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15 April 2019
Henderson Man Sentenced to Nine Years in Prison for Receipt and Possession of over 47,000 Images and Videos of Child Pornography Including Infants and ToddlersRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada, resident who pleaded guilty to receiving and possessing more than 47,000 images and videos of child pornography was sentenced today to nine years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“As part of the Justice Department’s Project Safe Childhood program, the U.S. Attorney’s Office is committed to the safety and well-being of every child in Nevada,” said U.S. Attorney Trutanich. “We will prosecute child sex predators who exploit the youngest and most vulnerable citizens and bring them to justice. We remain vigilant in our continued efforts to work with local, state, and federal partners to protect Nevada’s children.”
Robert William Surdel, 40, pleaded guilty to one count of receipt of child pornography, which carries a five year mandatory minimum sentence, and one count of possession of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey ordered him to pay $40,000 in restitution to his victims and sentenced him to lifetime supervised release. Under the Sex Offender Registration and Notification Act, he will be required to register as a sex offender.
Between November 2016 to January 2017, law enforcement officers were able to download images and videos of child pornography from Surdel’s computers. On February 22, during the execution of a search warrant at Surdel’s residence, he admitted to downloading child pornography using the internet and peer-to-peer programs. A forensic analysis of the seized devices discovered 46,001 images and 1,291 videos of child pornography that he meticulously sorted by subfolders, source, and genre. The longest video recovered during the search was over 26 hours. In one image that was recovered, the victim was only between 9 and 18 months of age.
The case was investigated by the FBI and Henderson Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.
To report an incident involving the possession, distribution, receipt, or production of child pornography, contact the National Center for Missing & Exploited Children by phone at 1-800-843-5678 or online at www.cybertipline.com.
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 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.justice.gov/psc.
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Head of Newark Drug Trafficking Organization Sentenced to 15 Years in Prison for Conspiracy to Distribute Heroin, Fentanyl, and Crack Cocaine and Possession of A FirearmRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 180 months in prison for his role in a conspiracy to distribute over a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as possession of a firearm by a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Ahmad Johnson, a/k/a “OC,” 38, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
From September 2016 through June 2017, Johnson and other members of the Johnson Drug Trafficking Organization engaged in a heroin distribution conspiracy that operated in and around Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.
In addition to the prison term, Judge McNulty sentenced Johnson to five years of supervised release.
U.S. Attorney Carpenito credited special agents and officers with Drug Enforcement Administration’ High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office, Economic Crimes Division in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey
Former Pfeiffer University CFO Pleads Guilty to FraudRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that JEFFREY BYRON PLYLER, of Albemarle, North Carolina, pleaded guilty in federal court in Greensboro to a felony charge of making a materially false, fictitious, and fraudulent statement.
PLYLER, age 57, pleaded guilty before United States District Judge William L. Osteen, Jr. in connection with a forged signature on an Internal Revenue Service Form W-9. PLYLER forged the signature in order to receive payment from Pfeiffer University on a fraudulent invoice.
“Mr. Plyler held a position of trust as CFO of Pfeiffer University. Instead of fulfilling that trust, he exploited it for his own gain. Let this be a lesson that federal authorities will address fraud in this district,” said U.S. Attorney Martin. “I commend the FBI, U.S. Postal Investigation Service, and AUSA McFadden for their excellent work.”
PLYLER served as Pfeiffer University’s Vice-President for Financial Services and Chief Financial Officer. During a review of insurance invoices, Pfeiffer’s Controller of Financial Operations noted that the university was paying a significant amount of money for insurance commission/agent fees and an audit ensued. The audit uncovered several irregular invoices allegedly related to insurance commission/agent fees and consulting work completed by Circle One, Senn Dunn, and Leggett. Investigation revealed that PLYLER was listed as the registered agent for Circle One and Leggett in documents filed with the North Carolina Secretary of State, and engaged in business under the assumed business name of Senn Dunn according to an Assumed Business Name Certificate filed in Stanly County. Senn Dunn did not authorize Plyler to do so. Pfeiffer University paid a total of $527,350.00 on these invoices to accounts that PLYLER controlled.
The defendant faces a maximum penalty of sixty months confinement. The plea agreement requires PLYLER to make restitution in the amount of $527,350.00. Sentencing will occur in Greensboro on August 19, 2019 at 2 p.m.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Former NYPD Officer Pleads Guilty to Fraudulently Obtaining Disability Benefits and Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John F. Grasso, the Special Agent-in-Charge of the United States Social Security Administration, Office of the Inspector General, New York Field Division (“SSA-OIG”), and Jonathan D. Larsen, the Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced that GERARD SCPARTA, a former New York City Police Department (“NYPD”) officer, pled guilty to fraudulently obtaining over approximately $638,000 in disability benefits from the Social Security Administration (“SSA”) and underreporting income on his taxes by approximately $268,000. SCPARTA lied to the SSA about his disability, falsely represented to the SSA that he could not work due to disability, and failed to report earnings from employment as required. At the same time SCPARTA was collecting disability benefits, he earned a total of approximately $1.6 million working as a security guard and host at a strip club located in Manhattan. SCPARTA pled guilty before U.S. District Judge Alison J. Nathan.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For two decades, former NYPD officer Gerard Scparta lied about being disabled to obtain over $638,000 in disability benefits through fraud, all while he was earning over $1.6 million as the host of a prominent strip club. In doing so, he stole money from truly disabled individuals who are dependent on this important source of public support. Then, not only did Scparta conceal his employment and income from the SSA by hiding behind a corporate entity purportedly owned by his wife, he also underreported his income to cheat on his taxes. Particularly today, on Tax Day, this case shows that such brazen fraud and tax evasion will be prosecuted to the fullest extent of the law.”
SSA-OIG Special Agent-in-Charge John F. Grasso said: “Today’s plea is the latest step in our continued and ongoing effort to bring to justice all individuals who commit Social Security Disability fraud and other crimes that stem from that act. I am very grateful for the efforts of our law enforcement partners involved in this investigation, to include the Internal Revenue Service Criminal Investigation Division, the New York City Department of Investigation and the continued commitment from the United States Attorney’s Office for the Southern District of New York. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or http://oig.ssa.gov/report.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “The Special Agents of IRS-Criminal Investigation Division are sworn to protect the tax system and bring to justice those who would steal from the Treasury. An oath similar in nature to one Mr. Scparta swore to as a law enforcement officer.”
According to the allegations contained in the Complaint and Information filed in federal court:
The SSA administers Social Security Disability Insurance (“SSD”), a federal benefits program that provides monthly cash benefits to individuals who have worked in the past and paid into Social Security, but who can no longer engage in any substantial gainful activity due to medical disabilities. SSD is a disability benefit available only to individuals who have a qualifying disability and are unable to work in any profession. In order to receive SSD, a beneficiary must certify that he or she is incapable of performing any gainful activity due to disability. In addition, a beneficiary must report to the SSA all sources of income from work activity and any changes in the beneficiary’s medical condition, which are taken into account in determining whether the beneficiary is entitled to payments and the amount of those payments.
Between in or about 1986 and in or about 1997, SCPARTA worked as a police officer with the NYPD. In or about 1997, after reportedly sustaining an injury at the age of 32, SCPARTA was referred to an individual (“CC-1”) who helped him fraudulently obtain disability benefits. Specifically, CC-1 submitted SSD application materials signed by SCPARTA that falsely stated, among other things, that SCPARTA suffered from severe depression and anxiety, could not do anything around his house, and was unable to work in any capacity. In addition, CC-1 coached SCPARTA to make the same false statements to physicians who examined SCPARTA for the purpose of establishing his disability and submitting reports to the SSA. Based on these false statements and representations by SCPARTA in documents and reports submitted to the SSA, the SSA approved SCPARTA to receive disability benefits from in or about 1997 onward.
In addition to lying about his disability status and inability to work, SCPARTA falsely claimed on multiple forms submitted to the SSA that he did not work, and failed to report earnings from employment as required. In fact, from in or about April 2004 up to and including at least in or about December 2017, SCPARTA worked as a security guard and host at a strip club located in New York, New York (the “Strip Club”). From in or about 1997 up to and including in or about 2017, SCPARTA received a total of over approximately $638,000 in disability benefits for himself, his wife, and his children, during which time SCPARTA earned approximately $1.6 million from his work at the Strip Club.
Further, from in or about 2012 up to and including in or about 2017, SCPARTA engaged in tax evasion by concealing and attempting to conceal from the IRS the nature and extent of his income. Specifically, SCARPTA utilized a nominee company registered to his wife to report income that SCPARTA earned from the Strip Club and falsely underreported that income by a total of approximately $268,602 for the tax years 2012 through 2016.
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SCPARTA, 54, of Campbell Hall, New York, pled guilty to one count of theft of government property, which carries a maximum sentence of 10 years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
As part of today’s guilty plea, SCPARTA agreed to forfeit the $638,586 in Social Security disability benefits he obtained fraudulently, file accurate amended personal tax returns, and pay past taxes due and owing to the IRS for tax years 2012 through 2016. SCPARTA is scheduled to be sentenced before Judge Nathan on July 16, 2019, at 12:45 p.m.
Mr. Berman praised the outstanding investigative work of the SSA-OIG and IRS-CI. Mr. Berman also thanked the Manhattan District Attorney’s Office and the New York City Department of Investigation for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Former Most Wanted Fugitive Pleads Guilty to Multi-Million Dollar Health Care FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Etienne Allonce, the former co-owner of Medical Solutions Management, Inc. (MSM), a medical equipment company in Hicksville, New York, pleaded guilty to health care fraud. In September 2018, Allonce was expelled from Haiti where he had fled 11 years earlier following the filing of an indictment in the Eastern District of New York charging him with billing Medicare and Medicaid for medical supplies never delivered to patients and never ordered by MSM. Prior to his return to the United States, Allonce was placed on the Most Wanted List of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). Allonce pleaded guilty before United States District Judge Joseph F. Bianco.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Allonce will now pay the price for defrauding American taxpayers in order to benefit himself,” stated United States Attorney Donoghue. “The defendant’s decision to flee to Haiti may have delayed holding him accountable for his crimes, but he could not escape the resolve of this Office and our law enforcement partners to prosecute those who steal from the Medicare and Medicaid benefit programs that serve our most vulnerable citizens, including the elderly.” Mr. Donoghue expressed his grateful appreciation to the agents of the Federal Bureau of Investigation and the HHS-OIG, for their investigative work in the case.
According to court filings, MSM, formerly co-owned by Allonce and his wife, Helen Michel, provided durable medical equipment and supplies to nursing homes. Between April 2003 and March 2007, Allonce and Michel submitted approximately $10 million in false claims to Medicare and Medicaid, seeking payment for medical supplies purportedly provided to patients at nursing homes when those medical supplies had not actually been provided. Allonce fled the United States hours before federal agents arrested his wife. Michel was tried and convicted by a jury in August 2012. She was sentenced in April 2013 to 12 years’ imprisonment, and ordered to forfeit $1.3 million that had been seized by the government.
When sentenced, Allonce faces up to 10 years in prison, as well as restitution and a fine.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly, Burton T. Ryan, Jr. and Madeline O’Connor are in charge of the prosecution.
The Defendant:
ETIENNE ALLONCE
Age: 55
Port au Prince, HaitiE.D.N.Y. Docket No 07-CR-889 (JFB)
Former Long Island Defense Contractor and Its CEO Ordered to Pay over $48 Million in Cleanup Costs and Penalties for Discharging Hazardous Substances at Port Jefferson Superfund SiteRead the Press Release
Earlier today, at federal court in Central Islip, United States District Judge Joan M. Azrack entered judgment holding liable Lawrence Aviation Industries, Inc. (LAI), a former defense contractor, and its long-time owner and CEO, Gerald Cohen, for environmental cleanup costs and penalties under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. As proven at trial, LAI and Cohen, in violation of several environmental laws and regulations, discharged a number of hazardous substances at LAI’s Port Jefferson facility on Long Island that could pose threats to human health and the environment. The Court found that, in addition to contaminating the LAI facility itself, LAI and Cohen were responsible for a mile-long contaminant plume in the groundwater beneath Port Jefferson. The Court’s judgment found LAI and Cohen jointly liable for $48,116,024.31 in costs incurred by the U.S. Environmental Protection Agency (EPA) in cleaning up the site, and imposed civil penalties of $750,000 against both LAI and Cohen, individually, for their failure to comply with requests for information issued by EPA.
“This case and the significant monetary penalties imposed by the Court should serve as a warning to would-be polluters, including individuals, that this Office and the EPA will use every tool at their disposal to protect Long Island’s groundwater and to ensure that those responsible for contamination will foot the bill for clean-up costs,” said Richard P. Donoghue, United States Attorney for the Eastern District of New York.
“EPA is pleased that our collaborative efforts with the United States Attorney’s Office in the Eastern District of New York have resulted in a victory for New Yorkers who have suffered for years with the environmental degradation inflicted by Lawrence Aviation and its owner, Gerald Cohen,” said U.S. Environmental Protection Agency Regional Administrator Pete Lopez. “This judgment provides for the reimbursement of money spent on cleanup work and imposes penalties that act as a deterrent. Our active engagement and work at this site will continue over the long-term, and we are proud that EPA’s Superfund continues to help revitalize this community and communities across the nation.”
In a separate, 37-page Memorandum and Order, the Court detailed the evidence establishing LAI’s and Cohen’s long history of disregard for federal, state and county environmental laws. In the early 1980s, for example, after the Suffolk County Department of Health issued a series of recommendations for LAI to come into compliance with various pollution control laws, LAI used a front-end loader to crush 55-gallon drums containing hazardous substances (among more than 1,600 of such drums identified on the property), resulting in a massive discharge of waste directly onto the ground. Samples taken from those drums revealed impermissibly high levels of trichloroethylene (TCE), among other pollutants. Nearly two decades later, in 1999, testing performed by the New York State Department of Environmental Conservation revealed contamination of groundwater and surface water at the site. Thereafter, in March 2000, the site was placed on the National Priorities List. For these and other reasons, the groundwater in the vicinity of the site is not currently used for drinking water.
EPA’s clean-up of the site, now into its 19th year, has included an exhaustive remedial investigation into the nature and scope of the contamination, various hazardous waste removal and stabilization activities, and the implementation and maintenance of two groundwater treatment systems designed to capture and treat contaminated groundwater. As noted in the Court’s decision, EPA’s activities at the LAI site have resulted in a decrease in size of the groundwater TCE plume and the removal of over 18,000 tons of soil contaminated with polychlorinated biphenyls, among other hazardous substances, including asbestos containing materials.
Various creditors have asserted claims against LAI and Cohen properties based on their respective liens. Those claims remain pending before the Court.
