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5 March 2019
U.S. Obtains over $25 Million in Forfeited Funds as Part of a Successful Effort to Root Out Fraud and Corruption in Government Contracting in AfghanistanRead the Press Release
WASHINGTON - The Department of Justice has reached a settlement of its civil forfeiture case against assets owned by Hikmatullah Shadman that he wrongfully acquired as a government contractor in Afghanistan. Under the terms of the settlement, approximately $25 million will be forfeited to the United States. The civil settlement is part of a global settlement that involved the resolution of a criminal case and False Claims Act allegations.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Jody Hunt of the Department’s Civil Division, U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, Inspector General John F. Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR), Director Frank Robey of the U.S. Army Criminal Investigation Command (CID)’s Major Procurement Fraud Unit, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Special Agent in Charge John Strong of the FBI North Carolina Field Office made the announcement after the settlement was signed and filed with the U.S. District Court for the District of Columbia.
“The United States relies on government contractors to supply and resupply our military with vital resources they require to carry out critical missions,” said Assistant Attorney General Hunt. “We will continue to ensure that companies and individuals who contract directly or indirectly with the federal government do not engage in fraudulent business practices at the expense of our nation’s military and the American taxpayer.”
“The success of our overseas war and reconstruction efforts is tied directly to the trust and respect established with the local populace,” said U.S. Attorney Higdon. “Corruption in our military operations undermines those efforts and cannot be tolerated.”
“This case involved fraud and corruption that exploited subcontracts designed to support American troops in a conflict zone,” said Special Inspector General John F. Sopko. “I’m proud of the tenacity displayed by SIGAR special agents, whose dogged pursuit of justice led to the return of $25 million to the United States Treasury.”
According to court documents, Hikmatullah Shadman, a young Afghan national, operated several companies including Hikmat Shadman Logistics Services Company (HSLSC), which served as subcontractors delivering supplies to U.S. service members at various locations in Afghanistan. From November 2010 to March 2012, Shadman charged the United States more than $77 million for delivering supplies to U.S. service members. The civil forfeiture case, initially filed on Nov. 20, 2012, targeted, among other things, Shadman’s fraudulent receipt of a disproportionate number of subcontracts for the transport of military supplies in Afghanistan, as well as the inflated prices that he charged the United States for such transport.
From at least 2007 to 2012, the U.S. Government paid contractors and subcontractors to resupply U.S. military forces operating in Afghanistan, and utilized local Afghan-owned businesses to transport fuel and other supplies by truck to various locations throughout the country. The investigation revealed thousands of apparent falsified documents submitted by Shadman’s companies to the United States for payment. As a result of this falsification, the Government often paid Shadman for work that was never performed and for work other than that described in the documentation submitted. Through his companies, Shadman also charged the United States rates which were well above the average rate of his competitors. The forensic analysis conducted in this case revealed that Shadman overcharged the United States millions of dollars for transporting supplies to U.S. service members in Afghanistan.
As part of the global settlement, several companies owned and controlled by Shadman, including HSLSC, entered into a separate agreement with the United States to resolve False Claims Act allegations arising from kickbacks paid from November 2010 to May 2012 to obtain subcontracts to transport military supplies needed by the U.S. military in Afghanistan. Under the agreement, $1.5 million of the forfeited funds will be paid to resolve these claims.
In addition to the civil forfeiture and False Claims Act resolutions, Shadman’s primary company, HSLSC, was criminally prosecuted by the U.S. Attorney’s Office in the Eastern District of North Carolina. On Jan. 3, HSLSC pleaded guilty to a criminal information, No. 5:18-cr-492-1, charging the corporation with two counts of paying gratuities to two U.S. service members in Afghanistan, and one count of conspiracy to do the same, in order to influence the award of subcontracts to HSLSC and to ensure favorable treatment in the contracting process. In this criminal case, HSLSC was sentenced to pay an $810,000 fine and forfeit $190,000. Under the terms of the civil settlement agreement agreed to by the parties, those funds will be paid to the United States before the civil settlement is concluded. As part of the criminal case, HSLSC also agreed to be placed on probation for five years, not to contest debarment, not to seek to engage in business within the United States, and its corporate officers agreed not to apply for a visa to travel to the United States.
“The corporate plea and the civil settlement filed today once again demonstrates that defrauding the government is a losing proposition,” said Director Robey of the U.S. Army CID’s Major Procurement Fraud Unit. “Stealing U.S. tax dollars meant to support our soldier’s readiness is an egregious abuse of trust. We, along with our law enforcement partners, will continue to protect the U.S. military from unscrupulous businesses.”
“DCIS will aggressively investigate complex fraud and corruption that undermines the integrity of the Department of Defense (DoD) no matter where it happens or how long it takes,” said DCIS Special Agent in Charge Craig. “We hope that this case demonstrates the commitment of DCIS and our law enforcement partners to use every available option to protect valuable DoD resources around the world and better enable our Warfighters to accomplish our critical global missions.”
This civil forfeiture case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The investigation was conducted by SIGAR along with the FBI, DCIS, the U.S. Army Major Procurement Fraud Unit, and the U.S. Air Force Office of Special Investigations, and was prosecuted by Trial Attorneys Patricia Kessler and Steven Parker of MLARS International Unit, and Assistant U.S. Attorney Elizabeth Aloi of the District of Columbia (formerly of MLARS). The HSLSC criminal case was prosecuted by Assistant U.S. Attorney Banu Rangarajan of the Eastern District of North Carolina.
The civil False Claims Act imposes treble damages and penalties on those who knowingly submit false or fraudulent claims for government funds or property. The False Claims Act investigation was handled by Trial Attorney Glenn Harris of the Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys John Truong and Heather Graham Oliver of the U.S. Attorney’s Office for the District of Columbia.
Two Mexican Mafia ‘Secretaries’ Found Guilty of RICO Charge for Being Street Intermediaries for Member of Violent Prison GangRead the Press Release
LOS ANGELES – A Los Angeles man and his long-time girlfriend have been found guilty of racketeering conspiracy for collecting and storing extortionate “taxes” for the man’s brother, an imprisoned Mexican Mafia member, and for acting as the brother’s eyes and ears on the street, delivering coded messages to him, including one message that resulted in an individual being marked for death.
Thomas Gonzales, 60, and Gloria Valerio, 66, both of the Elysian Valley neighborhood in the City of Los Angeles, were found guilty Monday of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) after a two-week federal jury trial. Gonzales also was found guilty of making a false statement to a law enforcement officer.
Gonzales and Valerio were named in a 2015 federal RICO indictment that charged 22 defendants and outlined how Gonzales’s brother, Mexican Mafia member and senior Frogtown gang member Arnold “Arnie” Gonzales, 58, had ordered the unification of the traditional rival Los Angeles street gangs of Frogtown, Toonerville, and Rascals. The inter-gang alliance began in 2010 and resulted in the three gangs controlling the narcotics trade and other illegal activities in an area along the Los Angeles River that ran from Elysian Park nearly to Burbank. Through violence and threats of violence, senior members collected money, or “taxes,” from legitimate and illegal businesses in the area for Arnie Gonzales’s benefit. Prosecutors previously obtained 19 convictions in this case with some defendants receiving sentences of up to 25 years in federal prison. Gonzales and Valerio were the last two defendants still facing charges.
According to the evidence presented at trial, Gonzales and Valerio acted as “secretaries,” or people who act as the bridge between imprisoned members of the Mexican Mafia prison gang and the gang members on the street. “Secretaries” often are not gang members themselves and have normal jobs and minimal criminal histories, which is why the Mexican Mafia targets them to be used as intermediaries, as they are able to make prison visits to Mexican Mafia members without arousing suspicion. In this case, Valerio worked as an insurance analyst and Thomas Gonzales was an HVAC technician.
At trial, jurors saw more than 35 video clips from 11 prison visits in 2012 and 2013 where Valerio and Thomas Gonzales visited Arnie Gonzales, who was serving a life sentence at Pelican Bay State Prison for a murder conviction. As Arnie Gonzales’s eyes and ears on the streets, Thomas Gonzales and Valerio stored the extortionate “tax” money gang leaders had collected from street gangs in Arnie Gonzales’s name within the territories controlled by him. Valerio deposited some of that money into Arnie Gonzales’s prison account. A search warrant executed at the defendants’ residence in June 2015 resulted in the seizure of more than $22,000 in cash.
The evidence at trial also showed that the defendants used coded language to inform Arnie Gonzales about an individual who was falsely claiming to have the authority to collect “taxes” on Arnie Gonzales’s behalf. That individual later was marked for death, the jury heard.
United States District Judge Philip S. Gutierrez has scheduled a June 3 sentencing hearing for both defendants. Gonzales and Valerio face a statutory maximum sentence of 20 years in federal prison on the racketeering conspiracy count. Gonzales faces an additional statutory maximum sentence of five years in prison on the false statements count.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Department of Corrections and Rehabilitation - Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen of the Organized Crime Drug Enforcement Task Force and Alexander B. Schwab of the Major Frauds Section.
