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Thursday 11 April 2019
Three Men Convicted of Running Sex Trafficking RingRead the Press Release
Three men were found guilty by a federal jury of sex trafficking and conspiracy to commit sex trafficking.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Field Office, made the announcement.
The verdict was accepted by U.S. District Judge Nitza I. Quiñones Alejandro of the Eastern District of Pennsylvania. Dkyle Jamal Bridges, 33, of Claymont, Delaware, and Kristian Jones, 25, and Anthony Jones, 35, both of Wilmington, Delaware, were each found guilty of conspiracy to engage in sex trafficking by force, fraud or coercion, and of minors, as well as sex trafficking three minors by force, fraud or coercion, on April 10 after a three-week jury trial. Bridges was also convicted of sex trafficking two adults by force, fraud or coercion.
According to evidence presented at trial, from 2012 through September 2017, Bridges, Kristian Jones and Anthony Jones ran a prostitution enterprise in which adult and minor females were sex trafficked throughout the mid-Atlantic region, including Pennsylvania and Delaware. Bridges frequently used violence and threats to cause the victims to engage in commercial sex acts. Kristian and Anthony Jones helped Bridges run the enterprise by providing security and reserving hotel rooms. The investigation began when a local police officer rescued two minors who had been advertised for prostitution on Backpage.com. Additional victims were identified by local law enforcement after being advertised for prostitution on Backpage.com.
The FBI investigated the case with assistance from the Tinicum Township Police Department; Newark, Delaware Police Department; Delaware State Police; Philadelphia Police Department; Delaware River & Bay Authority and Wilmington Police Department. Trial Attorney Jessica L. Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Priya T. De Souza and Seth M. Schlessinger of the Eastern District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Terwilliger Joins ATF’s National Crime Gun Intelligence BoardRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger has joined law enforcement leaders from around the country at the ATF’s National Crime Gun Intelligence Governing Board meeting in Huntsville, Alabama. (Click here for tweet and photo)
“It is an honor to join such an accomplished group of law enforcement officials in pursuit of reducing firearms violence,” said Terwilliger. “Already here in the Eastern District we have seen the benefits of the National Integrated Ballistic Information Network, or NIBIN, in helping solve shootings, and more help is on the way with the City of Richmond Police Department scheduled to receive their own NIBIN machine this fall. I believe this will be a game-changer in Richmond. Not only will it help us solve shootings, but it will also offer a deterrent effect in that criminals will know every time they fire a gun during a crime of violence, we will use this technology to assist us in matching the casing, tracking the gun, and hunting down the trigger-puller. The ATF’s leadership on this program and commitment to providing law enforcement officers around the country with the tools they need to solve firearms crimes is beyond impressive. I am thankful for the opportunity to serve on this national board and represent the interests of the Eastern District of Virginia.”
The two-day meeting of law enforcement leaders will include a tour of the National Integrated Ballistic Information Network (NIBIN) National Correlation Training Center and strategic discussions on NIBIN, a high-tech program that automates ballistics evaluations and provides actionable investigative leads in a timely manner. Terwilliger made acquiring NIBIN machines here in the Eastern District a high priority immediately after taking the reigns as U.S. Attorney in May 2018. Law enforcement in the Eastern District currently has access to two NIBIN machines: One in Beltsville, Maryland, that services law enforcement in Northern Virginia; and a machine in Newport News that is shared by the Newport News Police Department and the Hampton Police Department. The City of Richmond Police Department is scheduled to receive its own NIBIN machine this fall.
ATF Deputy Director Thomas E. Brandon said the bureau is pleased Terwilliger accepted an invitation to join the board.
“United States Attorney Terwilliger’s extensive experience in both prosecuting violent firearm offenders and developing Department of Justice policies to combat firearm violence provides essential expertise to the Crime Gun Intelligence Governing Board,” said ATF Deputy Director Thomas E. Brandon. “ATF is fully committed to reducing gun violence in communities across the nation and the Governing Board, which includes police chiefs, forensic lab directors and federal and state prosecutors, is vital to the success of our mission. ATF’s National Integrated Ballistic Information Network helps disrupt the shooting cycle by assisting investigators in identifying firearms involved in more than one crime, often leading to the arrest of active trigger pullers and the firearm traffickers who illegally supply them with guns. NIBIN focuses investigations on our nation’s most violent offenders, enhancing the effectiveness of law enforcement in making our communities safer. We thank United States Attorney Terwilliger for his commitment to public safety the Eastern District of Virginia and our nation, and greatly appreciate his joining the Board.”
Established in 2016, the board uses the collective experience of federal, state, and local experts in the fields of forensics, law enforcement, and criminal law to ensure ATF receives valuable input on national programs related to Crime Gun Intelligence. Members of the 23-member board serve 3-year terms and are eligible for re-appointment. It meets biannually in different cities across the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Tazewell County Felon Sentenced to Seven Years in Prison for Gun PossessionRead the Press Release
PEORIA, Ill. – A Washington, Ill., man, Tyler R. Davis, 25, has been sentenced to seven years in prison for possession of a firearm as a felon. U.S. District Court Judge James E. Shadid sentenced Davis on April 10, and ordered that Davis’s prison term be followed by three years of supervised release. Davis pleaded guilty to the charge on Aug. 16, 2018.
According to court documents and evidence presented by the government at sentencing, Davis was prohibited from possessing a firearm under state and federal law when he admitted he possessed a gun in July 2016. Davis previously pleaded guilty to a felony charge of aggravated battery of a peace officer in 2014 in Tazewell County.
At Davis’s sentencing and in court documents, the government presented evidence that on July 15, 2016, Davis and another individual, Anton Grayson, approached homeowners in East Peoria, Ill., and asked if they were shooting at them. When the homeowners replied that they were only shooting off fireworks, Davis and Grayson told the homeowners they would be back with their “crew.” Based on this threat, the wife and her six-year-old daughter left and went to a nearby family member’s house, while the husband and teenaged son stayed at the home. Shortly thereafter, Davis and Grayson fired multiple rounds into the front of the home. There were no injuries to the home’s residents; however, one .45 caliber bullet from Davis’s firearm was found lodged in the back wall of the home. Law enforcement officers later recovered the guns in a row of bushes approximately a block away after officers learned that Davis had directed his mother and brother to retrieve them.
Both DNA and ballistics testing by the Illinois State Police Department of Forensic Science aided in the investigation. Further, evidence obtained from Snapchat, Inc. showed Davis and Grayson flashing firearms in a “selfie” video with the caption, “retaliation,” posted after the threat and prior to the shooting.
Assistant U.S. Attorney Katherine Legge prosecuted the case which was investigated by the East Peoria Police Department.
Davis has remained in the custody of the Tazewell County Jail and U.S. Marshals Service since his arrest on July 16, 2016. The Tazewell County State’s Attorney’s Office prosecuted Grayson, who was convicted and sentenced to a five-year prison term in the Illinois Department of Corrections.
Taylor County woman sentenced for bank fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Karen Kinsley, of Grafton, West Virginia, was sentenced today to 36 months incarceration for taking out loans and opening accounts in bank customers’ names without their knowledge, United States Attorney Bill Powell announced.
Kinsley, age 46, pled guilty to one count of “Bank Fraud” in September 2018. Kinsley admitted to originating several loans in bank customers’ names without their consent or knowledge, reopening closed checking and saving accounts without the customers’ knowledge, and used some of the loan proceeds for personal use and some for payments on other fraudulent loans. Kinsley committed the crime while she was a branch manager of the Clear Mountain Bank inside the Kroger store in Sabraton, Monongalia County from June 2014 to September 2017.
The judge also ordered restitution in the amount of $170,219.19.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Monongalia County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Tax Return Preparer Pleads Guilty to Aiding in the Preparation of False Tax ReturnsRead the Press Release
A tax return preparer formerly of Roanoke, Virginia, pleaded guilty today to aiding and assisting in the preparation of false tax returns and filing a false personal tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to court documents, Saint Julien Pierre owned and operated a tax return preparation business, JP Tax Services LLC, in Roanoke, Virginia. Pierre aided and assisted in the preparation of 2013 and 2014 tax returns that falsely claimed energy-related credits and illegitimate itemized deductions, in order to fraudulently increase his clients’ refunds. Pierre also filed a false 2013 tax return for himself, on which he fraudulently reported that he was entitled to the same fuel tax credit he falsely claimed on his clients’ returns.
Pierre faces a statutory maximum sentence of three years in prison for each count of preparing false tax returns and three years in prison for the false tax return count. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Lauren A. Archer and Kevin Schneider and Assistant United States Attorney Charlene R. Day of the Western District of Virginia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tampa Man Sentenced to Twenty Years for Producing Child Pornography of Minors He Met OnlineRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Terrell Eady (33, Tampa) to 20 years in federal prison for producing child pornography. Eady had pleaded guilty on December 21, 2018.
According to court documents, between February and March 2010, Eady persuaded two female minors, whom he had met online, to produce and send him child pornography.
Eady met one of his victims on Facebook, where he had claimed to be a 15-year-old boy. He told the victim that he had obtained a naked video of her and threatened to send the video to her Facebook friends unless, she took naked photographs of herself for him, or filmed herself on a webcam. Unbeknownst to Eady, law enforcement took over the girl’s Facebook account and Eady attempted to persuade an undercover agent, whom Eady believed was the minor, to produce child pornography and send it to him.
The investigation revealed that Eady had previously communicated with a 16- year-old girl online. Eady had pressured that minor to produce and send him child pornography and threatened to send naked photographs of the girl to her friends on the internet unless, she produced more naked photographs for him. Pressured by Eady, the minor produced and sent him at least three pornographic images of herself.
This case was investigated by the FBI and the New York Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sports Manager Pleads Guilty to Money Laundering ConspiracyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Eric Dewayne Leak, 41, of Raleigh, N.C. pleaded guilty to money laundering conspiracy in connection with a bribery scheme involving college athletes.
North Carolina Secretary of State Elaine F. Marshall, John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (NCSBI) join U.S. Attorney Murray in making today’s announcement.
“Leak used the ill-gotten gains of one criminal scheme to fund another, and in the process potentially exposed student-athletes, their respective schools, and their families to scandal and tangible harm. This serial fraudster will now have to face the consequences of his corrupt ways,” said U.S. Attorney Murray.
“Today’s guilty plea underlines the message that when you come to North Carolina as an athlete agent you had better follow the law,” said Secretary Marshall. “We have demonstrated again that we can and will enforce the law, which is largely designed to protect student-athletes from having their careers damaged. The investigators did exemplary work on this investigation, and I thank the U.S. Attorney’s Office for its continued partnership in reaching today’s successful conclusion.”
“This is a prime example of what happens when you have compelling investigative work and a strong collaboration with other law enforcement and criminal justice agencies,” said Director Schurmeier. “For the NCSBI, it’s about integrity and fairness. It’s disappointing to know there are individuals who intentionally take advantage of our young people for personal gain and when that happens we want them brought to justice,” added Schurmeier.