Previously, in 2008, Cohen and LAI pleaded guilty to violating the Resource Conservation and Recovery Act for storing hazardous wastes at the LAI Facility without a permit issued by the EPA or New York State. Cohen was sentenced to a term of imprisonment of one year and a day, and supervised release of thirty-six months. He and LAI were ordered to pay restitution to the EPA of $105,816.
The government’s case is being handled by Assistant United States Attorneys Richard K. Hayes, Robert B. Kambic, Clayton P. Solomon, and Special Assistant United States Attorney James F. Doyle, with assistance from EPA Assistant Regional Counsel Elizabeth Leilani Davis and Andrea L. Leshak. The government’s trial team also included former Assistant United States Attorneys Sandra L. Levy and Morgan J. Brennan.
Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Filing Deadline ArrivesRead the Press Release
CHICAGO — Federal authorities today announced criminal prosecutions against several Chicago-area defendants for a variety of alleged tax schemes. With the arrival of Tax Day, the prosecutions serve as a reminder that individual taxpayers are responsible for the contents of their own return.
The recent prosecutions announced today include charges against a south suburban tax professional who allegedly filed a false personal income tax return, as well as a guilty plea by a west suburban general contractor who admitted willfully failing to file income tax returns for nearly a decade.
In addition to criminal penalties, including potential incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil penalties.
Today is the nation’s tax deadline.
“Preserving the integrity of the federal tax system is a significant priority in our office,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Through vigorous criminal enforcement of the internal revenue laws, we will hold accountable those who attempt to cheat the system.”
“As the tax filing deadline quickly approaches, I urge all Chicago-area residents to fully comply with federal tax laws,” said Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “If you choose to disobey these laws, please understand that you are not just hurting the government, you are hurting your neighbors and your community. IRS special agents will continue to serve the American people by aggressively pursuing tax criminals year round.”
A federal jury last week convicted JERMAINE JACKSON, 48, of Chicago, of filing 13 fraudulent federal income tax returns in the names of various trusts he created. Each of the returns sought a fraudulent tax refund based on fictitious income and withholding numbers. The IRS identified the bogus nature of a dozen of the returns, but the agency paid a refund of $900,000 on one of them. U.S. District Judge John Z. Lee set sentencing for July 10, 2019. The government in Jackson’s case is represented by Assistant U.S. Attorneys Stephen Heinze and Patrick King.
In a criminal information filed last month, the U.S. Attorney’s Office charged LISA LLOYD TAYLOR, 51, of Country Club Hills, with one count of willfully filing a false personal income tax return, and one count of stealing approximately $134,835 of Social Security funds. According to the charges, Taylor, who owned Ebiz Accounting Services in Country Club Hills, filed a false personal income tax return for calendar year 2012 that falsely listed gross receipts or sales from her business as $7,890, when Taylor knew that her gross receipts or sales substantially exceeded that amount. Taylor has pleaded not guilty to the charges. A status hearing is set for April 23, 2019, before U.S. District Judge Andrea R. Wood. The government in Taylor’s case is represented by Assistant U.S. Attorney Nani Gilkerson. The public is reminded that charges are not evidence of guilt. Taylor is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The general contractor, STEPHEN KEEFE, 47, of Downers Grove, pleaded guilty last month to multiple counts of willfully failing to file personal income tax returns. Keefe, who previously owned Downers Grove-based Stephen Keefe Construction and S. Keefe Construction, admitted in a plea agreement that he willfully failed to file income tax returns for the calendar years 2010 through 2017, despite receiving taxable income of at least $2.08 million in those years. Keefe’s conduct caused a combined tax loss to the federal and state government of approximately $379,493. U.S. Magistrate Judge Sunil R. Harjani set sentencing for June 28, 2019. The government in Keefe’s case is represented by Assistant U.S. Attorney Patrick King.
Another recent tax prosecution resulted in a term of imprisonment for a northwest suburban business executive. PETER KONOPKA, 72, of Marengo, was sentenced in December to six months in federal prison, and ordered to pay restitution of $189,837. While President of Illinois-based Solarcrete Energy Efficient Building Systems, Konopka filed a bankruptcy petition on behalf of Solarcrete that contained false statements in order to conceal corporate assets from the bankruptcy trustee. In addition, Konopka willfully failed to report personal income for the calendar year 2011 that included payments from business accounts that were used to pay off personal loans. The government in Konopka’s case was represented by Assistant U.S. Attorney William Hogan.
For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website: https://www.irs.gov/help-resources.
East Haddam Grocery Store Agrees to Permit Service Animals in ADA SettlementRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Grist Mill Market in East Haddam, Connecticut, to resolve allegations that the store was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Grist Mill Market required her to remove her service animal from the store as a condition of service. As a result of the settlement agreement, the store is in the process of posting signage indicating “Service Animals Welcome,” implementing a “Service Animal Policy,” which includes the types of legally permissible inquiries store employees may make of a customer who enters the store with a service animal, and training employees regarding the policy.
Under federal law, private entities that own or operate places of “public accommodation,” including grocery stores, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
During the course of the U.S. Attorney’s investigation, the Grist Mill Market was sold to a new owner. U.S. Attorney Durham noted that the new owner and management of the Grist Mill Market has worked cooperatively with the U.S. Attorney’s Office to promptly address the ADA issues without litigation.
“The Americans with Disabilities Act requires that individuals are able to access and enjoy grocery stores and other places of public accommodation,” said U.S. Attorney Durham. “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse populations of patrons who live, work, and visit Connecticut. We appreciate the Grist Mill Market’s commitment to increasing access to its store for individuals with disabilities who require service animal assistance.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Court Holds Former Detroit Tax Return Preparer in Contempt of Court for Violating Injunction OrderRead the Press Release
On Friday, a federal court in Detroit, Michigan, found Dieasha Davis in civil contempt of a permanent injunction barring her from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced.
In the contempt order, Judge Denise Page Hood found that Davis continued to prepare federal income tax returns and profited from preparing tax returns in violation of the court’s injunction, which had been entered against her and the business on September 25, 2017. Davis and the business agreed to the 2017 civil injunction order.
In February, 2019, following an investigation of Davis’ activities, the United States presented to the district court what the court on Friday found was clear and convincing evidence that Davis had violated the injunction. The court entered an order requiring Davis to file a written response to show cause why she should not be held in civil contempt. Davis did not file any response.
Based on the evidence submitted by the United States, the court also found that tax returns Davis prepared in violation of the injunction contained false and fraudulent information after entry of the injunction.
In addition, the court ordered Davis to pay to the United States $24,671 for attorney fees and costs incurred in detecting Davis’ non-compliance and bringing her violations of the injunction to the court’s attention.
Return preparer fraud is one of the IRS’ 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.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Conspirator in Fentanyl, Cocaine Trafficking Organization SentencedRead the Press Release
PROVIDENCE – A Providence man who conspired with the leader of a drug trafficking conspiracy that imported hundreds of kilograms of fentanyl and cocaine from the Dominican Republic and distributed them in Rhode Island and Massachusetts has been sentenced to 60 months in federal prison, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Audi E. Diaz, aka Boku, 29, previously admitted to the Court that he worked closely with Ramon Delossantos, of Cumberland, R.I., to prepare and distribute multi-kilogram shipments of fentanyl and cocaine to mid-level distributors in Rhode Island and Massachusetts.
As the result of a DEA and Rhode Island State Police High Intensity Drug Trafficking Area Task Force investigation during the summer and fall of 2017 dubbed “Operation Panamera,” more than two-dozen people were arrested and at least 23 kilograms of suspected fentanyl, 11 kilograms of cocaine, 11 kilograms of marijuana and two kilograms of psilocybin mushrooms were seized.
Delossantos was identified by law enforcement as the leader of the drug trafficking organization. He arranged for the shipment of fentanyl and cocaine from the Dominican Republic and oversaw the distribution of the drugs to mid-level distributors in Rhode Island and Massachusetts.
According to information presented to the Court, between August 10 and September 30, 2017, approximately 470 communications between Diaz and Delossantos were electronically intercepted by law enforcement. The conversations ranged in topic from Diaz arranging for numerous multi-kilogram purchases of fentanyl and cocaine from Delossantos for distribution to others, to Diaz borrowing equipment from Delossantos to prepare kilogram “bricks” of fentanyl and cocaine for delivery, to discussions between Delossantos and Diaz that Diaz take over Delossantos’ drug trafficking business either temporarily while Delossantos traveled outside of the country or on a permanent basis.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., sentenced Diaz to 60 months in federal prison, followed by a term of supervised release of 3 years.
Diaz, arrested and ordered detained on October 30, 2017, pleaded guilty on January 14, 2019, to conspiracy to possess with the intent to distribute fentanyl and conspiracy with the intent to distribute cocaine.
Delossantos, arrested on October 2, 2017, and ordered detained in federal custody, pleaded guilty on June 14, 2018, to conspiracy to possess with the intent to distribute fentanyl and conspiracy with the intent to distribute cocaine is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 14, 2019.
The cases are being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr. and Milind M. Shah.
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Colorado Springs Chiropractor Sentenced for Conspiracy and Filing False Income Tax ReturnsRead the Press Release
DENVER – Thomas Forster Gehrmann, Jr., age 45, of Colorado Springs, Colorado was sentenced by U.S. District Court Judge R. Brook Jackson to serve 24 months in federal prison followed by 3 years on supervised release for conspiracy to defraud the United States and filing three false income tax returns with the Internal Revenue Service, announced U.S. Attorney Jason Dunn and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Gehrmann was indicted on July 22, 2015. He was found guilty after a six-day trial before Judge Jackson on November 6, 2018. Gehrmann was sentenced on April 4, 2019. A hearing to determine restitution is scheduled for May 23, 2019.
According to information contained in the indictment and evidence presented at trial, from January 2007 until September 2011, Gehrmann conspired to defraud the U.S. by filing false U.S. Individual Income Tax Returns for the calendar years 2007, 2008, 2009 and 2010 after failing to disclose to his CPA income diverted from cash and checks.
Atlas Chiropractic Center at Briargate, Inc. and SpineMed Decompression Centers of Colorado, LLC (collectively, the “Atlas Entities”) are located in Colorado Springs, Colorado, and are in the business of providing chiropractic and spine-adjustment related services. During times relevant to this indictment, the Atlas Entities shared employees, business bank accounts, an outside bookkeeper, a Certified Public Accountant (“CPA”), and other resources, which were jointly managed by Gehrmann.
Patients of the Atlas Entities typically checked in for their appointments at a reception desk, completed requested paperwork, and were seen by Gehrmann. Payments for the services were made by means of check, cash, credit card or a third-party payer, such as an insurance company or an attorney. A sign was placed on the Atlas Entities reception desk that directed patients to make their checks payable to the individual chiropractic provider, rather than one of the Atlas Entities. Employees would copy each check received from a patient or third party payer, and compile copies of the checks in the Atlas Entities’ check binder. Daily spreadsheets were created and maintained in the binder, known as the “Daily Stats Sheets.”
Checks made payable to Atlas or SpineMed were regularly deposited in the business bank accounts for the Atlas Entities, together with patients’ payments via credit card. The actual cash and checks made payable to Gehrmann were placed into a receptacle known as the “cookie jar,” which was typically kept in Gehrmann’s office. Cash payments were kept separately and divided between the defendant and two other chiropractors. Once each week they divided up the contents of the “cookie jar” between themselves and that for certain periods, Gehrmann noted the amount that each person received as his share for that week in a book titled “Secret Records.”
Statements reflecting the deposits into the Atlas Entities’ business bank accounts were sent to the outside bookkeeper, who understood those were the total business income for the Atlas Entities. Those records were in turn supplied to the CPA for his use in preparing documents and filings including partnership tax filings for the Atlas Entities, and individual tax returns of Gehrmann. He did not send to the Atlas Entities’ outside bookkeeper or the CPA the check binders, the Daily Stats Sheets, or any other documents that included records reflecting all payments by Atlas Entities’ patients.
“On this tax day, it is important to remind would-be tax-cheats that we will aggressively investigate and prosecute tax fraud cases and that those found guilty can face significant jail time,” said U.S. Attorney Jason Dunn.
"Tax fraud is not a victimless crime,” said Steven Osborne, IRS Criminal Investigation Special Agent in Charge. “This is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shirk their tax responsibilities. The courts have overwhelmingly and consistently shown that you will be held accountable for such actions, and today's sentencing is a costly reminder."
Carlson, who pled guilty to filing a false tax return on October 24, 2018, is scheduled to be sentenced by Judge Jackson on April 17, 2019.
This case was investigated by IRS Criminal Investigation.
This case was prosecuted by Assistant U.S. Attorneys Suneeta Hazra, Bryan Fields, and Conor Flanigan.
Chevez McCray and Hector Mendez-Sales Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 15, 2019, Chevez McCray, 35, of Morristown, Tennessee, and Hector Mendez-Sales a/k/a Oswaldo Sanchez, 34, a citizen of Guatemala residing in Talbott, Tennessee, were sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, for their roles in a methamphetamine distribution conspiracy.
Both McCray and Sales-Mendez pleaded guilty December 2018 to conspiring with each other to distribute methamphetamine. Sales–Mendez was also convicted of illegally reentering the United States after having being deported. McCray was sentenced to serve 276 months in federal prison. Mendez Sales was sentenced to 151 months in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, FBI, and U.S. Department of Homeland Security, Immigration and Customs Enforcement. Assistant U.S. Attorneys William Roach and Robert Reeves represented the United States.
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Cardiac Associates, P.C. Agrees to Pay the United States over $399,000 to Settle False Claims Act Allegations Relating to Improper Billing PracticesRead the Press Release
Baltimore, Maryland – Cardiac Associates, P.C. has agreed to pay $399,230.35 to settle claims that they submitted false claims to the United States for services not rendered. Cardiac Associates, P.C. is a medical practice with offices located in Rockville, Olney, Laurel and Germantown, Maryland.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
According to the settlement agreement, the United States contends that from January 1, 2012 through December 21, 2016, Cardiac Associates billed for two similar procedures on the same date for the same patient, when only one of the procedures was actually performed.
Specifically, Cardiac Associates, P.C. administered tests to patients to assess the venous sufficiency in the lower extremities. As part of this process, they performed a venous Doppler duplex examination to determine if there were blood flow issues, including deep vein thromboses, in the patient’s legs. They billed Medicare under CPT 93970 for this work.
Billing records showed that Cardiac Associates, P.C. billed for an additional test using CPT 93965, which references an older, different technology, one that has generally been replaced by the CPT 93970 technology. The United States contends that billing both CPT codes 93965 and 93970 was improper and led to the submission of false claims to the Medicare and Medicaid programs.
