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5 February 2020
Owners of Greensboro Temporary Staffing Firms Plead Guilty to Employment Tax FraudRead the Press Release
WASHINGTON – Two Greensboro, North Carolina, business owners pleaded guilty today to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Rebecca Adams, 57, and her daughter Elizabeth Wood, 40, operated a temporary staffing business in Greensboro that changed names twice, even though it did not otherwise change its actual business operations. Adams and Wood withheld taxes from employees’ paychecks but did not pay those taxes over to the IRS.
In 2015, Wood began serving a criminal sentence in North Carolina after pleading guilty to embezzling employee state tax withholdings that were due to the State. During Wood’s period of incarceration, her mother, Adams, withheld taxes from employees’ paychecks, but did not pay those taxes over to the IRS. Adams also did not file the required quarterly payroll tax return. Upon being released from prison in 2015, Wood resumed her role at the staffing business and continued to withhold taxes from employees’ paychecks, but again did not pay the taxes over to the IRS.
U.S. Senior District Judge N. Carlton Tilley Jr., scheduled Adams’s sentencing for May 22, 2020, and Wood’s sentencing for May 29, 2020. They each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties. As part of their plea agreements, the defendants have agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Kevin Schneider of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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.
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Owners of Greensboro Temporary Staffing Firms Plead Guilty to Employment Tax FraudRead the Press Release
Two Greensboro, North Carolina, business owners pleaded guilty today to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Rebecca Adams, 57, and her daughter Elizabeth Wood, 40, operated a temporary staffing business in Greensboro that changed names twice, even though it did not otherwise change its actual business operations. Adams and Wood withheld taxes from employees’ paychecks but did not pay those taxes over to the IRS.
In 2015, Wood began serving a criminal sentence in North Carolina after pleading guilty to embezzling employee state tax withholdings that were due to the State. During Wood’s period of incarceration, her mother, Adams, withheld taxes from employees’ paychecks, but did not pay those taxes over to the IRS. Adams also did not file the required quarterly payroll tax return. Upon being released from prison in 2015, Wood resumed her role at the staffing business and continued to withhold taxes from employees’ paychecks, but again did not pay the taxes over to the IRS.
U.S. Senior District Judge N. Carlton Tilley Jr., scheduled Adams’s sentencing for May 22, 2020, and Wood’s sentencing for May 29, 2020. They each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties. As part of their plea agreements, the defendants have agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Kevin Schneider of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Notification Advisory for Victims Affected by Bukoski’s Dos-For-Hire Booter ServiceRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that David Bukoski, 24, of Hanover Township, Pennsylvania, was recently sentenced for operating a long-running Denial of Service (DoS) for-hire service, known as Quantum Stress, which allowed paying users to conduct wide-ranging attacks on individual and corporate victim domains and networks, preventing them from being able to access the internet. In August 2019, Bukoski pleaded guilty as charged for aiding and abetting computer intrusions, and he was sentenced for his conduct on Feb. 4, 2020.
Due to the large number of potential victims in this case, Chief U.S. District Judge Timothy M. Burgess issued an order directing the government to employ alternative victim notification procedures so that any member of the community at large who believes they may be a crime victim is made aware of their potential rights.
The government is asking that members of the community who believe they may be a victim of Bukoski’s criminal activities, to please contact (907) 271-3041 to reach the Victim-Witness Unit at the U.S. Attorney’s Office, District of Alaska.
The victim-witness program of the U.S. Attorney’s Office, District of Alaska, provides information, services, and support to individuals during federal prosecutions. Case updates will be provided on the U.S. Attorney’s Office, District of Alaska website at https://www.justice.gov/usao-ak/case-updates. A restitution hearing in this case is scheduled for May 5, 2020, at 10:30 A.M. in Anchorage.
According to public court filings, Bukoski became the subject of a federal investigation when FBI agents began investigating individuals in the United States and abroad operating what were suspected to be the longest running and most prevalent DoS-for-hire services. These websites, which offered what are often called “booter” or “stresser” services, are a mechanism by which criminals can manipulate (in most cases stolen) bandwidth and architecture for the purpose of damaging the targeted victim’s access to the internet by flooding them with internet traffic with the intent of causing damage or financial loss. The FBI’s investigation ultimately identified Bukoski as one of the individuals operating and profiting from one of these booter services under the domain “quantumstress.net.”
The investigation revealed that Bukoski made a number of different subscription plans available to his approximately 70-80,000 subscribers between 2011 and 2018, all of which entailed payment by the subscriber in exchange for some period of access to attack infrastructure controlled by Bukoski. It was further revealed that Bukoski’s booter service had been used both by individuals outside of Alaska to attack Alaskan victims, as well as individuals in Alaska to attack others outside.
This case was the product of an investigation conducted by the FBI’s Anchorage Field Office and the FBI’s Cyber Initiative and Resource Fusion Unit (CIRFU). The case against Bukoski was prosecuted by Assistant U.S. Attorney Adam Alexander of the U.S. Attorney’s Office for the District of Alaska.
Northwest Arkansas Man and Woman Sentenced to More Than 10 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas announced that Matthew Barnes, age 29, from Bentonville, Arkansas was sentenced to 77 months imprisonment followed by 3 years supervised release and Sonia Werline, age 24, from Fayetteville, Arkansas was sentenced to 51 months followed by 3 years supervised release for Aiding and Abetting in the Possession of More Than 50 Grams of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, narcotics investigators encountered Barnes and Werline at a Fayetteville motel and questioned them regarding suspected drug trafficking. After Barnes and Werline admitted to possessing a large quantity of methamphetamine, investigators located approximately one kilogram of methamphetamine under the sink.
The methamphetamine was subsequently sent to the DEA crime lab in Miami, Florida where it was found to contain 977 grams of actual methamphetamine.
Barnes and Werline were indicted by a federal grand jury in June of 2019 and entered guilty pleas in September of 2019.
This case was investigated by the Fourth Judicial Drug Task Force, the Drug Enforcement Administration and the Washington County Sheriff’s Office. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
North Suburban Man Pleads Guilty to Orchestrating $9.6 Million Fraud SchemeRead the Press Release
CHICAGO — A north suburban man pleaded guilty today to federal fraud and tax offenses in connection with a $9.6 million fraud scheme.
ROBERT GORODETSKY, 27, of Northbrook, pleaded guilty to one count of wire fraud and one count of filing a false tax return. U.S. District Judge Elaine E. Bucklo set sentencing for April 29, 2020.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
Gorodetsky admitted in a plea agreement that from 2014 to 2018 he schemed to defraud an individual of approximately $9.6 million in connection with purported stock market investments and wagers on sporting events. Gorodetsky represented himself as a successful “day trader” who would invest the individual’s money in the stock market and share in the profits, the plea agreement states. After initially obtaining approximately $953,000 from the individual, Gorodetsky invested only $215,000 of it and pocketed the rest for his personal use, the plea agreement states.
Gorodetsky later falsely told the individual that his investments had increased to $2 million, and that the purported gains should be put toward sports wagers, according to the plea agreement. Gorodetsky induced the individual to invest approximately $8.74 million of additional funds to wager on sports. Gorodetsky used much of this money for purposes unrelated to sports wagering, including personal expenditures such as living expenses, travel and entertainment costs, and luxury automobiles and jewelry, the plea agreement states. In all, Gorodetsky’s fraud scheme resulted in a loss to the individual of approximately $7.1 million.
The tax offense pertains to Gorodetsky’s failure to report the money he received from the individual as income on his tax returns, resulting in an approximate tax loss of more than $2.65 million.
Wire fraud is punishable by up to 20 years in prison, while the tax charge carries a maximum sentence of three years. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Norfolk Man Pleads Guilty to First Degree Murder in Indian CountryRead the Press Release
United States Attorney Joe Kelly announced that Joseph Lloyd James, 48, of Norfolk, entered a plea of guilty today in federal court in Omaha to First Degree Murder in Indian Country. James murdered Phyllis Hunhoff, of Yankton, South Dakota, on the Santee Sioux Indian Reservation in Nebraska. United States District Court Judge Brian C. Buescher ordered a presentence investigation report and set sentencing for May 6, 2020 at 10 a.m. in Omaha. James’s plea agreement mandates a life sentence. As part of his plea agreement, he waives his right to appeal, to seek a pardon, or commutation.
Phyllis Hunhoff regularly traveled from her home in Yankton to her mother’s home in Utica, South Dakota. Her regular practice was to call her mother upon returning to Yankton. On November 4, 2018, at approximately 10 p.m., Phyllis Hunhoff left her mother’s residence, alone, to drive home to Yankton. She did not call her mother as she did not make it home. Having not heard from her daughter, her mother began repeatedly calling her phone to determine her whereabouts. All calls were unanswered.
James and other men were near Phyllis Hunhoff’s mother’s residence as she was leaving. James and another man encountered Phyllis Hunhoff outside of the residence and got into her car with her inside. James, Phyllis Hunhoff, and another man traveled to Norfolk, Nebraska, arriving at about 11:00 p.m. When they arrived in Norfolk, James remained in the vehicle, and the other man left the vehicle. James drove Phyllis Hunhoff’s vehicle, with her inside, to the Santee Sioux Indian Reservation in Knox County, Nebraska.