According to plea documents and the bill of information, Leak was the owner of Hot Shots Sports Management, LLC (Hot Shots), a business in Raleigh, N.C., that provided, among other things, financial management services to professional athletes, including helping to transition student athletes from collegiate athletics into the National Football League (NFL) and the National Basketball Association (NBA). Leak admitted today in court that, from 2012 through 2015, he and others associated with Hot Shots executed a scheme to use the proceeds of previous criminal activity to promote new unlawful activity involving the payment of bribes to college athletes.
According to court records, from 2012 to 2014, Leak was the owner and executive director of Nature’s Reflections, LLC, (Nature’s Reflections) a mental health company with locations in Greensboro and Durham, N.C. Nature’s Reflections was enrolled as a Medicaid provider and received millions of dollars in direct reimbursements from Medicaid. From 2011 to 2013, Leak was involved in the payment of illegal kickbacks regarding the business of Nature’s Reflections. In March 2018, Leak pleaded guilty in federal court in the Middle District of North Carolina for his role in that scheme.
Court records show that Leak used money he made from the illegal scheme involving Nature Reflections’ to bribe college athletes, all of whom had received athletic scholarships and other benefits from their respective schools. Leak admitted in court today that, on multiple occasions from 2012 through 2015, he provided student-athletes, and on at least one occasion a student-athlete’s family member, with cash, clothes, loans, hotels rooms, entertainment, transportation, and other things of value, to influence those student-athletes to retain the services of Hot Shots. As Leak knew, the payment of bribes to student-athletes exposed the student-athletes’ schools to tangible economic harm, including, among other things, monetary fines, restrictions on athlete recruitment and the distribution of athletic scholarships, and the potential ineligibility of the schools to participate in various NCAA programs and tournaments.
Leak entered his guilty plea before U.S. Magistrate Judge David S, Cayer. The money laundering conspiracy charge carries a maximum prison term of 20 years and a $500,000 fine. Leak remains in custody. A sentencing date has not been set.
The Securities Division of the North Carolina Secretary of State, the North Carolina State Bureau of Investigation, and FBI investigated the case. Assistant U.S. Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Software Company Owner Gets Prison Sentence for Failing to Pay IRS More than $2.2M in Payroll TaxesRead the Press Release
PITTSBURGH -A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 2 years (24 months) in prison, restitution payable to the Internal Revenue Service in the amount of $2,285,807.70 and one year of supervised release on his conviction of willfully failing to pay over payroll taxes, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta Ambrose imposed sentence on Amarender Tiparthy, 50, of Coraopolis, PA.
In connection with sentencing, the court was advised that Tiparthy willfully failed to account for and pay over payroll taxes totaling $2,285,807.70, including all relevant conduct, for the 16 tax quarters in 2010 through 2013.
According to information provided the court, Tiparthy was the sole owner of Prodigy Software Group, Inc. ("Prodigy"), a Subchapter S business that provided companies and governmental entities with consulting services regarding information technology projects. The business model of Prodigy included the employment of individuals who then were assigned to various information technology projects pursuant to contracts negotiated and entered into by Tiparthy on behalf of Prodigy. Although Tiparthy collected payroll taxes for the 16 tax quarters in 2010 through 2013, he failed to truthfully account for and pay over the taxes when due to the Internal Revenue Service.
Assistant United States Attorney Mary McKeen Houghton prosecuted the case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the conviction in this case.
Schenectady Man Sentenced to 60 Months for Crack ConspiracyRead the Press Release
ALBANY, NEW YORK – Lance Green, age 37, of Schenectady, New York, was sentenced today to 60 months in prison, to be followed by 4 years of supervised release, for conspiring to distribute crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea on November 5, 2018, Green admitted that between December 2015 and May 2016, he was a member of a drug trafficking organization that conspired to distribute at least 28 grams of crack cocaine in Schenectady. Green has been in custody since his arrest in May 2016.
A co-conspirator, Ray A. Perkins, age 31, of Schenectady, pled guilty and was sentenced to 60 months in prison on July 11, 2017.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department and Schenectady County District Attorney’s Office.
This case was prosecuted by Assistant U.S. Attorneys Megan Kistler and Michael Barnett.
San Marcos Companies and Executives Charged with Tampering with Emission Control Devices on Diesel Truck FleetRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – April 11, 2019
SAN DIEGO – A federal grand jury in San Diego today returned a six-count indictment charging three San Marcos companies, two managers and a technician with various felonies related to tampering with emission control devices on heavy-duty diesel trucks.
Diamond Environmental Services LP, Diamond Maintenance Services, LLC and Diamond Solid Waste, Inc. (collectively “Diamond”) of San Marcos, California, plus owner and manager Arie Eric De Jong III, manager Warren Van Dam and technician Jorge Leyva Rodriguez of ECM Diesel Programming were charged with conspiring to manipulate the electronic control module (ECM) on Diamond’s fleet of heavy duty diesel trucks. The alleged manipulation was designed to disable the monitoring system that would otherwise cause the truck to effectively become non-operational if the diesel emissions filter became too dirty with diesel particulates.
Since model year 2008, EPA regulations required all heavy-duty diesel trucks to be equipped with a computerized system of electronics and sensors that monitored all emission-related engine systems and components. If a malfunction or problem occurred within the emission system - for example, the diesel particulate filter, or DPF, became dirty with soot that needed to be “regenerated” or burned off - the monitoring system would cause a Malfunction Indicator/Check Engine Light to be illuminated in the truck’s cabin. If the hardware emission system problem was not resolved, the monitoring system could limit the top speed of the truck to as low as five miles per hour (an effect commonly referred to as “limp mode” or “power reduced mode”), providing an incentive for the truck’s operator to repair the truck.
The indictment alleges that the defendants agreed to reprogram the ECMs to avoid the costs associated with the need to regenerate the diesel particulate filters (DPFs) on the heavy-duty diesel trucks in the fleets operated by defendant Diamond Environmental Services, LP and Diamond Solid Waste Services, Inc., and maintained by Diamond Maintenance Services, LLC. According to the indictment, employees removed the ECMs from trucks in their fleet and shipped them out of California to be reprogrammed, and, in addition, defendant Jorge Martin Leyva Rodriguez travelled from Mexico to Diamond locations in San Marcos and San Diego to reprogram the ECMs.
The indictment alleges that, in order to keep trucks operating with DPFs that had not been cleaned by regeneration, employees punched holes through the honeycomb cores of the DPFs on some of the heavy-duty diesel trucks to allow the free flow of air through this portion of the emission system, without filtration. It is further alleged that in order to conceal the fact that the emissions systems on some of the heavy-duty diesel trucks were not operating properly, employees prepared false opacity (smog) test results for such trucks, using an entirely different truck to achieve passing results. According to the indictment, when the co-conspirators learned that action by the authorities was imminent, defendant Rodriguez returned to the Diamond facilities to reprogram the software of the ECMs on the truck fleet in order to conceal the 2016 alterations. Defendants Diamond Environmental Services, LP, Arie Eric De Jong III and Jorge Levya Rodriguez are charged with evidence tampering, based on the later alterations to the ECMs.
“We are all the victims of environmental crime,” said U.S. Attorney Robert Brewer. “We aren’t going to allow companies to take shortcuts and pollute the environment.” Brewer praised prosecutor Melanie Pierson and investigators from the FBI and the U.S. Environmental Protection Agency, Criminal Investigation Division, for protecting the public.
San Diego FBI Acting Special Agent in Charge Suzanne Turner noted, “Today’s indictments underscore the FBI’s continued commitment to our law enforcement partners in combatting environmental crime in San Diego County. The alleged activity impacts every citizen and visitor to San Diego by contributing to declining air quality and increasing public exposure to airborne pollutants. The FBI will continue to work diligently to protect the citizens of San Diego County from entities engaged in illegal business practices which result in environmental harm.”
“The defendants have been charged with conspiring to violate the Clean Air Act and tampering with the emissions control equipment on their commercial diesel trucks,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in California. “The alleged crimes would increase air pollution linked to respiratory illnesses and environmental degradation. Today’s indictment serves as a reminder that EPA and our partners are steadfast in our commitment to protect human health and the environment.”
DEFENDANTS Criminal Case No. 18cr5382-GPC
Diamond Environmental Services, LP Organized: 1997 San Marcos, California
Diamond Maintenance Services, LLC Organized: 2004 San Marcos, California
Diamond Solid Waste Services, Inc. Incorporated: 2010 San Marcos, California
Arie Eric De Jong III Age: 52 San Marcos, California
Warren L. Van Dam Age: 52 San Marcos, California
Jorge Leyva-Rodriguez Age: 51 El Centro, California
SUMMARY OF CHARGES
Count 1
Conspiracy to Tamper with Monitoring Devices, 18 U.S.C. § 371
Maximum penalty: Five years in prison, fine of $250,000 ($500,000 for an organization)
Count 2-4 (charging Diamond Environmental Services, LP and De Jong)
Tampering with Monitoring Device, 42 U.S.C. §7413
Maximum Penalty: Two years in custody and/or $250,000 fine ($500,000 fine for an organization)
Count 5 (charging Diamond Environmental Services, LP; De Jong, Van Dam and Leyva-Rodriguez)
Tampering with Monitoring Device, 42 U.S.C. §7413
Maximum Penalty: Two years in custody and/or $250,000 fine ($500,000 fine for an organization)
Count 6 (charging Diamond Environmental Services, LP; De Jong and Leyva-Rodriguez)
Evidence Tampering, 18 U.S.C. §1512(c)(1)
Maximum Penalty: Twenty years and/or $250,000 fine
AGENCIES
Federal Bureau of Investigation
U.S. Environmental Protection Agency, Criminal Investigation Division
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Antonio Man Sentenced to 30 Years in Federal Prison for Production of Child PornographyRead the Press Release
In San Antonio today, a federal judge sentenced 23–year-old Tommy Ray Garcia to the maximum 30 years in federal prison for production of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
During sentencing yesterday, Senior U.S. District Judge David A. Ezra also ordered that Garcia be placed under supervised release for a period of ten years after completing his prison term.
“Words escape me. The crime here was unimaginably horrific. I am grateful that Judge Ezra sentenced Garcia to the maximum allowed by law. The sexual abuse of children is a problem that our country is not doing nearly enough about. We need to wake up,” stated U.S. Attorney Bash.
“The heavy sentence imposed on Mr. Garcia sends a clear message that there are serious consequences for those who exploit children in any way,” stated Special Agent in Charge, Shane Folden, HSI San Antonio. “Targeting crimes of this nature is a high priority for HSI. We will continue to dedicate HSI resources worldwide to identify and bring to justice these individuals.”