Twin Cities Bank Robber Sentenced to Eight Years in PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JAYVON DOMINIQUE GANT, 28, to eight years in prison for bank robbery. GANT, who pleaded guilty on August 20, 2018, was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, on June 7, 2018, GANT entered Premier Bank in Bloomington, Minnesota, and passed a note to the teller that contained a demand for money, followed by a verbal demand of the teller to, “give me all the money and no trackers.” In response to his demand, the teller handed GANT $3,710 and, after receiving the money, GANT fled the bank on foot. Following the robbery, law enforcement officers located GANT at his home in Bloomington. Upon law enforcement’s entry to the residence, GANT jumped from his third floor balcony to the second floor below, broke the sliding glass door and entered the second floor apartment in an attempt to escape. When confronted by law enforcement on the second floor, GANT jumped from the second floor balcony to the ground level where he was apprehended.
According to his guilty plea and documents filed in court, GANT committed five additional robberies of other banks located throughout the Twin Cities area. In all instances, GANT used similar tactics by passing a note to the teller that contained a demand for money. For example, one such note stated, “Give me all the money out the top and bottom drawer act calm and normal NO Gps or Dypack Im going to go through the money at this counter so don’t play games with me give me the money act normal no one will get hurt.”
This case was the result of an investigation conducted by the FBI Safe Streets Task Force, the Bloomington, Blaine, Fridley, Edina, Cottage Grove and Oakdale Police Departments. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat violent crime.
This case was prosecuted by Assistant U.S. Attorney Charles J. Kovats.
Defendant Information:
JAYVON DOMINIQUE GANT, 28
Bloomington, Minn.
Convicted:
- Bank robbery, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Michigan men indicted on drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three men from Michigan were indicted by a federal grand today on drug distribution charges, United States Attorney Bill Powell announced.
The men are accused of distributing heroin, fentanyl, cocaine, and crack cocaine, and methamphetamine from the fall of 2018 to January 2019 in Marion County and elsewhere. They are:
- Terrence D. Marsh, of Detroit, Michigan, age 37
- Nicholas J. Mathis, of Warren, Michigan, age 24
- Lamar D. Perdue, of Detroit, Michigan, age 20
Each man was indicted on one count of “Conspiracy to Possess With the Intent to Distribute and Distribute Controlled Substances,” one count of “Aiding and Abetting Possession With the Intent to Distribute Methamphetamine within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Heroin within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Fentanyl within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Cocaine Hydrochloride within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Cocaine Base within 1000 Feet of a Protected Location,” and one count of “Aiding and Abetting Possession of Firearm in Furtherance of Drug Trafficking Crime.”
Each face not less than 10 years and up to life incarceration and a fine of up to $10 million for each of the conspiracy and aiding and possession of methamphetamine counts. They face up to 40 years incarceration and a fine of up to $2 million for each of the heroin, fentanyl, cocaine and cocaine base counts, and face five years to life incarceration and a $250,000 fine for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Three Rivers Drug and Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Men Sentenced to Federal Prison for Interstate KidnappingRead the Press Release
PHOENIX – Yesterday, Jesus Humberto Barrera Estrada, 20, of Scottsdale, Ariz., was sentenced by United States District Judge Douglas L. Rayes to 60 months in federal prison followed by six years of supervised release. On Jan. 14, 2019, Corey Webster Newkirk, 22, of Tempe, Ariz., was sentenced to 78 months in federal prison followed by five years of supervised release. On Dec. 3, 2018, Gabriel Mario Morales, 20, of Tempe, Ariz., was sentenced to 60 months in federal prison followed by five years of supervised release. All three men had previously pleaded guilty to interstate kidnapping.
Beginning on or about May 27, 2018, Newkirk, Morales, and Barrera Estrada engaged in a conspiracy to find the victim, and clandestinely surveil her and her family in California. The trio drove from Arizona to southern California, where they continued to watch the victim and her family, even tracking one of their vehicles with a GPS device. The conspiracy culminated on June 4, 2018, when the three men ambushed the victim, physically restrained her inside a vehicle, and drove across state lines back to Arizona. A traffic stop in Quartzsite, Ariz. ultimately led to the victim’s rescue and the apprehension of the three men.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Los Angeles County Sherriff’s Department, and the Quartzsite Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-882-PHX-DLR
RELEASE NUMBER: 2019-021_Newkirk etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Thirteen Members of Middle Tennessee Drug Trafficking Organization IndictedRead the Press Release
NASHVILLE, Tenn. - March 5, 2019 – Two indictments unsealed today charged thirteen Middle Tennessee individuals with various crimes relating to a conspiracy to unlawfully possess and distribute heroin, cocaine and methamphetamine in the Middle Tennessee area, and federal firearms violations, announced U.S. Attorney Don Cochran.
Earlier today, local, state and federal law enforcement officers began arresting those charged and all but one are in custody. Robert Bell, 41 of Murfreesboro, Tennessee, remains at large.
The indictments allege the criminal activity occurred between June 1, 2017, and February 6, 2019. Those charged in the indictments are:
Mark McElwee, 50, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; unlawful possession with intent to distribute heroin methamphetamine and cocaine; unlawful distribution of more than 50 grams of methamphetamine; and possession of a firearm in furtherance of a drug crime.
Ramell Webster, 34, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; unlawful possession and distribution of heroin and possession with intent to distribute more than 100 grams of heroin; being a convicted felon in possession of firearms; and possession of a firearm in furtherance of a drug crime.
Michael Bedwell, 40, of Lewisburg, Tennessee, conspiracy to possess and distribute heroin, methamphetamine and cocaine; possession with intent to distribute 500 grams or more of methamphetamine; being a convicted felon in possession of firearms; and possession of a firearm in furtherance of a drug crime.
John Hayes, 36, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; possession with intent to distribute heroin, methamphetamine and cocaine.
Jesse Weston, 38, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; unlawful possession with intent to distribute methamphetamine.
Robert Bell, 41, of Murfreesboro, Tennessee, conspiracy to possess and distribute heroin, methamphetamine and cocaine; and unlawful possession with intent to distribute heroin and methamphetamine.
Chelsea Brassell, 28, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; possession with intent to distribute heroin and methamphetamine and cocaine.
Laura Hayes, 31, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; and possession with intent to distribute methamphetamine.
Caddius House, 42, of Murfreesboro, unlawful possession with intent to distribute Xanax.
Kirk Carroll, 41, of Westmoreland, Tennessee, conspiracy to possess and distribute heroin, methamphetamine and cocaine; unlawful possession with intent to distribute methamphetamine; being a convicted felon in possession of ammunition.
Jennifer Neal, 38, of Westmoreland, conspiracy to possess and distribute heroin, methamphetamine and cocaine; unlawful possession with intent to distribute methamphetamine.
Joshua Parsons, 37, of Nashville, conspiracy to possess and distribute heroin, methamphetamine and cocaine; unlawful possession with intent to distribute methamphetamine; being a convicted felon in possession of firearms; and possession of a firearm in furtherance of a drug crime.
Matthew Anderson, 31, of Nashville, being a convicted felon in possession of firearms.
If convicted, the following penalties apply:
McElwee and Webster, 10 - 45 years in prison and a $5,000,000 fine;
Michael Bedwell, 10 years, up to life in prison and a $10,000,000 fine;
John Hayes, Weston, Bell, Brassell, Laura Hayes, House, Carrol, and Neal, up to 20 years in prison and a $1,000,000 fine;
Joshua Parsons, 5 - 25 years in prison and a $1,000,000 fine; and
Matthew Anderson, up to 10 years in prison and a $250,000 fine.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives; The Metropolitan Nashville Police Department; the Smyrna, Tennessee Police Department; the Macon County, Tennessee Sheriff’s Department; the Marshall County, Tennessee Sheriff’s Department; and the Putnam County, Tennessee Sheriff’s Department. Assistant U.S. Attorney Siji Moore is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Three Men Sentenced for Multi-State Crime Spree Including Carjacking and Pharmacy Robberies in Wyoming and New MexicoRead the Press Release
New Mexico residents Antoine Mitchell, Moses D. Dickens III, and Christopher Dominguez, were all sentenced in a Cheyenne federal court recently after pleading guilty to crimes related to a violent crime spree that included armed pharmacy robberies in Wyoming and New Mexico.
On October 6, 2016, the three men, disguised in ski masks, kidnapped a woman at gunpoint in Wheatland, Wyoming, and dropped her at a remote location west of Wheatland before driving her Ford Edge and their own car to the Medicap Pharmacy in Cheyenne, Wyoming. There, again disguised, they fired shots and demanded painkillers, including OxyContin and Oxycodone. After exchanging gunfire with the pharmacist, the robbers fled in the Ford Edge, abandoned it shortly thereafter, and left Wyoming in their own car.