The claims resolved by this settlement are allegations only. The settlement is not an admission of liability by Cardiac Associates, P.C., nor a concession by the United States that its claims are not well founded.
U.S. Attorney Robert K. Hur thanked Assistant United States Attorney Allen Loucks and Investigator Steve Capobianco, who handled the case.
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Canadian Citizen Sentenced in Alien Smuggling Case Involving Underground Cargo Train Tunnel Between Canada and United StatesRead the Press Release
Today, a Guatemalan native and naturalized citizen of Canada, was sentenced to 16 months in prison, a $8,680 fine, a $600 special assessment and one year of supervised release in an alien smuggling case in which illegal aliens were smuggled into the United States through the underground cargo railroad tunnel which runs under the Detroit River between Canada and the United States, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by U.S. Border Patrol Chief Patrol Agent Douglas Harrison.
Juan Antonio Garcia-Jimenez, 53, of Windsor, Ontario, was sentenced by Stephen J. Murphy, III. U.S. District Court Judge, Eastern District of Michigan.
The investigation conducted by the U.S. Department of Homeland Security, Customs and Border Protection, Immigration and Customs Enforcement and the Royal Canadian Mounted Police, found that between July 30, 2018 and August 25, 2018, Garcia-Jimenez smuggled six aliens into the United States by instructing them to enter into the underground train tunnel late at night, and walk on the narrow walkway 1.6 miles until they arrived in the United States. U.S. Border Patrol Agents arrested each of the aliens as they exited the tunnel into the United States. The aliens were charged with illegal entry and after sentencing were removed to their native country.
“Today’s sentencing is the direct result of a whole of government approach to border security,” said U.S. Border Patrol Chief Patrol Agent Douglas Harrison. “The teamwork demonstrated in this case should be commended for their actions to arrest and prosecute Garcia-Jimenez who disregarded the safety of 6 aliens for financial gain.”
The case was prosecuted by Assistant United States Attorneys Timothy McDonald and Susan Fairchild with the assistance of DHS/ICE and RCMP.
California Tobacco Company Executive Charged in Scheme to Avoid the Payment of More than $5 Million in Federal Excise TaxesRead the Press Release
A California tobacco company executive on Friday was arrested after being charged with a conspiracy to evade the payment of millions of dollars in excise taxes on imported cigars.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Nicholas Colucci, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.
Akrum Alrahib, 41, of Los Angeles, California, was charged by indictment with the following counts: conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371; conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343. The indictment also charged Alrahib with violations of the Internal Revenue Code, including: refusing to pay Federal Tobacco Excise Tax on large cigars, and attempting to evade or defeat the tax or payment thereof, in violation of 26 U.S.C. § 5762(a)(3); and willfully attempting to evade or defeat Federal Tobacco Excise Tax on large cigars, in violation of Title 26 U.S.C. § 7201.
According to the indictment, Alrahib was the President of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in the State of Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” many of which were imported from the Dominican Republic.
In 2013, Alrahib partnered with Gitano Pierre Bryant, Jr., a TTB-permitted tobacco importer, to import large cigars from the Dominican Republic into Miami, Florida. The indictment alleges that Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. According to the charging document, Alrahib and Bryant consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.
It is alleged that Alrahib paid over $9 million for untaxed tobacco products during the course of the charged conspiracies and received over $700,000 in kickbacks from Bryant, on which aggregate amount he did not pay the required federal excise tax.
Alrahib will remain in custody pending his removal to the Southern District of Florida.
If convicted, Alrahib can be sentenced up to five years imprisonment on the conspiracy to defraud the United States charge and each of the charges for violations of the Internal Revenue Code, and up to 20 years imprisonment on the wire fraud and wire fraud conspiracy charges. Additionally, the court may impose a fine of up to $250,000, on each count alleged in the indictment.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the TTB and IRS-CI. The case is being prosecuted by Assistant United States Attorney Christopher Browne.
An indictment contains mere allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
California Man Sentenced to 28 Years in Federal Prison for Multi-State Methamphetamine ConspiracyRead the Press Release
Jackson, Miss. – Christopher Raynard Kidd, 27, of Rialto, California, was sentenced Friday afternoon by Chief U.S. District Judge Daniel P. Jordan III to 336 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst. He was also ordered to pay a $2,500 fine. Kidd was previously found guilty of the charges following a five-day trial in October 2015.
This case is the result of an extensive investigation dubbed "Operation Yeti Ice" targeting an illegal narcotics distribution network in central Mississippi that involved the distribution of over 100 Kilograms of Methamphetamine.
Beginning in early March 2013, and continuing through August 2014, Christopher Raynard Kidd conspired with others to obtain and distribute methamphetamine in Scott, Newton, Leake, and Neshoba Counties in Mississippi. The defendants used Federal Express, UPS, and the United States Postal Service to send methamphetamine from California to Mississippi. The defendants also transported the narcotics in compartments that were concealed in motor vehicles.
The network encompassed the States of California and Mississippi. The investigation yielded arrests of 19 additional defendants. The co-defendants and their sentences are listed below:
1. Rodney Gerald Henderson, 69, of Newton, Mississippi and Rialto, California, was sentenced to 235 months in federal prison followed by 5 years supervised release and ordered to pay $4,800 in restitution.
2. Steven Elias Ochoa, 29, of San Bernardino, California, was sentenced to 292 months in federal prison followed by 5 years supervised release, and ordered to pay a $1,000 fine.
3. Kafien Kidd, 35, of Newton, was sentenced to 300 months in federal prison followed by 5 years of supervised release, and ordered to pay a $1,500 fine.
4. Walter Pernillo, 42, of San Bernardino, California, was sentenced to 151 months in federal prison followed by 5 years of supervised release.
5. Michael Thomas McLemore, 38, of Pearl, was sentenced to 260 months in federal prison followed by 5 years of supervised release, and ordered to pay a $1,500 fine.
6. Jennifer Higgins McLemore, 35, of Pearl, was sentenced to 64 months in federal prison followed by 5 years supervised release.
7. Marcos Jones, 35, of Newton, was sentenced to serve a term of 160 months in federal prison followed by 5 years supervised release, and ordered to pay $2,400 in restitution.
8. Jennifer Toole Kidd, 30, of Newton, was sentenced to 37 months in federal prison followed by 3 years supervised release, and ordered to pay a $1,500 fine.
9. Angelina Fortenberry, 38, of Decatur, was sentenced to 46 months in federal prison followed by 3 years supervised release.
10. Stacy Shelwood, 32, of Ocean Springs, was sentenced to 63 months in federal prison followed by 3 years supervised release.
11. Jakeivia Fairley, 24, Rialto, of California, was sentenced to 51 months in federal prison followed by 3 years supervised release.
12. Cliff Williams, 36, of Meridian, was sentenced to 133 months in federal prison followed by 3 years supervised release.
13. Princess Grace, 35, of Meridian was sentenced to 36 months in federal prison followed by 3 years supervised release.
14. Terry Garth, 24, of Newton, was sentenced to 66 months in federal prison followed by 3 years supervised release.
15. Thomas Odell Mason 55, of Little Rock, Mississippi, was sentenced to 105 months in federal prison followed by 5 years supervised release, and ordered to pay a $1,500 fine.
16. Ronnie Round, 45, of Conehatta, was sentenced to 53 months in federal prison followed by 3 years supervised release, and ordered to pay a $1,500 fine.
17. Beatrice Williams McEntee, 56, of Forest, was sentenced to 18 months in federal prison followed by 3 years supervised release.
18. Jaime Tavare Thames, 40, of Forest, was sentenced to 124 months in federal prison followed by 4 years supervised release, and ordered to pay a $1,106 fine.
19. Kenneth Waggoner, 46, of Forest, was sentenced to 121 months in federal prison followed by 3 years supervised release, and ordered to pay a $1,500 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the Scott County Sheriff’s Office, Leake County Sherriff’s Office, Madison County Sherriff’s Office, United States Postal Service, Internal Revenue Service, Carthage Police Department, Forest Police Department, Newton County Sherriff’s Office, Lauderdale County Sherriff’s Office, Decatur Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Richland Police Department, Pearl Police Department, Ridgeland Police Department, Jackson Police Department, and the United States Marshal Service.
The case was prosecuted by Assistant U.S. Attorney Erin Chalk.
Brookfield Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office will issue a Letter of Resolution to Hacienda Don Manuel Restaurant in Brookfield to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The Letter of Resolution will resolve an ADA complaint filed by an individual with mobility disabilities alleging that Hacienda Don Manuel’s bar counter was not accessible to individuals in wheelchairs and that Hacienda Don Manuel would not provide “Happy Hour” services to individuals in wheelchairs sitting at tables in the restaurant.
In order for the U.S. Attorney’s Office to issue the Letter of Resolution, Hacienda Don Manuel will design and construct a fully accessible bar counter with a low section for individuals who use wheelchairs. Additionally, Hacienda Don Manuel will institute a written policy regarding the provision of Happy Hour specials to individuals with disabilities who may need to sit at tables within the restaurant. Finally, Hacienda Don Manuel will train managers, bartenders and staff on the new policy and on the provision of services to individuals with disabilities. Hacienda Don Manuel will perform these obligations within six months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages and civil penalties.
U.S. Attorney Durham noted the commitment of the owner of Hacienda Don Manuel to work collaboratively with the U.S. Attorney’s Office to address the ADA issues and to increase the restaurant’s accessibility without litigation. “We appreciate that Hacienda Don Manuel’s ownership and management cooperated during our investigation and we commend their prompt action to ensure the restaurant’s compliance with the ADA,” said U.S. Attorney Durham
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Bridgeton Man Pleads Guilty to Possession of Child Pornography ChargesRead the Press Release
St. Louis, MO – Matthew Gregory, 34, of Bridgeton, MO, pled guilty to one felony count of Possession and Accessing with the Intent to View Child Pornography. Gregory appeared before United States District Judge Henry Autrey and set sentencing for July 16, 2019.
According to court documents, on January 25, 2017, while at Southeast Missouri Behavioral Health, Inc., Gregory purchased a cell phone and used the Internet with his cell phone to access child pornography to view more than 600 images of child pornography. He admitted searching and viewing child pornography on a chat website where pornography was exchanged.
Gregory faces a minimum penalty of 10 years and a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by SA John “Mark” Burbridge of the Federal Bureau of Investigation. Assistant U.S. Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.
Alien Sentenced to Active Prison Time for Unlawful Voting in the 2016 General ElectionRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that GUADALUPE ESPINOSA-PENA, age 61, of Mexico, residing in Wake County, North Carolina, was sentenced to one month imprisonment and one year supervised release by United States District Judge Louise W. Flanagan after a guilty plea to illegal voting by an alien.
According to court records, ESPINOSA-PENA is a lawful permanent resident whose application for United States citizenship had been denied. ESPINOSA-PENA attempted to register to vote in North Carolina previously, but was informed he could not register as he was not a United States citizen. Thereafter, ESPINOSA-PENA nonetheless completed a voter registration with an election official’s aid and registered to vote. The election official advised ESPINOSA-PENA that “if he wanted his voice to be heard, he needed to vote.” As detailed in the Indictment, ESPINOSA-PENA voted in the General Election of 2016 in Wake County, North Carolina held in part for the purpose of electing a candidate for the office of President of the United States.
The case was investigated under the framework of the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina led by Homeland Security Investigations, among other agencies. The investigation as to voting fraud is ongoing.
13 April 2019
Tax Prosecutions Announced as the Income Tax Filing Deadline LoomsRead the Press Release
As the filing deadline for income taxes quickly approaches, United States Attorney Trent Shores announced that charges have been filed against four individuals for tax crimes.
“Tax Day is nearly upon us and millions of honest Americans will meet their tax obligations as required. However, there are those who will seek to cheat the system, and they must be held accountable. Those who file false returns, embezzle payroll taxes, commit identity theft to receive fraudulent refunds or fail to file tax returns at all can expect to be investigated and prosecuted."
During this tax season, the following individuals have been charged with fraudulent tax practices:
On April 3, 2019, Earenest J. Grayson Jr., 45, of Tulsa, Oklahoma, was indicted for 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own personal income tax returns for the years 2013, 2014 and 2015. The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division is prosecuting the case, in coordination with Assistant United States Attorneys Charles M. McLoughlin and Victor A.S. Régal,
On April 4, 2019, Gina Lisa Preble, 59, of Bartlesville, was charged by Criminal Information with bank fraud and subscribing to a false tax return. Preble was employed as a clerk at TransWood Carriers Incorporated from 2011 until her termination in 2017. In an effort to disguise her intent to steal funds, Preble allegedly created fraudulent “draft checks” which she mixed in with legitimate business expense “draft checks” and provided to a supervisor for signature. Preble deposited draft checks totaling $394,058.20 into her personal checking account, and used the funds for her own personal gain. Additionally in 2016, Preble signed and submitted a false tax return, omitting the stolen funds as income. The case was investigated by special agents of IRS-Criminal Investigation and the FBI. Assistant U.S. Attorneys Charles M. McLoughlin and Catherine J. Depew are prosecuting the case.
On April 5, 2019, Kevin Glenn Petty, 54, of Sand Springs was charged by Criminal Complaint with Theft of Government Property. Petty allegedly filed fraudulent 2016 income tax returns under the name of taxpayer Woodson J. Nightwalker. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty filed five additional fraudulent returns, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds. The case was investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspector. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.
On April 10, 2019, Jennifer Leann McCormick 44, of Nowata, was charged by Misdemeanor Criminal Information with failure to file a tax return for 2013. The case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.
A Criminal Information or Criminal Complaint is a set of allegations that, if a case were to proceed to trial, the government would need to prove beyond a reasonable doubt. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.
12 April 2019
“Incognito Bandit” Sentenced for Armed Bank RobberyRead the Press Release
BOSTON – A man dubbed the “Incognito Bandit” was sentenced in federal court in Boston today for armed bank robbery.
Albert Taderera, 36, of Brighton, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 34 months in prison, three years of supervised release, and ordered to pay restitution of $11,561. In January 2019, Taderera pleaded guilty to one count of armed bank robbery. In March 2017, Taderera was arrested at Dulles International Airport in Virginia as he attempted to board an outbound flight to South Africa.
Between February 2015 and March 2017, 16 banks were robbed in the Metro-West and Greater Boston areas. In most of the robberies, the robber was disguised in a dark hooded sweatshirt, dark face mask/sunglasses covering his face, dark gloves and dark clothing. In each case, the robber entered the bank and made verbal demands for the banks’ money. In most of the robberies, the robber displayed what tellers described as a black semi-automatic handgun.
All of the robberies occurred in suburban settings where banks were freestanding and featured adjacent wooded areas or foliage. After many of these robberies, witnesses observed the robber leave the bank and enter the wooded areas. Witnesses also observed the robber flee the area in a black BMW sedan. Based on these similarities, investigators believed that the individual driving the black BMW was responsible for the robberies.
