTEH for 10 years, and Lamb had worked there for six years.
Burdick and Lamb would ship the cell phones to customers and receive payment through Paypal and Western Union. Most of the phones were sent to a customer in Oregon, who shipped them to China. Burdick and Lamb completed 283 transactions from 2013 through 2017, and most transactions included more than one cell phone. CTEH fired Burdick and Lamb upon discovering the conduct, but they (and their insurance carrier, Continental Casualty Company), lost approximately $562,501 due to the scheme.
Conspiracy to commit wire fraud is punishable by up to twenty years imprisonment, a fine of not more than $250,000, and up to three years of supervised release. This case is being investigated by the FBI and prosecuted by Assistant United States Attorney Patrick C. Harris.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Lawrence Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Christian Villar, 26, of Lawrence, Massachusetts, pleaded guilty in federal court on Thursday to participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 24, 2019, co-conspirators Geovanny Rafael Perdomo-Mancebo and Zorelys Sosa planned to sell a quantity of fentanyl to a customer who was actually an undercover DEA agent. Due to the large quantity of fentanyl being sold, Perdomo-Mancebo and Sosa recruited Villar to hold the fentanyl in a safe location while they retrieved payment from the customer. Perdomo-Mancebo and Sosa dropped Villar off at a restaurant with the fentanyl shortly before departing to meet the customer outside a store in New Hampshire, at which time they were stopped and arrested. Villar was found to be in possession of 128.6 grams of a fentanyl.
Villar is scheduled to be sentenced on May 27, 2020. Co-conspirator Perdomo-Mancebo is scheduled to be sentenced on April 22, 2020. Sosa is scheduled to be sentenced on April 21, 2020.
“Interstate fentanyl traffickers are engaged in a criminal enterprise that makes a lethal substance available for sale in New Hampshire,” said U.S. Attorney Murray. “Stopping the activities of these conspirators serves to protect the health and safety of our citizens. We will continue to closely coordinate with DEA and all of our law enforcement partners to shut down the interstate supply line for these drugs.”
This matter was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys John Davis and Jarad Hodes.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Latin Count Gang Member Charged with Murder, Racketeering Conspiracy, and Drug ConspiracyRead the Press Release
HAMMOND- Eduardo Luciano, 31, of Hammond, Indiana, has been charged in a second superseding indictment with two murders, racketeering conspiracy, and drug conspiracy, announced U.S. Attorney Kirsch.
According to the second superseding indictment, Eduardo Luciano was charged with two counts of murder resulting from the use and carrying of a firearm during and in relation to racketeering activity, racketeering conspiracy, and conspiracy to possess with the intent to distribute and to distribute cocaine and marijuana. The second superseding indictment alleges that Luciano is responsible for the shooting deaths of Lauren Calvillo and Christopher White on June 29, 2015, in Hammond, Indiana. The second superseding indictment further alleges that the shooting was in furtherance of a racketeering conspiracy and as a result of an ongoing gang conflict between the Latin Counts and Latin Kings street gangs in Hammond, Indiana.
Previously in this case, Latin Counts members Ivan Reyes and Jeron Williams have both pled guilty to racketeering conspiracy and admitted their involvement in and responsibility for these murders as well. Reyes and Williams both await sentencing.
“This indictment should send a strong message that our investigations and prosecutions of individuals that participate in gang activities will not stop until all responsible are brought to justice,” said U.S. Attorney Thomas. L. Kirsch. “Our federal, state and local law enforcement partnerships are dedicated to reducing violent crime.”
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the ATF/HIDTA Task Force and the Hammond, Indiana Police Department, and the investigation has received substantial assistance from numerous law enforcement agencies including the FBI / GRIT Task Force, the Gary Police Department, the Indiana State Police, and the East Chicago Police Department. The case is being handled by Assistant U.S. Attorneys David J. Nozick and Caitlin M. Padula.
Kieta Armstead Sentenced to 98 Months for Possession with Intent to Distribute Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on February 14, 2020, Kieta Armstead was sentenced in federal court on one count of possession with intent to distribute more than 28 grams of cocaine base. Armstead -- who is 42 and formerly of New York, New York -- was sentenced by U.S. District Judge Christina Reiss to 98 months of imprisonment and four years of supervised release.