During the early morning hours of November 5, 2018, while on the Santee Sioux Indian Reservation, James killed Phyllis Hunhoff. He stabbed her with a knife and strangled her. She died in her vehicle as a result of the bleeding and strangulation. James drove Phyllis Hunhoff’s vehicle to a gas station on the Santee Sioux Indian Reservation. Video from the gas station showed James putting gasoline into her vehicle and driving away. Later, James returned in the same vehicle to the gas station and pumped gasoline into a soda bottle. James put the bottle containing the gasoline into the vehicle. He then drove to a wooded location on the Santee Sioux Indian Reservation in Knox County, Nebraska, where he set fire to Hunhoff’s body and her vehicle to conceal evidence of the murder. He abandoned the body and vehicle and left the area.
Law enforcement officers investigated the murder and obtained evidence, including surveillance footage of James at the gas station during the early morning hours of November 5, 2018. Santee Police recovered the shirt James was wearing when he killed Phyllis Hunhoff from a trash receptacle. Her DNA was on James’ shirt. James’s DNA was on clothing Phyllis Hunhoff was wearing when he killed her.
United States Attorney Joe Kelly expressed his appreciation for the hard work and cooperation of multiple law enforcement agencies in both Nebraska and South Dakota. “The quick and thorough work of these agencies, coupled thereafter with the acquisition of digital evidence, resulted in holding James accountable for this horrific crime and tragic loss for the Hunhoff family,” said USA Kelly.
FBI Special Agent in Charge Kristi Johnson added, “The FBI’s partnership with the Santee Sioux Nation Tribal Police, Knox County Sheriff, and Nebraska State Patrol were vital to the success of this investigation. So long as our Native American partners face terrible crimes like this on reservation land, the FBI stands ready to work alongside them as we together seek justice for all.”
The case was investigated by the Federal Bureau of Investigation, the Nebraska State Patrol, Knox County Sheriff’s Office, Santee Sioux Nation Tribal Police, Yankton County Sheriff’s Office, Yankton Police Department (South Dakota), Norfolk Police Department, the University of Nebraska Medical Center, the Nebraska State Fire Marshal, and the Lincoln Police Department.
New Haven Crack Dealer Sentenced to 4 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYRESE HARGROVE, also known as “T.Y.,” 38, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by five years of supervised release, for his role in a New Haven drug trafficking ring.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area.
Hargrove purchased distribution quantities of crack cocaine from Butler and then sold the drug in smaller quantities to his own customers. During the investigation, law enforcement made four controlled purchases of crack from Hargrove.
On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging Hargrove, Butler and 17 other individuals with various offenses. Hargrove pleaded guilty on November 16, 2018.
Butler pleaded guilty on August 9, 2019, and awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Multiple-Time Convicted Felon Who Had Violent Encounter with Law Enforcement Admits Possessing Cocaine, Oxycodone, and A FirearmRead the Press Release
NEWARK, N.J. – A Union County, New Jersey man who was previously convicted of several felonies admitted that he possessed and intended to distribute drugs and that he possessed a handgun to aid his drug distribution, U.S. Attorney Craig Carpenito announced today.
Arthur Forman, 37, pleaded guilty on Feb. 4, 2020 to a Superseding Information charging him with possession with the intent to distribute cocaine and oxycodone, possession of a firearm in the course of committing that drug crime, and being a previously convicted felon in possession of a firearm. Forman entered his plea before United States District Judge Katharine S. Hayden in Newark federal court.
According to documents filed in this case and statements made in court:
During an encounter with the Plainfield, NJ police Department on October 13, 2017, Forman resisted arrest by violently choking a Plainfield detective. While trying to evade capture, Forman transferred a bag containing the cocaine and firearm to a family member, who attempted to dispose of the bag and its contents by throwing it out a window. During a subsequent search of Forman’s bedroom, Plainfield police officers found numerous oxycodone pills and paraphernalia used to grind pills and package drugs for sale. Forman today acknowledged that he possessed the drugs and gun. Forman also acknowledged that he was previously convicted in 2016 in Union County, New Jersey of resisting arrest and eluding, a felony under New Jersey state law.
The combined charges are punishable by a maximum sentence of 30 years to life in prison.
U.S. Attorney Carpenito credited the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Charlie J. Patterson; the Plainfield Police Division, under the leadership of Police Director Lisa Burgess; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Desiree Grace Latzer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Lisa, Esq., Jersey City, NJ
Multiple Life Sentences Handed Down in Bradenton Gang Racketeering and Murder CaseRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Jordan Rodriguez (Bradenton, 26) to, among other things, three terms of life imprisonment. Rodriguez’s co-defendants, Alfonzo Churchwell (Bradenton, 32) and Andrew Thompson (Bradenton, 25) were also sentenced to multiple life terms of imprisonment last month. All three individuals were found guilty on November 5, 2019, following a three-and-a-half-week jury trial. See
summary chart for a complete list of charges and sentences.According to evidence presented during the trial, the defendants were engaged in a violent and deadly rivalry with others in Oneco, a community in Bradenton. The men worked together to traffic in controlled substances and to control and protect their drug business with violence and murder. Rodriguez, Churchwell, and Thompson were responsible for at least four murders. Their racketeering enterprise maintained a “trap house” that was used to distribute heroin, cocaine, crack cocaine, marijuana, and other drugs.
“Our thoughts and prayers remain with the families of the murdered victims,” stated U.S. Attorney Maria Chapa Lopez. “We are deeply committed to dismantling violent criminal organizations.” “The Department of Justice, working closely with our partners at all levels of law enforcement, will continue to use every available resource to protect vulnerable communities from the scourge of violent drug crime.
“The announcement of these sentences means that these individuals will no longer be able to hurt, harm or intimidate this community,” said ATF Special Agent in Charge Daryl McCrary. “ATF has worked extensively with the Manatee County Sheriff’s Office to reduce violent crime and also with the victims’ families to bring closure to those who have suffered through these senseless acts of violence.”
Manatee County Sheriff Rick Wells said, “Our goal has always been to find violent drug traffickers who are destroying lives in our community, and hold them accountable. We appreciate the hard work of the United States Attorney’s Office for bringing this case to a successful conclusion.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the State Attorney’s Office (Twelfth Judicial Circuit). It was prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Christopher F. Murray.
Montana Broker Found Guilty in Multimillion-Dollar Fraud SchemeRead the Press Release
A federal jury found a Montana man guilty yesterday for his role as a broker for a Swiss company involved in a multimillion-dollar international fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Following a five-day trial, Sean Finn, 51, of Whitefish, Montana, was found guilty of one count of conspiracy to commit wire fraud and securities fraud, four counts of wire fraud and four counts of securities fraud. He was acquitted of one count of wire fraud. Sentencing has been scheduled for May 12, 2020, before U.S. District Judge Kent J. Dawson of the District of Nevada, who presided over the trial.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans. The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled approximately $4 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced to 87 months in prison, followed by three years of supervised release, on Aug. 3, 2016. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced to 60 months in prison, followed by three years of supervised release, on Feb. 23, 2016. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white-collar crime around the country.
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.
Montana Broker Found Guilty in Multimillion Dollar Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A federal jury found a Montana man guilty Tuesday for his role as a broker for a Swiss company involved in a multimillion-dollar international fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Following a five-day trial, Sean Finn, 51, of Whitefish, Montana, was found guilty of one count of conspiracy to commit wire fraud and securities fraud, four counts of wire fraud and four counts of securities fraud. He was acquitted of one count of wire fraud. Sentencing has been scheduled for May 12, 2020, before U.S. District Judge Kent J. Dawson of the District of Nevada, who presided over the trial.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans. The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled approximately $4 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced to 87 months in prison, followed by three years of supervised release, on Aug. 3, 2016. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced to 60 months in prison, followed by three years of supervised release, on Feb. 23, 2016. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white-collar crime around the country.
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Monroeville Man Admits Guilt in Marriage Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of Monroeville pleaded guilty in federal court on Monday to conspiracy to commit marriage fraud, United States Attorney Scott W. Brady announced today.
Makhan Singh, 53, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around 2011 through in and around October of 2018, Makhan Singh conspired with his brother Rajinder Singh, and United States citizen Dawn Haroulakis, to knowingly facilitate or enter into a marriage for the purpose of evading the immigration laws. The court was further advised that Makhan Singh offered to pay Ms. Haroulakis if she would marry his brother, Rajinder Singh, so that Rajinder, a native and citizen of India, could obtain legal permanent residency in the United States. Ms. Haroulakis agreed to the sham marriage, and Makhan Singh then made payments of more than $15,000 to Ms. Haroulakis in exchange for her marriage to Rajinder Singh.