On March 16, 2017, the law enforcement observed a black BMW sedan sitting outside a local bank. They also noted that Taderera fit the general description of the individual responsible for numerous recent robberies. Police determined that the registration of the BMW was revoked and per Department policy, the vehicle was towed and inventoried.
On Wednesday, March 22, 2017, an individual identifying himself as Taderera, called the tow company and inquired about the status of his BMW. The tow company informed Taderera that the vehicle was in police custody.
On Thursday, March 23, 2017, at approximately 10:15 pm, law enforcement learned that Taderera had booked a flight, scheduled to leave on Friday, March 24, 2017, at 11:00 a.m., from Dulles International Airport to Addis Ababa, Ethiopia. During the morning of March 24, 2017, Taderera was en route to Dulles having taken a flight out of Boston. It was later learned that Taderera had rebooked his flight and was now planning to leave on March 24, 2017, at 5:45 p.m. from Dulles to Johannesburg, South Africa. Taderera was arrested prior to boarding the flight.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William Ferrara, Director of Field Operations, U.S. Customs and Border Protection; and Concord Police Chief Joseph F. O’Connor made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Worcester Man Arrested on Fraud Charges Arising from Role in Running Employment AgencyRead the Press Release
BOSTON – A Worcester man was arrested today and charged in federal court on fraud charges arising from his role overseeing UT Services, a Worcester employment agency.
Tam Vuong, 43, was charged with two counts of wire fraud and will appear in federal court in Worcester later today.
According to the criminal complaint, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services paid most of its workers in cash as part of a scheme to underreport wages, and thus fraudulently minimize its workers’ compensation insurance premium.
UT Services allegedly disseminated forged certificates of insurance to several clients and underreported its payroll on various state and federal filings.
According to court documents, Vuong previously operated other employment agencies, including Prime Labor Services, which had revenues of more than $25 million and also underreported its wages. Vuong shifted operations from Prime Labor Services to UT Services after federal agents executed search warrants in November 2017.
Each count of wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations, Insurance Fraud Bureau of Massachusetts, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman who Embezzled over $720,000 Pleads Guilty to Filing False Tax Returns, Obtaining a Controlled Substance by FraudRead the Press Release
Ann E. Darling-Batson, 58, of Herrin, Illinois, has pleaded guilty to filing a false federal income tax return and fraudulently acquiring a controlled substance. Darling-Batson had been an office manager at New Horizons OBGYN, an obstetrics and gynecological practice group in Carbondale, Illinois. As part of the plea, she admitted embezzling in excess of $720,000 from her employer from 2012 through 2016 – income she acknowledged was not reported on her federal income tax returns for those years. She also confessed that in September 2016, she obtained acetaminophen/codeine #3, a Schedule III controlled substance, from a Walgreens pharmacy without a legitimate, authorized prescription.
Prior to the plea, the defendant made complete restitution to her employer.
Sentencing is scheduled for July 9, 2019. Batson-Darling, who is currently released on bond, faces a total of up to seven years imprisonment, three years of supervised release, and a maximum fine of $250,000.
This guilty plea is the result of an investigation conducted by IRS Criminal Investigation and the Drug Enforcement Agency. The prosecution is being handled by Assistant U.S. Attorney Norm Smith.
West Yellowstone woman sentenced to probation for defrauding employerRead the Press Release
MISSOULA—West Yellowstone resident Ann Bennett Hermanson was sentenced today to five years of probation and ordered to pay $479,730 restitution for embezzling from her employer over a seven-year period, U.S. Attorney Kurt Alme said.
Hermanson, 54, pleaded earlier to wire fraud.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecution evidence showed that Hermanson worked for 15 years as a para-professional in the West Yellowstone office of a regional accounting and business services company. As a para-professional, Hermanson had access to bank account information and signature stamps for the company’s customers.
Starting in 2009 and continuing until April 2016, Hermanson embezzled about $630,327.88 from several accounts belonging to the company’s customers. She has repaid some of the money.
The thefts were discovered in April 2016 when a customer reported irregularities in her business account to the company’s corporate office.
Hermanson embezzled funds by writing checks to herself for personal credit card expenses and other bills and using customers’ signature stamps to sign the checks. She also obtained a duplicate credit card for one victim’s account and used it to make unauthorized purchases.
When approached by a company employee in April 2016 about suspicious transactions, Hermanson admitted to embezzling money. She also admitted the thefts to an FBI agent and identified five business accounts from which she stole money.
Assistant U.S. Attorney Timothy Racicot is prosecuting the case, which was investigated by the FBI.
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West Monroe felon pleads guilty to illegally possessing a pistol, ammunitionRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Devin Dewayne Williams, 27, of West Monroe, Louisiana, pleaded guilty Thursday before U.S. District Judge Terry Doughty for possession of a firearm by a convicted felon.
According to the guilty plea, during a traffic stop on Williams’ vehicle on September 24, 2017, a West Monroe Police officer found a handgun magazine in Williams’ front pocket and a Beretta, Model 21A, .25-caliber pistol under the driver’s seat. Williams is a felon who was convicted in Ouachita Parish on March 8, 2013 of simple kidnapping and on November 12, 2015 of possession with intent to distribute marijuana. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
Williams faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Doughty set the sentencing date for August 7, 2019.
The ATF and West Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney’s Office Seeks Preliminary Injunction to Stop Doctor from Illegally Prescribing Controlled SubstancesRead the Press Release
SALT LAKE CITY -- The U.S. Attorney’s Office in Salt Lake City filed a civil complaint in U.S. District Court afternoon morning against a doctor the complaint alleges is issuing prescriptions for controlled substances in violation of the Controlled Substance Act. To protect the public, the United States is also seeking a preliminary injunction to immediately stop the doctor from prescribing powerful controlled substances.
According to the complaint, Dr. Nicholas Carl Greenwood operates Greenwood Addiction Physicians in Murray. Greenwood Addiction Physicians claims on its website to be the premier outpatient program for the treatment of opioid dependence in the Western United States. In reality, the complaint alleges, Dr. Greenwood issues prescriptions for substances with no legitimate medical purpose and outside the usual course of professional practice.
Through his business, Dr. Greenwood claims to offer treatment options for opioid dependence, alcohol dependence, Benzodiazepine dependence, outpatient medical detox, and nicotine/tobacco dependence.
Dr. Greenwood has the authority to dispense and administer Schedule III drugs for maintenance or detoxification treatment. Currently, the only controlled substance approved for the treatment of narcotic addiction is Buprenorphine.
A Schedule III controlled substance, Buprenorphine and Buprenorphine combination products are manufactured by multiple companies, according to an affidavit filed in the case. The products are marketed under several trade names including Suboxone, Zubsolv, and Butrans. Suboxone is sold as a dissolvable film for the treatment of opioid dependence and should be used as part of a complete treatment plan including counseling and psychosocial support.
According to the complaint, on April 4, 2018, the Tooele County Sheriff’s Office told the DEA’s Tactical Division Squad that an inmate was organizing and paying individuals to obtain controlled substances from Dr. Greenwood.
Following the tip from the Tooele County Jail inmate, three separate agents with the DEA Tactical Diversion Squad visited Dr. Greenwood 20 times in an undercover capacity, according to the complaint. The complaint alleges that over the course of almost eight months, Dr, Greenwood wrote the undercover agents 19 prescriptions for 889 pills without a legitimate medical purpose and outside the usual course of professional practice. All prescriptions were for Buprenorphine. The agents visited Dr. Greenwood from June 28, 2018, through February 21, 2019.
The complaint alleges all of the agents’ visits with Dr. Greenwood followed the same pattern: Dr. Greenwood never performed a medical examination, never asked questions about the agent’s health or symptoms, and never reviewed prior medical records. Instead, Dr. Greenwood issued prescriptions for Buprenorphine to the undercover agents without any evidence of medical need. Dr. Greenwood issued most of the prescriptions without actually meeting with the undercover agents, according to documents filed in court.
Dr. Greenwood knew, or should have known, that the prescriptions he issued, essentially on a cash-and-carry basis, were not medically necessary and were being sold or traded on the street, documents filed in court allege. Dr. Greenwood believed that 25 to 50 percent of the prescriptions he issued were sold or traded, documents filed with the court allege. None of Dr. Greenwood’s prescriptions issued to the undercover investigators had a legitimate medical purpose, according to a motion and memorandum in support of a preliminary injunction filed with the court.
The United States is seeking to stop Dr. Greenwood from prescribing controlled substances. Accordingly, the United States moved for a preliminary injunction at the same time it filed the complaint against Dr. Greenwood. Dr. Greenwood will have 60 days to respond to the complaint and 14 days to respond to the motion.
The claims made in the complaint and other court filings are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office Observes National Crime Victims’ Rights WeekRead the Press Release
Columbia, South Carolina – United States Attorney Sherri A. Lydon announced today that the United States Attorney’s Office has joined with state and local partners to honor National Crime Victims’ Rights Week. Events included the South Carolina Victims’ Rights Week Conference, held April 2-4, and a Unity Ceremony on April 2.
Each 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. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future. The annual observance is an opportunity to bring victim advocates, law enforcement, and crime victims together to increase awareness of victims’ rights and provider services. It serves as a way to honor the courage and resilience demonstrated by those impacted by crimes and to pay homage to the advocates serving them.
“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."
“The women and men in the U.S. Attorney’s Office work hard every day to uphold the rule of law, to keep the citizens of South Carolina safe, and to seek justice for victims of crime and their loved ones,” said U.S. Attorney Lydon. This National Crime Victims’ Rights Week, we are honored to join victim advocates, law enforcement, and the community in remembering victims of crime and paying tribute to the public servants and advocates who serve, encourage, and empower them. We are especially grateful to Brittany Todd, who shared the story of her assault and her daughter’s kidnapping and delivered an inspiring message of hope at this year’s Unity Ceremony. Our office will forever be amazed at Brittany’s strength and resilience.”
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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. 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/.
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U.S. Attorney’s Office Dedicates the John K. Vincent Memorial Conference RoomRead the Press Release
SACRAMENTO, Calif. — Today, the U.S. Attorney’s Office dedicated the John K. Vincent Memorial Conference Room to honor the legacy of their friend and colleague.
John Vincent provided selfless service to the U.S. Attorney’s Office and his country for more than thirty-two years until his untimely death in 2018. His tenure in the office was marked by inspiring leadership, devoted service, tenacious advocacy on behalf of the United States, and steady guidance as the office’s moral and ethical guiding star in the pursuit of justice.
John Vincent was a public servant of the highest order. He came to the office as an Assistant U.S. Attorney (AUSA) in 1986 and was promoted to Chief of the Special Prosecutions Unit in 1997, a role he held until 2000. He was then promoted to First Assistant U.S. Attorney, and in 2001, he became Acting and then court-appointed U.S. Attorney until 2003. In 2003, Mr. Vincent became the district’s Criminal Chief, a role he held until 2018 while continuing to carry his own portfolio of complex cases and supervising the office’s National Security Unit. His contributions to the office were invaluable and helped to form and sustain the heart and soul of the office. Mr. Vincent exemplified integrity, and he personified the principle that the office’s mission is to always do the right thing for the right reason.
In recognition of his public service, Mr. Vincent was awarded the Director’s Award three times: in 1991 and 1996 for Superior Performance as an AUSA, and then in 2018 for Superior Performance in a Managerial Role. He worked tirelessly to pursue justice, and he embodied the best qualities of a prosecutor and a leader.
To recognize John Vincent’s many contributions to the Office, U.S. Attorney McGregor W. Scott chose to dedicate the main conference room in the U.S. Attorney’s Office in Sacramento in his honor. This facility is the heart of the office and is used almost continually to hold presentations, trainings, press conferences, staff meetings, and holiday events. It is the room that AUSAs enter on their first day of service to take their oath and where the office celebrates AUSAs as they bid their farewell. It is fitting that John Vincent’s name will overlook the many activities that will take place in this room.
U.S. Attorney, IRS Warn Taxpayers to Be on the Lookout for Fraud and Remain Tax CompliantRead the Press Release
MACON – As many people scramble to file their individual taxes prior to Monday’s deadline, federal officials are warning people to be on the lookout for tax scams, carefully protect their personal information from theft, and comply with federal tax laws to avoid penalties, criminal prosecution and even jail time. The U.S. Attorney’s Office for the Middle District of Georgia and the Internal Revenue Service-Criminal Investigation are actively investigating tax fraud cases in Middle and South Georgia, and are holding criminals accountable for identity theft and tax fraud.
“Tax cheats are becoming more sophisticated in their schemes and are finding new ways to swindle the system and even access unsuspecting victims’ personal and tax information for nefarious purposes,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. “Our Office is working closely with our law enforcement partners at the IRS and local agencies to stop this criminal activity that has far-reaching consequences for both individual victims and our country.”
“We have IRS Special Agents located here in Georgia working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.
Since last tax season, approximately twenty-two defendants have been sentenced for fraudulent tax schemes beginning in May 2018 in the Middle District of Georgia. Here are two recent examples of tax fraud cases prosecuted in the Middle District of Georgia during 2018:
1. Portia Powell of Columbus, GA, was sentenced in November 2018 to 18 months in federal prison, three years supervised release plus $159,000 restitution to the IRS in a stolen identity tax refund scheme. Between August and October 2013, Powell received approximately 71 stolen U.S. Treasury checks written to various taxpayers. These treasury checks were taxpayer refunds for the 2012 tax year totaling $159,000. The victims were all either students, disabled or unemployed.
2. Belinda Harris, Cynthia Clarkston and Susie Sherman Hall, all of Valdosta, GA, were involved in a tax fraud scheme. In 2018, Ms. Harris and Ms. Hall were each sentenced to 57 months in federal prison, and Ms. Clarkston was sentenced to 24 months imprisonment. All of the defendants were ordered to pay $258,914 to the IRS in restitution. The three defendants admitted to filing numerous fraudulent tax returns using stolen personal information, including 100 names obtained from an individual employed at Valdosta State University. IRS investigators determined 222 fraudulent federal income tax returns, filed for the 2010 and 2011 years, were directly linked to the conspiracy, claiming refunds totaling $670,860.00. Actual refunds of $258,914.00 were issued on those fraudulent returns. A number of victims said that the federal income tax returns filed in their names were completely false and that they did not authorize anyone to file or accept a tax refund in their names.
To learn more, visit https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for information about the “Dirty Dozen” for the 2019 filing season. The deadline for taxpayers to file their income taxes is Monday, April 15, 2018 at midnight.
For in person interview requests or questions, please contact the Atlanta Field Office IRS-Criminal Investigation Public Information Officer at [email protected]. Additional 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.