Despite a detailed and thorough investigation by the Cheyenne Police Department, the crimes in Wyoming went unsolved until December 3, 2016, when Mitchell, Dickens, and Dominguez robbed another pharmacy at gunpoint in Raton, New Mexico, fleeing with OxyContin, Morphine, Promethazine, cough syrup, and Ketamine. After a high-speed chase with the Raton Police Department, the three men were apprehended and charged in federal court in New Mexico.
In a joint effort by the Federal Bureau of Investigation in Wyoming, the Platte County Sheriff’s Office, the Wheatland Police Department, the Cheyenne Police Department, the Wyoming State Crime Laboratory, and with the courageous assistance of the victims in Wyoming, Mitchell, Dickens, and Dominguez were linked to their crimes in Wheatland and Cheyenne. They were charged in federal court in Wyoming.
Eventually, both the Wyoming and New Mexico cases were consolidated before Federal Judge Nancy D. Freudenthal in Wyoming. Pursuant to a plea agreement with the United States Attorney’s Offices in New Mexico and Wyoming, Dickens, Dominguez, and Mitchell all entered pleas related to the carjacking and pharmacy robberies. Mitchell and Dickens received sentences of 35 years in prison. Dominguez will serve 28 years.
"This case is an outstanding representation of how close cooperation between federal and local law enforcement agencies across two states can put violent criminals and drug dealers behind bars," said Wyoming U.S. Attorney Mark Klaassen. "It is a perfect example of the kind of case that our President, our Attorney General, and the U.S. Attorney’s Offices in Wyoming and New Mexico are targeting to reduce violent crime and address the opiate epidemic in our respective communities. Here, we combined the resources of local, state, and federal law enforcement agencies and prosecutors’ offices across two states to find the most effective way to investigate and prosecute these violent actors, and to bring justice to the victims of violent crime, which is the mandate of the Department of Justice’s Project Safe Neighborhood initiative. I also want to highlight in particular the courage or the victims of these crimes in Wyoming. Without their assistance, these criminals may never have been accountable for their violent crimes here."
"Today’s sentencing of Antione Mitchell and the recent sentencings of Moses Dickens III and Christopher Dominguez illustrate the FBI’s commitment to work with its law enforcement partners to address violent crime in our community," said FBI Special Agent in Charge Dean Phillips. "This investigation was truly a collaborative multi-state effort between local and federal law enforcement. The community is safer with these individuals behind bars. And we are confident Mitchell, Dickens, and Dominguez’s sentencings sends a message to those involved in acts of violence that they will be aggressively investigated and prosecuted to the full extent of the law."
Stockton Woman Pleads Guilty to Two Separate Fraud ConspiraciesRead the Press Release
SACRAMENTO, Calif. — Kioni M. Dogan, 38, of Stockton, pleaded guilty Tuesday to separate criminal conspiracies to submit false claims for federal income tax refunds and to commit mail fraud in connection with California state unemployment insurance benefits, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dogan and her co-conspirators together illegally sought over $2 million from the California and federal governments with these schemes.
In the tax case, Dogan conspired with her co-defendant Antonia Brasley and others to submit false tax returns to the IRS by obtaining personal identifying information from family, friends, and others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the returns regarding income, withholding from income, and gambling losses, with fraudulent supporting tax forms. From May 2011 through April 2012, Dogan and her co-conspirators sought over $940,000 in fraudulent tax refunds, of which approximately $708,188 were paid out by the IRS.
In the unemployment insurance case, from 2010 through 2015, Dogan and her co‑conspirators operated a “fictitious employer” scheme. Dogan created an employer with the California Employment Development Department (EDD) that was fictitious and did not conduct any business. Dogan then caused the submission of information to the EDD falsely indicating that various persons were employed by the fictitious entity. Dogan subsequently filed unemployment claims in the names of the fake employees. Co-defendants Gloria Harris and Lavonda Bailey are among the individuals alleged to have collected the fraudulent benefits, both in their own names and in the names of other fake employees. Dogan was connected to approximately $1.3 million in fraudulent claims to EDD, of which approximately $972,319 were paid out by EDD.
The unemployment fraud case is the product of an investigation by the U.S. Department of Labor, the California Employment Development Department, and the U.S. Postal Inspection Service. The tax fraud case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting both cases.
The charges against co-defendants Brasley, Harris, and Bailey remain pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Dogan is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 11, 2019. Dogan faces a maximum statutory penalty of 10 years in prison for conspiracy to submit false claims, and 20 years in prison for conspiracy to commit mail fraud, as well as a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Statement by Attorney General William P. Barr on President Donald J. Trump’s Intent to Nominate Jessie K. Liu as Associate Attorney General of the United StatesRead the Press Release
Attorney General William P. Barr issued the following statement:
"I was pleased to recommend Jessie Liu to President Trump for the position of Associate Attorney General and am grateful that he has nominated her. Jessie has distinguished herself as a first-class attorney in private practice, in the Treasury Department, and in five different positions over her career at the Department of Justice. Today she leads more than 300 prosecutors at our nation's largest U.S. Attorney office, where she has achieved significant accomplishments, including prosecuting several significant False Claims Act cases and implementing the Department's pilot initiative on sexual harassment in public housing. With her record of public service, particularly in civil justice and federal law enforcement matters, it is clear that she will be an outstanding addition to our leadership team at the Department.”
Statement Following the Completion of State and Local InvestigationsRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office today issued the following statement:
“Now that both state and local authorities have completed their investigations into the shooting of Stephon Clark, the U.S. Attorney’s Office and the FBI, in conjunction with the Civil Rights Division of the U.S. Department of Justice, will examine whether the shooting involved violations of Mr. Clark’s federal civil rights. That examination will involve a review of the substance and results of the state and local investigations, and any additional investigative steps, if warranted.”
St. Thomas Man Found Guilty on Drug Charges Involving 5 Kilograms of Powder CocaineRead the Press Release
St. Croix, USVI – Alvin Henry, 40, of St. Thomas, has been found guilty, after a jury trial, of one count of Conspiracy to Possess a Controlled Substance With Intent to Distribute and one count of Possession of a Controlled Substance With Intent to Distribute in the St. Croix District Court, United States Attorney Gretchen C.F. Shappert announced. The jury trial lasted a total of seven days, starting on February 25, 2019, and concluding on March 5, 2019.
These federal offenses carry a minimum term of imprisonment of not less than 10 years or more than life, a fine of up to $10,000,000, and a term of supervised release of at least five years. Sentencing will be set for a future date.
According to trial testimony, on November 2, 2016, a Customs and Border Protection K-9 officer entered the pre-departure area at the Henry E. Rohlsen Airport on St. Croix to randomly inspect departing passengers. When the K-9 officer approached, Defendant Henry ("Henry") nervously stood up and lifted his bag off the floor. When the CBP officers noticed this suspicious behavior, they asked if they could look into his bags. Henry consented and 10 duct-taped bricks of cocaine powder were confiscated from the bag. Further investigation revealed that Henry was part of a scheme to transport cocaine from St. Croix to Florida, and had met with an airport employee in the bathroom of the departure area, who delivered the cocaine bricks to Henry in the bathroom. Henry was scheduled to board the American Airlines flight to Miami with the cocaine in his carry-on luggage. Laboratory analysis confirmed the substance was cocaine hydrochloride (cocaine powder) with a net weight of 5,132.4 grams, or over 5 kilograms.
The case was investigated by Customs and Boarder Protection and Homeland Security Investigations. The Drug Enforcement Administration (DEA) Southeast Laboratory in Miami analyzed the cocaine. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Sinaloa, Mexico Man Sentenced to 188 Months for Methamphetamine, Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Abel Eduardo Cristerna-Gonzalez, age 27, of Sinaloa, Mexico, was sentenced on February 27, 2019, to 188 months imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine and for Possession With Intent To Distribute Heroin, in violation of Title 21, United States Code, Sections 841(a)(1); 841(b)(1)(A); 841(b)(1)(B); and Title 18, United States Code, Section 2. The defendant’s jury trial began with testimony on Tuesday, August 7, 2018 and concluded on Thursday, August 9, 2018 with a guilty verdict. The verdict and sentence obtained was the result of an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration. Sentencing occurred following the completion of a pre-sentence report prepared by the United States Probation Office.
Evidence at trial proved that on April 24, 2018, an Oklahoma Highway Patrol Trooper stopped a vehicle for traveling in excess of the speed limit on I-40 in Okmulgee County. The vehicle was driven by Luis Lopez Arce and Cristerna-Gonzalez was a passenger. Following routine questioning and further investigation, methamphetamine, a Schedule II controlled substance, and heroin, a Schedule I controlled substance were located in the vehicle. Additionally, evidence proved that the methamphetamine in the vehicle weighed 50 grams or more and the heroin 100 grams or more of a mixture or substance containing heroin. The jury found that Cristerna-Gonzalez – the defendant on trial – knowingly and intentionally possessed the methamphetamine and heroin with the intent to distribute them.