Judge Schwab scheduled sentencing for August 6, 2020. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant remains on bond pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Singh, in connection with the Pittsburgh Document and Benefit Fraud Task Force (DBFTF). The DBFTF is a multi-agency partnership established to focus on high-impact criminal investigations involving the use of fraudulent documents in furtherance of immigrations benefit applications and petitions, financial fraud, criminal work-site enforcement, and public benefits fraud. The Pittsburgh DBFTF consists of the following agencies: Homeland Security Investigations, US Citizenship and Immigration Services, the Social Security Administration-Office of the Inspector General, the Internal Revenue Service-Criminal Investigations, US Department of State-Diplomatic Security Service, US Department of Agriculture- Office of the Inspector General, US Department of Labor- Office of the Inspector General, and the Pennsylvania Office of the Attorney General.
Missouri Businessman Arrested on Antitrust Charge for Rigging Bids at Online Government AuctionsRead the Press Release
A federal grand jury returned an indictment charging Alan Gaines, a Missouri resident, with participating in a conspiracy to rig bids submitted to the General Services Administration (GSA) at online auctions for surplus government equipment, the Department of Justice announced.
According to the indictment filed in the U.S. District Court in Minneapolis, Gaines conspired to rig bids at public online GSA auctions of surplus government equipment from about July 2012 until as late as May 2018. Gaines is the third individual charged in this investigation. Two co-conspirators, Marshall Holland and Igor Yurkovetsky, previously pleaded guilty in the investigation.
“Rigging bids at government auctions cheats taxpayers out of the benefits of competition and steals from the public purse,” said Assistant Attorney General Makan Delrahim of the Department of Justice. “This indictment affirms the Division’s commitment to safeguarding online markets and holding to account individuals who rig bids.”
“The general public deserves a level playing field when doing business with the government,” said GSA Inspector General Carol Ochoa. “GSA OIG is committed to prosecuting individuals who corrupt the system put in place for fair and competitive bidding.”
The GSA operates GSA Auctions, which offers the general public the opportunity to bid electronically on a wide variety of federal assets, including computer equipment that is no longer needed by government agencies. GSA Auctions sells that equipment via its online auctions, and the proceeds of the auctions are distributed to the government agencies or the U.S. Treasury general fund. According to the charge, the primary purpose of the conspiracy was to suppress and eliminate competition. Additionally, the co-conspirators obtained the equipment by agreeing which co-conspirators would submit bids for particular lots offered for sale by GSA Auctions and which co-conspirator would be designated to win a particular lot.
Gaines is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The ongoing investigation into bid rigging at GSA auctions is being conducted by the Antitrust Division’s Chicago Office and the GSA Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago, Illinois. Anyone with information concerning bid rigging or fraud related to GSA auctions should contact the Chicago Office of the Antitrust Division at 312-984-7200, the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit http://www.justice.gov/atr/report-violations or email the GSA Office of Inspector General at [email protected].
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.
Mishawaka, Indiana Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND - Kenneth Sanders, age 39, of Mishawaka, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for conspiracy to distribute over 500 grams of a mixture or substance containing methamphetamine and over 100 grams of a mixture or substance containing heroin, announced U.S. Attorney Kirsch
Mr. Sanders was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in this case, between October and November of 2018, Mr. Sanders along with other individuals conspired to distribute methamphetamine out of a home located in South Bend, Indiana. In November, law enforcement executed a search warrant in South Bend where they found over four pounds of methamphetamine, money which had been used to buy drugs that same day from Mr. Sanders, along with Mr. Sanders and another person. Mr. Sanders has twice been convicted of felonies, one of which involved violence. Mr. Sanders admitted to knowing that methamphetamine was an illegal substance as well his role in the distribution of methamphetamine.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department, the LaPorte County Drug Task Force, and the Indiana State Police. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Michigan man sentenced to prison, ordered to pay $208,718 restitution in cryptocurrency scamRead the Press Release
MISSOULA—A Michigan man who admitted defrauding two Missoula persons in a cryptocurrency scam was sentenced today to one year and one day in prison followed by three years of supervised release and ordered to pay $208,718 restitution, U.S. Attorney Kurt Alme said.
James Matthew Thomas, 35, of Midland, MI, pleaded guilty in October to wire fraud and money laundering.
U.S. District Judge Donald W. Molloy presided.
The prosecution said in court documents filed in the case that the evidence showed Thomas contacted Victim 1, who lives in Missoula, through LinkedIn in March 2018. The two had met several years earlier while working together on the east coast. Thomas asked Victim 1 if he wanted to invest in cryptocurrency for a few days with a rate of return of 30 to 40 percent. Thomas said he worked with CoinPoint, an internet advertising company that pushed people to participating company websites, and that CoinPoint was looking for investors.
Victim 1 sent Thomas $6,948 worth of virtual currency. A few days later, Thomas sent the victim $9,203 worth of virtual currency, which was about a 30 percent return on the victim’s investment. Based on the return, Victim 1 talked with a second victim and some of his friends and family members. The second victim invested $185,000 with Thomas and the friends and family members agreed to contribute another $500,000.
Much of the money taken in from Victim 1’s friends and family was never converted to virtual currency or forwarded to Thomas. When Victim 1 realized Thomas was scamming him, he was able to return most of that money.
As the scam progressed, Thomas told Victim 1 the investments were doing well and that he was getting rich. Victim 1 asked to be included on communications with CoinPoint and started receiving emails from various purported CoinPoint employees.
The FBI later determined the email addresses were fake and associated with another domain name – coinpointpartners.net – that was not associated with the real CoinPoint. Investigators also determined that Thomas had registered the fake domain name, coinpointpartners.net, the day after Victim 1 asked to be included in communications.
When Victim 1 tried to remove some money from the CoinPoint investment because it was doing so well, he encountered delays and various explanations. Victim 1 independently contacted CoinPoint and received information that led him to believe he had likely been scammed by Thomas.
The FBI interviewed CoinPoint’s owner, who said the company had never worked with Thomas or Victim 1.
As part of scam, Thomas used investment proceeds from the victims to buy a vehicle in New Jersey for $10,245.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the FBI.
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Martinsburg woman admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Devale Montray Jackson, of Martinsburg, West Virginia, has admitted to his role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Jackson, age 58, pled guilty to one count of “Unlawful Use of Communication Facility.” Jackson admitted to using a phone to arrange a heroin sale in Berkeley County in December 2018.
Jackson is facing up to four 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, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department 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.
Man Sentenced for Medicaid Fraud Scheme Related to Child AbuseRead the Press Release
NORFOLK, Va. – A Hampton man was sentenced today to over four years in prison for defrauding Medicaid out of approximately $109,000.
According to court documents, Maurice Moody, 41, and Dena Major, 49, conspired to defraud the Virginia Medicaid program out of approximately $109,000 by submitting fraudulent claims to Medicaid for their severely disabled son’s care, which he was eligible to receive. Major was the child’s primary caregiver and under Medicaid rules, she was also in charge of hiring a personal care aide to help in his care. Despite knowing that Medicaid does not permit the hiring of a parent to be a personal care aide, Major hired Moody to be their child’s personal care aide and falsely stated that Moody was the child’s uncle.
Moody also submitted claims for personal care hours provided to his son when Moody was incarcerated, and when he was out of the area traveling. In September 2015, the child was removed from Major’s custody on allegations of abuse and neglect. Nonetheless, Moody and Major continued to bill Medicaid for his care from September 2015 to April 2016. When challenged, the pair attempted to use another minor and pass him off as their child with the Medicaid service facilitator.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Joseph L. Kosky prosecuted the case. The Virginia Medicaid Fraud Control Unit assisted in the investigation.
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. 2:19-cr-033.
Montana Broker Found Guilty in Multimillion-Dollar Fraud SchemeRead the Press Release
WASHINGTON – A federal jury found a Montana man guilty yesterday for his role as a broker for a Swiss company involved in a multimillion-dollar international fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Following a five-day trial, Sean Finn, 51, of Whitefish, Montana, was found guilty of one count of conspiracy to commit wire fraud and securities fraud, four counts of wire fraud and four counts of securities fraud. He was acquitted of one count of wire fraud. Sentencing has been scheduled for May 12, 2020, before U.S. District Judge Kent J. Dawson of the District of Nevada, who presided over the trial.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans. The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled approximately $4 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced to 87 months in prison, followed by three years of supervised release, on Aug. 3, 2016. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced to 60 months in prison, followed by three years of supervised release, on Feb. 23, 2016. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white-collar crime around the country.
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.
# # #Luzerne County Man Sentenced to 80 Months’ Imprisonment for Distribution of “Bath Salts”Read the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Popish, age 41, of Pittston, was sentenced on February 4, 2020, by Senior U.S. District Court Judge James M. Munley, to 80 months’ imprisonment followed by three years on supervised release for his role in a Luzerne County-based drug conspiracy that obtained and distributed large quantities of alpha-pvp, commonly known as “bath salts,” during 2014 and 2015.
According to United States Attorney David J. Freed, Popish previously pleaded guilty to participating in the conspiracy by selling alpha-pvp to customers in Luzerne County. Popish was responsible for distributing approximately 300 grams of the drug.
Popish was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including two Texas-based suppliers of the bath salts.