The defendant pleaded guilty pursuant to a plea agreement he entered into with the United States. As described at the defendant’s sentencing and in court records, in May 2019, Armstead came to Chittenden County, Vermont to distribute cocaine base, as well as heroin and fentanyl. In mid-May, law enforcement conducted three controlled purchases of drugs from Armstead. On May 30, 2019, officers arrested Armstead and, during a subsequent search of his hotel room, found additional quantities of heroin, fentanyl, cocaine base, and cocaine. This conviction was Armstead’s third in the District of Vermont for violating the federal Controlled Substances Act.
U.S. Attorney Christina Nolan commended the collaborative investigation of the DEA and the Burlington Police Department, stating: “With this significant sentence, we reiterate a simple and important message: do not come to Vermont to sell deadly drugs. If you do, law enforcement will target you for criminal charges and serious consequences. This is especially true for repeat offenders.”
“Let this significant sentence serve as a warning to those traffickers who are coming from out of state like Mr. Armstead to deal these poisons to the citizens of Vermont,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in the Green Mountain State.”
Kieta Armstead is represented by Mark A. Kaplan, Esq. The United States is represented by Assistant United States Attorney John J. Boscia.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
Kentucky Man Pleads Guilty to Concealing Decade-Long E-Rate Wire Fraud SchemeRead the Press Release
Memphis, TN – Mark J. Whitaker, 49, has pleaded guilty to misprision of wire fraud. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to information presented in court, from 2004 until August 13, 2014, Whitaker actively concealed a scheme directed by his co-defendant, Charles "Chuck" Jones, to defraud the federal E-Rate Program. The E-Rate Program is a Federal Communications Commission program that distributes money to schools and libraries for internet access, telecommunication services, and related equipment. There are specific rules and regulations that govern schools’ and vendors’ participation in that program, which include requiring vendors to certify that no kickbacks have been paid to participating schools or their agents, and requiring vendors to certify that participating schools have been invoiced for their share of the contracted-for services and equipment.
Whitaker helped manage two of Jones' companies: Integrated Computer Solutions ("ICS") and Technology Associates. Those companies participated as E-Rate Program vendors for several public school districts in Tennessee and Missouri. Whitaker's job was to submit false certifications to the E-Rate Program at Jones’ direction.
Those certifications falsely stated that Jones' companies had complied with the E-Rate Program’s rules and regulations, including: (1) falsely certifying that the schools had been invoiced for their required E-Rate Program "co-pay"; and (2) falsely certifying that Jones' companies had not paid any kickbacks to the schools or their agents.
Whitaker submitted those false certifications despite knowing that Jones paid the schools’ consultant, "A.J.," bribes and gave A.J. valuable gifts while A.J. worked with and for the schools in Crockett County, Tennessee and Missouri. He also knew that Technology Associates and ICS did not bill the Missouri schools for their full required co-pays. Despite that knowledge, Whitaker did not report the fraud to the E-Rate Program
or to law enforcement. If the E-Rate Program had known that the schools were not being invoiced for their correct co-pays and that Jones was paying kickbacks to A.J., the program would not have paid ICS and Technology Associates.
According to the Superseding Indictment, the E-Rate Program allegedly paid Jones and his companies approximately $6.9 million as a result of the fraud. Wire fraud and conspiracy charges against Chuck Jones are still pending.
Sentencing for Whitaker is scheduled for July 23, 2020, before U.S. District Court Judge Mark S. Norris, where Whitaker faces a maximum of 3 years imprisonment, 1 year supervised release and a fine of $250,000.
U.S. Attorney D. Michael Dunavant said, "Protection of federal grant programs that provide needed services and equipment to our schools in West Tennessee is a top priority of this office. When dishonest offenders conspire to defraud these programs for their own selfish gain and unjust enrichment, they not only steal tax dollars, but also hurt local schools in the process. We will continue to work with our federal partners to root out and expose such fraud against the government, to hold offenders accountable, and to recover ill-gotten gains."