U.S. Attorney reminds taxpayers to be vigilant as tax day approachesRead the Press Release
ATLANTA - With the tax deadline quickly approaching for individual taxpayers, it is important to be aware of tax scams as well as the importance of being compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“Criminals continue use tax fraud schemes to steal from tax-payers,” said U.S. Attorney Byung J. “BJay” Pak. “Be honest and truthful in your tax filings, and beware of others who look to take advantage of you and the tax system.”
“We have IRS Special Agents located here in Georgia working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.
The U.S. Attorney’s Office for the Northern District of Georgia, along with agents of IRS-Criminal Investigation and other law enforcement partners, is actively engaged in investigating and prosecuting tax fraud as well as combatting those criminals willing to steal identities and commit tax fraud on the unsuspecting public. Over the past year, multiple tax investigations were successfully resolved, with approximately 13 convicted individuals sentenced related to fraudulent tax schemes since May of 2018. The following are highlights of some of those cases:
Lakeisha Stone
On December 10, 2018, Lakeisha Stone of Fairburn, Georgia was sentenced to four years, two months in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $392,174 to the IRS for her role in a scheme to defraud the IRS. Stone used two other individuals as nominee names to obtain fraudulent Electronic Filing Identifying Numbers and Preparer Tax Identification Numbers to prepare false income tax returns. Stone also stole the identities of some of her tax customers and cashed stolen treasury checks. Stone used the Atlanta-based businesses Taxes R’ Us, Taxs R’ Us, and Tax Tyme to commit her fraudulent activity.
Stephanie Parker
On November 15, 2018, Stephanie Parker of Atlanta, Georgia was sentenced to two years in federal prison, to be followed by one year of supervised release and ordered to pay $5,964 in restitution to the IRS for a scheme to use stolen identities to defraud the IRS. Parker was an employee of the IRS and worked in the IRS office located in Chamblee, Georgia. From September of 2012 through April of 2013, Parker accessed taxpayers’ personal identifying information (“PII”) while employed as a customer service representative for the IRS. Parker took those taxpayers’ PII and filed fraudulent tax returns with the IRS in those names.
Joseph Racine & Arnouse Merlien
On November 8, 2018, Joseph Racine, of Boynton Beach, Florida, was sentenced to three years, four months in federal prison, to be followed by three years of supervised release and Arnouse Merlien, also of Boynton Beach, was sentenced to three years in federal prison, followed by three years of supervised release and both were ordered to pay $3,854,915 in restitution to the IRS for conspiracy to defraud the IRS. Racine was the owner of JSR Westend Tax Services, located in Atlanta, and JSR Tax Services, located in Greenacres, Florida. Merlien was the office manager of JSR Tax Services in Florida. The IRS-CI investigation revealed that Racine was filing fraudulent returns involving multiple credits and deductions, including the fuel tax credit, refundable education credit, and unreimbursed employee business expenses. Racine requested refunds on 99 percent of the returns, a rate significantly higher than the average over the same years. In March 2017, IRS-CI determined that JSR Tax Services in Florida, where Merlien primarily worked, was filing federal tax returns displaying the same patterns of fraud as those prepared at JSR Westend Tax Services in Atlanta. The investigation revealed that Racine and Merlien engaged in this scheme to increase the amount of money they could charge their clients for preparing their returns.
Michael Jon Kell
On October 16, 2018, Michael Jon Kell of Powder Springs, Georgia was sentenced to one year, six months in federal prison, followed by one year of probation and ordered to pay $321,878 in restitution to the IRS for a twenty year tax scheme to funnel millions of dollars in assets through a church he created in order to evade filing federal tax returns. Dr. Kell developed numerous patented technologies and worked as a consultant, which generated millions of dollars in income over the years. In an attempt to hide this income, he founded and claimed to be the “pastor” of the First Meliorite Church, which he said was a branch of the Universal Life Church. Dr. Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Dr. Kell’s exclusive control. He used these accounts to cover all of his personal expenses—including overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Dr. Kell also transferred ownership of his multi-million dollar residence in Vinings several times over the years to various entities he created and controlled, in an effort to protect the property from creditors, including the IRS.
Hanh Tran
On April 8, 2019, Hanh Tran of Lilburn, Georgia was sentenced to ten months of home confinement, to be followed by twelve months of supervised release and ordered to pay $124,812 in restitution to the IRS for willfully filing a false tax return with the IRS. For the tax years 2010 through 2014, Tran underreported his total income causing an underreporting of his tax liability of $124,812. Hanh Tran is the C.E.O. of Glamour Salon & Spa, Inc. located in Marietta, Georgia.
Go to https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for more information on the Dirty Dozen for the 2019 filing season.
For Atlanta Field Office IRS-Criminal Investigation interview requests or questions, please contact their Public Information Officer at [email protected].
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.
U.S. Attorney and ATF Target Those who “Lie-And-Try” to Purchase FirearmsRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced that five “lie and try” defendants have pleaded guilty to violations of federal firearms laws that stemmed from “lie and try” charges filed in February. The charges were announced by U.S. Attorney Shores and law enforcement officials from the Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Tulsa Police Department, Tulsa County Sheriff’s Office and Delaware County Sheriff’s Office during a February press conference.
“All too often, illegally purchased guns are then used to commit violent crimes. From domestic violence to mass shootings, time and again we see that criminals committing these heinous acts should never have had a gun in the first place because they are a “prohibited person” under federal law. Our “lie-and-try” prosecutions seek to stop the firearms from ever making it into the hands of those prohibited persons,” said U.S. Attorney Shores. “The ATF has been and continues to be a great partner to hold accountable those who lie on federal forms and try to purchase a gun. The ATF’s efforts to stop “lie and try” purchases in Tulsa will help prevent violent gun crimes in our community. Every gun related crime or tragedy prevented through “lie and try” prosecutions is a victory for all of us.”
“Prior to stepping foot in a gun store, potential purchasers with eligibility concerns have access to a variety of information, reference materials and Q&A at www.atf.gov or by contacting their local ATF Office,” stated Dallas Division ATF Special Agent in Charge Jeffrey C. Boshek II. “The ATF Form 4473 questions are designed to identify prohibited persons and prevent the illegal transfer and possession of firearms. “Lie-And-Try”, or lying on the form about facts relevant to the transfer of a firearm is a felony, period.”
The following defendants were charged with making false statements in connection the attempted acquisition of a firearm and other firearm offenses: Glenville L. Albright, 50, of Pawhuska; Anthony Dale Brannon, 59, of Grove; Rufus Hicks, Jr., 39, of Tulsa, Christopher Manzanares, 28, of Broken Arrow; and Bradley Wikel, 31, of Jay.
Four of the men lied on the ATF Form 4473, answering no, when asked if they were convicted felons. The fifth man, Manzanares, lied when answering that he was not subject to a restraining order.
As a result of the ATF investigation, the men pleaded guilty to making false statements in connection with the attempted acquisition of a firearm or to other related federal firearms violations, including felon in possession of a firearm and possession of a firearm and ammunition while subject to a domestic violence restraining order.
The ATF Form 4473, specifically questions potential purchasers about their criminal history, for example, if they’ve been convicted of a felony, domestic abuse, and/or illegal drug use. The maximum penalty for making a false statement during the purchase of a firearm is 10 years in prison.
Additionally, Federal Firearms Licensees (FFLs), who sell or transfer a firearm to a prohibited person, allow a straw purchaser to buy a gun for someone else, or fail to keep proper records of who they sell firearms to, also face criminal prosecution.
All men have pleaded guilty this month to the following firearms violations:
- Albright: Felon in Possession of a Firearm
- Brannon: Felon in Possession of a Firearm
- Hicks: False Statement in Connection With the Attempted Acquisition of a Firearm
- Wikel: False Statement in Connection With the Attempted Acquisition of a Firearm
- Manzanares: Possession of a Firearm and Ammunition While Subject to a Domestic Violence Restraining Order
The ATF and the Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorneys Richard M. Cella, Eric O. Johnston, and Christopher J. Nassar and Victor A.S. Régal prosecuted the cases.
U.S. Attorney Attends Pilot Test of Micro-Jamming Technology in South Carolina PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that the federal Bureau of Prisons conducted a pilot test of micro-jamming technology this week at the Broad River Correctional Institution in Columbia, South Carolina. The test was the first collaboration of its kind in a state corrections facility. It was conducted to determine if micro-jamming could disable cell signals and prevent wireless communication by inmates using contraband cellphones in a housing unit.
“I am so encouraged by what I observed firsthand standing in a cellblock beside SCDC Director Bryan Stirling, as federal officials tested cellphone micro-jamming technology,” said U.S. Attorney Lydon. “The technology was designed and deployed to block signals from contraband cellphones inside the prison, while ensuring that there was no interference with wireless signals used by the public outside the facility. It is incredibly promising to see the potential for technology to address contraband cellphones in prisons, which for years have threatened our corrections and law enforcement officers and our community.”
Contraband cellphones pose a significant safety threat to the general public, prison workers, and other inmates. In partnership with the South Carolina Department of Corrections (SCDC) and the South Carolina Law Enforcement Division (SLED), the U.S. Attorney’s Office for the District of South Carolina has brought a number of cases against both inmates using contraband phones to harm the public and SCDC employees smuggling contraband—including cellphones—into prisons. For example, the office has recently prosecuted inmates who have used contraband phones to move large quantities of methamphetamine from California to South Carolina; access the dark web and buy a mail bomb intended to kill an ex-wife; and defraud members of the military of over $560,000 through a “sextortion” scheme.
“I am so grateful to Director Stirling, who has led the effort to allow state and local prisons to jam cell signals and made the entire country aware of the need for this tool,” Lydon said. “He should be applauded for his tireless efforts to protect both the general public and the prison population from the safety threat posed by contraband cellphones. This is a game changer for law enforcement who work to protect the public from criminal enterprises run from within prisons.”
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U.S. Attorney and IRS Warn Potential Tax Cheats to Timely File Accurate and Complete Tax ReturnsRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including listing recent tax fraud prosecutions and sentences.
“Individuals who fail to file tax returns in a timely manner are taking advantage of the honest taxpayers who finance the government’s operations, and subject themselves to criminal prosecution,” said U.S. Attorney David J. Freed. “We will continue to pursue those who fail to meet the obligations of paying their fair share.”
"As we approach the end of filing season, taxpayers are reminded that preparing and filing false tax returns will result in extremely negative consequences,” said Guy Ficco, Special Agent in Charge of the Philadelphia Field Office. “Whether you prepare your own tax return or utilize the services of a tax return preparer, remember, you the taxpayer are ultimately responsible for the accuracy of your tax return.”
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for filing false federal tax returns and committing tax evasion. Defendants have received substantial sentences for tax fraud, ranging from several years in prison to home confinement. Restitution is mandatory and often includes substantial interest and penalties. For example, the following individuals were charged and/or sentenced for tax fraud recently:
FILING FALSE TAX RETURNS AND TAX EVASION
- Jeremy Baney, age 48, an inmate at SCI Smithfield, Huntingdon, Pennsylvania, pleaded guilty on May 2, 2018, to aiding and assisting in making false statements to the IRS. Baney admitted to being involved in a prison tax scheme from November 17, 2009 through February 25, 2012. Baney obtained names and social security numbers of inmates to file false tax returns or would send that information to a former inmate who would then prepare and file the fraudulent 1040EZ tax returns with fictitious wages and holdings in order to get a tax refund. The government is alleging that Baney attempted to receive tax refunds totaling $236,407, to which he was not entitled to receive. Baney is awaiting sentencing.
- Atef Hussein, age 48, of Hagerstown, Maryland, former owner/operator of the Fairground Diner in Carlisle, Pennsylvania, was sentenced on May 30, 2018, to one year and one day imprisonment and ordered to pay restitution in the amount of $139,293, for income tax evasion. Hussein understated income and taxes due, resulting in false income tax returns for tax years 2011 through 2015, causing a tax loss of approximately $139,293.
- Hiteshkumar Patel, age 52, of South Abington Township, Pennsylvania, was sentenced on August 9, 2018, to serve 234 months’ imprisonment and ordered to pay restitution in the amount of $896,112, for conspiracy to commit wire and mail fraud, as well as aggravated identity theft in November 2017. The investigation revealed that beginning in or about August 2015 through May 2016, Patel was involved in a multi-faceted international conspiracy and devised a scheme to defraud that included individuals who falsely represented themselves as Internal Revenue Service (IRS) agents, as well as individuals associated with an illegitimate online loan business. Individuals who falsely claimed to represent the Internal Revenue Service (IRS) contacted unsuspecting victims throughout the United States. The victims were told that they had to immediately make a monetary payment in order to satisfy outstanding IRS tax debt and/or IRS penalty fees. Victims were told that there would be severe consequences if they did not immediately comply, such as federal agents knocking on their door, notification to employers, garnishment of wages, and even arrest. Victims of the online loan fraud scheme were instructed that in order to receive the proceeds of their online loan application, they had to first make monetary payments associated with the processing of the application, such as fees for expediting the loan and insurance. Some victims of the loan fraud scheme were also told that outstanding IRS debt had to be satisfied before their loan application could be processed. All of the victims were instructed to remit monetary payments to a number of different individuals via the U.S. Mail, Western Union, MoneyGram, and/or RIA (Walmart to Walmart). The monetary payments were received by Patel, or by members of the unlawful telemarketing organization and unindicted co-conspirators. The investigation identified 634 individuals directly tied to Patel’s criminal conduct from across the country. The victims collectively sustained a loss of nearly $900,000.
- Diane M. Fabian, age 67, of Middletown, Pennsylvania, pleaded guilty to tax evasion charges on August 14, 2018. Fabian admitted that from 2011 through 2015, she filed tax returns that understated her income resulting in a total tax due and owing to the United States of $45,100. Fabian is awaiting sentencing.
- James W. Pilsner, age 60, of Harrisburg, Pennsylvania, the former Vice President of Rite Aid, pleaded guilty on October 1, 2018, to vendor kick-back and tax evasion charges. In March 2014, Pilsner filed an income tax return with the IRS that did not report his receipt of $411,500 in kick-back money during 2013, thereby avoiding approximately $157,648, in federal income taxes. Pilsner paid $300,000 towards his tax restitution obligation for the period 2013-2017 of approximately $592,000, and agreed to pay the balance at sentencing.
- Al T. Hughes, age 60, of Scranton, Pennsylvania, was charged in a superseding indictment on January 30, 2018, and pleaded guilty on February 7, 2019, to tax evasion. Hughes admitted to diverting approximately $892,000 in corporate receipts to his personal benefit, and failed to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,000. Hughes also admitted that he began diverting corporate receipts in 2009 and continued through 2014, and that he cashed hundreds of customer checks, intended for payment of funeral home services, at various financial institutions, including a check cashing service in Scranton. Hughes diverted corporate receipts from four area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel. Sentencing is currently scheduled for June 7, 2019.