“Drug trafficking organizations distribute their poison to towns and cities across our country. The people that transport these drugs and deliver them to their intended distribution points are an integral part of the business model these organizations utilize to make huge profits while the rest of society pays the price. This investigation and prosecution of the defendant disrupted a drug trafficking organization which is a Department of Justice priority,” United States Attorney Brian J. Kuester said. “The members of this office will continue to work with our state, local, tribal and federal law enforcement partners to combat the distribution of dangerous drugs which has had such a devastating impact across the nation.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Shiprock Man Sentenced to Eight Years’ Prison for DUI Causing Child’s DeathRead the Press Release
PHOENIX – On March 4, 2019, Travis Lester Begay, 30, of Shiprock, N.M., was sentenced by U.S. District Judge Steven P. Logan to eight years’ imprisonment. Begay had previously pleaded guilty to involuntary manslaughter and assault resulting in serious bodily injury.
After drinking all day on June 3, 2018, Begay began driving his car with four young children in the back seat. Begay’s blood alcohol content at the time was 0.28, which is three-and-a-half times the legal limit. Because he was so intoxicated, Begay lost control of the car and caused a rollover crash. A ten-year-old child was ejected from the back seat and died as a result of the collision. Both Begay and the victim are members of the Navajo Nation, and the offense occurred on Navajo Route 63, north of Red Valley, Ariz., on the Navajo Nation Indian Reservation.
The investigation was conducted by agents of the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR 18-08223-SPL
RELEASE NUMBER: 2019-025_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Shiprock Man Found Guilty of Raping Woman in TowaocRead the Press Release
DURANGO – Merle Denezpi, age 39, of Shiprock, New Mexico, was found guilty on March 1, 2019, of federal sexual assault charges following a week-long trial before U.S. District Court Judge Robert E. Blackburn, U.S. Attorney Jason Dunn announced. Denezpi appeared at trial in custody and was remanded to the custody of the U.S. Marshals Service at the trial’s conclusion.
Denezpi was indicted by a federal grand jury on June 7, 2018, for one count of Aggravated Sexual Assault within the exterior boundaries of the Ute Mountain Ute Indian Reservation, near Towaoc, Colorado. According to court documents, as well as facts presented during trial, Denezpi used physical force and death threats to sexually assault his victim. Denezpi fled from the scene by jumping out a second-story window and hid underneath a bush for roughly thirteen hours. When apprehended by federal agents, Denezpi offered a contradictory story about his relationship with the victim, before finally asserting any sex was consensual. A Sexual Assault Nurse Exam (“SANE”) was conducted showing significant bruising and injuries to the victim. In addition a DNA test conducted by the Federal Bureau of Investigations revealed Denezpi’s DNA was present on the victim.
Denezpi will be sentenced by Judge Blackburn on June 3, 2019, at 1:30 p.m. in Durango, Colorado. Denezpi faces up to life in prison.
“Victims of sexual assault display tremendous courage when they agree to participate in the prosecution of their assailants by confronting them in court, and we commend the victim here for her courage,” said U.S. Attorney Jason Dunn. Our office is committed to vigorously prosecuting those who prey upon women and hold them accountable.”
This case was investigated by Bureau of Indian Affairs, with the assistance of their Victim Witness Specialist. The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves and Tim Neff.
Rosebud Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assault With a Dangerous Weapon was sentenced on March 4, 2019, by U.S. District Judge Roberto A. Lange.
Lawrence Gary, Jr., age 20, was sentenced to 84 months in federal prison, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Gary was indicted on February 14, 2018. He pled guilty on August 7, 2018.
The conviction stemmed from an incident that occurred around midnight on the evening of January 20, 2018. On that evening, the Defendant was at a social gathering at a residence in the Two Strike Community near Rosebud. The victim, an adult man, was also present. At some point, Gary and the victim got into an argument and Gary began assaulting the victim, striking him with his hands and fists. The victim fell to the floor and Gary kicked and stomped the victim multiple times with shod feet. He further struck the victim multiple times with a saucepan. The Defendant also stabbed the victim in the middle of his back, between his shoulder blades, with a knife. After he assaulted the victim, Gary left him lying on the floor and departed the house.
The stab wound severed the victim’s spinal cord and left him paralyzed from the chest down. Around noon on January 21, 2018, the victim was discovered lying on the floor of the residence. He was transported by ambulance to the Rosebud Indian Health Services Hospital, and subsequently transferred to Rapid City Regional Hospital. He was thereafter placed in a nursing home.
On October 24, 2018, while Gary was pending sentencing, the victim passed away. An autopsy determined that the stab wound inflicted by Gary was the proximate cause of the victim’s death.
The case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Gary was immediately turned over to the custody of the U.S. Marshals Service.
Rockford Man Charged with Illegal Possesson of FirearmsRead the Press Release
ROCKFORD — ALVIN J. MALONE, 31, of Rockford, was indicted today by a federal grand jury in Rockford for illegally possessing firearms as a convicted felon.
The indictment alleges that on Feb. 19, 2019, Malone illegally possessed a loaded 12-gauge shotgun, a .22-caliber rifle, and a loaded .45 semi-automatic pistol.
Malone has been in custody since his arrest on Feb. 19, 2019. He will appear for arraignment on March 6, 2019, at 11:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The indicted was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The Rockford Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
The charge of illegally possessing a firearm carries a maximum sentence of ten years in prison, to be followed by up to three years of supervised release, and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rigby Man Sentenced for Obtaining Controlled Substances by FraudRead the Press Release
POCATELLO - Benjamin J. Hurley, 38, of Rigby, Idaho, was sentenced yesterday to 3 years of probation for obtaining controlled substances, namely Tylenol 3 and 4, by fraud, U.S. Attorney Bart M. Davis announced. Hurley was sentenced by Chief U.S. District Judge David C. Nye. Hurley pleaded guilty on November 30, 2018.
According to court records, Hurley was employed as a pharmacist in Rigby. As part of his employment, Hurley had access to the controlled substances in the pharmacy and access to the pharmacy’s inventory management system. Hurley knowingly and intentionally altered the pharmacy’s inventory management system to fraudulently conceal his theft of acetaminophen/codeine 300/30mg (Tylenol 3) and acetaminophen/codeine 300/60mg (Tylenol 4) from the pharmacy. Tylenol 3 and Tylenol 4 are Schedule III controlled substances. Hurley stole over 1,600 pills of Tylenol 3 and 580 pills of Tylenol 4.
This case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement from the DEA, Ada County Sheriff’s Office, and U.S. Department of Health and Human Services Office of Inspector General.
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Richardson, Texas Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raudy Acosta Fernandez, age 32, of Richardson, Texas, entered a guilty plea to Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), punishable by not more than 2 years imprisonment, a fine up to $250,000.00, or both.
The Superseding Indictment alleges that on or about March 21, 2018, in the Eastern District of Oklahoma, the defendant did knowingly possess, and use, without lawful authority, a means of identification of another person during and in relation to Conspiracy to Commit Wire Fraud.
The charges arose from an investigation by the Lighthorse Police Department and the United States Secret Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Puyallup Tribal Member Sentenced to 18 Months in Prison for Strangulation Assault on Intimate PartnerRead the Press Release
A 20-year-old enrolled member of the Puyallup Tribe was sentenced today in U.S. District Court in Seattle to 18 months in prison and three years of supervised release for assault by strangulation, announced U.S. Attorney Brian T. Moran. SHAWN MICHAEL SAM of Tacoma was indicted in November 2017 for an assault that occurred on the Swinomish Reservation on October 15, 2017. SAM punched and strangled his then-girlfriend to the point that she lost consciousness. U.S. District Judge John C. Coughenour imposed the sentence.
According to records filed in the case, the victim suffered significant injuries including black eyes, tenderness, and swelling. After SAM strangled his victim, he continued to punch and hit her after she regained consciousness. Following his arrest for this assault, SAM was released with electronic monitoring. However, he cut the monitoring bracelet on May 2, 2018, and was ultimately located nearly four weeks later at his sister’s home in Tacoma. When law enforcement arrived, SAM ran from police but was taken into custody following a foot chase.
Swinomish Chairman Brian Cladoosby wrote to the court, “We take these matters very seriously and we will not tolerate this behavior in our community. The Violence Against Women Act is important for our State and Nation and protects the most vulnerable in our communities. We support Judge Coughenour to uphold justice for the victims and support his decision.”
SAM pleaded guilty August 29, 2018.
The case was investigated by the Swinomish Police Department and the FBI. The case was prosecuted by Assistant United States Attorneys Rebecca Cohen and J. Tate London. Ms. Cohen and Mr. London serve as Tribal Liaisons for the U.S. Attorney’s Office specially designated to prosecute cases involving Tribal communities.