On January 2, 2019, before Judge Ezra, Garcia pleaded guilty to one count of production of child pornography. According to the factual basis filed in this case, which Garcia admitted was true, on multiple occasions in 2016, he chose a 16-month-old female who was unable to communicate her trauma, and sexually assaulted her while taking videos and pictures. Those videos and images were discovered after he distributed them on a social media application. During the execution of a search warrant at the defendant’s residence on January 31, 2018, Garcia admitted to authorities he produced the videos and images of child pornography. Garcia was arrested following his admission and has since remained in federal custody.
HSI San Antonio, the Royal Canadian Mounted Police and HSI Vancouver investigated this case with assistance from the National Center for Missing and Exploited Children. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sale of Firearm Nets Brookhaven Man 5 Years in Federal Prison for Illegally Possessing a Firearm as a Previously Convicted FelonRead the Press Release
Jackson, Miss. – Alfred Henderson, 28, of Brookhaven, was sentenced today by Senior U.S. District Judge David C. Bramlette III to 60 months in federal prison, followed by three years of supervised release, for illegally possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Henderson was also ordered to pay a $1,500 fine.
On October 23, 2017, a confidential informant successfully purchased a .44 Caliber rifle from Henderson, a previously convicted felon, on parole. Henderson was previously convicted in Lincoln County for sale of controlled substances, burglary of a dwelling, and conspiracy to commit burglary. He was indicted on July 25, 2018, for being a felon in possession of a firearm. He pled guilty before Judge Bramlette on January 9, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Candace Gregory Mayberry.
Roanoke Tax Return Preparer Pleads Guilty to Aiding in the Preparation of False Tax ReturnsRead the Press Release
Roanoke, VIRGINIA – A tax return preparer formerly of Roanoke, Virginia, pleaded guilty today to aiding and assisting in the preparation of false tax returns and filing a false personal tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to court documents, Saint Julien Pierre owned and operated a tax return preparation business, JP Tax Services LLC, in Roanoke, Virginia. Pierre aided and assisted in the preparation of 2013 and 2014 tax returns that falsely claimed energy-related credits and illegitimate itemized deductions, in order to fraudulently increase his clients’ refunds. Pierre also filed a false 2013 tax return for himself, on which he fraudulently reported that he was entitled to the same fuel tax credit he falsely claimed on his clients’ returns.
“As this case indicates, the Department of Justice is committed to prosecuting tax fraud, including bogus refund, credit, and deduction schemes,” U.S. Attorney Cullen stated today. “No preparation fee, commission, or refund earned through fraudulent means is worth a felony conviction and the possibility of a prison sentence.”
Pierre faces a statutory maximum sentence of three years in prison for each count of preparing false tax returns and three years in prison for the false tax return count. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Lauren A. Archer and Kevin Schneider and Assistant United States Attorney Charlene R. Day of the Western District of Virginia, who are prosecuting the case.
Retired Navy Vet Sentenced to 120 Months in Prison for Attempted Online Enticement of A MinorRead the Press Release
MACON – A Dodge County resident was sentenced to 120 months in prison, followed by 10 years of supervised release, after pleading guilty to one count of Attempted Online Enticement of a Minor, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. The Honorable Marc Treadwell sentenced Bryan Alan Asbell, Sr., 56, of Chester, Georgia in federal court in Macon on Wednesday. Mr. Asbell pleaded guilty to his crime in January. Mr. Asbell will be required to register as a sex offender. There is no parole in the federal system.
According to the plea agreement, on March 15, 2018, Mr. Asbell responded to an online post by agents with the Air Force Office of Special Investigations (AFOSI) posing as a 14-year-old girl living on Robins Air Force Base in Warner Robins. The post read, “Nuthing 2 do after school, can you get on base? wanna hang out or chat? hit me up!” On the same day, Mr. Asbell responded, “Must ask age? I am a veteran 55yoa white male.” The AFOSI undercover agent responded that it was a 14-year-old girl, and Mr. Asbell acknowledged the undercover agent’s age and continued to talk with the agent via email and cellular messages. Mr. Asbell discussed meeting up and what he would do if they did meet up, and indicated he would perform sexual acts. Mr. Asbell agreed to meet on Robins Air Force Base on April 5, 2018, when told that the undercover agent’s “mother” would be out of the house. Mr. Asbell was arrested when attempting to enter the meeting place, with a necklace and fast food as gifts for the agent he believed to be a young girl he was meeting for sex.
“Predators are online, seeking vulnerable children for their perverse sexual gratification,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “This Office will pursue these predators and prosecute them to the fullest extent of the law. I want to express my gratitude to the Air Force Office of Special Investigations for their excellent work protecting minors.”
This case was investigated by the Air Force Office of Special Investigations. Assistant U.S. Attorneys Shanelle Booker and Michael Solis are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Recent Tax Prosecutions Serve as A Reminder to Accurately File and Pay Taxes as the April 15 Deadline ApproachesRead the Press Release
HAMMOND – The U.S. Attorney’s Office for the Northern District of Indiana remind all Hoosiers that the deadline for filing federal income tax returns is Monday, April 15. Although the filing season is nearing the end, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division work year round to protect the integrity of our nation’s tax system by investigating and prosecuting individuals who violate the tax laws.
U.S. Attorney Kirsch said, “We continually work with the Internal Revenue Service to aggressively investigate and prosecute people who commit all levels of tax fraud. Cheating the IRS -- stealing from the United States Treasury -- is stealing from all of us.”
“Taxpayers thinking about participating in fraudulent tax schemes, such as failing to report all forms of income or falsifying deductions should take a good look at the serious and detrimental consequences of taking the next step,” stated Special Agent in Charge Gabe Grchan of the IRS Criminal Investigation Division. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time, large tax bills, including substantial fines, interest and penalties.”
As the tax filing season winds down next week, the following court actions serve as a reminder to taxpayers, to think before filing a false or fraudulent tax return and to be wary of any schemes that falsify your income or deductions.
RANDALL STILES, of Fort Wayne, was convicted and sentenced for failure to file a federal tax return and other federal violations. STILES will serve 6 months in prison and pay $235,055 in restitution to the IRS.
TARA HIGHTOWER was convicted for preparing false federal tax returns. HIGHTOWER owned and operated a tax preparation service TZH Consulting and collected fees for tax preparation services. She did not report her collected fees on her personal federal tax returns. HIGHTOWER was sentenced to 5 months’ imprisonment and ordered to pay $62,303 in restitution to the IRS.
SHERECE MOORE was convicted for assisting in the preparation of a false federal tax return. MOORE was employed as a tax return preparer for Quick Sam Tax Refund in Gary, Indiana. MOORE was sentenced to 12 months’ probation.
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Project Charleston Update: Mother and Daughter Plead Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A mother and her daughter pled guilty to federal drug charges, announced United States Attorney Mike Stuart. Sherry Gray, 62, pled guilty to conspiring to distribute methamphetamine in Kanawha County in August and September 2018. Gray’s daughter, Miranda Brandon, 38, pled guilty to distributing methamphetamine on August 1, 2018, and possessing a firearm in furtherance of a drug trafficking crime on September 28, 2018.
“It’s all in the family. This Project Charleston takedown dismantled a multi-state, poly-drug organization responsible for trafficking a significant amount of illegal drugs on Charleston’s West Side,” said United States Attorney Mike Stuart. “Although removing drug dealers from our community is gratifying, it’s tragic to see mother and daughter working side-by-side in the drug trade.”
On August 1, 2018, Brandon and Gray each participated in delivering methamphetamine to a confidential informant. The deal took place inside of a vehicle parked in a residential neighborhood on Charleston’s’ West Side. A week later, Gray later delivered additional methamphetamine to the same confidential informant at the same location.
Brandon and Gray each face a prison sentence of up to 20 years in prison when they are sentenced on August 13, 2019. Additionally, Brandon will be subject to a mandatory minimum sentence of five years for carrying a firearm during and in relation to a drug trafficking offense.
The Drug Enforcement Administration (DEA) and the Metro Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Matt Davis is handling the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
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President of E-Commerce Company Pleads Guilty to Price FixingRead the Press Release
HOUSTON - An e-commerce company president entered a guilty plea today for conspiring to fix prices for customized promotional products sold online to customers in the United States.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office.
According to the felony charges filed Nov. 1, 2018, and the plea agreement today, Akil Kurji, owner and president of Gennex Media, and his co-conspirators agreed to fix the prices of customized promotional products sold online from as early as May 2014 until at least June 2016. These products included wristbands, lanyards, temporary tattoos and buttons. Kurji and his co-conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreement. Kurji is the fifth individual to enter a guilty plea in the Department of Justice’s ongoing promotional products investigation. To date, 11 defendants have been charged in the investigation into the online customized promotional products industry.
“Price fixing for small, logo branded items is illegal, just like it would be for a pair of Fortune 500 companies,” said U.S. Attorney Patrick. “In the end, consumers are harmed by paying inflated prices for items.”
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to prosecuting executives who conspire to fix prices of products sold online,” said Delrahim. “The Department and its law enforcement partners are committed to detecting and preventing collusion carried out using encrypted messaging applications and social media platforms.”
“The FBI investigates unlawful business practices including those that seek to corrupt business markets,”said Turner. “We work hard to safeguard American consumers so that they can buy goods and services with confidence they are paying a competitive price.”
Kurji is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals. The maximum fine for an individual 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.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the U.S. Attorney’s Office of the Southern District of Texas and the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
President of E-Commerce Company Pleads Guilty to Price FixingRead the Press Release
An e-commerce company president entered a guilty plea today for conspiring to fix prices for customized promotional products sold online to customers in the United States, the Department of Justice announced.
Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas, and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
According to the felony charges filed on Nov. 1, 2018, and the plea agreement filed today in the U.S. District Court of the Southern District of Texas in Houston, Akil Kurji, owner and president of Gennex Media, and his co-conspirators agreed to fix the prices of customized promotional products sold online from as early as May 2014 until at least June 2016. These products included wristbands, lanyards, temporary tattoos, and buttons. Kurji and his co-conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype, and Whatsapp, to reach and implement their illegal agreement. Kurji is the fifth individual to enter a guilty plea in the Department of Justice’s ongoing promotional products investigation. To date, 11 defendants have been charged in the investigation into the online customized promotional products industry.
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to prosecuting executives who conspire to fix prices of products sold online,” said Assistant Attorney General Delrahim. “The Department and its law enforcement partners are committed to detecting and preventing collusion carried out using encrypted messaging applications and social media platforms.”
“Price fixing for small, logo branded items is illegal, just like it would be for a pair of Fortune 500 companies,” said U.S. Attorney Patrick. “In the end, consumers are harmed by paying inflated prices for items.”
“The FBI investigates unlawful business practices including those that seek to corrupt business markets,” said Perrye K. Turner, Special Agent in Charge of FBI’s Houston Field Office. “We work hard to safeguard American consumers so that they can buy goods and services with confidence they are paying a competitive price.”