This case was investigated by the Federal Communications Commission - Office of Inspector General, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Tony Arvin and Murre Foster are prosecuting this case on behalf of the government.
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Jamaican National Convicted of Stealing More Than $700,000 from Estes Park Senior Through Lottery ScamRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that a Jamaican national living in Brooklyn, New York was convicted late last week for his role in a lottery scheme that targeted an elderly woman from Estes Park. After a four-day jury trial in federal court in Denver, Leonard Luton, age 43, was convicted of one count of conspiracy to commit mail fraud and eight counts of aiding and abetting mail fraud.
According to court documents and facts presented at trial, Luton and another Jamaican national conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz. In order to receive her winnings, the victim was told she needed to pay thousands of dollars in “fees.” Throughout 2018, one of Luton’s co-conspirators directed the victim to mail multiple packages containing cash and cashier’s checks to what the investigation revealed were the addresses of Luton’s friends. The victim was also directed to purchase and mail six iPhones as part of the scheme.
The evidence admitted at trial established that Luton made two trips to the victim’s home in Estes Park to pick up packages of cash. On the first trip, in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. Financial records from the victim and Luton also established Luton’s involvement in the scheme. In total the victim lost more than $700,000.
“The United States Attorney’s Office is committed to fighting elder fraud,” said United States Attorney Jason Dunn. “Lottery scams are just one way that scammers prey on vulnerable victims. Together with our law enforcement partners, we are working to protect the elderly and bring scammers to justice.”
“The outcome of this case is indicative of the success that can be attained when agencies combine resources to tackle cyber-related matters such as the greed-driven lottery scam Mr. Luton fabricated,” said FBI Special Agent in Charge Dean Phillips. “We are confident this case will send a message to those who devise complex fraud schemes that they will be aggressively investigated and prosecuted to the full extent of the law. The FBI would like to extend its appreciation to the Larimer County Sheriff’s Office and Estes Park Police Department for their partnership, hard work, and efforts in this investigation.”
Luton is scheduled to be sentenced on May 12, 2020, by the Honorable United States District Court Judge Christine M. Arguello.
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch and Sarah Weiss prosecuted this matter.
CASE NUMBER: 19-cr-00098
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on a criminal complaint on Feb. 18 was:
Nicholas James Imhoff, 29, of Cape Floral, FL, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Imhoff faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Imhoff was detained pending further proceedings. The Drug Enforcement Administration and the Montana Highway Patrol investigated the case. Pacer case reference. 20-13.
Appearing on Feb. 20 and pleading not guilty was:
Anfernee Jamal Limberhand, also known as Anfernee Jamal Whiteman, 21, of Lame Deer, on charges of assault resulting in substantial bodily injury to a dating or intimate partner. If convicted of the most serious crime, Limberhand faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Limberhand was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-11.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 18 was:
Anna Michelle Niles, 47, of Bozeman, on charges of wire fraud. If convicted of the most serious crime, Niles faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Niles was released pending further proceedings. The FBI investigated the case. Pacer case reference. 20-2.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 18 was:
Dakota Black Elk Houle, 22, on charges of possession of unregistered firearm. If convicted of the most serious crime, Houle faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Houle was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 19-25.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hope Mills Man Sentenced to 34 Years for Armed Drug TraffickingRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that, United States District Judge James C. Dever III sentenced FrANKLIN ANTONIO RIOS, 49, of Hope Mills, North Carolina to 408 months’ imprisonment, followed by 4 years of supervised release. On August 7, 2018, RIOS pled guilty to one count of Conspiracy to Distribute and Possess with Intent to Distribute 100 Grams or More of Heroin and two counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Additionally, KAYLA NICOLE HOSKINS, 24, of Fayetteville, North Carolina pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Aiding and Abetting on July 23, 2018. On May 30, 2019, Judge Dever sentenced her to 54 months’ imprisonment followed by 3 years of supervised release.