- James Famularo, age 61, of Swiftwater, Pennsylvania, Famularo was sentenced on April 2, 2019, to six months’ imprisonment to be followed by six months home detention and ordered to pay restitution to the IRS of $196,119, for income tax evasion spanning tax years 2012 through 2015. Famularo failed to report a total of $646,663.40 in income between tax years 2012 and 2015, and filed false Form 1040 Individual Income Tax Returns for each of tax years 2012, 2013, 2014 and 2015 resulting in a loss of $196,119 to the IRS.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are continuing to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.
- Julio Polanco Suarez, age 41, of Allentown, Pennsylvania, was charged on April 10, 2018, with conspiring to defraud the government between March 1, 2009 – September 20, 2016; theft of government money; and aggravated identity theft on September 20, 2016, in Luzerne County. The indictment alleged that Suarez’s coconspirators stole individuals’ identities, used them to prepare and file false tax returns, and obtained the refund checks issued by the U.S. Treasury pursuant to those false tax returns. Suarez took possession of the refund checks, forged names and social security numbers on them, and cashed them at check cashing businesses in the Middle District of Pennsylvania. Suarez and his coconspirators are charged with cashing $522,613.80 in fraudulently obtained Treasury checks, and attempting to cash an additional $41,401.57 worth of checks. Suarez has signed a plea agreement and is awaiting his plea hearing.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS would like to warn taxpayers of a quickly growing scam involving a phone scam whereby criminals fake calls from the Taxpayer Advocate Service (TAS), an independent organization within the IRS.
Similar to other IRS impersonation scams, thieves make unsolicited phone calls to their intended victims fraudulently claiming to be from the IRS. In this most recent scam variation, callers “spoof” the telephone number of the IRS Taxpayer Advocate Service office in Houston or Brooklyn. Calls may be ‘robo-calls’ that request a call back. Once the taxpayer returns the call, the con artist requests personal information, including Social Security number or individual taxpayer identification number (ITIN).
TAS can help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. TAS does not initiate calls to taxpayers “out of the blue.” Typically, a taxpayer would contact TAS for help first, and only then would TAS reach out to the taxpayer.
In other variations of the IRS impersonation phone scam, fraudsters demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive. Alternately, scammers may tell would-be victims that they are entitled to a large refund but must first provide personal information. Other characteristics of these scams include:
- Scammers use fake names and IRS badge numbers to identify themselves.
- Scammers may know the last four digits of the taxpayer’s Social Security number.
- Scammers spoof caller ID to make the phone number appear as if the IRS or another local law enforcement agency is calling.
- Scammers may send bogus IRS emails to victims to support their bogus calls.
- Victims hear background noise of other calls to mimic a call site.
- After threatening victims with jail time or with, driver’s license or other professional license revocation, scammers hang up. Others soon call back pretending to be from local law enforcement agencies or the Department of Motor Vehicles, and caller ID again supports their claim.
Here are some things the scammers often do, but the IRS will not do. Taxpayers should remember that any one of these is a tell-tale sign of a scam.
The IRS will never:
- Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
- Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Ask for credit or debit card numbers over the phone.
- Call about an unexpected refund.
For taxpayers who don’t owe taxes or don’t think they do:
- Please report IRS or Treasury-related fraudulent calls to [email protected] (Subject: IRS Phone Scam).
- Do not give out any information. Hang up immediately. The longer the con artist is engaged; the more opportunity he/she believes exists, potentially prompting more calls.
- Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
- Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add "IRS Telephone Scam" in the notes.
For those who owe taxes or think they do:
- Call the IRS at 800-829-1040. IRS workers can help.
- View tax account online. Taxpayers can see their past 24 months of payment history, payoff amount and balance of each tax year owed.
Stay alert to scams that use the IRS or other legitimate companies and agencies as a lure. Tax scams can happen any time of year, not just at tax time. For more information visit Tax Scams and Consumer Alerts on IRS.gov.
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Two Men Charged with Drug ConspiracyRead the Press Release
BOSTON – Two Massachusetts men were charged in federal court in Boston yesterday with drug trafficking for their roles in a cocaine conspiracy.
John Jones, 42, of Taunton, and John Fisher, 46, of Berkley, were charged with one count of conspiracy to distribute and possess with intent to distribute cocaine. Jones is in state custody pending trial in another matter, and Fisher was arrested on April 11, 2019, and is in currently in custody. Fisher and Jones will appear for arraignment in federal court on April 16, 2019.
The charges are the result of a nine-month investigation aimed at attacking the increased volume of cocaine flooding Southern and Central Massachusetts. Ten defendants were charged in this conspiracy in April 2018, eight of whom have since pleaded guilty. Jones and Fisher are alleged to have been kilogram-level redistributors of a lucrative and sophisticated drug trafficking and distribution ring in the region.
The drug statute provides for a sentence no greater than 20 years in prison, at least three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Arrested for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Dominican national and Lawrence man were arrested yesterday and charged in federal court in Boston with conspiracy to distribute and possess with intent to distribute fentanyl.
Aneudy Rios, 40, of Lawrence, and Luis Arias, 50, a Dominican national residing in Lawrence, were charged with conspiracy to distribute and to possess with intent to distribute fentanyl.
Over the course of several months, agents investigated Rios and Arias’ alleged fentanyl distribution operation, which culminated on April 11, 2019, when investigators arrested them in Lawrence. During Rios’ arrest, he attempted to swallow a large bag of suspected fentanyl. The bag, however, ripped and the suspected fentanyl covered Rios and the area around him. Investigators swiftly requested an ambulance for Rios and he was provided naloxone, commonly known as Narcan. Rios was transported to an area hospital and a hazmat response cleared the scene of the potentially deadly substance.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl carries a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of $1 million. Arias will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement. During the course of this investigation, valuable assistance was provided by Homeland Security Investigations in Boston and the Lawrence, North Andover, Methuen, Billerica, Andover, Lowell, and Groton Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Two Defendants Sentenced in Multi-Million Dollar Health Care Fraud ConspiracyRead the Press Release
PITTSBURGH, Pa. – Two residents of Pittsburgh, Pennsylvania, were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon sentenced Autumn Brown, 31, and Brenda Lowry Horton, 48, to five years of probation, including six months of home detention, for their roles in a years-long conspiracy. Brown and Lowry Horton were also ordered to pay restitution to the Pennsylvania Medicaid program in the amount of $68,917.80 and $67,107.32, respectively.
During their respective plea hearings in December 2018, the defendants admitted that they were employees of one or more related entities operating in the home health care industry—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), and Everyday People Staffing, Inc. (EPS). Each of these entities was owned or controlled by Arlinda Moriarty. MCI and ADL were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and another related entity (Coordination Care, Inc.), collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, the defendants admitted that they participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims or for which there was insufficient or fabricated documentation to support the claims. The Court was further advised that the defendants conspired with, among others, various office workers at the companies, including Tiffhany Covington and Tia Collins. As part of the conspiracy, the defendants admitted that they fabricated timesheets to reflect the provision of in-home PAS care they provided to consumers but that, in fact, never occurred. In addition, at Arlinda Moriarty’s direction, certain co-conspirators, including Lowry Horton, stopped using their own names as the attendant on timesheets and instead used the names of "ghost" attendants, some of whom permitted their names to be used in exchange for a kickback of resulting fraudulent salary payments. Brown admitted that she allowed her name to be used in this manner and that she received a portion of the fraudulent proceeds from Ms. Covington. Lowry Horton further admitted that, as part of the conspiracy, she and others paid kickbacks to consumers in exchange for the consumers’ agreement to sign—or allow their names to be forged on—false timesheets.
To date, 16 people have been charged with offenses related to the conspiracy.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Twenty-Two Defendants Charged with Federal Drug Conspiracy and Related CrimesRead the Press Release
Defendants Allegedly Knew the Drugs They Sold Were Causing Overdoses
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging 22 defendants with participating in a drug conspiracy that allegedly distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland and surrounding states, resulting in multiple overdoses, including five overdose deaths. According to the superseding indictment, the defendants possessed firearms in furtherance of their drug trafficking and purchased guns from customers in exchange for drugs. The superseding indictment was returned late on April 10, 2019, and unsealed yesterday.
The superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Acting Chief Russell E. Hamill, III of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
“A supply chain that distributed opioids--including deadly fentanyl—throughout Maryland and in Virginia, West Virginia, and Pennsylvania, has been dismantled, and those charged with trafficking these poisons are now in federal custody,” said U.S. Attorney Robert K. Hur. “Drugs—especially opioids—are killing thousands of Marylanders a year. Federal, state, and local law enforcement are working together to reduce overdose deaths from fentanyl and from all opioids. Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution and federal time.”
"The FBI worked side-by-side with the Montgomery County and Rockville City Police Department and other federal, state and local partners to ensure we stopped these individuals from further distributing heroin, fentanyl, cocaine and crack cocaine in the region," said FBI Baltimore Acting Special Agent in Charge Jennifer L. Moore. "These dangerous drugs have a devastating effect on our communities and we will continue to work with our law enforcement partners to make Maryland a safer place."
According to the 23-count indictment, from 2016 to April 3, 2019, the defendants were members and associates of the Butler Drug Trafficking Organization (DTO) and distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania. The indictment alleges that the members of the conspiracy conducted sales on a daily basis, operating in rotating shifts to ensure continuous availability. Members of the conspiracy allegedly used residences in and around Baltimore to process, cut, repackage, and prepare heroin, fentanyl, and cocaine base for distribution, and rotated the residences to minimize detection by law enforcement. The indictment alleges that in order to maximize their profits, the conspirators cut the heroin and crack cocaine with other substances, such as fentanyl and diphenhydramine (often found in sleeping pills).
As detailed in the superseding indictment, the defendants were aware that the drugs they distributed were causing overdoses. According to the superseding indictment, at least five overdose deaths are attributed to the distribution of drugs by members of the conspiracy, including the father of one of the conspirators.
According to the superseding indictment, members of the conspiracy possessed firearms in furtherance of their drug trafficking activities, sometimes purchasing firearms from drug customers and paying the customers with drugs in exchange for the firearms. In addition, the conspirators allegedly took steps to avoid detection by law enforcement, including: conducting counter-surveillance; rotating the use of vehicles and residences used to store narcotics; changing locations in Baltimore to conduct drug transactions; frequently changing cell phones; and using encrypted phone applications to prevent interception of drug-trafficking communications by law enforcement.
The following defendants are charged in the superseding indictment unsealed today:
Michael Bailey, age 30, of Winchester, Maryland; Donte Bennett, a/k/a Tay, age 27, of Baltimore, Maryland; Darlene Best, age 56, of Baltimore; Gregory Butler, a/k/a Sags and Little Dick, age 28, of Baltimore; Juawan Davis, a/k/a Fat Daddy, age 24, of Baltimore; Timothy Downing, age 35, of Mount Airy, Maryland; Edward Buddy Hall, a/k/a Gwar, age 54, of Baltimore; Syed Hussain, age 25, of Virginia; Ryan Johnson, age 26, of Montgomery County, Maryland; Cindy Legard, age 31, of Bunker Hill, West Virginia; Kareem Mack, a/k/a K Mack, age 29, of Baltimore; Terrance Medley, a/k/a Mazzi, age 35, of Baltimore; Russell Oliver, age 43, of Bunker Hill, West Virginia; Davon Owens, a/k/a Gusto, age 31, of Baltimore; Desmond Ringgold, a/k/a Worm and Fool, age 28, of Baltimore; James Henry Roberts, a/k/a Bub, age 29, of Baltimore; Tirrel Saunders, a/k/a Pretty, age 32, of Baltimore; Gary Smith, age 20, of Virginia; Ann Waugh-Hixon, age 48, of Berkeley County; Laura Warner, age 36, of Berkeley County; Emanuel Watkins, age 62, of Baltimore; and
John Wolfrey, age 39, of Berkeley County, West Virginia.Ten defendants face a maximum sentence of 40 years in prison, ten defendants face a maximum of life in prison, and two defendants face a maximum of 20 years in prison on the drug conspiracy charge. Legard, Hussain, Smith, Mack, Davis, Wolfrey, Bailey, Johnson, Warner, Waugh-Hixon, Owens, and Roberts also face a maximum sentence of 20 years in prison for possessing with intent to distribute heroin, crack cocaine, or fentanyl. Davis, Owens, Hall, Butler, Roberts, and Medley also face a mandatory minimum sentence of five years in prison, consecutive to any other sentence, and a maximum sentence of life in prison for possession of a firearm in relation to a drug trafficking crime. Finally, Owens, Hall, Butler, Roberts, and Medley face a maximum sentence of 10 years in prison for possession of a firearm and ammunition by a prohibited person.
Twenty-one defendants have been arrested. Eighteen of those defendants are detained, and two defendants have been released under the supervision of U.S. Pretrial Services. Emanuel Watkins is still being sought.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Montgomery County and the Baltimore Police Department for their work in the investigation. Mr. Hur commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Towson Woman Sentenced to Eight Years in Federal Prison for Obtaining More Than $4.3 Million in an Advance Fee Fraud Scheme and for Evading TaxesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Lauren Montillo, age 47, of Towson, Maryland, to eight years in federal prison, followed by five years of supervised release, for conspiracy to commit wire fraud and for tax evasion. Judge Bennett also ordered Montillo to pay restitution of $4,060,284.79 to the victims of the scheme, and $276,240 to the Internal Revenue Service.
Montillo admitted that from 2010 through 2015, she and her co-conspirators sought at least $8.7 million in advance fees from foreign and United States victims, purporting to offer access to exotic bank financial instruments. Victims paid $4,342,540 in advance fees into Hong Kong bank accounts or attorney escrow accounts and received nothing in return. For tax years 2012 through 2014, Montillo reported no income other than $100, evading a substantial amount of income taxes.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to her plea agreement and other court documents, Montillo and her co-conspirators created shell companies, with associated websites, email addresses, and bank accounts, which they used to perpetrate the fraud. Specifically, in February 2010, Montillo opened an account with GoDaddy, which provides web-hosting services. From 2010 to 2015, Montillo and other co-conspirators used GoDaddy to host websites for shell companies such as MLL Holdings, The Bussola Group, Worldwide Escrow Holdings, Ltd., International Insurance of Nebraska, Atlas Investment Bancorp, Entirety Capital, GPF Global, and Atlas-Gayle Trust. Each of these shell companies had associated email addresses, which Montillo and her co-conspirators opened and used.