Pleasants County man sentenced for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA –Willard Lee Moss, Jr., of Saint Marys, West Virginia, was sentenced today to 27 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
Moss, age 38, was found guilty of one count of “Domestic Violence Offender in Possession of a Firearm” after a two-day trial in October 2018. Moss, having previously been convicted of two separate domestic violence offenses in Pleasants County, possessed one handgun, three rifles, and two shotguns in his home in February 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Pleasants County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Penn Hills Man Pleads Guilty to Distributing FentanylRead the Press Release
PITTSBURGH - A resident of Penn Hills, Pennsylvania, pleaded guilty in federal court to conspiracy to possess with intent to distribute and distribute fentanyl, United States Attorney Scott W. Brady announced today.
Veryl Long, 29, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between October 2016 and March 2017, Long participated in a conspiracy to distribute 400 grams or more of fentanyl.
Judge Cercone scheduled sentencing for July 23, 2019 at 11 a.m. The law provides for a total sentence of not less than 10 years and up to life, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Allegheny County Police Department conducted the investigation leading to the prosecution of Long.
Parkersburg Man Pleads Guilty to Tax CrimeRead the Press Release
CHARLESTON, W.Va. -- A Parkersburg, West Virginia man entered a guilty plea to Willful Failure to Pay a Tax Return, announced United States Attorney Mike Stuart. Jeffrey Scott Dowler, 54, faces up to a year of incarceration, a $100,000 fine and an order of restitution to the United States Treasury for at least $20,818 when he is sentenced on June 5, 2019. Dowler further agrees to work with the Internal Revenue Service (IRS) to assist in the recovery of assets. Stuart praised the work of the Internal Revenue Service and the United States Department of Justice Tax Division.
Dowler owned an insurance appraisal business from 2009 to 2014. During those years, he made sufficient income where he had the ability to pay taxes. In 2013, Dowler willfully did not pay at least $20,818 in personal income tax that he knew was due and owing to the United States Treasury. Dowler had the financial ability to pay this tax at that time and chose not to do so. He also failed to pay business and payroll taxes associated with his insurance appraisal business. Dowler agrees he owes at least $20,818 in taxes and possibly more. His total tax liability will be determined by the Court at sentencing.
Assistant United States Attorney Erik S. Goes prosecuted the case. The hearing was conducted before United States Magistrate Judge Dwane L. Tinsley.
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Oxycodone Distributor Sentenced to 48 Months in PrisonRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on March 1, 2019, Lance Bruette, (age 36) of Minocqua was sentenced in federal court to 48 months in prison for conspiring to distribute oxycodone. Bruette had previously pleaded guilty to this charge.
The investigation revealed that from 2013 through 2016, Bruette and his co-conspirators traveled from Oneida and Vilas Counties to Milwaukee to pick up at least 289,140 mg tablets of oxycodone and then sell them in northern Wisconsin. The investigation showed that Bruette was a leader in this conspiracy and directed co-conspirators when to pick up oxycodone and how much oxycodone to pick up. He also recruited accomplices to sell in particular geographic areas.
While sentencing Bruette, United States District Court Judge Lynn Adelman emphasized that the offense was particularly serious because the opioid epidemic has had such a dramatic impact in small, rural communities in Wisconsin, such as those in Oneida County and Vilas County. Bruette was the seventh and final defendant to be sentenced for conspiring to distribute oxycodone in this case. See United States v. Orvin Kay, Case No. 17-CR-16.
“The defendant’s greed led him to exploit countless individuals’ addictions to opioids,” said U.S. Attorney Krueger. “This case shows that trafficking in pills is no less serious than trafficking in illicit opioids like heroin. We commend the outstanding collaboration by federal, state, and local law enforcement partners to shut down this illegal flow of opioids.”
The following agencies participated in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice—Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department; the Rhinelander Police Department; and the Northcentral Drug Enforcement Group (“NORDEG”). The case was prosecuted by Assistant United States Attorney Zachary J. Corey.
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Oregon U.S. Attorney's Office Collects Nearly $7 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
PORTLAND—U.S. Attorney Billy J. Williams announced today that the District of Oregon collected $6,996,187 in criminal and civil actions in Fiscal Year 2018. Of this amount, $5,085,876 was collected in criminal actions and $1,910,310 in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The FY 2018 collections are nearly seven times the appropriated $2.13 billion budget for the 94 U.S. Attorneys’ offices.
An example of the district’s collection efforts was U.S. v. Jumroon et al. On December 18, 2018, Paul Jumroon was sentenced to 37 months in prison for forced labor, visa fraud and filing false tax returns. Between 2011 and 2014, defendant Paul Jumroon and co-defendant Tanya Jumroon fraudulently obtained E-2 "investor" visas to bring Thai nationals into the United States to provide cheap labor at their restaurants in Lake Oswego, Oregon, and in Ridgefield, Washington. At sentencing, Paul Jumroon was ordered to pay more than $131,000 in restitution to his victims and more than $120,000 to the IRS. As part of his plea agreement, Jumroon also agreed to forfeit more than $80,000 in seized currency and gold bars and to a garnishment of more than $170,000 in retirement savings.
A second example is U.S. v. Hankins. In 2001, Anne Hankins pleaded guilty to bank fraud after submitting a false loan application for $350,000 to U.S. Bank Special Assets Group. Hankins was sentenced to 30 days in jail and, under the Mandatory Victims Restitution Act, ordered to pay $350,000 in restitution to U.S. Bank. Between 2002 and 2013, Hankins made sporadic payments ranging from $50 to $400 monthly. By July 2013, Hankins had paid $13,044. In September 2013, Hankins and Horton & Associates LLC, a firm U.S. Bank had previously assigned its restitution interest to, agreed to settle the outstanding restitution for a mere $5,000. In April 2015, the Treasury Offset Program garnished $21,765 from Hankins, who had stopped making restitution payments after her purported agreement with Horton & Associates LLC. Displeased with the garnishment, Hankins filed a motion in the district court for full satisfaction of the restitution judgment. The district court denied the motion and Hankins appealed.
The government successfully argued on appeal before the Ninth Circuit Court of Appeals that restitution cannot be settled for less than the full amount ordered and that if a victim declines
receipt of restitution, the balance should be paid to the national Crime Victims Fund. The ruling resulted in a full restitution judgment of $331,995 from Hankins going directly to the Crime Victims Fund.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Oregon Man Sentenced for Depredation of Government Property in the Umatilla National ForestRead the Press Release
PORTLAND, Ore.—John M. Wasson, 74, of Irrigon, Oregon, was sentenced today to five years’ probation including 60 days in a community corrections facility for misusing a mining claim on the North Fork of the John Day River in the Umatilla National Forest resulting in the depredation of government property. Wasson was also ordered to pay $28,817 in restitution.
"Like all Americans, Oregonians expect public lands to be protected from degradation and misuse. This defendant, over a series of years, treated Forest Service land as if it were his own, causing significant environmental damage," said Billy J. Williams, U.S. Attorney for the District of Oregon. "We take these crimes seriously and will continue to pursue those who violate our shared resources."
"Our wild and scenic rivers are special places that hold many values for our public, while providing habitat and resources for a variety of species and ecosystems," said Eric Watrud, Umatilla Forest Supervisor. "I’m thankful for the professional support from DOJ to hold people accountable that ignore the rules on our public lands. Our National Forests provide a wide array of resources and benefits, which our multiple use mission sustains through wise use and permitted activities."
According to court documents, Wasson was the claimant on the Slippery Rocks Mining Claim, an unpatented claim giving him possessory interest in the site for prospecting, mining or processing operations. Beginning in 2012, Wasson developed a personal interpretation of mining laws that permitted him to take any action on the claim that he believed to be reasonably incident to his mining. Over a period of years, despite court orders, misdemeanor convictions and the U.S. Forest Service officials’ repeated attempts to work with Wasson to bring his conduct into compliance, Wasson’s misuse of the claim grew more expansive and egregious.
By 2017, Forest Service officials observed that Wasson established a semi-permanent encampment on the claim, violating Forest Service regulations prohibiting occupancy for more than 14 days in a 30 day period without Forest Service authorization. Wasson’s camp included three tents, one with a foundation Wasson constructed of treated lumber, sand and gravel; a camper; a truck and a pop-up outhouse. Wasson had constructed a new road to the claim by driving through a riparian area, compacting soil and native vegetation. Additionally, Wasson created a walking path across the John Day River and used plastic sheeting to line a wing dam he made to hold water. The plastic lining was catching and holding juvenile steelhead, preventing them from accessing the flowing portion of the river.
The Forest Service paid a hazardous waste disposal company more than $19,000 to remove three quarters of a ton of contaminated soil, 90 gallons of vegetable oil, and quantities of pesticides, insecticides and rodenticides from the campsite.
Wasson was previously found guilty of one count of depredation of government property in a four-day jury trial ending on November 8, 2018.
This case was investigated by the U.S. Forest Service and prosecuted by Jennifer Martin and John Brassell, Assistant U.S. Attorneys for the District of Oregon.