Kurji is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals. The maximum fine for an individual 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.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section, with the assistance of the U.S. Attorney’s Office of the Southern District of Texas and the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Portland Man Pleads Guilty for Role in Interstate Marijuana Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—On Thursday, April 10, 2019, Paul Eugene Thomas, 38, of Portland, pleaded guilty to one count of conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises, and one count of money laundering for his role in a vast conspiracy to traffic marijuana grown in Portland to Virginia and Texas.
According to court documents, Thomas and co-defendants Jody Tremayne Wafer, 29, Trent Lamar Knight, 30, and Brittany Lesanta Kizzee, 28, of Houston, Texas and Raleigh Dragon Lau, 33, also of Portland, conspired to manufacture marijuana in Portland, transport it across state lines, and sell it in Virginia and Texas.
Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. As part of this investigation, federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, pieces of heavy equipment, a yacht, and three houses used as marijuana grow sites, all since August 2017.
Conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises carries a maximum sentence of 40 years in prison, a mandatory minimum sentence of 5 years in prison, a $5 million fine, and a lifetime of supervised release. Money laundering carries a max sentence of 20 years in prison, a $250,000 fine, and three years’ supervised release. As part of the plea agreement, Thomas has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.
Thomas will be sentenced on August 6, 2019 before U.S. District Court Judge Robert E. Jones.
Kizzee entered a guilty plea on November 27, 2018, and is scheduled to be sentenced on May 7, 2019. Lau and Knight have scheduled change of plea hearings for April 22, 2019 and May 8, 2019, respectively. Wafer is scheduled for trial on June 18, 2019.
In a related case, in August 2018, Cole William Giffiths was charged of conspiring to manufacture marijuana in Hood River, Oregon and shipping it to Florida. He has scheduled a change of plea hearing for April 22, 2019.
This case was investigated by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations and the FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Philadelphia Man Sentenced to 87 Months in Prison for Gun TraffickingRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Renard Gray, of Philadelphia, was sentenced to 87 months in federal prison by United States District Judge Petrese B. Tucker for his participation in a criminal conspiracy to traffic firearms into the Philadelphia region.
Over the course of several months in 2017, Gray and his coconspirators illegally obtained straw-purchased and stolen firearms from Georgia and other states, which they then shipped to Philadelphia and sold in black market transactions in the city. In late 2017, an undercover officer infiltrated the trafficking ring and secretly recorded a number of gun transactions conducted by Gray and his coconspirators. During two of these transactions, Gray also sold quantities of cocaine to the undercover officer.
During one conversation recorded by the undercover officer, Gray boasted about the sophistication of his gun trafficking operation and predicted that law enforcement would never “track [the guns] back to me.” This prediction proved false on March 13, 2018, when a federal grand jury indicted Gray and two of his coconspirators on charges related to conspiracy, gun trafficking, illegally transporting firearms, and distributing cocaine. Gray plead guilty to all counts on May 31, 2018.
“Gun violence in the City of Philadelphia is a scourge on our city, one which is enabled by the illegal trafficking of firearms and black market sales to individuals who should not have access to them,” said U.S. Attorney McSwain. “Criminals like defendant Gray should be on notice that federal law enforcement will track these back to you, and we will prosecute you to the fullest extent the law allows. We thank our federal and local law enforcement partners for their work in this investigation.”
“The primary goal of ATF’s firearms trafficking strategy is to prevent violent crime by disrupting and dismantling the firearms trafficking organizations and networks responsible for supplying violent offenders with crime guns,” said Donald Robinson, Special Agent in Charge of the Philadelphia Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice is a top priority for the Philadelphia Field Division.”
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from the Philadelphia Police Department, and was prosecuted by Assistant United States Attorney Sean P. McDonnell.
Pawtucket Man Detained on Drug Trafficking ChargesRead the Press Release
PROVIDENCE – A Pawtucket man who fled members of the FBI Safe Streets Task Force on Tuesday during an investigation into his alleged drug trafficking activities was arrested by FBI agents on Wednesday in Fall River, Mass., and ordered detained today following his initial appearance in U.S. District Court in Providence on drug trafficking charges, announced United States Attorney Aaron L. Weisman and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
According to court documents, over the past week members of the FBI Safe Streets Task Force have been investigating the alleged drug trafficking activities of 24-year-old Luis Leon. Task force members had information that Leon was expecting to receive a large shipment of fentanyl. As part of the investigation task force members established surveillance of Leon’s residence. On Tuesday afternoon agents and officers saw an individual enter Leon’s residence carrying a large duffel bag. A short time later they observed Leon leave the residence and place the duffel bag in the back of a dark colored pickup truck and drive off. He was alone in the vehicle.
As law enforcement moved into position to follow the pickup truck they observed Leon repeatedly looking into his rear view mirrors at their vehicle. Investigators decided to attempt to effect a traffic stop, signaling the driver to stop by illuminating their flashing lights and engaging their siren. Leon failed to stop, instead driving away at a high rate of speed. Because of the reckless manner in which Leon was operating the truck, investigators did not further pursue the vehicle.
Law enforcement continued to drive the route Leon’s truck appeared to take, coming upon an accident scene a short distance away. Witnesses told police that a pickup truck struck a vehicle causing the vehicle to careen into a building. Witnesses told police the pickup truck fled the accident scene without stopping.
Several minutes later law enforcement learned that a pickup truck with heavy front end damage was pulled into a nearby parking lot and abandoned. A witness advised law enforcement that they saw the driver get out of the vehicle, toss a duffel bag into bushes nearby, and then run off. The description of the driver fit the description of Leon. Agents retrieved the bag which was found to contain approximately 634.4 grams of suspected fentanyl and approximately 429.5 grams of suspected cocaine.
Law enforcement developed information overnight Tuesday and on Wednesday morning that Leon was likely at a residence in Fall River. They established surveillance of the residence and arrested Leon Wednesday afternoon as he exited the residence.
Leon made an initial appearance in U.S. District Court in Providence today on a criminal complaint charging him with conspiracy to possess cocaine with the intent to distribute and possession of cocaine with the intent to distribute. He was ordered detained by Magistrate Judge Lincoln D. Almond.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Oxford Man Sentenced to 60 Months for Illegally Possessing a Firearm and AmmunitionRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that Chief United States District Judge Terrence W. Boyle sentenced MAURICE SHAWAYNE HARRIS, a/k/a “Gator”, 38, of Oxford to 60 months’ imprisonment, followed by 3 years of supervised released.
On January 2, 2019, HARRIS pled guilty to possession of a firearm and ammunition by a convicted felon.
In January 2018, the Oxford Police Department attempted to make a traffic stop of a vehicle occupied by HARRIS, to investigate a report of shots fired in the area. HARRIS jumped and ran from the vehicle. Inside of that vehicle officers recovered a box of .38 caliber ammunition. Officers traced HARRIS’s flight path and recovered a Taurus model .38 caliber revolver. HARRIS was later arrested by the Oxford Police Department.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Oxford Police Department and the North Carolina State Highway Patrol.
Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.
Owners of Fraudulent Debt Collection Company Convicted of Conspiring to Defraud Victims of Millions of DollarsRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted late yesterday Laurence A. Sessum, 46, and Jacqueline Dianne Okomba, 50, both of Charlotte, of conspiring to commit wire fraud in connection with a fraudulent debt collection scheme that defrauded victims throughout the United States of at least $5.7 million, announced Andrew Murray, United States Attorney for the Western District of North Carolina. Sessum was also convicted of wire fraud, conspiracy to commit money laundering, and obstruction of justice. Okomba was also convicted of obstruction of justice.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins the U.S. Attorney’s Office in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, from October 2013 to January 2017, Sessum was the owner and operator of Direct Processing LLC (Direct Processing) a fraudulent debt collection company located in Mecklenburg County. Sessum was also the leader and organizer of the debt scheme. His codefendant, Okomba, was the registered agent and member-owner of Direct Processing, who also worked as a manager in charge of overseeing other company collectors and managed the finances and bank accounts of Direct Processing.
As part of the scheme, Sessum purchased lists of purportedly outstanding accounts, which they used to make fraudulent debt collections. Sessum intentionally sought out lists of old and unenforceable debts. Direct Processing used a dialer service to leave automated messages for victims, directing them to contact the company to resolve the purported debts. To induce victims to call back, the automated messages often contained fraudulent and misleading information, including that there was “possible pending litigation” against the victims, or that there was a “process server” attempting to locate them.
When the victims returned the calls, they were connected with collectors working for Direct Processing. The collectors made similar threats and fraudulent statements about the purported debts and regularly used prepared scripts, including scripts handed out by Direct Processing management, that were designed to scare and intimidate victims to pay the purported debts. The collectors used fake “shake names” when making calls to the victims, claiming that they were “retained” to “investigate” and “file” charges against the victims. Collectors also told victims that the sheriff was prepared to serve victims with legal documents, and in some cases threatened victims with jail. The defendants’ scheme harmed many elderly and retired victims, several of whom testified at trial about the lies and threats they were told to induce them to make payments.
Direct Processing also sent victims fraudulent documents, prepared to look like legal documents that had been filed in court, demanding restitution. Using threats and other intimidating tactics, company collectors regularly collected amounts that were not owed or they were not authorized to collect. One victim testified during trial that Direct Processing’s aggressive and fraudulent collections tactics made her feel “devastated” out of concern that she would be sent to jail if she failed to pay. That victim lost $1,250 in the scheme.
To disguise the fraudulent nature of the business, collectors often used fake company names when communicating with victims. In addition, Sessum directed others to establish nominee bank accounts, which were used to pay operational and other expenses associated with the fraudulent debt collection company.
When Sessum learned the FBI had seized funds held in an account associated with Direct Processing, Sessum, Okomba, and others removed Direct Processing computers, documents, and records from a location associated with the company in order to impede the federal investigation. When FBI agents arrived at the location to execute a search warrant, they found computer accessories, such as monitors, at collectors’ cubicles but no desktop units. When FBI agents questioned Okomba about the computers that had been removed, Okomba falsely told the agents that Direct Processing did not own any computers.
Sessum and Okomba are awaiting sentencing and face up to 20 years’ imprisonment on each count of conviction.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorneys William M. Miller and Dallas J. Kaplan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.
New Windsor Tax Preparer Charged with Tax Evasion and 83 Counts of Aiding and Assisting Preparation of False and Fraudulent Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced today that EVERSLEY E. BARRETT, the owner of a tax preparation business named Eversley Tax, in New Windsor, New York, was charged with assisting the preparation of false and fraudulent tax returns and tax evasion. BARRETT surrendered to authorities this morning and was presented before U.S. Magistrate Judge Paul E. Davison in White Plains federal court.