Also in 2010, Montillo's father incorporated "Worldwide Escrow Holdings Limited" ("Worldwide Escrow") in Hong Kong and opened a bank account for Worldwide Escrow at the Hong Kong Shanghai Bank (HSBC), Hong Kong with Montillo as a signatory. Montillo’s father resigned from the company in April 2011. In March 2011, Montillo and a co-conspirator opened two more bank accounts in Hong Kong, the MLL Holdings and the Skywall bank accounts, also at HSBC. Montillo and her co-conspirators had on-line access to the Hong Kong bank accounts so that they could conduct banking transactions over the internet. In 2012, Montillo’s father also opened an escrow account in the name of his mother-in-law, a licensed attorney in Maryland who had stopped practicing law in approximately 2007. She was not aware that the escrow account had been opened in her name. The conspirators directed victims to wire-transfer their advance fees into the HSBC, Hong Kong bank accounts or the attorney escrow account.
Montillo’s co-conspirator, Eric Becker, was her former fiancé. Becker developed, and Montillo edited, websites for the various phony businesses, which purported to offer access to financial instruments, such as standby letters of credit, bank guarantees, bonds, or private placement trading platforms. Montillo and her co-conspirators had no access to any financial instruments. For example, Montillo and several co-conspirators obtained advance fee payments from a victim that would purportedly gain access to a private placement trading platform. The co-conspirators persuaded the victim, through several broker intermediaries, to send $1.7 million to a BB&T bank account in Florida. BB&T returned the funds to the victim. The victim, a Mexican national, was told that the funds were returned because the window had closed on the investment opportunity. Co-conspirators, including Montillo, then informed the victim, through his broker, that they could offer him a private placement trading platform in which he would receive profits and a charitable organization would use its portion of the profits to invest in its projects. The conspirators directed the victim to send his money to the Worldwide Escrow account at HSBC, Hong Kong. On May 8, 2012, the victim used his own and his family's funds to send $3,099,990 to the Worldwide Escrow Holdings account. The conspirators, including Montillo, moved more than $2 million of the funds to a bank account opened at Choice Bank in Belize.
To conceal the fraud and to reassure the victim and his brokers, co-conspirators including Montillo, created an insurance policy for a non-existent insurance company called International Insurance of Nebraska, which was back-stopped with a website hosted through Montillo's GoDaddy account. The insurance policy purported to show that the victim's investment funds would not be at risk because they were fully insured. In addition, co-conspirators, including Montillo, used her GoDaddy account to host the website “wweholdingsltd.com” to add an air of legitimacy to Worldwide Escrow. Both the insurance company and the private placement trading platform were bogus.
Over the next several years, Montillo and her co-conspirators continued with the advance fee scheme. The scheme had both foreign and U.S. victims. To protect her identity, Montillo frequently used the name “Kati Conti” in the frauds and used a “burner phone” so that after the scam was concluded, she could “go dark” and stop communicating with the victims. In all, the scheme sought at least $8.7 million from victims, and actually obtained $4,342,540.
For tax years 2012 through 2014, Montillo filed personal tax returns showing either no income or just $100 in income, and thus no income tax was owed. Montillo admitted that she was the signatory on bank accounts in the names of limited liability corporations into which victims' funds were wire transferred from Hong Kong, Choice Bank in Belize, the attorney escrow account, and other accounts controlled by co-conspirators. Montillo used the victim funds transferred to the limited liability accounts for living expenses. Montillo had no accounts in her own name. Montillo admitted that by failing to report her income for 2012 through 2014 to the Internal Revenue Service, she evaded a substantial amount of income taxes.
Three defendants were charged and sentenced in a related case in the Western District of Texas—James Edward Cox was sentenced to 78 months in prison and was ordered to pay $4,249,478 in restitution; and Kelly Ray Coronado and Gordon Richard Moscowitz were each sentenced to 46 months in prison sentence and were also ordered to pay restitution. Becker was indicted with Montillo but has since died. Montillo’s father died in 2016.
United States Attorney Robert K. Hur commended the FBI and IRS-CI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Sean Delaney, who prosecuted the case.
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Three ex-employees of Blackfeet Tribe’s Head Start Program sentenced in theft, fraudRead the Press Release
GREAT FALLS—Three former employees who had management positions with the Blackfeet Tribe’s Head Start Program were sentenced on April 11 to months in prison for their roles in an overtime pay scheme that defrauded the children’s assistance program of an estimated $174,000, U.S. Attorney Kurt Alme said.
U.S. District Judge Brian M. Morris presided at the sentencings for Theresa Marie Calf Boss Ribs, 51, of Browning, Patrick H. Calf Boss Ribs, Jr., 44, of Heart Butte, and Denise L. Sharp, 60, of Browning.
The three defendants each pleaded guilty earlier to theft from an Indian tribal government receiving federal funding and to wire fraud.
Morris sentenced Theresa Marie Calf Boss Ribs, who was the payroll manager, to 8 months in prison, two years of supervised release and ordered $139,096 in restitution.
Morris sentenced Patrick H. Calf Boss Ribs, Jr., who was the nutrition manager/payroll clerk, to 9 months in prison, two years of supervised release and ordered $139,096 in restitution and a $25,122 forfeiture.
Morris sentenced Sharp, who was the personnel manager, to nine months in prison, two years of supervised release and ordered $139,096 in restitution and a $29,033 forfeiture.
U.S. Attorney Alme said, “I hope that the sentencings of three former managers of the Blackfeet Head Start program will deter others from stealing from federally funds intended to help tribal members. The theft of $174,000 hurt the children enrolled in Head Start by prohibiting the purchase of books, barring the ability to obtain teaching materials and cutting food nutrition programs for those who need it most. We will continue to prosecute these cases to ensure that federal funds are used for the needs of those intended.”
The Blackfeet Tribe operates the Head Start Program with funding from the U.S. Department of Health and Human Services. Head Start provides early childhood education and other services for low-income children and their families.
During a 15-month period, starting in April 2013, the defendants and others falsely claimed 5,850 hours of overtime and received more than $174,000 in overtime pay from the Head Start program. When the fraud was uncovered, two different firms audited the Blackfeet Head Start program. Both audits questioned the overtime claims, identifying them as “beyond necessary and reasonable” and lacking any supporting documentation.
The Blackfeet Tribe did its own internal review, agreed it could not justify the overtime claims and repaid HHS $250,620.29 for disallowed costs and other expenses.
After an on-site review of the program by government authorities from Washington, D.C., the defendants along with others met in a conference room. Despite not actually working the hours, everyone present in the room agreed to continue claiming overtime.
Theresa Calf Boss Ribs and Patrick H. Calf Boss Ribs, Jr. were in charge of monitoring the time cards. At the end of the pay period, individuals in the group would stop by to sign their time cards for the pay period. The time cards were already completed by the defendants and included false overtime hours.
Other Head Start workers told investigators they never saw Blackfeet Head Start personnel working late nights or on weekends. The program’s board chairman was unaware of the overtime claims and was unaware of any needs that would have justified the overtime claims by the defendants. Because of insufficient funds, he also had to identify necessary budget cuts.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI and the U.S. Department of Health and Human Services’ Office of Inspector General.
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Thai National Sentenced to Prison Term for Attempting to Unlawfully Export Firearm Parts from the United States to ThailandRead the Press Release
WASHINGTON –Thai national Apichart Srivaranon 34, was sentenced today in the District of Columbia to 26 months in prison on federal charges of conspiracy to defraud the United States and to export defense articles from the United States to Thailand.
The announcement was made by U.S. Attorney for the District of Columbia Jessie K. Liu, U.S. Attorney for the District of Maryland Robert K. Hur, and Acting Special Agent in Charge Cardell T. Morant of the Baltimore Field Office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Srivaranon pleaded guilty to charges in both Maryland and the District of Columbia in January and March 2019, respectively, as required by his plea agreement in each District.
In the District of Columbia, he was sentenced today by the Honorable Reggie B. Walton. In Maryland, he was sentenced on April 11, 2018 by the Honorable George J. Hazel, who imposed a sentence of 26 months of incarceration and a forfeiture of $10,000. The sentences imposed in both cases will be served concurrently. Following his prison terms, Srivaranon will be deported from the United States and returned to Thailand.
Srivaranon admitted that between 2012 and 2014, he conspired with individuals in the United States and Thailand to obtain firearm parts in the United States that were listed on the United States Munitions List (USML) and then exported, and attempted to export, the firearm parts to Thailand without having first obtained the required license or written authorization from the Directorate of Defense Trade Controls, an office in the United States Department of State.
As detailed in his plea agreements, during the conspiracy, Srivaranon and his co-conspirators ordered firearms parts on the USML from U.S.-based firearms parts retailers and caused those firearms parts to ship to addresses in the United States where co-conspirators lived, visited, or conducted business. At the direction of Srivaranon and others, co-conspirators would then repackage the USML firearms parts in the United States; falsely label United States Postal Services Form 2976 and Customs Declarations CN 22 (sender’s declarations forms) by using fake names for return addresses; falsely declare the contents of the packages and understate their value; and then ship the USML firearms parts to Thailand via the U.S. mail and private shipping companies. This was done to conceal the prohibited exports from detection by the U.S. government.
In the District of Columbia cases, Srivaranon admitted that to facilitate the scheme, he and others deposited funds into co-conspirators’ bank accounts in Thailand. The funds were deposited in Thai Baht currency. The co-conspirators would then withdraw U.S. dollars from automatic teller machines in the United States, as payment for their participation in the scheme.
Srivaranon was arrested in Las Vegas, Nev. on January 22, 2018, after flying there from Thailand to attend a trade show unrelated to the charges in the case. He has been in custody since his arrest.
In announcing the sentences, U.S. Attorney Liu, U.S. Attorney Hur, and Acting Special Agent in Charge Morant commended the work of those who investigated the case from the HSI’s Baltimore Field Office. They also expressed appreciation for the efforts of those who worked on the case from the District of Columbia, including Assistant U.S. Attorney Frederick Yette and Trial Attorney Rebecca A. Caruso of the Justice Department’s Criminal Division. They also commended the work of Assistant U.S. Attorneys Kelly Hayes and Bryan Foreman, who handled the related prosecution in the District of Maryland.
Thai National Sentenced to over Two Years in Federal Prison for Conspiring to Unlawfully Export Firearms Parts from the United States to ThailandRead the Press Release
Greenbelt, Maryland – Thai national Apichart Srivaranon, 34 years old, was sentenced to 26 months in federal prison for a conspiracy to export arms and munitions, and for unlawfully exporting arms and munitions, specifically for exporting firearms parts from the United States to Thailand. U.S. District Judge George J. Hazel imposed the sentence on April 11, 2019, and also ordered Srivaranon to forfeit $10,000. Today, U.S. District Judge Reggie B. Walton for the District of Columbia sentenced Srivaranon to the same sentence for conspiracy to defraud the United States and to export defense articles from the United States to Thailand. The sentences will be served concurrently. Upon his release from prison, Srivaranon will be deported from the United States and returned to Thailand.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the District of Columbia Jessie K. Liu; and Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore.
Srivaranon pleaded guilty to charges in both Maryland and the District of Columbia in January and March 2019, respectively, as required by his plea agreement in each District.
Srivaranon admitted that between 2012 and 2014, he conspired with individuals in the United States and Thailand to obtain firearms parts in the United States that were listed on the United States Munitions List (USML) and then exported, and attempted to export, the firearm parts to Thailand without having first obtained the required license or written authorization from the Directorate of Defense Trade Controls, an office in the United States Department of State.
As detailed in his plea agreements, during the conspiracy, Srivaranon and his co-conspirators ordered firearms parts on the USML from U.S.-based firearms parts retailers and caused those firearms parts to ship to addresses in the United States where co-conspirators lived, visited, or conducted business. At the direction of Srivaranon and others, co-conspirators would then repackage the USML firearms parts in the United States; falsely label United States Postal Services (“USPS”) Form 2976 and Customs Declarations CN 22 (sender’s declarations forms) by using fake names for return addresses; falsely declare the contents of the packages and understate their value; and then ship the USML firearms parts to Thailand via the USPS and private shipping companies. This was done to conceal the prohibited exports from detection by the U.S. government.
In his guilty plea to the District of Columbia charges, Srivaranon admitted that to facilitate the scheme, he and others deposited funds into co-conspirators’ bank accounts in Thailand. The funds were deposited in Thai Baht currency. The co-conspirators would then withdraw U.S. dollars from automatic teller machines (ATMs) in the United States, as payment for their participation in the scheme.
Srivaranon was arrested in Las Vegas, Nevada on January 22, 2018, after flying there from Thailand to attend a trade show unrelated to the charges in the case. He has been in custody since his arrest.
United States Attorneys Robert K. Hur and Jessie K. Liu commended HSI Baltimore for its work in this investigation. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Offices, including Assistant U.S. Attorneys Kelly Hayes and Bryan Foreman, who handled the prosecution in the District of Maryland, and Assistant U.S. Attorney Frederick Yette and Trial Attorney Rebecca A. Caruso of the Money Laundering & Asset Recovery Section (formerly a Special Assistant U.S. Attorney with the District of Columbia), who handled the case in the District of Columbia.
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Test Taker in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – The test taker in the college admissions case pleaded guilty today in federal court in Boston in connection with accepting payments to cheat on the ACT and SAT exams, and other tests.
Mark Riddell, 36, of Palmetto, Fla., pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 18, 2019 at 3:00 p.m.
From 2011 through February 2019, Riddell conspired with William “Rick” Singer and others to cheat on college entrance exams in the United States and Canada. As part of the scheme, Riddell secretly took college entrance exams in place of students, or corrected the students’ answers after they had taken the exam.
In many cases, Singer facilitated the cheating by counseling his clients to seek extended time on the exams, including by having their children purport to have learning disabilities in order to obtain the required medical documentation. Once the extended time was granted, Singer instructed the clients to change the location of the exams to one of two test centers: a public high school in Houston, Texas, or a private college preparatory school in West Hollywood, Calif. Singer had established relationships at those locations with test administrators Niki Williams and Igor Dvorskiy, who allegedly accepted bribes of as much as $10,000 per test in order to facilitate the cheating scheme. Specifically, Williams and Dvorskiy allowed Riddell to take the exams in place of the students, to give the students the correct answers during the exams, or to correct the students’ answers after they completed the exams. Singer typically paid Riddell $10,000 for each test. Singer’s clients paid him between $15,000 and $75,000 per test, with the payments structured as purported donations to the KWF charity controlled by Singer. In many instances, the students taking the exams were unaware that their parents had arranged for the cheating.
On March 22, 2019, Singer pleaded guilty to racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the United States and obstruction of justice. He is scheduled to be sentenced on June 19, 2019, at 2:00 p.m. in Boston.