The Cumberland County Sheriff’s Office (CCSO) and the Drug Enforcement Administration (DEA) began investigating a heroin distribution network that had been operating in the Fayetteville area since early 2014. RIOS, the target of the investigation, had been receiving shipments of heroin from his source of supply (SOS). The SOS received regularly-scheduled shipments of heroin from the New Jersey area. Between October 20, 2015, and May 2, 2016, an undercover law enforcement officer, along with a confidential source, conducted 12 undercover purchases of heroin and firearms from RIOS. On one occasion, RIOS was assisted by HOSKINS. All of the controlled transactions took place at RIOS’s residence in Hope Mills, North Carolina, with the exception of February 25, 2016, which took place at a convenience store in Hope Mills.
During a transaction on February 10, 2016, the undercover officer purchased a .45 caliber firearm with two magazines, 105 rounds of ammunition and a magazine holder from RIOS. The firearm was later determined to have been stolen from Johnston County. On February 25, 2016, the undercover officer purchased a 30/30 rifle and a 20 gauge shotgun, both with defaced serial numbers, from RIOS. On May 2, 2016, heroin and an 88 model shotgun were purchased from RIOS and HOSKINS. The shotgun was later determined to have been stolen out of Fayetteville.
Following the controlled purchase in May 2016, a search was executed at RIOS’s residence. The following was found either in the residence, an outdoor building on the property, or RIOS’s Chevrolet Camaro: heroin, Adderall XR pills, Clonazepam pills, Amphetamine/Dextroamphetamine pills, a .38 caliber revolver, a 14 gauge shotgun with no serial number, digital scales, recorded cash from the previous undercover drug transactions, and an additional $1,011 currency.
Based upon the investigation, at sentencing, RIOS was held accountable for a total of 610.24 grams of heroin, 22.62 grams of actual amphetamine, and 233 Clonazepam pills, for a total of 1,062.65 kilograms of converted drug weight. RIOS was also found to have maintained a premises for the purpose of manufacturing or distributing a controlled substance, and several of RIOS’s customers overdosed from the heroin RIOS provided.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Cumberland County Sheriff’s Office (CCSO) and the Drug Enforcement Administration (DEA) conducted the investigation in this matter. Assistant United States Attorney Scott A. Lemmon represented the government.
Henryetta Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Edward Douglas Jacome, age 31, of Henryetta, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about December 2, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the Project Safe Neighborhoods (“PSN”) effort in the Eastern District of Oklahoma to reduce violent crime. PSN is an initiative led and coordinated by the United States Attorney’s Office.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney David Youll represented the United States.
Harrison County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jamie Allen Butcher, of Shinnston, West Virginia, was sentenced today to 65 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Butcher, age 48, pled guilty to one count of “Aiding and Abetting Possession of a Stolen Firearm” in October 2019. Butcher admitted to having a stolen .45 caliber pistol in June 2018 in Lewis County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Weston Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Guatemalan Citizen Who Raped a Young Child in Lancaster Sentenced for Illegal Reentry after Previous DeportationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Maudilio Diaz-Vazquez, a/k/a “Magdilio Diaz-Vazquez,” age 23, of Quarryville, PA was sentenced today to the statutory maximum of two years’ imprisonment by United States District Court Judge Joseph F. Leeson, Jr., after pleading guilty to the federal crime of illegal reentry after deportation.
The defendant, an illegal alien and citizen of Guatemala, was previously deported from the United States in May 2012. Following this deportation, Diaz-Vazquez illegally reentered the United States and traveled to Lancaster County. While residing there, the defendant repeatedly raped a 12 year-old child. The defendant was convicted of these offenses in Lancaster County in January 2019 and sentenced to 7-20 years’ incarceration in Pennsylvania state prison. His federal sentence will run consecutive to the state sentence.
“This case is a tragedy: an illegal alien -- who should not have been in the country to begin with – raped a young child. He has been held accountable for the rape and now he has been held accountable for the illegal reentry into our country. He will serve his sentences and then be deported,” said U.S. Attorney McSwain. “Working together with ICE, my Office will continue to uphold the rule of law and protect the community from dangerous criminal aliens like Diaz-Vazquez.”