According to the allegations contained in the Indictment unsealed today[1]:
From in or about 2012 through 2016, BARRETT’s tax preparation business prepared and submitted to the IRS, on average, over 700 tax returns each year. Some of these tax returns were false and fraudulent in that they contained various fabricated and fraudulently inflated items such as filing statuses, rental real estate losses, unreimbursed employee business expenses, gifts to charity, real estate-related expenses and application of certain tax credits. BARRETT’s inclusion of these false and fraudulent deductions led the returns to fraudulently claim refunds.
As alleged in the indictment, BARRETT also prepared and filed his own tax returns. From in or about 2012 through 2016, BARRETT’s tax returns also contained many of the same fabricated and fraudulently inflated items, such as filing statuses, rental real estate losses, unreimbursed employee expenses, gifts to charity and real estate-related expenses. In addition, BARRETT, who received many of his fees for his tax preparation services in cash, failed to report more than $300,000 in gross receipts for Eversley Tax for the tax years 2012 through 2015.
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BARRETT, 64, is charged in 84 counts. The first 83 counts charge him with aiding and assisting the preparation of false and fraudulent U.S. tax returns, each of which carries a maximum sentence of three years in prison and a maximum fine of $250,000. He is also charged with one count of attempting to evade or defeat tax, which carries a maximum sentence of five years in prison and a maximum fine of $250,000. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised IRS-CI for their outstanding work in the investigation.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Multiple Felons Charged with Federal Gun Crimes Appear in CourtRead the Press Release
CHARLESTON, W.Va. – Multiple felons charged with federal gun crimes appeared in court this week, announced United States Attorney Mike Stuart.
- Christopher Saunders, 26, of Parkersburg was sentenced to 63 months in prison for being a felon in possession of a firearm. Saunders pled guilty to a single-count indictment in January 2019, admitting he sold a sawed-off shotgun to a confidential informant on March 17, 2018. Saunders is prohibited from possessing any firearm due to 2012 conviction for malicious wounding in Wood County Circuit Court. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Matt Davis handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
- Chris Pauley, 42, of Logan, was sentenced to 57 months in prison for being a felon in possession of a firearm. Pauley pled guilty in December 2018, admitting he carried a sawed-off .22 caliber rifle with him while taking a walk in Blair, Logan County. Saunders is prohibited from possessing any firearm due to 2008 conviction for grand larceny in Boone County Circuit Court. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Matt Davis handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
- Antonio Parnell, 42, from Detroit, Michigan, was sentenced to 84 months in prison by Judge Copenhaver. Parnell previously pled guilty to being a convicted felon in possession of a firearm. On April 14, 2018, Parnell got into a violent altercation with two victims and with officers from the Charleston Police Department. Parnell had a firearm in his possession that he threw when the officers approached him. He was arrested and has been in custody since that day. Parnell has three felony convictions under three different names. The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Steve Loew handled the prosecution.
- Antoine Maurice Brown, 36, entered a guilty plea to possession of a firearm by a prohibited person. Brown admitted that on December 16, 2018, he was driving a vehicle and was pulled over because an officer smelled burnt marijuana emanating from Brown’s vehicle at the intersection of US 119 and Oakwood Road in Charleston. Brown moved a 9mm Taurus pistol from the center console of the vehicle and put it under a child’s car seat located in the back seat of the car. Officers searched the vehicle and located the subject firearm. Brown is prohibited from possessing firearms because he has two prior felony convictions. Brown faces up to ten years in federal prison when he is sentenced on July 9, 2019. The investigation was conducted by the Charleston Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Senior United States District Judge John T. Copenhaver Jr. presided over the plea hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
“No one is a stronger supporter of the Second Amendment than this United States Attorney,” said United States Attorney Mike Stuart. “This is not an issue about the Second Amendment but, rather, one of enforcing federal law to keep firearms out of the hands of violent felons and prohibited persons to ensure the safety of law enforcement and the public.”
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Media Advisory: United States Attorney’s Office and Center Point-Urbana High School to Host School Threats ForumRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa recently collaborated with prosecutors, law enforcement, mental health providers, and school officials to discuss how best to prevent and address school threats. The group gathered existing resources and developed their own materials to build a school threats prevention resource guide.
The group is now following that effort by moderating a School Threats Forum. The forum will be held at Center-Point Urbana High School and will include moderated discussion and audience questions detailing the prevention of and response to school threats. The forum will address mental health resources available in the community as well as behavioral indicators that may present cause for concern. Law enforcement officers and prosecutors will discuss how undeterred behavior can potentially lead to the involvement of the criminal justice system.
Numerous local agencies will be represented at the forum, including the United States Attorney’s Office, Center Point-Urbana High School, the Linn County Attorney’s Office, the Sixth Judicial District Juvenile Court Services, the Abbe Center for Community Mental Health, Foundation2, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Linn County Sheriff’s Office.
Event Details
When: April 17, 2019
Where: CPU High School Gym, 145 Iowa St., Center Point, Iowa
Time: 7:00 P.M. to 8:15 P.M.
This is a camera friendly event and interview opportunities will be available. Media members please RSVP to Tony Morfitt at [email protected] if you plan to attend.
Follow us on Twitter @USAO_NDIA.
Masseuse Sent to Federal Prison for Heroin TraffickingRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old Houston woman has been sentenced in Corpus Christi federal court following her conviction of possessing with the intent to distribute approximately 10 pounds of heroin, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Marlo Denise Young Feb. 6, 2019, following two days of trial and approximately 20 minutes of deliberations.
Today, Senior U.S. District Judge Janis Graham Jack handed Young a 168-month sentence to be immediately followed by five years of supervised release. At the hearing, additional evidence was offered that demonstrated Young lied under oath and detailed how she attempted to obstruct justice by having a family member remotely delete text messages and map data from her cell phone.
On Oct. 30, 2018, law enforcement conducted a traffic stop on Young near Kingsville. At that time, officers found more than $4,800 in cash, hydroponic marijuana and approximately 4.7 kilograms of heroin. The heroin was concealed inside Young’s car battery and valued at approximately $188,000.
Young claimed she was a licensed physical therapist in the Houston area. However, the evidence showed she was actually an unlicensed masseuse who provided massages to people in their hotels and homes.
At trial, Young denied knowingly transporting the narcotics, claiming instead that she was taking a trip to the valley with a friend who was moving.
However, federal agents testified about their investigation which revealed the Young was traveling alone, had made another trip to the valley the previous day and that she had fabricated the story she told law enforcement officers.
Young also attempted to obstruct justice and impede the investigation after her arrest. While in custody, she instructed an individual to remotely log into her phone account and delete specific text messages from her phone, which was in law enforcement’s possession. Young also directed this individual to delete travel information from the navigation application on her phone, which might have allowed authorities to retrace her route.
Young 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 and the South Texas Specialized Crimes and Narcotics Task Force conducted the investigation. Assistant U.S. Attorneys Jeremy C. Fugate and Robert D. Thorpe are prosecuting the case.
Maryland MS-13 Gang Member Sentenced to 33 Years in Federal Prison for a Violent Racketeering Conspiracy, Including Murder and ExtortionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Noe Coreas-Mejia, a/k/a “Tsunami,” age 22, of Hyattsville, Maryland, today to 33 years in federal prison, followed by five years of supervised release, for conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Chief Russell E. Hamill, III of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
“We will not tolerate the violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “Today’s sentence sends a strong message to MS-13 gang members that federal, state, and local law enforcement will continue to work together to find and bring to justice MS-13 members who commit these heinous crimes.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). A person within the participating cliques is selected as the Program leader.
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”
According to his plea agreement, beginning in 2015, Coreas-Mejia was a member of the Parkview clique. Coreas-Mejia admitted that he conspired with other MS-13 members and associates to participate in numerous acts in furtherance of the racketeering conspiracy, including extortion and murder.
As detailed in his plea agreement, in 2015, Coreas-Mejia and other members and associates of MS-13 extorted persons conducting business in the Langley Park area of Prince George’s County, by demanding cash payments, known as “rent.”
According to his plea agreement, in November 2015, Coreas-Mejia and other MS-13 members and associates held a disciplinary procedure for an MS-13 member, called a “court.” During the “court,” the individual was beaten for approximately 13 seconds. The victim reported the assault to law enforcement, which resulted in criminal charges being filed against Coreas-Mejia and other MS-13 members and associates. In retaliation, Coreas-Mejia planned to murder the victim, and directed two MS-13 members from the Parkview clique to assist.
Coreas-Mejia admitted that on December 16, 2015, he and other MS-13 members and associates lured the victim to a secluded area beneath the 495 overpass in the Silver Spring area of Montgomery County, purportedly for Coreas-Mejia to speak with the victim concerning the victim’s reporting of the “court” proceeding to law enforcement. A co-conspirator met the victim and walked with him to the secluded location, where Coreas-Mejia and the second co-conspirator were waiting. Coreas-Mejia and his two co-conspirators attacked the victim, stabbing him multiple times and hitting him with large stones. The victim attempted to get away and ran into a stream. Coreas-Mejia and at least one co-conspirator continued to hit the victim with stones until the victim collapsed unconscious in the stream. Coreas-Mejia and his co-conspirators left the victim submerged in the stream, where the victim died.
Law enforcement found the victim’s body, still submerged in the stream, on December 22, 2015. According to the autopsy report, the cause of death was drowning, multiple blunt-force injuries, and multiple sharp-force injuries.
Co-defendants Jose Augustin Salmeron-Larios, a/k/a “Joseph Morales-Martinez,” “Angel Salvador Gutierrez,” “Yankee,” and “Kean,” age 26, of Severn, Maryland; Juan Carlos Espinal-Rapalo, a/k/a “Chiki,” age 21; Daniel Adonai Ramos-Romero, a/k/a “Romero Taylor Binga,” “Taylor Romero,” and “Binga,” age 22; and Oscar Delgado-Perez, a/k/a “Complicado” and “Indio,” age 26, all of Gaithersburg, Maryland, have pleaded guilty to the racketeering conspiracy and other charges related to their MS-13 gang activity. They remain detained as they await sentencing.