Updated information about this case can be found at https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of not more than $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tax business owner charged with preparing and filing false tax returnsRead the Press Release
ATLANTA – Local tax business owner Thomas Holmes has been arraigned on federal charges of willfully preparing and filing federal income tax returns that fraudulently claimed hundreds of thousands of dollars in tax refunds.
“Citizens expect tax preparers like Holmes to accurately prepare and file their returns,” said U.S. Attorney Byung J. “BJay” Pak. “His alleged abuse of the tax system for financial gain undermines public confidence in the system. We have dedicated resources to combat this kind of theft, and we will aggressively prosecute those who believe they can file false tax returns, thereby cheating everyone else.”
“Holmes took advantage of his clients’ trust and lined his pockets with fraudulent tax refunds. If you use a return preparer to file your taxes, ask to review the tax return before it is filed with the IRS and ask for a copy of the filed tax return. If you become suspicious that your return preparer isn’t filing the correct information, report that return preparer to the IRS,” said Steve S. Bahhur, Acting Assistant Special Agent in Charge of IRS-CI, Atlanta Field Office.
According to U.S. Attorney Pak, the charges, and other information presented in court: Thomas Holmes ran a tax preparation business in Austell, Georgia called TKO Tax Pros. Between 2013 and 2017, Holmes, through TKO Tax Pros, prepared and filed thousands of federal income tax returns on behalf of clients. The indictment alleges that on many of those returns, Holmes willfully listed false information, such as false Schedule C business losses and false Schedule A itemized deductions, causing the tax returns to claim thousands of dollars in refunds that taxpayers were not entitled to. When the Internal Revenue Service (“IRS”) issued refunds to these taxpayers, Holmes allegedly kept a portion of the fraudulent refunds for himself and paid the balance to his clients. During the relevant time period, Holmes made hundreds of thousands of dollars for his tax preparation services.
Thomas Holmes, 41, of Austell, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King. He was indicted by a federal grand jury on April 10, 2019 on 22 counts of willfully preparing and filing fraudulent federal income tax returns on behalf of eight individual taxpayers.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Annalise Peters is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tax Preparer and Two Employees Indicted on Fraud ChargesRead the Press Release
A tax preparer and two employees were indicted on charges related to the preparation and filing of false tax returns.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Olry Maurival, of West Palm Beach, Florida, Paula Pognon, also of West Palm Beach, Florida and Amos Regusme, of Felton, Delaware, have been indicted for conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371 (Case No. 19-80054-CR-Middlebrooks). Maurival and Pognon have also been indicted for aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2) and Maurival has been indicted for filing false tax returns, in violation of Title 26, United States Code, Section 7206(1). Their initial appearances are scheduled for April 25, 2019, in West Palm Beach.
According to the allegations in the indictment, Maurival operated a tax preparation business where he, Pognon, and Regusme prepared taxes. From 2012 through 2015, they prepared and filed returns on which they claimed a variety of credits and deductions to which their clients were not entitled, including the Earned Income Credit, the Fuel Tax Credit, deductions for unreimbursed employee expenses, and deductions and credit for educational expenses. In addition, Maurival underreported his gross earnings from the operation of his tax business on his personal tax returns.
If convicted, the defendants face maximum possible statutory sentences of 5 years in prison, for the conspiracy. In addition, Maurival and Pognon face maximum possible statutory sentences of 3 years in prison on each of the other counts.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sunnyvale-Based Network Security Company Agrees to Pay $545,000 to Resolve False Claims Act AllegationsRead the Press Release
SAN FRANCISO –Sunnyvale-based Fortinet, Inc. has agreed to a settlement valued at $545,000 to resolve allegations it violated the False Claims Act by falsely representing its products were in compliance with the Trade Agreements Act (TAA), 19 U.S.C. § 2501 et seq., announced United States Attorney David L. Anderson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge Bryan D. Denny; General Services Administration Office of the Inspector General (GSA-OIG), Western Field Office, Special Agent in Charge Theresa Quellhorst; Director of the U.S. Army Criminal Investigation Command’s (USACIDC) Major Procurement Fraud Unit Frank Robey; and Department of Homeland Security Office of Inspector General (DHS-OIG) Special Agent in Charge Amanda Thandi.
According to the settlement agreement made public today, Fortinet acknowledged that during the more than seven years between January of 2009 and the fall of 2016, a Fortinet employee responsible for supply chain management (the “Responsible Employee”) arranged to have labels on certain products altered to make the products appear to be compliant with the TAA. A portion of the products were resold through distributors and subsequent resellers to U.S. government end users.
“Today’s announcement illustrates the continuing commitment of the U.S. Attorney’s Office and our law enforcement partners to identify and prosecute fraudulent schemes relating to the sale of goods to the United States,” said U.S. Attorney Anderson.
“Contractors that supply the U.S. Government with Chinese-made technology will be pursued and held accountable when violating the Trade Agreement Act,” said DCIS Special Agent in Charge Denny. “The DCIS and its law enforcement partners are committed to combatting procurement fraud and cyber risk within U.S. Department of Defense programs.”
“This settlement displays the steadfast commitment of our agents and our federal law enforcement partners,” said USACIDC Director Robey. “This settlement is a clear signal to the supply community doing business with the Department of the Army—fraud will not be tolerated in any way, shape or form.”
“Contractors who undermine American trade interest and pose a security risk by selling unauthorized foreign-made devices to the United States will be held accountable,” said DHS-OIG Special Agent in Charge Thandi. “Contracting companies that conduct business with the federal government must uphold our trade laws; any misrepresentation during this process undercuts its integrity.”
“This settlement reflects the GSA OIG’s commitment to work with our law enforcement partners to aggressively investigate and prosecute those who seek to fraudulently sell products to the federal government that do not meet the standards set by law,” said GSA OIG Special Agent in Charge Theresa Quellhorst.
The TAA generally prohibits certain government contractors from purchasing products that are not entirely from, or “substantially transformed” in, the United States or certain designated countries. Fortinet sells network security devices, some of which may be sold through distributors and subsequent resellers to U.S. government end users. In this case, Fortinet acknowledged the Responsible Employee directed certain employees and contractors to change product labels so that no country of origin was listed, or to include the phrases “Designed in the United States and Canada,” or “Assembled in the United States.” Fortinet acknowledged that the Responsible Employee’s actions involved products sold to certain distributors that subsequently sold them to resellers, which in turn sold a portion of them to U.S. government end users. The Responsible Employee has since been terminated from employment with Fortinet.
To settle the allegations, Fortinet has agreed to pay $400,000 and to provide the United States Marine Corps with additional equipment valued at $145,000.
The lawsuit was filed by Yuxin “Jay” Fang under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on or behalf of the government for false claims and share in any recovery. The act also permits the United States to intervene in and take over a whistleblower suit, as was done here.
This matter was investigated by the U.S. Attorney’s Office of the Northern District of California, along with the DCIS, GSA-OIG, Air Force Office of Special Investigations, USACIDC, DHS-OIG, the Department of the Navy, and the Coast Guard Investigative Service. Fortinet cooperated in the government’s investigation, including by sharing the results of its internal investigation in this matter. The settlement reflects Fortinet’s cooperation with the government in this and other matters.
Assistant U.S. Attorney Ellen London is handling the case with the assistance of Garland He, Jacqui Hollar, and Tina Louie.
Sulphur resident pleads guilty to illegally possessing a shotgun and pistolRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that James Bergeron, 29, of Sulphur, Louisiana, pleaded guilty Thursday day before U.S. Magistrate Judge Kathleen Kay for possession of a firearm and ammunition by a convicted felon.
According to the guilty plea, law enforcement officers executed a search warrant on October 19, 2018 at Bergeron’s Sulphur residence where they found a Browning 12-gauge shotgun and a Ruger .380-caliber semi-automatic pistol. Bergeron, a convicted felon, was present at the time of the search and admitted to ownership and use of the firearms. He was convicted in federal court in the Eastern District of Texas on September 26, 2013 for bank robbery and in the 14th Judicial District Court, Calcasieu Parish, on August 25, 2017 for possession of Methamphetamine. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
Bergeron faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for July 9, 2019.
The ATF, Lake Charles Police Department and Calcasieu Parish Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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 reductions in crime.
Sudbury Man Sentenced to 15 Months in Prison for Flying Without a Valid Pilot’s LicenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Angelo Efthimiatos, 49, of Sudbury, Vermont, was sentenced yesterday to serve 15 months in prison followed by a year of supervised release following his conviction at trial in December 2018 of flying without a valid pilot’s license. The sentence will be served concurrently with an 18 month sentence from the Southern District of Iowa for violating terms of his prior federal supervised release. Efthimiatos, who has been in custody since April 2018, will receive credit for time served.
According to the indictment in the case and information presented at trial, just after midnight on April 10, 2018, Efthimiatos landed a small plane at the Rutland Regional Airport in North Clarendon, Vermont. The flight originated in Nantucket, Massachusetts. Efthimiatos was intercepted by federal agents at the airport and was arrested. He has been detained since that time. At the time of his arrest, Efthimiatos did not have a valid pilot’s license or “airman’s certificate” from the Federal Aviation Administration (FAA). His airman’s certificate had been revoked by the FAA as of July 1, 2014.
The United States Attorney’s Office recognized the hard work of Special Agents from the Drug Enforcement Agency and the Department of Transportation’s Office of Inspector General to support the investigation and trial. The FAA also provided extensive support during the case.
At trial, the government was represented by Assistant U.S. Attorneys Nicole Cate and Eugenia Cowles. Mr. Efthimiatos was represented by Craig S. Nolan, Esq. of Sheehy, Furlong, and Behm, P.C.
St. Thomas Resident Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
St. Thomas, USVI –Jeffrey Cole, 57, of St. Thomas, pleaded guilty in District Court before Judge Curtis V. Gomez, to failing to register as a sex offender, United States Attorney Gretchen C.F. Shappert announced.
According to court records, Cole was convicted for voyeurism in the State of Ohio in 2009. He moved to the State of Georgia where he registered as a sex offender. Cole relocated to the Virgin Islands in 2018, and failed to register as required by law.
Under federal law, Cole faces a maximum sentence of 10 years in prison and a maximum fine of $250,000.
This case was investigated by the United States Marshal Service. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Six Remaining Cherry Hill Hillside Gang Members Plead Guilty to Federal Racketeering Conspiracy ChargesRead the Press Release
Baltimore, Maryland – On Thursday, April 11, 2019, six Baltimore men pleaded guilty to conspiracy to participate in a racketeering enterprise related to their activities as members of the violent Hillside gang that operated in the Cherry Hill neighborhood of Baltimore. As part of their plea agreements, the defendants admitted to participating in murders; attempted murders, robberies; and the distribution of narcotics. The following defendants pleaded guilty:
Keenan Lawson, a/k/a BlackFace, age 27; Michael Evans, a/k/a Pee Wee, age 25; Kevin Horsey, a/k/a What What, age 26; Stevie Lawson, a/k/a GB, age 28; Terrell Luster, a/k/a Relly, age 31; and
Caesar Rice, a/k/a Stinky, age 27.Thirteen other Hillside gang members have previously pleaded guilty to their participation in the racketeering conspiracy. Of those, eight have been sentenced to between 10 and 30 years in federal prison.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“These gang members brought terror and death to Baltimore’s Cherry Hill neighborhood with guns and drugs. Federal, state, and local law enforcement are committed to working together to target those responsible for the most violence in Baltimore City,” said U.S. Attorney Robert K. Hur. “These defendants admitted that they were part of an organized criminal enterprise with leaders and members who dealt drugs and committed violent crimes using guns. Now they face lengthy sentences in federal prison, where there is no parole—ever. I urge anyone who’s thinking of following these defendants’ example: Please, put down the guns and save a life—maybe even your own.”
“Identifying, investigating, and incarcerating the armed gunmen that menace Baltimore’s communities is ATF’s primary focus,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF is determined to collaborate with our law enforcement partners in our plight to ensure Baltimore neighborhoods can be free of violence.”
According to their plea agreements, the defendants were members and associates of the Hillside Enterprise, which they knew distributed powder and crack cocaine, heroin, oxycodone, and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. These locations included a house at 453 Roundview Road and an apartment at 2300 Terra Firma Road in Cherry Hill. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring. All six defendants admitted that they distributed drugs as a member of Hillside, and on behalf of the gang. Stevie Lawson is also captured on video in the stash houses on at least 16 occasions between November 2014 and June 2015, preparing controlled substances for distribution.
Members of the Hillside Enterprise routinely carried firearms and committed acts of violence in furtherance of the organization’s activities, including robberies, shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.
Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. The defendants all knew that these acts of violence, including the homicides, were committed by Hillside members and associates, including murders committed by Terrell Luster and Keenan Lawson. For example, Luster, Horsey, Rice, Keenan Lawson and Evans all admitted that they participated in, or were present at shootings, generally of individuals whom they and their fellow Hillside members believed to be rival gang members.
As part of their plea agreements, all of the defendants have agreed with the government to recommend a sentence to the Court, with the recommendations ranging from 12 years to 23 years in federal prison. U.S. District Judge George L. Russell III has scheduled sentencing for Evans, Luster, Rice, and Horsey on July 12, 2019, and scheduled sentencing for Keenan and Stevie Lawson on July 19, 2019.
According to the ATF, a reward of $10,000 each is available for information leading to the arrest of the final two defendants in this case, fugitives Travis Eugene Alewine, a/k/a Sticks, age 27; and Deaven Raeshawn Cherry, a/k/a Gotti, age 32, both of Baltimore, who are charged federally with drug and racketeering conspiracies, including murders. They are actively being sought by ATF Baltimore Special Agents and the U.S. Marshals Service. They should be considered armed and dangerous. Law enforcement believes they are likely still in the counties near Baltimore City, if not within the city itself. Anyone with information should contact ATF at (888) ATF-TIPS, [email protected], text “ATFBAL” to 63975, or contact ATF via the mobile reportit® app.
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 ATF, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Sioux Falls Man Sentenced for Possession of Firearms by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of Firearms by a Prohibited Person was sentenced on April 5, 2019, by U.S. District Judge Karen E. Schreier.
Richard Joseph Long, Jr., age 45, was sentenced to 54 months in federal prison, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Long was indicted by a federal grand jury on April 4, 2018. He pled guilty on January 17, 2019.
The conviction stemmed from an incident on or about between November 20, 2017, and December 6, 2017, when Long broke into his father's home and stole firearms and other property. Long was caught attempting to sell one of the firearms to a pawnshop in Sioux Falls. The pawn business was aware of the items reported stolen and immediately contacted the police. Long was prohibited from possessing any guns because he had previously been convicted of a felony.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its 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 investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Long was immediately turned over to the custody of the U.S. Marshals Service.