“Diaz-Vazquez unlawfully entered the United States and was removed,” said Simona L. Flores-Lund, Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Philadelphia. “He illegally reentered the country and committed the unconscionable act of victimizing a child. The men and women of ICE have the vital role of arresting and removing criminal aliens like Diaz-Vazquez, and will continue to perform their duties as intended by Congress with veracity, courage, and professionalism.”
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Kelly Harrell.
Grant County man indicted on drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Lawrence Allen Keplinger, of Lahmansville, West Virginia, was indicted this week on methamphetamine distribution and firearms charges, U.S. Attorney Bill Powell announced.
Keplinger, age 38, is charged with four counts of “Distribution of Methamphetamine,” one count of “Distribution of Methamphetamine” involving more than five grams of “crystal meth” or” ice,” one count of “Possession with Intent to Distribute Methamphetamine” involving more than 50 grams of “crystal meth” or “ice,” one count of “Unlawful Possession of a Firearm,” and one count of “Possession of Unregistered Firearm.” Keplinger is accused of distributing methamphetamine from July 2017 to March 2019 in Grant County. Keplinger, a person prohibited from having a firearm, is also accused of having a .17 caliber rifle, a .375 caliber bolt-action rifle, and an unregistered .22 caliber long rifle in March 2019 in Grant County.
Keplinger faces up to 20 years incarceration and a fine of up to $1,000,000 for each of the distribution counts, faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000 for “crystal meth” distribution charge, and faces at least 10 years and up to life incarceration and a fine of up to $10,000,000 for the possession with intent distribution charge. Keplinger also faces up to 10 years incarceration and a fine of up to $250,000 for the unlawful possession charge and faces up to 10 years incarceration and a fine of up to $10,000 for the unregistered firearm charge. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Friendswood man gets 40 years after sexually exploiting childRead the Press Release
GALVESTON, Texas - A 22-year-old man from Friendswood has received a significant sentence following his convictions for producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
Malik Berlanga pleaded guilty April 3, 2019.
Today, U.S. District Judge George C. Hanks Jr. handed Berlanga a sentence of 360 months for the sexual exploitation of a child aka production of child pornography. He also received 120 months for the possession conviction which will run consecutively for a total 40-year-prison sentence. Berlanga will also be on supervised release for life following completion of that 480-month federal prison term.
At the hearing, the court heard that Berlanga’s preferential age was between 5-10 years old and had a foot fetish. In one particular video, Berlanga is seen licking and sucking a minor female’s feet while she is asleep. He then appears to ejaculate off-camera with a semen-like substance then found on her feet.
At the hearing, the court described other pornographic videos in Berlanga’s possession involving children under the age of five. In handing down the sentence, Judge Hanks noted he had a duty to protect the public and anything less than the term imposed would not have done that.
A cyber-tip submitted to the National Center for Missing and Exploited Children led to the Berlanga’s identification. He had created videos of a minor female and stored them in his Dropbox account. Authorities found 14 child pornography videos in a folder entitled Personal CP that Berlanga produced.
Law enforcement later conducted a search warrant at his residence, at which time they seized several cellular phones and a laptop computer located within Berlanga’s bedroom. Forensic analysis of those items revealed more than 5000 images and 70 videos containing child pornography. Authorities also found several videos that Berlanga produced on these devices as well.
In one video, Berlanga picks up a minor victim, wraps her legs around his waist and proceeds to simulate sexual intercourse while he remains standing. In an image he also produced, his penis is seen on the back of her jeans while she is lying down.
The investigation revealed the victim to be a minor relative, approximately 7-8 years of age during the production of some of the videos and images.
The investigation revealed some of the images were taken at a hotel in the Galleria area during the 2018 BBQ cook off - the precursor to the Houston Livestock Show and Rodeo.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force, which included detectives from police departments in Galveston, Pearland and Webster.