Operation "Press Your Luck" Leads to Dozens of Arrests in Helena-West HelenaRead the Press Release
HELENA-WEST HELENA—The United States Marshals Service announced today an arrest operation targeting violence in the Delta. Operation “Press Your Luck” began this morning in Helena-West Helena, resulting in multiple cooperating law enforcement agencies arresting 44 suspects thus far in an ongoing investigation.
Operation “Press Your Luck, led by the United States Marshals Service (USMS), is designed to target fugitive gang members and other violent criminals wanted on arrest warrants for egregious violent criminal offenses. The goal of the operation is to provide communities in the Delta region with immediate relief from violent gang-related crime.
Fugitive task forces began Operation “Press Your Luck” early this morning by searching for more than 60 suspects, all of whom had outstanding arrest warrants for crimes including rape, murder, aggravated assault, kidnapping, sex offenses, and other crimes. Authorities began a sweep of the area, concentrating their efforts in Phillips County and nearby locations including several targets in Arkansas County and Saint Francis County, as well as neighboring communities in Mississippi. The operation is ongoing and law enforcement will continue to seek additional wanted suspects, beyond those arrested today.
“Today’s arrests signify the presence of federal law enforcement in Helena-West Helena and the surrounding communities,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “When local communities in our district reach out for help from federal authorities to stem the tide of violence, we will swiftly and forcefully respond. Criminals in the Delta now know that we will not tolerate their violence and disregard of the law.”
“We are committed to working with our federal, state, and local partners to address those wanted for crimes of violence and fleeing justice,” said Jay L. Tuck, Chief Deputy United States Marshal for the Eastern District of Arkansas. “The Marshals’ collaborative efforts, through our fugitive task forces, place us in a unique position to arrest violent offenders and help make cities like Helena-West Helena safer.
“The citizens of this community and the entire Delta region should not be worried to sit on their porch, allow children to play in a park, or take a family walk. We will continue to assist these communities and take back the streets from gang members and violent offenders, paving a successful path for future generations.”
The USMS was assisted by several participating agencies, including the Drug Enforcement Agency; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Arkansas Department of Community Correction; Arkansas State Police; National Guard Counterdrug Aviation; and MEMS STAR Team.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at http://www.justice.gov/edarTwitter: @EDARNEWS
Nurse Anesthetist Sentenced for Stealing Fentanyl at VA HospitalRead the Press Release
Madison, Wis. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Todd Mehrhoff, 49, Waunakee, Wisconsin, was sentenced today by U.S. District Judge James Peterson to three years of probation for obtaining fentanyl by use of misrepresentation and fraud.
During the timeframe of the government’s investigation, Mehrhoff was employed at the William S. Middleton Memorial Veterans Hospital in Madison as a Certified Registered Nurse Anesthetist and primarily participated in surgeries in the operating room. The hospital utilized a Med-Select system, which automated and monitored the distribution, management, and control of prescription medications, including fentanyl. As a Certified Registered Nurse Anesthetist, Mehrhoff had access to the Med-Select system. Each individual user of the Med-Select system logged in by either entering their unique user ID number along with a PIN number or entering their unique ID number along with a fingerprint scan.
On December 19, 2017, Veteran Affairs police officers responded to a complaint of suspected drug diversion by Mehrhoff. Earlier that day, employees in an operating room found a fentanyl syringe that was left unattended on a medical cart. Staff within the operating room queried usage within the automatic dispensing cabinet and determined Mehrhoff had removed fentanyl earlier in the day and did not report its administration or destruction.
The subsequent investigation into Mehrhoff’s records revealed over 100 suspected diversions of fentanyl between August and December of 2017. Mehrhoff admitted obtaining fentanyl for personal use from the Med-Select system in the following situations: 1) when he was not on duty; 2) for patients he was not assigned to; 3) on days when no surgeries were scheduled; and 4) in amounts greater than would be typical for any operating room procedure.
The charges against Mehrhoff are the result of an investigation by the Veteran’s Affairs Police Department and the Drug Enforcement Administration. The prosecution of this case has been handled by Assistant U.S. Attorney Aaron D. Wegner.
Norwalk Woman Pleads Guilty to Stealing Federal Annuity BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SYBIL F. BUTLER, 56, of Norwalk, waived her right to be indicted and pleaded guilty today in Bridgeport federal court to one count of theft of government funds.
According to court documents and statements made in court, Butler’s mother received monthly annuity payments following her retirement from the U.S. Postal Service. Butler’s mother died in June 2014. Between June 2014 and October 2016, Butler impersonated her mother in phone calls to the Office of Personnel Management, and also forged her mother’s signature on numerous documents indicating that her mother was alive. As a result, $71,701.13 in federal annuity benefits were deposited into Butler’s and her mother’s joint bank account after her mother’s death.
Butler was arrested on a criminal complaint on October 3, 2018. She is released on a $10,000 bond pending sentencing, which is not yet scheduled.
The charge of theft of government funds carries a maximum term of imprisonment of 10 years.
This matter is being investigated by the Office of Personnel Management, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Nigerian National Involved in Phishing Scheme that Targeted Connecticut Schools is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that OLUKAYODE IBRAHIM LAWAL, 36, a citizen of Nigeria last residing in Smyrna, Georgia, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to approximately 10 months of imprisonment, time already served, for his role in a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.
According to court documents and statements made in court, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut in 2017.
In March 2017, an employee of the Groton Public Schools received an email that appeared to be sent by another Groton school system employee. The email contained a request to send W-2 tax information for all employees of the school system. The recipient of the email responded by sending copies of the W-2 information for approximately 1,300 Groton Public Schools employees. After the W-2 information was emailed, approximately 100 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme. The 100 tax returns claimed refunds totaling $491,737. Approximately three of the returns were processed, and $23,543 in fraudulently-obtained funds were electronically deposited into various bank accounts. The other returns were not processed because they were suspected of being fraudulent.
Lawal controlled or used certain email accounts involved in this phishing scheme. A co-conspirator of Lawal sent personal identifying information, including names and Social Security Numbers, of at least 10 employees to an email account that Lawal used. Lawal then sent the victims’ personal identifying information to another co-conspirator.
The investigation further revealed that in February 2017, in a related scheme, Sacred Heart Academy in Hamden was victimized by a phishing e-mail that requested W-2 forms for its employees. Approximately 103 employee W-2 forms were compromised as a result of the phishing e-mail. The IRS confirmed that 33 victims had fraudulent tax returns filed electronically with the IRS, claiming refunds in the amount of $314,184. The returns were not processed because they were suspected of being fraudulent.
Lawal entered the U.S. on a visitor’s visa on November 24, 2016, and failed to depart on his scheduled departure date of December 1, 2016. He has been detained since his arrest on May 9, 2018. On December 20, 2018, he pleaded guilty to one count of conspiracy to commit wire fraud.
Lawal, who is now in the custody of U.S. Immigration and Customs Enforcement, will be removed to Nigeria.
This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
U.S. Attorney Durham thanked the FBI and IRS in Atlanta, and the U.S. Attorney’s Office for the Northern District of Georgia, for their valuable assistance in this matter.
Nigerian Man, extradited from Canada, Sentenced to 10 years for Obstruction of Justice in addition to an Existing 17 ½ Year Sentence for Multi-Million Dollar Fraud SchemeRead the Press Release
Fargo – United States Attorney Christopher C. Myers announced that on March 4, 2019, United States District Court Judge Linda R. Reade, Northern District of Iowa, sentenced Michael Adefemi Adeyemo, a/k/a/ Adekunle Olufemi Adetiloye, age 47, a citizen of Nigeria and living in Canada when extradited to the United States, to serve 10 years in prison, which is the statutory maximum for obstruction of justice under 18 U.S.C. 1503(b)(3).
Previously, in 2012, Adeyemo, received a sentence of 17 ½ years in the District of North Dakota for a multi-million dollar fraud scheme that was conducted from Canada involving more than 20 banks in the United States. At that time, it was the largest credit card fraud suffered by US Bank and the Discover Card Bank in the history of those institutions.
Years after that sentencing, it was discovered that Adeyemo had taken many steps to conceal from law enforcement and the court his prior residency in the United States as a legal permanent resident, that he was licensed as an attorney in Nigeria, and that he was a fugitive with an outstanding federal warrant in California from 2001 for a similar fraud scheme. Following trial, the trial jury found Adeyemo guilty of concealing this evidence to reduce his earlier sentence.
In sentencing Adeyemo to 10 years’ imprisonment, District Judge Linda R. Reade stated that Adeyemo showed a “callous disregard of the laws of the United States.”
This case was investigated by the U.S. Department of Homeland Security and the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service has been and will always be relentless in the pursuit of facts throughout a criminal investigation,” said Bill Hedrick, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service, which includes North Dakota. “Postal Inspectors know this and take great pride in their search to find the truth. Through the diligence of our Inspector and others in this case, we were able to bring the defendant to face justice for the full scope of his crimes,” said Hedrick. “We appreciate the dedicated effort of all those involved in this case, including the U.S. Postal Inspection Service Forensic Lab, and agents from Homeland Security Investigations.”