The case was investigated by Homeland Security Investigations, the United States Postal Inspection, the Drug Enforcement Administration, the Pennsylvania State Police, and local police from Luzerne County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Leader of Family-Run Heroin-Trafficking Ring SentencedRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 22 years in prison for conspiring to manufacture, distribute, and possess with intent to distribute one kilogram or more of heroin; and for distributing heroin, fentanyl, and Acetyl fentanyl.
“Malcolm Jones turned armed drug trafficking into a family business, relying on his brother, sons, and others to help run multiple drug properties from which they injected deadly substances such as heroin, fentanyl, and crack cocaine into the Hampton Roads community,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Thanks to the coordinated work of federal, state, and local law enforcement, Operation High Tide has been a success in apprehending individuals who have deprived our neighborhoods of peace and security through the dangerous combination of drugs and guns. Neutralizing individuals, like Jones, who have committed serious offenses and endangered our communities has been and remains the goal of this highly coordinated and targeted law enforcement operation.”
According to court documents, Malcolm Dominique Jones, 45, was the leader and patriarch of a family-run heroin-trafficking operation in Portsmouth. The Jones operation ran at least three drug properties. One of these properties was the “Court,” a residence serving as the distribution point for Jones’s drugs such as heroin, fentanyl, Acetyl fentanyl, crack, and powder cocaine. Between 2017 and 2019, the “Court” served 50 to 100 customers a day. During that time, Jones arranged for his brother and three sons to live at the “Court.” He had them manage drug-trafficking efforts and stockpile firearms to protect their drug trade, until authorities shut down the operation in September 2019. Jones also admitted to knowingly marketing fentanyl and Acetyl fentanyl-laced products as heroin.
“Drug dealing alone brings danger into communities, but adding firearms into the mix as a means to enforce and expand territory makes it exponentially more dangerous, even lethal,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF’s priority is reducing violent crime and this investigation focused on the most violent offenders in the Chesapeake, Norfolk, and Portsmouth communities. We are committed to our law enforcement partnerships and fulfilling the mission of Project Guardian to help keep our cities safe.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson and Special Assistant U.S. Attorney Kristin G. Bird 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. 2:19-cr-155.
Leader of Atlantic City Drug Trafficking Organization and Coconspirator Plead GuiltyRead the Press Release
CAMDEN, N.J. – Two members of an Atlantic City drug-trafficking organization, including the leader of the organization, pleaded guilty today to distributing large amounts of heroin throughout Atlantic City, U.S. Attorney Craig Carpenito said.
Khalif Toombs, 30, of Egg Harbor Township, NJ, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin.
Nasir Brown, 27, of Atlantic City, NJ, also pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin.
Eight other members of the drug trafficking conspiracy – Wilbert Toombs, Quadir Stanley, Dean Johnson, Khalif Davis, Joseph Aversa, Thomas Randall, Mayda Hernandez, and Sarah Taliaferro – previously have pleaded guilty. The charges against twelve other defendants remain pending.
According to documents filed in the case and statements made in court:
Toombs, Brown, and other members of the drug conspiracy trafficked heroin from Paterson, New Jersey and into Atlantic City, New Jersey throughout the course of the investigation. Toombs admitted in court to conspiring with others to traffic between three and ten kilograms of heroin during this time and to being a manager and supervisor of the drug trafficking conspiracy which operated throughout Atlantic County. An investigation led by the FBI used physical and video surveillance, confidential informants, consensual recordings, and two court authorized wiretaps to uncover the operations of Toombs and his many coconspirators. The investigation tracked multiple stamps of heroin being distributed by Toombs and others, including, “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between January 1, 2017 and June 21, 2019, these stamps have accounted for 48 deaths and 84 non-fatal overdoses in the State of New Jersey.
The count to which Toombs pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and up to a $10 million fine. His sentencing is scheduled for May 12, 2020.
The count to which Brown pleaded guilty carries a mandatory penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and up to a $5 million fine. His sentencing is scheduled for May 12, 2020.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI-Newark, under the direction of Special Agent in Charge Gregory W. Ehrie; officers of the Atlantic City Police Department, under the direction of Chief Henry White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to today’s guilty pleas. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
For the twelve defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Toombs: Jerome Ballarotto Esq., Trenton, New Jersey
Brown: Mark Catanzaro Esq., Mount Holly, New JerseyLast Defendant Sentenced for Methamphetamine Distribution ConspiracyRead the Press Release
LAS VEGAS, Nev. – The last defendant in a methamphetamine distribution conspiracy was sentenced today to 10 years and one month in prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Kareen Anderson, also known as Webb, 55, of Las Vegas, pleaded guilty to one count of conspiracy to distribute methamphetamine. In addition to the term of imprisonment, U.S. District Judge Kent J. Dawson also sentenced Anderson to five years of supervised release.
According to court documents, Anderson conspired with his co-defendants to sell methamphetamine. On several occasions between August 2016 and October 2016, Anderson negotiated the sale of and/or sold methamphetamine at a supermarket, an apartment complex, and a fast food restaurant. He sold a total of at least 150 grams of methamphetamine.
Anderson was previously convicted of possession of a firearm by a felon and has numerous arrests in California for assault with a firearm, carjacking, robbery, and burglary.
This case was the product of an investigation by the FBI.
Co-conspirators Londa Lynette Gates and Melanie Lowe both pleaded guilty and were sentenced to prison. Robert Smith, a separately charged co-conspirator, was sentenced to 14 years. Co-conspirator Derrick James Haywood was also charged separately and sentenced to 10 years in prison.
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Las Vegas Man Pleads Guilty to Selling Firearms Without A Federal Firearms LicenseRead the Press Release
LAS VEGAS, Nev. – George Stone, 70, of Las Vegas, pleaded guilty today to one count of dealing in firearms without a Federal Firearms License (FFL), announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents, Stone, an unlicensed firearms dealer, admitted that he sold dozens of firearms without an FFL. Stone sold some of those firearms to undercover law enforcement officers. A subsequent search warrant executed at Stone’s residence resulted in the seizure of 32 firearms, many bearing price tags and marked for sale.
The case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher Burton is prosecuting the case.
Stone is scheduled to be sentenced by U.S. District Judge James C. Mahan on May 5, 2020. Stone faces a maximum statutory penalty of five years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 ATF 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.
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Justice Department Announces Investigation into Conditions in Four Mississippi PrisonsRead the Press Release
The Department of Justice’s Civil Rights Division announced today that it has opened an investigation into conditions of confinement in four of Mississippi’s prisons. The investigation will examine conditions at the Mississippi State Penitentiary (Parchman), Southern Mississippi Correctional Institute, Central Mississippi Correctional Facility, and the Wilkinson County Correctional Facility. The State of Mississippi is responsible for all four facilities. The investigation will focus on whether the Mississippi Department of Corrections adequately protects prisoners from physical harm at the hands of other prisoners at the four prisons, as well as whether there is adequate suicide prevention, including adequate mental health care and appropriate use of isolation, at Parchman.
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The Department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section is conducting this investigation, with support from the United States Attorney’s Offices for the Northern and Southern Districts of Mississippi. Individuals with relevant information are encouraged to contact the Department via phone at 1-833-591-0288 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions at South Carolina’s Broad River Road Complex Violate the ConstitutionRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of South Carolina today concluded that there is reasonable cause to believe that the conditions at the Broad River Road Complex in Columbia, South Carolina, violate the Fourteenth Amendment of the Constitution. Specifically, the Department concluded that there is reasonable cause to believe that the Broad River Road Complex fails to protect youth from youth-on-youth violence and places youth in punitive, prolonged isolation.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“Youth held in custody for rehabilitation are protected by the Fourteenth Amendment of the Constitution, which guarantees reasonable safety from harm,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to conclude that youth in the facility are at substantial risk of serious physical harm from other youth and that youth are regularly subjected to harmful isolation. The Justice Department hopes to continue to work with South Carolina to resolve the Department’s concerns.”
The Civil Rights Division and the United States Attorney’s Office for District of South Carolina initiated the investigation in September 2017 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated under the Violent Crime Control and Law Enforcement Act of 1994.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of South Carolina.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jackson Man Sentenced to 15 Months in Federal Prison Under Project EJECT for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Arthur L. Flowers, 35, of Jackson, was sentenced today by U.S. District Daniel P. Jordan III to fifteen months in prison, followed by three years of supervised release, for illegally possessing a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
On September 11, 2018, officers with the Jackson Police Department were dispatched to the McDowell Road and I-55 underpass in Jackson on a shooting complaint. They found Arthur Flowers laying on his back stating that he had been shot. Upon questioning, Flowers admitted to accidentally shooting himself in the leg while trying to holster a pistol. Flowers was transported to UMMC for treatment of the gunshot wound.
Because Flowers has grand larceny convictions in Copiah County in 2004 and Hinds County in 2005, it is illegal for him to possess a firearm. He pleaded guilty before Judge Jordan on November 8, 2019.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Hoboken-Based Accountant Sentenced to 12 Months for Tax EvasionRead the Press Release
NEWARK, N.J. – A Hoboken-based accountant was sentenced to a year and a day in prison for evading more than $914,000 in taxes on income he earned from his accounting practice and various rental properties he owned, U.S. Attorney Craig Carpenito announced today.