Berlanga has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Fresno Man Pleads Guilty to Credit Card Fraud and Possession of Stolen MailRead the Press Release
FRESNO, Calif. — On Friday, Feb. 21, Justin Deger, 28, of Fresno, pleaded guilty to two counts of access device fraud and one count of possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, from Dec. 5, 2018, through March 28, 2019, Deger broke into mail boxes at various Fresno area residences. He stole over 2,000 pieces of mail, including 26 credit cards or account access devices. He subsequently activated some of those devices and made unauthorized purchases and cash withdrawals at retailers and casinos totaling thousands of dollars. As part of the plea agreement, Deger agreed to pay full restitution to the victims and forfeiture.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
Deger is scheduled to be sentenced on May 22. He faces a maximum penalty of 10 years in prison and a $250,000 fine for the access device fraud counts, and a maximum penalty of five years in prison and a $250,000 fine for the stolen mail count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fort Thompson Man Charged with Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Stuart Dion, age 36, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 30, 2019, and February 11, 2020, Dion, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration as required by law.
The charge is merely an accusation and Dion is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Dion was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Lauderdale Father and Daughter Sentenced to Prison Terms for Involvement in $100 Million Fraudulent Tax Refund SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Anthony Ramirez, Assistant Special Agent-in-Charge, U.S. Department of State Diplomatic Security Service (DSS), Miami Field Office; George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office; and James S. Jackson, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA) announced that U.S. District Judge Robin L. Rosenberg sentenced Danielle Takeila Edmonson, 35, and Kenneth Roger Edmonson, 51, both of Fort Lauderdale, Florida, to prison terms for their involvement in a scheme that involved the filing of false and fraudulent tax returns seeking large-dollar tax refunds. D. Edmonson received a 72-month sentence. K. Edmonson received a 51-month sentence.
According to the evidence presented at trial, from 2015 through 2018, D. Edmonson and K. Edmonson filed large-dollar tax refund claims with the IRS totaling over $100 million, including individual refund claims ranging from hundreds of thousands of dollars to as high as eighty million dollars. Despite the false nature of the claims, the Department of Treasury paid out approximately $3.4 million in refunds through the issuance of U.S. Treasury checks.
In addition, D. Edmonson filed a fraudulent tax return seeking a large refund for tax year 2014, falsely indicating on handwritten forms that she had paid taxes of over $300,000. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax return, the Department of Treasury issued a tax refund check for $239,700 in 2015. D. Edmonson deposited this tax refund check into her bank account and used the funds to purchase a luxury vehicle.
D. Edmonson also filed fraudulent tax returns for each of tax years 2015, 2016, and 2017, seeking refunds of approximately $80 million, $2.4 million, and $9 million, respectively. These tax returns contained forms falsely claiming that she had paid over $145 million in taxes during this period. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax returns, the Department of Treasury issued a tax refund check to K. Edmonson in the amount of $2,405,703 on September 4, 2017. D. Edmonson subsequently deposited this tax refund check into her bank account.
In September 2017, K. Edmonson filed a fraudulent tax return seeking a refund of approximately $725,111. The return contained false and fraudulent claims that he had paid a substantial amount of withholding taxes. The IRS did not receive corresponding forms to support the claimed payments. Despite the false nature of the tax return, on January 28, 2018, the Department of Treasury mailed a tax refund check to K. Edmonson for $734,266.27 (including interest). Shortly thereafter, K. Edmonson deposited this tax refund check into his bank account.
Trial evidence also established that in January 2018, law enforcement conducted a search of the Edmonson residence. During the search, in the bedrooms of D. Edmonson and K. Edmonson, law enforcement found letters addressed to both individuals warning them of the frivolous nature of their returns. Shortly after law enforcement left, despite warnings not to do so, K. Edmonson went to his bank to attempt to withdraw the funds from the account that received the fraudulent refund check.
D. Edmonson was convicted on four counts of filing false, fictitious and fraudulent claims, two counts of mail fraud, and one count of false statements.
K. Edmonson was convicted at trial of two counts of filing false, fraudulent, and fictitious claims, one count of mail fraud, and one count of false statements.
U.S. Attorney Fajardo Orshan commended IRS-CI, DSS, FBI and TIGTA for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Adrienne Rosen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.