Assistant United States Attorney Nick Chase prosecuted the case.
New York Tax Return Preparer Found Guilty of Tax Crimes in Stolen Identity Refund Fraud SchemeRead the Press Release
A Springfield Gardens, New York, resident was convicted yesterday by a federal jury for conspiring to commit aggravated identity theft and for two counts of aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, Afolabi Ajelero, the owner of Mo-Betta Ventures Inc., a tax preparation business located in Springfield Gardens, New York, conspired with others to possess and use without lawful authority one or more means of identification of another person. He also filed false corporate income tax returns for the 2014 and 2015 tax years for his business.
Ajelero was acquitted of wire fraud and aggravated identity theft counts.
Ajelero faces a maximum sentence of five years for the conspiracy conviction and a maximum sentence of three years in prison for each count of aiding or assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
On Feb. 15, 2019, co-defendant Hakeem Bamgbala pleaded guilty to 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return. On July 31, 2018, co-defendant Michael Campbell pleaded guilty to conspiracy to commit aggravated identity theft. A sentencing date has not been set for Bamgbala and Campbell.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.
New Jersey Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A New Jersey man who was caught selling drugs near a school in West Huntington last September last year pled guilty today to a federal drug and gun charges, announced United States Attorney Mike Stuart. Eric Moore Bellamy, 51, entered guilty pleas to possession with intent to distribute crack cocaine and heroin within one-thousand feet of a school and possession of firearms in furtherance of a drug trafficking crime in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department.
“Bellamy’s den of drugs and guns was close to an elementary school and our precious children,” said United States Attorney Mike Stuart. “I appreciate the great effort by law enforcement to get him off the streets. We will protect our children at all cost from the drug traffickers that cause so much pain in our communities. You can bet that if you are selling drugs near a school, we will charge you accordingly. Drug thugs that put our most vulnerable in harm’s way will be prosecuted to the maximum extent of the law.”
On September 12, 2018, after officers with the Huntington Police Department developed information that Bellamy was selling drugs in West Huntington, a search warrant was executed at his residence located at 1037 Madison Avenue. During the search, officers seized crack cocaine and heroin from a dresser in the residence. In a separate drawer of the same dresser containing the drugs, officers seized a loaded Springfield .45 caliber pistol, a loaded Ruger Model P85, 9mm pistol, and a loaded Imperial Metal, Model 9, .22 caliber revolver. Bellamy was arrested and admitted to officers that he possessed the drugs and firearms and that he had been selling both crack and heroin in the West Huntington area.
Bellamy’s residence is located within one-thousand feet of Grace Christian School, a private elementary and secondary school. Bellamy admitted at his plea hearing that he possessed the firearms to serve as protection based on his distribution of drugs. Bellamy was also prohibited from possessing firearms based on multiple prior felony convictions he received in the State of New Jersey.
Bellamy faces a mandatory minimum of 1 year up to 40 years in federal prison for the drug charge, and a consecutive mandatory minimum of 5 years up to life in federal prison for the gun charge, when he is sentenced on June 17, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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New Jersey Man Convicted in Manhattan Federal Court of Three Counts in Connection with Theft of over $2 Million in Stock Certificates from Deceased Manhattan WomanRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the conviction yesterday of ROBERT MERLO, a New Jersey-based insurance agent who participated in a scheme to steal more than $2 million in stock certificates from the apartment of a deceased Manhattan woman, open a brokerage account in her name in order to liquidate the stocks, and then use those stolen assets to attempt to purchase over $2 million worth of gold coins, following a four-day trial before the Honorable Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “We are gratified that the jury reached a swift and just verdict in this case. The conduct of the defendant was the financial equivalent of grave-robbing.”
FBI Assistant Director William F. Sweeney Jr. said: “There are few things more disturbing than stealing from the deceased. The conviction of Robert Merlo is a welcome conclusion – one that highlights our resolve to defend the truly defenseless.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
From approximately March 2016 to February 2017, MERLO engaged in a scheme with others known and unknown designed to steal over $2 million from a deceased Manhattan woman (the “Victim”). As part of the scheme, MERLO’s co-conspirators stole stock certificates valued at over $2 million from the Victim’s Manhattan apartment after the Victim’s death. In August 2016, MERLO agreed with others to make false representations to a financial institution (“Company-1”) in order to open a brokerage account (the “Account”) in the Victim’s name, deposit the stolen stock certificates into the Account, and sell the shares in the brokerage account, resulting in a cash balance of over $2 million. MERLO agreed to help launder the cash balance in the brokerage account, approaching several individuals to carry out his plan. MERLO and his co-conspirators then attempted to purchase $2 million in gold coins using the assets in the Account. MERLO and his co-conspirators met several times over the course of months and communicated using prepaid or “burner” phones regarding the fraudulent scheme.
* * *
MERLO, 55, of Secaucus, New Jersey, was convicted of one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge. Sentencing before Judge Kaplan is scheduled for June 10, 2019.
Mr. Berman praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Cecilia Vogel, Sarah Mortazavi, Dina McLeod, and Alexandra Rothman are in charge of the prosecution.
Monongalia County residents indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brendan Regan Boddie and Amie Kristine Pritt, both of Morgantown, West Virginia, were indicted by a federal grand today firearms charges, United States Attorney Bill Powell announced.
Boddie, age 28, was indicted on one count of “Unlawful Transfer of Firearm to Prohibited Person” and one count of “Unlawful Possession of Firearms by Person Convicted of Domestic Violence Crime.” Boddie, having previously been convicted of domestic violence, is accused of having two pistols, two rifles, and one shotgun between February and April 2018 in Monongalia County.
Pritt, age 34, was indicted on one count of “False Statement During Purchase of a Firearm” and one count of “Unlawful Transfer of Firearm to Prohibited Person.” Pritt is accused of purchasing a 9mm caliber pistol for Boddie, who is prohibited from having a firearm.
Boddie and Pritt each face up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Monmouth County, New Jersey, Pharmacist Admits Cashing Millions in Checks to Avoid Paying Income TaxesRead the Press Release
NEWARK – A licensed pharmacist from Monmouth County, New Jersey, today admitted cashing millions of dollars’ worth of his pharmacy’s checks to evade the payment of income taxes, U.S. Attorney Craig Carpenito announced.
Ajay Barthwal, 43, of Morganville, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit tax evasion in connection with income he received from Old Bridge Drugs & Surgicals (OBDS), a retail pharmacy in Old Bridge, New Jersey, during calendar years 2009 through 2011, that he failed to report on the income tax returns he filed for those years.
According to documents filed in this case and statements made in court:
Barthwal and his wife claimed to be each 50 percent owners of OBDS. However, Barthwal was actually a one-third owner in OBDS, and two other individuals, Dilip Naik and Bhavesh Mistry, both of whom have previously pleaded guilty to related tax crimes, were each one-third owners and “silent partners.”
As a partnership, OBDS was required to file an IRS Form 1065 U.S. Partnership Income Tax Return. Income received by the business would flow through to the individual partners’ Individual Income Tax Return, IRS Forms 1040. As owners of OBDS, Barthwal, Naik and Mistry each were responsible for accurately reporting to the IRS their business income and respective personal incomes.
Barthwal admitted that from at least Jan. 1, 2009, through Nov. 5, 2012, he, Naik and Mistry all agreed to evade paying income taxes. He admitted that he, Naik and Mistry agreed to hide taxable revenue of $9,343,234, which OBDS had received, by submitting to the IRS tax returns that substantially under-reported the gross receipts of OBDS for calendar years 2009 through 2011.
Beginning in January 2009, Barthwal and Naik caused business receipts from OBDS to be cashed at a check cashier located in Jersey City, New Jersey. Barthwal then deposited only a portion of the OBDS business receipts into the OBDS operating account, and Barthwal, Naik and Mistry each received approximately one-third of the proceeds of the OBDS business receipts that were not deposited into the operating account.
In early 2009, Barthwal, Naik and Mistry agreed to hide the undeposited gross cash receipts from OBDS from the IRS. Barthwal admitted that he, Naik and Mistry failed to pay $4,114,102 in taxes that would have been due and owing to the IRS.
The count of conspiracy to commit tax evasion is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense, whichever is greater. Sentencing is scheduled for July 7, 2019.U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Frank Agostino Esq., Hackensack, New Jersey
McAlester Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gary Don Hicks, Sr., age 51, of McAlester, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that in on or about January 8, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Maryland Heights Woman Convicted of Embezzling from EmployerRead the Press Release
St. Louis, MO – Wende Terrill, 48, of Maryland Heights, MO, was convicted by a jury today in U.S. District Court in St. Louis for one count of wire fraud. Terrill’s trial took place before U.S. District Court Judge Rodney Sippel and set a sentencing hearing for June 20, 2019.