Louis Picardo, 64, of Hoboken, New Jersey, previously pleaded guilty to an information charging him with four counts of income tax evasion. U.S. District Judge Stanley R. Chesler imposed the sentence on Feb. 4, 2020 in Newark federal court.
According to documents filed in this case and statements made in court:
Picardo served as the Tax Collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County. Picardo failed to report approximately $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of approximately $914,908.
In addition to the prison term, Judge Chesler sentenced Picardo to two years of supervised release and ordered him to pay restitution to the IRS in the amount of $914,908.
U.S. Attorney Craig Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentence.
The government is represented by Assistant United States Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Peter Willis, Esq., Jersey City
Hayward Resident Sentenced to More Than Ten Years for Drug TraffickingRead the Press Release
OAKLAND – Joseph Daniel Sandoval was sentenced to 130 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Sandoval, 34, of Hayward, Calif., pleaded guilty to the charge on November 5, 2019. According to the plea agreement, Sandoval admitted to possessing 917.6 grams (approximately two pounds) of methamphetamine with the intent to distribute the drugs. Sandoval also admitted to possessing items related to drug trafficking, including $3,200 cash, a digital scale, and two boxes of clear plastic baggies.
A criminal complaint was filed on August 26, 2019, charging Sandoval with possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). An information was later filed on September 12, 2019, charging Sandoval with possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). The defendant pleaded guilty to the charge in the information.
According to the complaint, the Gang Suppression Unit of the Alameda County Sheriff’s Office began investigating Sandoval for suspected drug trafficking in June 2019. At the time, Sandoval had two outstanding warrants for his arrest. On July 31, 2019, the Gang Suppression Unit traced Sandoval to a room at the Quality Inn in Hayward, California, where he was arrested. Law enforcement seized 917.6 grams of methamphetamine, one digital scale, two boxes of clear plastic baggies, $3,200 cash, and one taser in connection with the arrest.
In addition to the prison term, Judge White sentenced Sandoval to a three-year period of supervised release to begin at the conclusion of his prison term. Sandoval will begin serving his federal sentence in April 2020 after he finishes serving a separate, unrelated sentence in Santa Clara County.
Special Assistant U.S. Attorney Andrew Briggs is prosecuting the case with the assistance of Kay Konopaske and Katie Turner. The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alameda County Sheriff’s Office.
Hattiesburg Man Sentenced under Project EJECT to Two Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Hattiesburg, Miss. – Marcus Foster, 30, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 24 months in federal prison, followed by 3 years of supervised release, for being a 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.
On February 11, 2019, Foster was found in possession of two firearms during the search of an apartment in Forrest County. He has prior felony convictions in Forrest County for burglary of a dwelling and receipt of stolen property. On July 24, 2019, he was indicted for being a felon in possession of a firearm. He pled guilty before Judge Starrett on October 3, 2019.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Sentenced to over 3 Years in Federal Prison under Project EJECT for Illegally Possessing a Firearm as a Convicted Felon While on State ProbationRead the Press Release
Hattiesburg, Miss. – Alfred McCaskill, 25, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 41 months in federal prison, followed by three years of supervised release, for being a 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.
McCaskill has previous convictions in Forrest County for possession of a stolen firearm and possession of cocaine. On February 27, 2019, while still on state probation, McCaskill was found in possession of a firearm during a traffic stop in Forrest County. He fled on foot and evaded law enforcement until his arrest in April 2019.
McCaskill was indicted on July 24, 2019, for being a felon in possession of a firearm. He pled guilty before Judge Starrett on October 3, 2019. In adjudicating McCaskill’s sentence, Judge Starrett specifically indicated that his federal confinement would run consecutive to whatever confinement he receives related to his state charges.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Gets over Ten Years in Federal Prison under Project EJECT for Multiple, Violent Armed RobberiesRead the Press Release
Hattiesburg, Miss. – Christian Jamal Martin, 20, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 126 months in federal prison, followed by 5 years of supervised release, for his involvement in multiple armed robberies in Hattiesburg, as well as possessing ammunition while being an unlawful user of a controlled substance, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Martin was also ordered to pay restitution to the victims of the robberies.
Martin was involved in the robberies of two gas stations in Hattiesburg, Mississippi on the morning of March 4, 2019, as well as a third attempted robbery at a Captain D’s restaurant on March 26, 2019. Firearms were discharged at all three locations. Martin functioned as the getaway driver during the incidents. On March 28, 2019, when Martin was apprehended by law enforcement, he was found in possession of ammunition and admitted during a subsequent interview to be an unlawful user of a controlled substance at the same time as the possession.
Martin was indicted on April 16, 2019 and pled guilty before Judge Starrett on October 3, 2019. In adjudicating Martin’s sentence, Judge Starrett discussed the dangerous nature of the crimes Martin committed.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hartford Man Sentenced to 57 Months in Federal Prison for Role in Latin Kings Drug Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN MATOS, also known as “Buddha,” 30, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 57 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and fentanyl.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and Hartford Police Department’s Vice and Narcotics Division into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that two alleged members of the Latin Kings operated separate drug trafficking organizations that distributed fentanyl, heroin, cocaine and crack cocaine. The organizations used multiple locations to process, package, store and distribute narcotics, and possessed firearms in furtherance of their drug trafficking activities. Matos helped broker transactions with a cocaine supplier for one of the drug trafficking organizations, and also assisted in the packaging and delivery of fentanyl for street sale.
During the investigation, on June 10, 2018, City of Hartford surveillance cameras captured another member of the organization, Hector Santiago, pistol-whipping a victim. Santiago was eventually located and arrested by Hartford Police, but no gun was located. After the incident, intercepted communications revealed that Matos helped to locate, recover and stash the gun used during the assault.
Matos has been detained since his arrest. On November 7, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, cocaine, heroin and fentanyl.
Matos’ criminal history includes state convictions for firearm and narcotics.
Santiago, also known as “Bebo,” pleaded guilty to related federal charges and, on November 18, 2019, was sentenced to 69 months of imprisonment.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County woman sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Danielle Lynn McCarty, of Shinnston, West Virginia, was sentenced today to five years probation and 125 hours of community service for a firearms charge, U.S. Attorney Bill Powell announced.
McCarty, age 32, pled guilty to one count of “Aiding and Abetting Possession of a Stolen Firearm” in August 2019. McCarty 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.
Habitual drug trafficker sentenced to more than 14 yearsRead the Press Release
McALLEN, Texas – A 46-year-old woman has been ordered to federal prison for following her conviction of importing a large quantity of 97% pure meth, announced U.S. Attorney Ryan K. Patrick.
Elizabeth Garcia, Houston, pleaded guilty Nov. 21, 2019.
Today, U.S. District Judge Randy Crane ordered Garcia to serve 175 months in federal prison to be followed by five years of supervised release. In handing down the sentence, the court noted Garcia was a habitual drug trafficker and cited her extensive criminal record, which included trafficking 10 kilograms of cocaine, possessing more than 30 kilograms of marijuana, her involvement in an alien transporting conspiracy and engaging in organized criminal activity.
On July 22, 2019, Garcia attempted to enter the United States through the Hidalgo Port of Entry. She was referred to secondary inspection where authorities discovered a total of 37 packages with 32.6 kilograms of meth concealed within her BMW.
Lab tests revealed a 97% purity rate.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
Grundy County Businessman Charged with Operating Ponzi SchemeRead the Press Release
CHICAGO — A Grundy County businessman has been charged with fraud for allegedly orchestrating a Ponzi scheme that raised at least $75 million from more than 500 investors.
KENNETH D. COURTRIGHT owned and operated Today’s Growth Consultant Inc., a Minooka-based business that purported to build or acquire websites for investors. TGC also did business through a division known as The Income Store, which had an office in Lancaster, Penn. From at least January 2017 to October 2019, Courtright falsely promised to provide investors with a guaranteed income stream of up to 20% of their initial investment or 50% of the website revenues, whichever was higher, according to a criminal complaint filed in federal court in Chicago. TGC backed these guarantees through fraudulent claims that the companies were financially healthy, the complaint states.
In reality, the payment of returns to investors was primarily funded through a Ponzi scheme, with Courtright paying early investors with money raised from later investors, the charges allege. Courtright also spent some of the investor funds to pay his mortgage and the school tuition of a family member, the complaint states. By December 2019 the scheme had become unsustainable, and TGC notified investors of a “moratorium” on payments of returns purportedly due to unspecified “challenges and headwinds,” the complaint states.
The complaint charges Courtright, 49, of Minooka, with one count of wire fraud. Courtright was arrested this morning and made an initial court appearance this afternoon before U.S. Magistrate Judge Jeffrey I. Cummings in Chicago. Judge Cummings ordered Courtright released on bond.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorneys Jason Yonan and Saurish Appleby-Bhattacharjee. The U.S. Securities and Exchange Commission provided valuable assistance. The SEC previously filed a civil enforcement action and obtained a temporary restraining order and asset freeze against Courtright and TGC.