Co-defendant Kevin Henriquez-Chavez, a/k/a “Loco” and “Crazy,” age 24, of Washington Grove, Maryland, also pleaded guilty to the racketeering conspiracy and was sentenced to 30 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA; HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Hur thanked Assistant United States Attorneys William D. Moomau, Ray D. McKenzie, Catherine K. Dick, and Burden H. Walker who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Manhattan Doctor Indicted for Diverting Drugs and Causing Patient’s Overdose DeathRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an Indictment in Manhattan federal court charging a doctor who practiced in Manhattan, GORDON FREEDMAN, with 16 counts of distributing oxycodone, fentanyl, and other controlled substances to a particular patient, including one count for distributing fentanyl that caused the patient’s death. FREEDMAN was arrested this morning, and is expected to be presented before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Physicians take an oath to practice medicine for the sole purpose of improving their patients’ health. Instead, Gordon Freedman allegedly used his medical license to overprescribe dangerous opioids to a patient. When overprescribing deadly fentanyl for no legitimate medical purpose, it is just a matter of time before luck runs out – and in this case it has – as a patient of Freedman’s has allegedly suffered a fatal overdose as a result of Freedman’s alleged misconduct.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Everyone knows the inherent danger in buying and selling drugs on the street, but when doctors overprescribe legal substances in lethal quantities, they too contribute to the overall drug epidemic. These drugs pose a real threat to our society. We hope to send the message today that there’s no quick fix for doctors who hide behind their prescription pad—this is criminal activity, and it will be treated as such.”
As alleged in the Indictment[1] unsealed today in Manhattan federal court:
From in or about 2013 through in or about May 2017, FREEDMAN, who worked at and owned a private pain-management office on the Upper East Side of Manhattan and was an associate clinical professor at a large hospital in Manhattan, prescribed numerous controlled substances to a particular patient (“Patient-1”), including enormous quantities of oxycodone and fentanyl. For example, in 2013 alone, FREEDMAN prescribed Patient-1 approximately 85,427 oxycodone pills – an average of approximately 234 oxycodone pills per day – containing a total of approximately 2,422,435mg of oxycodone.
On or about April 13, 2017, FREEDMAN gave Patient-1 prescriptions for approximately 150 doses of a drug containing fentanyl, and for approximately 950 oxycodone pills containing approximately 30mg of oxycodone per pill. On or about May 4, 2017, Patient-1 died of a fentanyl overdose after ingesting a quantity of the drug prescribed by FREEDMAN on or about April 13, 2017.
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FREEDMAN, 58, of Mount Kisco, New York, is charged with one count of distributing controlled substances resulting in the death of another, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison. FREEDMAN is also charged with 15 counts of distributing controlled substances, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
In March 2018, FREEDMAN was indicted in a separate case, U.S. v. Gordon Freedman et al., 18 Cr. 217 (KMW), on charges of conspiracy to violate the Anti-Kickback Statute, violation of the Anti-Kickback Statute, and conspiracy to commit honest services wire fraud. Trial in that case is scheduled to begin November 4, 2019, before the Honorable Kimba M. Wood.
Mr. Berman praised the FBI and the New York City Police Department (“NYPD”) for their investigative efforts and ongoing support and assistance with the case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to Five Months in Prison for Role in Bank Fraud ConspiracyRead the Press Release
CONCORD - Angel Forteza-Concepcion, 20, of Manchester, has been sentenced to five months in prison and ordered to pay restitution in the amount of $4,055.85 for conspiracy to commit bank fraud, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, from November 2017 to February 2018, Forteza-Concepcion and Ariel Mendoza, a citizen of the Dominican Republic, knowingly deposited stolen checks and money orders totaling more than $7,100 into accounts at four federally insured banks. They then obtained proceeds from the stolen checks and money orders by using debit cards assigned to the accounts to withdraw cash at ATMs and perform debit card transactions.
Forteza-Concepcion pleaded guilty on December 19, 2018. Mendoza is serving an 18-month prison sentence and faces likely deportation to the Dominican Republic after he completes his sentence.
“The defendants in this scheme obtained money from multiple banks by depositing stolen checks and money orders,” said U.S. Attorney Murray. “This type of conduct cannot be tolerated. In order to ensure the integrity of our banking system and protect Granite Staters’ finances, we will aggressively prosecute those who participate in fraud schemes.”
“The U.S. Postal Inspection Service works alongside our local law enforcement partners to conduct investigations of those individuals who compromise the personal information of our customers and who fraudulently use the U.S. Mail for financial gains,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “The integrity of the U.S. Mail is vital to our business and we will continue to work hard to protect it.”
The United States Postal Inspection Service investigated the case, with assistance from the Police Departments in Manchester and Salem, New Hampshire, and Lawrence, Massachusetts. The case was prosecuted by Assistant United States Attorney Robert M. Kinsella.
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Man Who Led Police on Chase on Lookout Mt. SentencedRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a northeast Alabama man for illegal gun possession, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Karon O. Bowdre sentenced Dennis John Johnson, 43, to 87 months in prison and three years of supervised release.
Dennis John Johnson pled guilty in November 2018 to the federal charge of being a convicted felon in possession of a Smith & Wesson .40 Caliber semi-automatic pistol. According to the indictment Johnson had prior felony convictions of second-degree assault in Marshall County Circuit Court in November 1997, unlawful possession of a controlled substance in Etowah County Circuit Court in June 2001, and third-degree robbery in Marshall County Circuit Court in April 2014.
“Career criminals and illegal firearms are a dangerous combination,” Town said. “Anyone who endangers the lives of law enforcement and civilians trying to escape justice will be prosecuted vigorously.”
Johnson had the handgun with him when police arrested him on April 9 as he ran from a pickup truck he abandoned on Georgia Highway 48 in Chattooga County, Ga., according to a Fort Payne Police arrest report. Johnson jumped from the truck after fleeing police in Fort Payne and speeding away along U.S. Highway 11 to Hammondville. His flight took him onto Alabama Highway 117 and through Valley Head and Mentone before crossing the state line into Georgia, according to the arrest report.
Fort Payne officers had tried to pull over the pickup truck because the license plate was registered to a different vehicle, the police report said. In the ensuing chase, speeds topped 100 mph as Johnson ran vehicles off the narrow roads, swerved toward police vehicles and aimed his speeding truck at the Hammondville police chief, who was running across the road to deploy a stop strip. The first Fort Payne police vehicle in pursuit behind Johnson hit the stop strip and crashed, seriously injuring one Fort Payne officer, according to the police report.
ATF investigated the case in conjunction with the Fort Payne Police Department, DeKalb County Sheriff’s Office and the Chattooga County, Ga., Sheriff’s Office. Assistant U.S. Attorney Jonathan S. Keim prosecuted the case
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Man Sentenced to 17 Years in Prison for Bank RobberiesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 17 years in prison for aiding and abetting the commission of two armed bank robberies.
According to court documents, Andrew Welton, aka “Manny”, 28, along with two associates, participated in a bank robbery on Dec. 20, 2017. Welton scoped out the BB&T bank on Lakeside Avenue in Henrico, and then provided Amber Fusco with a revolver while Jennifer Bessette wrote the demand note and served as the getaway car driver. Three days later, the trio committed a similar bank robbery, this time involving the Wells Fargo Bank in Richmond. After the robbery, Welton was stopped by law enforcement and part of the proceeds from the robbery were recovered from his vehicle.
Co-defendants Jennifer Bessette and Amber Fusco were previously sentenced to 7 1/2 years and 15 years in prison, respectively.
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, Humberto I. Cardounel, Jr., Chief of Henrico County Police Division, and William C. Smith, Interim Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Angela Mastandrea-Miller 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. 3:18-cr-163.
Man Sentenced for Assaulting Customs and Border Protection Officer at Orlando International AirportRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced John Craig Myrick (67, Groveland) to seven years and three months in federal prison for forcible assaulting a federal officer causing bodily injury. Myrick was convicted following a two-day jury trial on January 8, 2019.
According to testimony and evidence presented at trial, on August 11, 2018, Myrick arrived at the Orlando International Airport from Bogota, Colombia. While passing through the screening area, a Customs and Border Protection officer (CBPO) directed Myrick to the baggage control seating area. While in the seating area, Myrick had an altercation with another CBPO who attempted to control Myrick by grabbing Myrick’s arm. Myrick resisted, fell on top of the CBPO, and began punching the officer in the back of the head several times. The CBPO suffered a fractured ankle in the process.
“This case emphasizes zero tolerance for violence against law enforcement,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “Thanks to our law enforcement partners, including U.S. Customs and Border Protection, this man will be held accountable for his actions.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, ICE, and Assistant United States Attorney E. Jackson Boggs.
Longtown Man Pleads Guilty to Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sidney Charles Shannon, age 35, entered a guilty plea to Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleges that on or about October 30, 2018, within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition, to-wit: Eight (8) rounds of Precision Made Cartridges (PMC) brand 9mm Luger caliber ammunition, which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the District 18 Drug and Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Lehighton Man Charged with Racist Internet ThreatsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Corbin Kauffman, age 30, of Lehighton, Pennsylvania, was charged by a criminal complaint on April 1, 2019, with interstate transmission of threats to injure the person of another.
According to United States Attorney David J. Freed, the complaint alleges that Kauffman posted threatening images and messages on a website called Minds.com on March 7, 2019. It further alleges that Kauffman used various aliases online to post hundreds of anti-semitic, anti-black, and anti-Muslim messages, images, and videos. Several of these posts included threats to various religious and racial groups, and one included a digitally created image of Kauffman aiming an AR-15 rifle at a congregation of praying Jewish men. Other posts allegedly expressed a desire to commit genocide and “hate crimes,” and called for or depicted images of the killing of Jewish people, black people, and Muslim people.
Kauffman also posted pictures of acts of vandalism he committed, including anti-semitic graffiti at a public park, and the defacement of a display case at the Chabad Jewish Center in Ocean City, Maryland with white supremacist and anti-semitic stickers.
“Pennsylvanians know all too well how dangerous these kinds of white supremacist threats can be,” said U.S. Attorney Freed. “The last thing we want is to see another tragedy like we saw at Tree of Life Synagogue in Pittsburgh, or at Al Noor Mosque in Christchurch, or at Emmanual African Methodist Episcopal Church in Charleston. We don’t know what might have happened, but we take these threats seriously, and I commend the FBI for their vigilance and quick action in this case.”
“If someone makes violent threats, we’re going to take them at their word and investigate accordingly,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “While the FBI does not and will not police ideology, we stand ready to intervene whenever threatening language crosses the line into illegal activity. As always, protecting the public is our highest priority.”
The case is being investigated by the U.S. Federal Bureau of Investigation. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment for each violation, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lehigh Acres Man Sentenced for Theft of Government Money and Identity Theft CrimesRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Kenneth R. Jackson, Jr. (42, Lehigh Acres) to six years and three months in federal prison for identity theft, conversion of government property, aggravated identity theft, passing a forged treasury check, and access device (credit card) fraud. As part of his sentence, the court also entered a money judgment of $71,931.87, the proceeds obtained from the charged criminal conduct. Jackson was also ordered to pay $99,230.90 in restitution to three banks.
Jackson had been found guilty by a jury on December 21, 2018.
According to testimony and evidence presented during the five-day trial, Jackson operated a business that allowed him full access to credit reports. He used his business to unlawfully obtain credit reports on his victims and opened fraudulent online bank accounts in their names. Jackson then deposited approximately $115,000 in stolen U.S. Treasury tax refund checks into the fraudulent accounts. He used associates to launder the money or directly withdrew cash from ATMs at the banks.