Wire fraud carries a maximum sentence of 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that a criminal complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Greeneville Man Sentenced for Federal Gun OffenseRead the Press Release
Greeneville, Tenn. – On February 3, 2020, Brandon David Meacham, 37, of Kenosha, Wisconsin, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement, Meacham pled guilty to one count of being a convicted felon in the unlawful possession of a firearm. Meacham was sentenced to 63 months in the Federal Bureau of Prisons, followed by three years’ supervised release.
Meacham was arrested in 2018, following a traffic stop by a Washington County Sheriff’s deputy. Meacham, who had been convicted of armed robbery in Wisconsin, was found to be in possession of a loaded .380 caliber, semi-automatic pistol.
The prosecution resulted from an investigation by the Washington County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Fourth Rural King Robber Pleads Guilty in Federal CourtRead the Press Release
Ocala, Florida – Christopher Louis Hooker (25, Orlando) today pleaded guilty to interference with commerce by robbery. He faces up to 20 years in federal prison. Last week, three co-defendants, Carlos Eduardo Hampton, Jr. (22, Tampa), Quintin Eugene Augustus (18, Cocoa), and Jonathan Arthur Floyd (21, of Cocoa), entered guilty pleas in connection with the 2019 robberies of two central Florida Rural King stores.
According to the plea agreements, on July 26 and August 16, 2019, Hampton, Augustus, and Floyd used a sledgehammer to break into two Rural King locations in Ocala and Zephyrhills. The men then used the sledgehammer to smash open display cases and steal a total of 28 firearms. Hooker served as the group’s getaway driver for the Zephyrhills robbery. Immediately following that robbery, law enforcement officers stopped Hooker’s car, arrested the four men, and recovered numerous firearms stolen from the Zephyrhills Rural King store.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Ocala Police Department, and the Zephyrhills Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Four sentenced for intricate $1M counterfeiting scamRead the Press Release
HOUSTON – The leaders and two others have been ordered to federal prison after passing more than $1.3 million in counterfeit checks in Houston and Louisiana, announced U.S. Attorney Ryan K. Patrick.
A jury convicted Harold Chaney, 49, Missouri City, Oct. 3, 2019, following a three-day trial and approximately four hours of deliberation. Also sentenced today were Charmine Godine, 46, and Marcus McNeal, 40, both of Missouri City, along with Frank Chaney, 55, Houston, who had all previously pleaded guilty for their roles in the scheme.
Today, U.S. District Judge David Hittner ordered Harold Chaney, one of the leaders, to serve a 235-month sentence. The other leader – Godine - received a 240-month-term of imprisonment, while Frank Chaney and McNeal received respective terms of 85 and 160 months. All will also serve three years of supervised release following their sentences.
At the hearing, the court heard evidence that showed the group was responsible for attempting to steal more than $6 million in merchandise and passing over $1.3 million in counterfeit checks.
Harold Chaney and Godine headed the group who purchased expensive goods from retail stores using a sophisticated counterfeiting scheme.
McNeal provided stolen checking account information, which he obtained as a courier for a legitimate business. Harold Chaney and Godine used the stolen account information and stolen identities to create counterfeit checks using a special computer program and special printer paper.
Other members of the group, such as Frank Chaney, used the counterfeit checks to purchase computers, appliances and construction materials at retail stores. The group then sold the items to customers on the black market.
Authorities also found them with hundreds of stolen identifications, which they used to establish criminal identities.
All four Harold Chaney, Frank Chaney and McNeal have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service, Houston Police Department and Harris County Sheriff’s Office conducted the investigation as part of the Houston Area Fraud Task Force.
Assistant U.S. Attorney Jim McAlister is prosecuting the case.
Four plead guilty in a failed human smuggling attempt that left six people deadRead the Press Release
CORPUS CHRISTI, Texas – The final defendant has admitted her guilt in the human smuggling conspiracy that left six people dead in Robstown in June 2019, announced U.S. Attorney Ryan K. Patrick.
Mayra Chaver, 32, of Honduras, pleaded guilty today to assisting an undocumented immigrant to evade arrest. The three others charged in relation to the crime – Mexican citizens Agustin Gutierrez-Gonzalez, 33, and Ivan Dario Puga-Moreno, 30; and Elena Ruiz, 35, of Corpus Christi – had previously entered their guilty pleas to conspiracy to transport undocumented aliens into the United States causing death or serious bodily injury.
On June 5, 2019, authorities discovered a wrecked Chevrolet Suburban in a ditch in Robstown. Six people were found deceased at the scene with 12 more requiring hospitalization due to their significant injuries.
Puga-Moreno was the driver of the wrecked vehicle and had been attempting to smuggle 18 undocumented immigrants. Further investigation revealed Puga-Moreno fled the scene of the accident with the assistance of his girlfriend and friends Ruiz, Chaver and Gutierrez-Gonzalez.
At the time of his plea, Puga-Moreno admitted he was driving the vehicle that crashed. He also acknowledged that when the accident occurred, he was evading police, confirming he was a citizen from Mexico and fled to Houston in an attempt to avoid arrest.
Chaver, Ruiz and Gutierrez-Gonzalez admitted they helped Puga-Moreno flee the scene and evade arrest after the crashed occurred.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing April 22. At that time, Puga-Moreno, Ruiz and Gutierrez-Gonzalez face up to life in prison. Chaver received time served for her role in the offense.
Puga-Moreno and Gutierrez-Gonzalez have been and will remain in custody pending sentencing. Ruiz was permitted to remain on bond pending her hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol, Corpus Christi Police Department and Nueces County Sherriff’s Office conducted the investigation.
Assistant U.S. Attorneys John Cody Barnes and Jeremy Carl Fugate are prosecuting the case.
Former Manager of Long Island Catering Hall Pleads Guilty to Forced Labor and Forced Labor ConspiracyRead the Press Release
Earlier today, in federal court in Central Islip, Roberto Villanueva pleaded guilty before United States Magistrate Judge Anne Y. Shields to forced labor conspiracy and forced labor of employees at the Thatched Cottage, a former catering and wedding venue in Centerport, New York. When sentenced, Villanueva faces up to 20 years in prison, as well as restitution and a fine of up to $250,000 on each count.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Peter C. Fitzhugh, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York (DOL-OIG); and Patricia A. Menges, Director, United States Citizenship and Immigration Services, New York Asylum Office (USCIS), announced the guilty plea.
Villanueva formerly worked as a recruiter and manager for the Thatched Cottage. At today’s plea proceeding, Villanueva admitted that workers were brought from the Philippines to the United States on H-2B visas that expired shortly after their arrival. Once their H-2B visas expired, Villanueva coached workers how to apply for student visas by fraudulently representing that they intended to attend school full-time and had sufficient resources to support themselves during school. Villanueva admitted that at times he deposited funds in the workers’ bank accounts to give the appearance of ample resources, and then withdrew the funds once the student visas were approved. When workers objected to performing certain jobs, working consecutive shifts or not being paid promptly, Villanueva threatened to report them to immigration authorities. Villanueva admitted that his actions were in concert and agreement with Ralph Colamussi, the former owner of Thatched Cottage. Colamussi pleaded guilty in September 2018 to forced labor of employees and is awaiting sentencing.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution, with the assistance of Assistant United States Attorney Madeline O’Connor from the Office’s Long Island Civil Division.
The Defendant:
ROBERTO VILLANUEVA
Age: 64
Huntington, New YorkE.D.N.Y. Criminal Docket No. 17-0592 (DRH)
Former LEO sent to prisonRead the Press Release
HOUSTON – A South Texas law enforcement officer now finds himself behind prison bars following his conviction on multiple drug trafficking charges, announced U.S. Attorney Ryan K. Patrick.
A federal jury in Houston convicted Hector Beltran, 44, Edinburg, on July 22, 2019, for conspiracy to possess with intent to distribute more than five kilograms of cocaine. Beltran was a former Edinburg Police Department K-9 officer.
Today, U.S. District Judge Keith P. Ellison imposed a total 120-month sentence to be followed by five years of supervised release. In handing down the sentence, the court noted Beltran abused his position of trust as a law enforcement officer (LEO) and used a possessed a firearm during the commission of the offense.
During the two-week trial, the jury heard that the investigation began in 2011 when authorities targeted a drug trafficking organization involved in the transportation and distribution of cocaine and marijuana. During the course of the investigation, agents learned the organization was stealing cocaine and marijuana from the source of supply with the assistance of LEOs. The scheme was to pose as drug transporters. However, instead of transporting the cocaine and marijuana, they sold the drugs and told the source of supply that law enforcement had seized the narcotics.
In their effort to cover up the theft, the drug trafficking organization created fake bundles of cocaine and marijuana and used LEOs to seize it. Once authorities seized the fake cocaine and marijuana, the drug trafficking organization provided law enforcement seizure documents to the source of supply.
During the course of the investigation, agents discovered Beltran, while an Edinburg police officer, conducted more than 10 seizures of fake drugs. Most involved the drug trafficking organization leaving the fake drug bundles in abandoned vehicles, giving Beltran the vehicle’s location and having him seize them. Since the seizures did not involve any arrests, the fake drugs were not tested and put in evidence lockers.
Upon discovery of the scheme, a review of Beltran’s drug seizures revealed bundles of suspected marijuana contained hay, while bundles of suspected cocaine contained only trace amounts of cocaine hydrochloride.
Testimony at trial showed Beltran personally conducted and assisted other law enforcement agencies with the seizure of approximately 600 kilograms of fake marijuana and 168 kilograms of fake cocaine. The jury also heard the drug trafficking organization paid Beltran for his participation in each seizure of fake drugs.
Beltran testified at trial and denied participating in the scheme. The jury did not believe his claims and ultimately found him guilty.
Previously released on bond, Beltran was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation has led to the arrest and prosecution of 20 individuals including Beltran and five other LEOs – two BP agents; officers with the Houston and Edcouch Police Departments and Harris County Constable’s Office; and a former chief of the LaJoya Police Department.
Immigration and Customs Enforcement’s Homeland Security Investigations
and Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Blue Shame. Assistant U.S. Attorney Casey N. MacDonald and Anibal J. Alaniz prosecuted the case.
Former Employee of Walter Reed National Military Medical Center Facing Federal Indictment in MarylandRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted David Laufer, age 63, of Pittsburgh, Pennsylvania, formerly of Bethesda, Maryland, on five counts of the federal charge of making false statements. The indictment was returned on December 16, 2019, and was unsealed upon his arrest on January 28, 2020. Laufer had his initial appearance yesterday in U.S. District Court in Greenbelt and was released pending trial.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to the indictment, until May 2019, Laufer worked as the Chief of the Prosthetics and Orthotics Department at Walter Reed National Military Medical Center, the largest joint military medical center in the United States. Walter Reed is located in Bethesda and provides medical services, including orthotic and prosthetic services to U.S. service members and their dependents, including wounded soldiers. Laufer’s job required him to complete annual Confidential Financial Disclosure forms which required him to report: all sources of outside income greater than $200; any business outside the U.S. Government in which Laufer or his spouse was an employee or consultant, whether or not compensated; any agreements or arrangements concerning past, current, and future employment; and travel-related reimbursement or other gifts totaling more than $350 from any one source during the reporting period.
The indictment alleges that Laufer failed to report financial benefits he received from Person B and Company B, located in Germantown, Maryland and owned, operated, and controlled by Person B. Company B provided prosthetics and orthotics materials to Walter Reed in return for payments from the government. According to the indictment, Person B regularly interacted with Laufer about Company B’s business with Walter Reed. Further, the indictment alleges that Laufer falsely told federal agents that he had never received money, gifts, or sporting event tickets from any vendor doing business before the Prosthetics and Orthotics Department when in fact Laufer had received financial benefits, including travel and sporting event tickets, from Person B and Company B.
In a related case that was recently unsealed, Timothy Hamilton, age 58, of Columbia, Maryland, and an employee in the Walter Reed Prosthetics and Orthotics Department from 1991 to 2017, pleaded guilty to conspiracy to commit health care fraud and to acts affecting a financial interest. Hamilton admitted that beginning in 2009, he allowed Person A to use his Orthotist certification for Person A’s business, Company A. Hamilton was aware that Company A used his certification to obtain national accreditation and as part of its documentation for Medicare credentialing, which allowed Company A to bill insurers for medical treatment that required the involvement of a certified Orthotist, even though Hamilton was not providing those services in the vast majority of cases. Hamilton admitted that he received monthly financial payments from Company A from 2009 until October 2015, totaling more than $45,000. From 2011 to 2015, Company A used Hamilton’s credentials to submit more than 225 fraudulent insurance claims of more than $150,000.
Further, Hamilton admitted receiving more than $15,000 in gift cards, checks, and other benefits such as tickets and lodging, from Company B, which was run by Person B and which had business with Walter Reed’s Prosthetic and Orthotics Department. During the time that Hamilton was receiving payments from Company A and Company B, Hamilton ordered products on behalf of Walter Reed from both companies.
Hamilton faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and a maximum of one year in prison for acts affecting a financial interest. Hamilton is awaiting sentencing.
If convicted, Laufer faces a maximum sentence of five years in prison for each of the five counts of making a false statement. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the DCIS and HHS OIG for their work in the investigation and thanked the FBI, the Veterans Administration Office of Inspector General, the Army CID Major Procurement Fraud Unit, and the Office of Personnel Management Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Dana Brusca, who are prosecuting these cases.
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Former Delta Homes & Lending Inc. Employees Sentenced for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Tuesday, U.S. District Judge John A. Mendez sentenced two Sacramento residents each to two years in prison for conspiring to commit wire fraud, U.S. Attorney McGregor W. Scott announced. Ruben Rodriguez, 43, and Jaime Mayorga, 41, were convicted at a jury trial in April 2019.
According to court documents, between October 2004 and May 2007, Rodriguez and Mayorga were employees of Delta Homes and Lending Inc., a now-defunct Sacramento-based real estate and mortgage lending company that was founded by co-defendant Moctezuma “Mo” Tovar. Rodriguez, Mayorga, Tovar, and other Delta Homes employees and co-defendants Manuel Herrera, Sandra Hermosillo, Jun Michael Dirain, and Christian Parada Renteria agreed to commit fraud to obtain home loans from mortgage lenders. As part of the scheme, Rodriguez and Mayorga submitted fraudulent mortgage loan applications and supporting documents, which falsely represented the borrowers’ assets and income, liabilities and debts, employment status, citizenship status, and intent to occupy the property. Rodriguez and Mayorga also provided money to the borrowers in order to inflate their bank account balances. Once the loans were secured, the borrowers returned the money. The aggregate sales price of the homes involved in the overall conspiracy was in excess of $10 million. As a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty and Justin L. Lee prosecuted the case.
Co-defendant Moctezuma Tovar, 50, of Sacramento, was sentenced to 4 ½ years in prison. Co‑defendant Manuel Herrera, of Davis, was sentenced to one year in prison. Co-defendant Jun Michael Dirain, 47, of Antelope, was sentenced to six months in prison, followed by six months of home detention. Co-defendant Sandra Hermosillo, 57, of Woodland, was sentenced to 9 months of home detention. Co-defendant Christian Parada Renteria, 43, formerly of Sacramento, pleaded guilty to 2 counts of concealing felonies related to the wire fraud conspiracy, and was previously sentenced to serve 1 year in prison.
Former Corrections Officer Sentenced to 84 Months in Prison for Distributing Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 84 months in prison for distributing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Michael A. Ruggiero, 38, of Lacey Township, New Jersey, a former corrections officer, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of distribution of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of child sexual abuse. Some of the images and videos were of prepubescent children or children who had not attained the age of 12. Ruggiero also received over the same mobile chat application other images and videos of child sexual abuse, and he possessed additional depictions of child sexual abuse on his cellular telephone at the time of his arrest in June 2017.
In addition to the prison sentence, Judge Sheridan sentenced Ruggiero to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel B. Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office under the direction of Prosecutor Bradley Billhimer with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Telesforo Del Valle, Jr., Esq., New York, NY
Former Cohoes Mayor Sentenced for Stealing Campaign ContributionsRead the Press Release
ALBANY, NEW YORK – Shawn Morse, age 52, the former Mayor of Cohoes, New York, was sentenced today to two years of probation, 200 hours of community service, a $3,000 fine, and forfeiture of $12,250, for defrauding his supporters by stealing campaign contributions for his personal benefit.
The announcement was made by United States Attorney Grant C. Jaquith and Tina Fuerholzer, Supervisory Special Agent of the Federal Bureau of Investigation (FBI).
During his guilty plea on August 20, 2019, Morse admitted that he and his campaign treasurer, Ralph Signoracci, solicited and received contributions to his political committee the “Friends of Shawn Morse” and a political action committee. Signoracci then provided some of those funds to Morse for his personal use including an August 2015 contribution of $500 Morse used to pay a personal bill. In total, as part of the scheme, Morse personally obtained $12,250 in political contributions from at least 10 victims to pay personal expenses at hotels, restaurants, and retailers.
As part of the scheme, Signoracci concealed the nature of the fraudulent expenditures by falsely reporting their purpose or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office. Signoracci pled guilty to conspiracy to commit wire fraud, and was sentenced to a one-year term of probation and 100 hours of community service.
This case was investigated by the FBI, and was prosecuted by former Assistant U.S. Attorney Megan Kinsella Kistler and Assistant U.S. Attorney Daniel Hanlon.
Former Airport Official Sentenced to 10 Years in Prison in Record Setting Bribe and Kickback SchemeRead the Press Release
United States District Judge Victoria A. Roberts sentenced convicted former Wayne County airport official, James Warner, 52, of Commerce Township, to 10 years’ imprisonment today. A federal jury convicted Warner last June of ten counts of conspiracy, federal program bribery, federal program theft, money laundering and obstruction of justice, in connection with maintenance and repair contracts for runways and parking structures at Detroit Metropolitan Airport, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Steven M. D'Antuono, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andrea M. Kropf, Special Agent-in-Charge of the Midwestern Region of the United States Department of Transportation Office of Inspector General.