“We have come a long way in combatting the scourge of identity theft in Florida,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Today’s sentencing should pose as yet another warning to would-be crooks that stealing someone’s identity is a serious crime that IRS Criminal Investigation will not tolerate. We will continue to work together with our law enforcement partners to track down identity thieves. We will continue to fight for the victims. We will continue to put offenders behind bars.”
This case was investigated by the Internal Revenue Service - Criminal Investigation and the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
KC Man Sentenced to 17 Years for Heroin TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin.
Scheronn Scott, 53, was sentenced by U.S. District Judge Greg Kays on Wednesday, April 10, to 17 years and one month in federal prison without parole. The court also ordered Scott to forfeit to the government $25,000, which represents the proceeds of illegal drug trafficking.
On June 25, 2018, Scott pleaded guilty to participating in a conspiracy to distribute heroin, to distributing heroin, and to using a cell phone to facilitate illegal drug trafficking.
Scott participated in the conspiracy to distribute heroin from October 2012 to September 2016. Scott admitted that he sold heroin to an undercover agent on numerous occasions. Additionally, two confidential sources stated they purchased approximately 260 grams of heroin from Scott over a two and one-half year period.
Scott has 26 adult criminal convictions, five of which are felony convictions with the remaining being misdemeanor convictions. The five felony convictions are all drug-related offenses.
Scott is one of five defendants who have pleaded guilty in this case, four of whom have been sentenced.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Justice Department observes national crime victims’ rights week with events throughout the countryRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia joins the Department of Justice in observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
“During National Crime Victim’s Rights Week we honor all victims of a crime, even those that many people view as victimless such as drug trafficking crimes,” said U.S. Attorney Byung J. “BJay” Pak. “This crime is far from victimless. We have lost thousands of fellow Georgians to drug overdoses – particularly from opioids. Moreover, an untold number of our families, friends or neighbors and their loved ones in the form of financial and emotional toll suffer from the destructive cycle of drug addiction.”
Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Northern District of Georgia Victim Witness Program at (404) 581-6000.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Observes National Crime Victims’ Rights Week with Events throughout the Country, Including ArizonaRead the Press Release
PHOENIX – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the District of Arizona hosted its annual Service Award Ceremony today to recognize individuals who have performed exceptional service on behalf of crime victims. This year’s theme for National Crime Victims’ Rights Week is “Honoring Our Past. Creating Hope for the Future.”
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime. Since then, every year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by organizing events to highlight the rights of victims in our legal system and to honor those who advocate on their behalf.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“Our office is deeply committed to ensuring that all crime victims are accorded their rights under the Crime Victims’ Rights Act, they are protected from further harm, and they receive the support and assistance necessary for recovery,” stated First Assistant United States Attorney Elizabeth A. Strange. “We honor all of our law enforcement partners who work with us every day to protect our communities and, today, we specifically recognize outstanding individuals who went above and beyond the call of duty to serve victims of crime or to advocate on their behalf.”
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victims’ Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, District of Arizona Victim Witness Program at 602-514-7500.
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RELEASE NUMBER: 2019-043_NVRW
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
BOISE – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the District of Idaho is participating in a community awareness project, Evening of Awareness, hosted by the Advocates Against Family Violence. The public event will be held at Indian Creek Plaza in Caldwell on Saturday, April 13, 2019 from 5:00 pm – 9:00 pm. The Evening of Awareness is a free family event that will offer victim services related booths, nonprofit information booths, food trucks, speakers and entertainment. The event will close with a candlelight vigil.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
“I encourage the public to take a moment to remember and support the victims of crime,” said U.S. Attorney for the District of Idaho Bart M. Davis. “And with first-hand knowledge, I want to thank all those who work with victims. Thank you for all your heroic efforts to help the victims of crime become survivors.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Unit in Idaho at (208) 334-1211.
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Justice Department Continues Nationwide Enforcement Actions Against Dishonest Tax Return PreparersRead the Press Release
Now that tax season is in full swing, the Department of Justice reminds taxpayers to choose tax preparers carefully.
The Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, takes legal action throughout the United States, including seeking court orders to shut down tax return preparers who prepared false tax returns, and criminally prosecuting fraudulent tax return preparers to punish dishonest tax return preparers for their fraudulent activities and to protect taxpayers and government funds.
“Most tax return preparers provide competent and professional advice,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “For those tax return preparers who choose to engage in fraudulent tax return preparation the Justice Department is steadfast in its commitment to ending such tax fraud. Criminal prosecutions and civil injunction actions against dishonest tax return preparers should serve as a strong message to fraudulent tax return preparers that criminal and fraudulent conduct has serious and permanent consequences.”
During this tax season, examples of some of the criminal convictions obtained by the Tax Division include:
- On March 7, 2019, a Miami, Florida, Certified Public Accountant (CPA) was sentenced to 39 months in prison for tax evasion. Darryl Sharpton willfully evaded the payment of federal income taxes for the tax years 2004 through 2008 and 2010. He was ordered to pay $1,380,602 in restitution to the IRS.
- On March 20, 2019, a Charlotte, North Carolina, tax return preparer was sentenced to 24 months in prison for preparing income tax returns for clients that claimed false deductions and fictitious businesses in order to obtain the Earned Income Credit. Shawanda Elmore prepared approximately 500 fraudulent tax returns.
- On March 4, 2019, a federal jury convicted a New York owner of a tax return preparation business for conspiring to commit aggravated identity theft and aiding and assisting in the preparation of false tax returns. Afolabi Ajelero used the identity of others to accomplish the scheme. His co-defendant, Hakeem Bamgbala, also has been convicted and awaits sentencing on wire fraud, aggravated identity theft, and aiding and assisting in the preparation of a false tax return charges.
- On Feb. 8, 2019, a Hattiesburg, Mississippi, CPA was convicted of conspiracy to defraud the United States, aiding in the preparation of false tax returns and filing false tax returns. Carl Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. He faces sentencing on May 23, 2019.
Examples of some of this tax season’s civil injunctions obtained by the Tax Division include:
- On March 29, 2019, a federal court in Dallas, Texas, permanently enjoined Jhane Broadway, individually and doing business as Jeprofessionalz or MaxTaxPros, from preparing federal income tax returns for others. Broadway was required to mail or e-mail notice of the injunction order to all customers for whom she prepared a federal tax return or claim for refund for tax years 2015 through 2017.
- Also on March 29, 2019, a federal court in Beaumont, Texas, entered a permanent injunction against tax return preparer Sylvia Rodriguez, who is also known as Sylvia Ornelas, barring her from preparing federal tax returns for others and owning or operating a tax preparation business. The court found that Rodriguez engaged in fraudulent and deceptive conduct that substantially interfered with the administration of the tax laws.
- On March 27, 2019, a federal court in Miami, Florida, entered a permanent injunction barring Vilbrun Simon, Saintanise Agenord, Simon Accounting & Tax Services LLC, and Village Tax Multi Services from preparing federal income tax returns for others. The group is prohibited from operating, managing, or participating in any business, which prepares tax returns.
In the past decade, the Tax Division has obtained convictions and injunctions against hundreds of unscrupulous return preparers. Information about these cases is available on the Justice Department’s website. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
The Justice Department reminds taxpayers that they could still be responsible for any unpaid taxes, penalties, and interest, resulting from errors made on their returns.
Tax return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
Justice Department Awards $9.4 Million to Support Native American Crime Victims in Eight StatesRead the Press Release
Washington -- United States Attorney Halsey B. Frank joined the Department of Justice’s Office of Justice Programs (OJP) in announcing the award of $9.4 million to support crime victims in Native American communities in eight states: Alaska, California, Maine, Michigan, New Mexico, New York, Oklahoma and Washington. The group of 16 awards is the fourth in a series of grants being made by the Department’s Office for Victims of Crime (OVC) to American Indian and Alaska Native communities. OVC has now awarded more than $26 million of nearly $100 million to support tribal victim service programs.
The Pleasant Point Passamaquoddy Tribe (Maine) received $328,905 to expand existing services for victims of intimate partner violence, sexual assault, dating violence, sex trafficking and stalking, as well as for elders experiencing abuse. Funding will support staff training, transportation for victims in remote areas and a contracted attorney to provide legal counsel in civil matters to elder abuse victims.
The awards—46 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said OJP’s Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
According to OJP’s Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.
“We are hopeful that this grant will help the Pleasant Point Passamaquoddy Tribe address some of the challenges that they face in the areas of domestic violence, sexual assault and trafficking, and elder abuse, all of which are national and local priorities for the Department and our office,” said U.S. Attorney Frank.
Nearly 170 tribes are expected to receive funding this spring to help their communities support crime victims over the next three years.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
OJP, directed by Principal Deputy Assistant Attorney General Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Jury convicts two Romanian nationals of crimes related to their scheme to infect computers with malware in order to steal credit card and other information to sell on dark market websites, mine cryptocurrency and engage in online fraudRead the Press Release
A federal jury today convicted two Romanian nationals of 21 counts related to their scheme to infect victim computers with malware in order to steal credit card and other information to sell on dark market websites, mine cryptocurrency and engage in online auction fraud.
Bogdan Nicolescu, 36, and Radu Miclaus, 37, were convicted after a 12-day trial of conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and 12 counts each of wire fraud.
The verdict was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Justin E. Herdman of the Northern District of Ohio, and FBI Special Agent in Charge Eric B. Smith.
“The evidence at presented at trial set out an international criminal enterprise with victims around the world, including people here in Northern Ohio,” Justin Herdman said. “While they stole millions of dollars, what they thought was a veil of anonymity was no protection against law enforcement, who worked diligently to track them down and bring them to justice in an American courthouse.”
"This conviction reveals the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud, unsuspecting victims,” Smith said. “Despite the complexity and global character of this type of investigation, this judgment demonstrates the commitment by the FBI and our partners to aggressively pursue the individuals responsible, anywhere in the world, and bring them to justice.”
According to testimony at trial and court documents, Nicolescu, Miclaus, and a co-conspirator who pleaded guilty, collectively operated a criminal conspiracy from Bucharest, Romania. It began in 2007 with the development of proprietary malware, which they disseminated through malicious emails purporting to be legitimate from such entities as Western Union, Norton AntiVirus and the IRS. When recipients clicked on an attached file, the malware was surreptitiously installed onto their computer.
This malware harvested email addresses from the infected computer, such as from contact lists or email accounts, and then sent malicious emails to these harvested email addresses. The defendants infected and controlled more than 400,000 individual computers, primarily in the United States.
Controlling these computers allowed the defendants to harvest personal information, such as credit card information, user names and passwords. They disabled victims’ malware protection and blocked the victims’ access to websites associated with law enforcement.
Controlling the computers also allowed the defendants to use the processing power of the computer to solve complex algorithms for the financial benefit of the group, a process known as cryptocurrency mining.