According to the evidence provided during the three-week trial, from May of 2010, through August of 2014, while employed as a field inspector at the Wayne County Airport Authority (WCAA), Warner used his position of trust at the airport to direct more than $43 million in airport infrastructure projects to three coconspirators—William Pritula, Douglas Earles and Gary Tenaglia—in exchange for more than $6 million in kickbacks. This amount represents the highest bribe totals in the Eastern District of Michigan’s history, and one of the largest in the country.
On one occasion, Warner falsified the square footage and asphalt depth on an airport roadway project, creating and later approving a $938,000 bill from Pritula’s company for work which Pritula’s subcontractor only invoiced $275,000. Warner and Pritula then split the profits evenly. On another occasion, Earles’s company submitted two separate invoices—one for $13,429.63, and another for $18,055.26—for the replacement of backflow preventers at the airport. However, as the evidence revealed at trial, the backflow preventers listed in these invoices were neither purchased nor installed at the airport. Since Warner was the public official responsible for verifying these falsified invoices, he was able to conceal this fraud from the airport and authorize the airport to pay Earles for work that was never completed—a percentage of which was ultimately kicked back to Warner.
Each of Warner’s coconspirators, Pritula, 69, of Romulus, Earles, 60, of White Lake, and Tenaglia, 65, of Commerce Township have all pleaded guilty to conspiracy to commit bribery and theft.” To date, the government has seized $11 million from Warner and his co-conspirators.
United States Attorney Schneider stated, “This case is yet another example of our office’s commitment to vigorously prosecute corrupt public officials who elevate their own greed over the best interests of the people of Michigan.”
“Through bribery, fraud, and kickbacks, Mr. Warner stole the hard-earned money of the men and women who fund the services provided at Detroit Metropolitan Airport,” said SAC D’Antuono. “I am incredibly proud of the hard work of agents from the FBI and the US Department of Transportation, Office of Inspector General, and attorneys from the United States Attorney’s Office, whose collective efforts helped bring a measure of justice to this defendant."
“With one of the largest bribes prosecuted to date in the Eastern District of Michigan, today’s sentencing reinforces our commitment to rooting out egregious infrastructure fraud,” stated Andrea M. Kropf, DOT-OIG Regional Special Agent-In-Charge. “It sends a message to public officials who may be motivated by greed to abuse their positions that they will be met with the full force of the criminal justice system.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown and Mark Chutkow.
Florida Man Pleads Guilty to Bank Fraud, Mail Theft, Id TheftRead the Press Release
PROVIDENCE – A Florida man pled guilty in U.S. District Court in Providence today to bank fraud, ID theft, and mail theft charges, admitting that he executed a scheme to order then steal debit cards and PINs from mailboxes in Rhode Island and Massachusetts, then used them at ATMs in both states to withdraw funds from individuals’ bank accounts without their knowledge.
Stacy Moore, 48, of Miami Beach, FL, admitted that as part of the scheme replacement debit cards were ordered with the use of stolen personal identifying information belonging to bank account holders. The new debit cards and PINs were sent to the account holders, then stolen from the account holders’ mailboxes upon delivery by the U.S. Postal Service (USPS). The fraudulently obtained debit cards and PINs were used to make unauthorized bank withdrawals.
Account holders were unaware that replacement debit cards and PINs had been requested.
According to court documents and information presented to the court, from December 11, 2018, to February 10, 2019, Moore used fraudulently obtained debit cards and PINs to make multiple withdrawals from at least six individuals’ personal bank accounts in Rhode Island and Massachusetts.
As part of the scheme, replacement debit cards and PINs were ordered via telephone without the knowledge of bank account holders. They were delivered via the United States Postal Service to the account holders’ homes. An Informed Delivery account through the USPS website was established for each account holder’s address, allowing for notification when the replacement debit cards and PINs would be delivered. After delivery, the debit cards and PINs were stolen.
In court today, Moore admitted that among his fraudulent activities were 17 unauthorized ATM withdrawals on December 11 and 12, 2018, at ATMs in Boston. Withdrawals totaling $9,600 were made with the use of two fraudulently obtained debit cards and PINs, both in the name of the same bank customer. Moore also admitted that he made 10 unauthorized withdrawals totaling $6,000 on February 12 and 13, 2019, from ATMs in Middletown and Newport with the use of fraudulently obtained debit cards and PINs in the name of another bank customer.
Appearing today before U.S. District Court Judge William E. Smith, Moore pled guilty to two counts of bank fraud and one count each of aggravated identity theft and theft of mail, announced United States Attorney Aaron L. Weisman, Inspector in Charge of the U.S. Postal Inspection Service Boston Division Joseph W. Cronin, and Craig A. Marech, Resident Agent in Charge of the Providence Office of the United States Secret Service.
Moore is scheduled to be sentenced on May 7, 2020.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney Aaron L. Weisman thanks the East Greenwich, West Warwick, Barrington and Middletown Police Departments, and the Rhode Island Department of Corrections for their assistance in the investigation of this matter.
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Flooring Executive Charged in Antitrust and Money Laundering ConspiraciesRead the Press Release
Carter Brett, an account executive for a large flooring manufacturer, has been charged for conspiring to rig bids and fix prices for commercial flooring products and services, and for his role in a money laundering conspiracy involving kickbacks, the Department of Justice announced.
“The bid-rigging and money laundering schemes charged today cheated a state-funded school out of competitive bids and lined the defendant’s pockets with kickbacks,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This latest charge in the ongoing investigation demonstrates the Antitrust Division’s commitment to bringing to justice those in the commercial flooring industry who have victimized Chicago-area schools, hospitals, charities, and businesses.”
“When businesses rig bids to increase their own profits illegally, it is our citizens who suffer,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Division. “Today’s charges illustrate our ongoing efforts to protect Americans from price fixing and other dishonest business practices.”
According to a two-count felony charge filed today in U.S. District Court in Chicago, Illinois, Brett engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by initiating and orchestrating a bid rotation conspiracy among three commercial flooring installation companies so that the designated company would win the bidding for jobs at a suburban community college. According to the charge, Brett and his co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 22, 2017.
The second count filed today charges Brett with engaging in a money laundering conspiracy wherein Brett solicited and accepted kickbacks from his co-conspirators in exchange for offering those co-conspirators unlawfully low pricing. The charge alleges that Brett established a shell corporation for the sole purpose of receiving the illegal kickback payments. According to the charge, Brett and his co-conspirators carried out this conspiracy from at least as early as 2013 until late 2017.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Conspiring to commit money laundering carries maximum penalties of a $500,000 criminal fine and 20 years in prison. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine.
The information charging Brett is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division. Brett is the fifth individual to be charged in the investigation; one corporation has also been charged to date.
Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200, contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
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.
Financial Adviser Sentenced to 30 Months in Prison for Defrauding Clients in Fake Investment SchemeRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ELIAS HERBERT HAFEN, a former financial adviser at two investment banks with offices in New York, New York, was sentenced yesterday to 30 months in prison for having defrauded his clients out of more than $1.6 million. HAFEN previously pled guilty to one count of investment adviser fraud before United States District Judge Alvin K. Hellerstein, who imposed yesterday’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Elias Hafen promised to invest his clients’ money in a high-yield fund with guaranteed returns, and propped up his fraud with fake account statements. He never invested his clients’ money, instead using it to line his pockets.”
According to allegations in the Information, other documents filed in federal court, and statements made in public court proceedings, including during HAFEN’s guilty plea:
From 2011 until 2018, HAFEN engaged in a scheme to defraud 11 of his financial advisory clients into believing that HAFEN had access to a high-yield investment fund with guaranteed returns, which was not affiliated with the investment bank at which HAFEN worked. On HAFEN’s advice, these clients transferred approximately $1.6 million directly to HAFEN’s personal bank account for investment in the purported investment fund over the years that HAFEN engaged in his fraudulent scheme. HAFEN also created fictitious “Investor’s Statements” bearing the name of a non-existent investment company purporting to detail the status of his victims’ investments. In reality, however, there was no investment fund at all; HAFEN was using the victims’ funds to pay for personal expenses.
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In addition to the prison term, HAFEN, 64, was also sentenced to three years of supervised release, ordered to pay $745,000 in restitution, and ordered to forfeit $806,750.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jacob R. Fiddelman is in charge of the prosecution.
Felon admits to illegal weapons chargeRead the Press Release
HOUSTON – A 33-year-old resident of Houston has admitted he illegally possessed firearms and ammunition, announced U.S. Attorney Ryan K. Patrick.
Joffre Cross III surrendered to federal authorities today and entered a plea of guilty.
On Feb. 20, 2019, authorities executed a federal search warrant at the Cross residence. Upon entry, they located an AK-style rifle and approximately 2200 rounds of ammunition.
Having been convicted in April 2008 in North Carolina federal court for distribution of controlled substances, he is prohibited per federal law of possessing any firearms or ammunition.
At the time of the search they also found a homemade pistol and three homemade rifles.
Sentencing is set before Chief U.S. District Judge Rosenthal for May 27. At that time, Cross faces up to 10 years in federal prison and a possible $250,000 fine.
He will remain in custody pending that hearing.
The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.