The defendants used stolen email credentials to copy a victim’s email contacts. They also activated files that forced infected computers to register email accounts with AOL. The defendants registered more than 100,000 email accounts using this method. They then sent malicious emails from these addresses to the compromised contact lists. Through this method, they sent tens of millions of malicious emails.
When victims with infected computers visited websites such as Facebook, PayPal, eBay or others, the defendants would intercept the request and redirect the computer to a nearly identical website they had created. The defendants would then steal account credentials. They used the stolen credit card information to fund their criminal infrastructure, including renting server space, registering domain names using fictitious identities and paying for Virtual Private Networks (VPNs) which further concealed their identities.
The defendants were also able to inject fake pages into legitimate websites, such as eBay, to make victims believe they were receiving and following instructions from legitimate websites, when they were actually following the instructions of the defendants.
They placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction sites. Photos of the items were infected with malware, which redirected computers that clicked on the image to fictitious webpages designed by the defendants to resemble legitimate eBay pages.
These fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent” who was simply a person hired by the defendants. Users paid for the goods to the fraudulent escrow agents, who in turn wired the money to others in Eastern Europe, who in turn gave it to the defendants. The payers/victims never received the items and never got their money back.
This resulted in a loss of millions of dollars.
The Bayrob group laundered this money by hiring “money transfer agents” and created fictitious companies with fraudulent websites designed to give the impression they were actual businesses engaged in legitimate financial transactions. Money stolen from victims was wired to these fraudulent companies and then in turn wired to Western Union or Money Gram offices in Romania. European “money mules” used fake identity documents to collect the money and deliver it to the defendants.
The FBI investigated the case, with assistance from the Romanian National Police. The case was prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Brian McDonough and Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section. The Office of International Affairs also provided assistance in this case.
Jury convicts Elyria man of illegally having handgunRead the Press Release
A jury convicted an Elyria man of illegally having a firearm and ammunition.
Gregory Raymore, 32, was convicted of one county of being a felon in possession of a firearm after a four-day trial. He is scheduled to be sentenced July 17.
Raymore possessed a .45-caliber handgun and 22 rounds of ammunition. Lorain police officers responded to a fatal shooting in an alleyway outside a bar in May 2018. The murder investigation led to the recovery of a firearm and ammunition near the crime scene that contained Raymore's DNA, although it was not the firearm that caused the death, according to trial testimony.
Raymore was not allowed to possess the firearm or ammunition because of multiple previous convictions, including for aggravated robbery, aggravated burglary, possession of drugs and being a felon in possession of a firearm, according to trial testimony and court documents
This case was prosecuted as part of Project Safe Neighborhoods, 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. PSN was reinvigorated 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.
This case was prosecuted by Assistant U.S. Attorneys Scott Zarzycki and Maggie Kane following an investigation by the Lorain Police Department and FBI.
Jury Verdict: Larned Man Was Behind Attacks on Internet Service ProviderRead the Press Release
WICHITA, KAN. – A jury today convicted a Larned man on federal charges of arranging for a series of denial of service attacks on a Kansas internet service provider, U.S. Attorney Stephen McAllister said.
The jury convicted Michael D. Golightley, 35, Larned, Kan., on seven counts of damaging a protected computer and one count of threatening to damage a computer connected to the internet.
During trial, prosecutors presented evidence that Golightley contacted an entity called DDosCity to arrange for a series of attacks on Nex-Tech’s computers.
Nex-Tech is an internet service provider with offices in Hays, Lenora, Beloit, Concordia, Courtland, Dodge City, Downs, Great Bend, Hill City, Hoxie, McPherson, Norton, Osborne, Phillipsburg, Plainville, Quinter, Russell, Salina, Smith Center, Stockton and WaKeeney.
Prosecutors presented evidence that on March 30 and 31, 2017, Nex-Tech was hit by six denial of service attacks, which caused Nex-Tech’s computers to become inaccessible to the public.
Before the attacks, Golightley sent Nex-Tech two threats. He was angry about the company removing an ad he placed on Nex-Tech Classifieds for a PlayStation 3 game that been “jail broken,” or modified to bypass a system security check. Golightley placed the ad a second time and sent Nex-Tech a warning that he would “violate this site by bringing it offline” if the ad were removed again. He added: “If u make me upset, I will retaliate -- your choice.”
Sentencing is set for July 1. He faces a penalty of up to five years in federal prison and a fine up to $250,000 on each count. McAllister commended the FBI, the Hays Police Department, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Ryan McCarty for their work on the case.
Jury Convicts Hamilton Physician of Illegal Distribution of OpioidsRead the Press Release
CINCINNATI – A U.S. District Court jury convicted Dr. Saad Sakkal, 71, of illegally distributing and dispensing controlled substances that led to the death of one victim in 2016. Sakkal was practicing at Lindenwald Medical Association, Inc. in Hamilton.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Anthony Groeber, Executive Director, State Medical Board of Ohio, Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy, Sarah D. Morrison, Administrator, Ohio Bureau of Workers Compensation, announced the verdict reached today following a trial that began April 1 before U.S. District Judge Michael R. Barrett.
“Sakkal had a medical license, but he was the opposite of a doctor – he was dealing deadly drugs under the guise of practicing medicine and even killed one of his ‘patients’,” U.S. Attorney Glassman said of the jury’s verdict. “The penalty for dealing drugs that cause death is at least 20 years and up to life in prison.” Judge Barrett will schedule a date for sentencing.
The jury convicted Sakkal of 30 counts of illegal distribution of controlled substances outside the scope of a medical practice and with no legitimate medical purpose, and six counts of use of a registration number that was issued to someone else.
During the trial, prosecutors presented evidence gathered by investigators that Sakkal performed inadequate physical exams to identify and verify patient’s complaints of pain, and that he issued prescription combinations that were particularly dangerous and addictive. Pharmacists testified that they warned Sakkal of the risks and eventually refused to fill prescriptions issued by Sakkal. Investigators also testified that Sakkal received repeated notice of addiction, overdoses and deaths, but continued his practices.
A federal grand jury indicted Sakkal in June, 2018. Agents arrested him in Florida after he was indicted. He has been held without bond since his arrest. Judge Barrett ordered him to remain in custody until sentencing.
U.S. Attorney Glassman commended the investigation by the HHS OIG, DEA, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorneys Timothy Oakley and Timothy Mangan, who represented the United States in the case.
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Jackson Man Sentenced to 9 Years in Federal Prison under Project EJECT for Armed Robbery of Local BusinessRead the Press Release
Jackson, Miss. – Stefan Brown, 21, of Jackson, was sentenced today by U.S. District Judge David C. Bramlette to 108 months in prison, followed by three years of supervised release, for robbing a local business and brandishing a firearm, announced U.S. Attorney Mike Hurst and Federal Bureau of Investigation Special Agent in Charge Christopher Freeze.
On January 31, 2017, officers with the Jackson Police Department responded to an armed robbery at the International House of Pancakes ("IHOP") on Greenway Drive in Jackson. The victims reported, and surveillance video confirmed, that Brown entered the IHOP brandishing a firearm and demanding all of the money in their cash registers. The victims answered Brown’s demands and ran to hide in the restaurant freezer. Brown exited the business with $631.
Brown was indicted by a federal grand jury on February 21, 2018 and pled guilty on January 9, 2019.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Candace Mayberry.
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). 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 to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing our 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.
Justice Department Observes National Crime Victims’ Rights WeekRead the Press Release
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“One of our greatest rewards as federal prosecutors is to see how our work can make a difference in the lives of victims of crime. Whether they are victims of physically violent attack, suffer financial loss, or endure other forms of exploitation, we are committed to seeing that they receive a measure of justice.” stated US Attorney for the District of Wyoming, Mark A. Klaassen. “I am proud of the work we do every day for the people of Wyoming in this regard, and appreciate the recognition and attention given to this important effort during Crime Victim’s Rights Week.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s Annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
Hopkins Man Indicted for Distributing Fentanyl Causing the Deaths of Eleven PeopleRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against AARON RHY BROUSSARD, 28, charging him with twenty-one counts related to the distribution of controlled substances, including fentanyl, which resulted in the deaths of eleven people and caused serious bodily injury to four people. BROUSSARD will be arraigned on these charges before a Magistrate Judge in U.S. District Court at a later date. On December 6, 2016, the U.S. Attorney’s Office for the Middle District of Pennsylvania indicted BROUSSARD on one count of distribution and possession with intent to distribute a controlled substance and he is scheduled to stand trial on those charges on May 14, 2019. BROUSSARD was arrested on December 7, 2016, and is in custody in Scranton, Pennsylvania.
According to the allegations in the indictment, from 2014 through December 6, 2016, BROUSSARD obtained controlled substances, including fentanyl, from China-based drug suppliers. Upon receipt, BROUSSARD repackaged the controlled substances, marketed them for sale, and sold them to customers in the United States. BROUSSARD used various websites to market the controlled substances including PlantFoodUSA.Net, and distributed the controlled substances to customers using the United States mail and a United States Postal Service “Click-N-Ship” account.
According to the allegations in the indictment, on March 12, 2016, BROUSSARD placed a drug order for 100 grams of 4-FA, a controlled substance, which was shipped from China and contained approximately 100 grams of fentanyl. Between April 1 and April 27, 2016, BROUSSARD sent packages containing fentanyl to multiple customers throughout the United States. After ingesting the controlled substance received from BROUSSARD, eleven of the customers died from a fentanyl overdose and four customers suffered serious bodily injury. BROUSSARD continued to distribute controlled substances to customers even after learning that some had overdosed.
This case is the result of an investigation conducted by the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, the University of Minnesota Police Department, the Peoria Heights (Illinois) Police Department, the Hazel Green (Wisconsin) Police Department, the Dallas (Texas) Police Department, the Broome County (New York) Sheriff’s Office, the Velusia County (Florida) Sheriff’s Office, the Orange County (California) Sheriff’s Office, and the Atlanta (Georgia) Police Department.
Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.
Defendant Information:
AARON RHY BROUSSARD, 28
Hopkins, Minn.
Charges:
- Drug conspiracy resulting in death/serious bodily injury, 1 count
- Importation of 40+ grams of fentanyl, 1 count
- Possession with intent to distribute 40+ grams of fentanyl, 1 count
- Distribution resulting in death/serious bodily injury, 12 counts
- Possession with intent to distribute controlled substance analogues, 5 counts
- Possession With Intent To Distribute 4-EMC, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that FRANKI NOEL ORTIZ-BERNARDEZ, age 34, pleaded guilty Tuesday, April 9, 2019 to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, FRANKI NOEL ORTIZ-BERNARDEZ (“BERNARDEZ”), reentered the United States after he was previously deported on September 14, 2014 and May 11, 2016.
BERNARDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for July 10, 2019.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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