According to testimony at trial, in 2017, Terrill was serving as Controller for Midwest Petroleum where she embezzled approximately $210,000. Terrill’s scheme involved a wire transfer and numerous checks fraudulently issued by her from company funds. The checks were then converted by her to cashier’s checks and written to “vendors” that had not actually performed any services for the company. Terrill concealed her scheme through manipulation of internal company records and false representations to co-workers. Some of the funds were traced overseas, but the ultimate end recipients were unable to be determined.
"Not all criminals wear a mask and point a gun," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "In this case, Wende Terrill was a beloved long-time employee who abused that trust to embezzle more than $200,000 from a family-owned business."
Terrill faces a penalty of up to 20 years imprisonment and a fine of $250,000 or both. 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 the Federal Bureau of Investigation. This case was handled by Assistant United States Attorneys Gwen Carroll and Lindsay McClure-Hartman.
Marcus Danner Sentenced to 352 Months Imprisonment as Leader of an Armed Robbery Crew and Member of a Drug Trafficking OrganizationRead the Press Release
Memphis, TN – Marcus Danner a/k/a "Poncho", 39, was sentenced to 352 months imprisonment for his role in a conspiracy to possess with intent to distribute cocaine, the possession of a firearm in the furtherance of a drug trafficking crime, and aiding and abetting an attempted robbery. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, Danner was the leader of an armed robbery crew located in Memphis. On January 9, 2019, a federal grand jury returned an 11-count third superseding indictment against Danner and four others. This indictment followed a four-month investigation involving agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as other federal and local agencies, in which Danner and his co-defendants were alleged to have participated in a conspiracy to rob drug dealers in Memphis. During the investigation, agents seized multiple firearms; approximately $2,000 in U.S. currency; and approximately 28 grams of crack cocaine.
Following his guilty plea to the above charges, the proof presented at sentencing showed that Danner, organized three indicted co-defendants to participate in an attempted armed robbery of a drug trafficker in January, 2018, where the mother of the drug trafficker was beaten and shot in the chest for his role in the conspiracy to possess with intent to distribute between 5 and 15 kilograms of cocaine. Danner has an extensive history of multiple prior violent and drug felony convictions, including Solicitation of Aggravated Robbery, Robbery, Possession of a Controlled Substance with Intent to Sell, and Convicted Felon in Possession of a Firearm.
On March 1, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Danner to 352 months imprisonment followed by five years supervised release.
U.S. Attorney Dunavant said, "Armed Robbery crews made up of violent felons will NOT continue to terrorize and endanger our communities in West Tennessee with impunity. We use all available law enforcement and prosecutorial resources to pursue, disrupt, and dismantle groups and conspiracies that are most responsible for violence and drug dealing, and to remove dangerous offenders with firearms from our streets. I commend the great investigative work of ATF and our local partners in neutralizing this violent recidivist and his crew of trigger-pullers and traffickers."
ATF Special Agent in Charge Marcus Watson stated, "ATF is committed to working with our law enforcement and community partners every day in our ongoing priority to reduce violent crime. ATF’s Crime Gun Intelligence leverages technology that ultimately disrupts the shooting cycle that negatively impacts our neighborhoods."
This prosecution is part of an extensive investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat 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 case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Memphis Police Department, Multi Agency Gang Unit (MGU), and the Shelby County Sheriff’s Office.
Assistant U.S. Attorneys Jerry Kitchen and Gregory Allen prosecuted this case on behalf of the government.
Malden Man Sentenced for Defrauding EmployerRead the Press Release
BOSTON – A Malden man was sentenced yesterday in federal court in Boston for his role in a wide-ranging conspiracy to defraud his employer, a large facilities services company with offices in the Greater Boston area.
Lou Amaral, 52, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 30 months in prison and two years of supervised release, and restitution to be determined at a later date. In July 2018, Amaral pleaded guilty to one count of conspiracy to commit honest services mail fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of tax evasion. Co-defendant Vence Pires, 58, also of Malden, was sentenced on Feb. 28, 2019, to one year and one day in prison after pleading guilty to one count of conspiracy to commit wire fraud.
Amaral and Pires worked for the same facilities services company in the Greater Boston area. Amaral was the supervisor of the Special Services Department, and as such, he had the ability to hire employees and to contract with third-parties to provide temporary labor. Pires was an account manager who worked for Amaral in Special Services. Amaral first began taking bribes from a temporary labor company in order to steer contracts to that company. In 2014, Amaral opened up his own temporary labor company and, with the help of Pires, awarded himself the temporary labor contracts. Through this scheme, Amaral made approximately $10 million in revenue over a three-year period, resulting in a net gain to him of approximately $2 million.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Crimes Unit prosecuted the case.
Lewiston Man Sentenced to over Five Years for Furanyl Fentanyl TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Nera James, also known as “King,” 39, of Lewiston, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to 67 months in prison and three years of supervised release for possession with the intent to distribute furanyl fentanyl, a fentanyl analogue. James pled guilty on May 30, 2018.
Court records reveal that on December 20, 2016, and May 3, 2017, state and local law enforcement agencies seized distributable quantities of furanyl fentanyl from James and his Lewiston apartment, respectively. The latter search resulted in the seizure of about 601 “tickets” (dosage units) of furanyl fentanyl, $9,863, and three firearms.
The investigation was conducted by the Maine Drug Enforcement Agency; the Lewiston and Auburn Police Departments; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Central Maine Violent Crimes Task Force; and was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Las Vegas Man Sentenced to over Seven Years in Prison for Assaulting A Federal OfficerRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was convicted by a jury for using his car as a dangerous weapon as he attempted to flee from law enforcement officers was sentenced today to 92 months in prison and three years of supervised release, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Brian Keith Wright, aka “Calione,” 34, was found guilty following a two-day trial in August 2018, of assault on a federal officer with a dangerous weapon, assault on a federal officer with intent to commit another felony, and assault on a federal officer. In sentencing Wright, U.S. District Judge Jennifer A. Dorsey stated that the 92-month sentence was necessary because of the defendant’s “flagrant disrespect for the law” and the safety of the community.
In February 2016, Wright was placed on federal supervised release as part of his sentence arising from a separate felony conviction for being a felon in possession of a firearm. In February 2017, members of the FBI’s Las Vegas Safe Streets Task Force attempted to execute an arrest warrant issued by a federal judge for alleged violations of Wright’s supervised release conditions along with a state search warrant for Wright’s residence. Upon arriving at the residence, law enforcement knocked and announced their presence. Wright failed to open the door causing law enforcement to force entry into the house. As they were doing so, Wright attempted to flee the residence in his BMW sedan by pulling out of the garage in an erratic manner. Seeing that his escape route was partially blocked by an officer’s vehicle, Wright continued to reverse his vehicle until he struck the officer’s car, causing the officer to quickly move out of the way to avoid being struck. Wright initially refused to comply with officers’ commands to stop and exit his vehicle after he was surrounded by task force members with their weapons drawn. After finally complying with the officers’ commands, Wright was arrested.
The case was investigated by the FBI Safe Streets Task Force. Assistant U.S. Attorneys Nadia Ahmed and Alexandra Michael prosecuted the case.
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Lake County Man Indicted for Tax Evasion and Tax FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Douglas V. Oakes (60, Bella Collina) with one count of tax evasion and six counts of making false and fraudulent statements on tax returns. If convicted, he faces up to five years in federal prison on the tax evasion count and up to three years’ imprisonment on each of the false statement counts.
According to the
indictment , in 2015, in order to evade the payment of his income taxes for 2002 to 2005, Oakes falsely represented to the IRS that he was not employed or self-employed, earned no income, and that he did not have a financial interest in any business entities. In fact, Oakes was the CEO of Dealerindustry.com, LLC (“DI”) d/b/a Automotive Capital Corporation, a company in which he had a substantial financial interest. To conceal from the IRS his financial interest in DI, Oakes registered his daughters and others as DI’s managing members with the Florida Department of State, removed his name and title from DI’s website and from the website LinkedIn, and caused false DI ownership documents to be created, signed, and backdated. Between 2015 and 2018, Oakes further attempted to conceal his assets from the IRS by purchasing a beachfront home in Merritt Island in the name of a nominee, causing false DI ownership documents to be created, signed, and backdated, and having tax returns prepared for his deceased daughter in which DI’s income was falsely claimed to be his daughter’s income.The indictment further charges that in September 2015, Oakes submitted fraudulent tax returns to the IRS for the 2009 to 2014 tax years, each of which falsely claimed that he had no tax due and owing. The Internal Revenue Service – Criminal Investigation estimates that Oakes’s actions resulted in approximately $1.1 million of tax losses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Justice Department Secures Denaturalization of Convicted War Criminal Who Fraudulently Obtained Refugee Status and U.S. CitizenshipRead the Press Release
WASHINGTON – On March 1, Judge Marco A. Hernandez of the U.S. District Court for the District of Oregon entered an order revoking the naturalized U.S. citizenship of a convicted war criminal. The court held that defendant Sammy Rasema Yetisen aka Rasema Handanovic aka Zolja, a native of the former Yugoslavia, illegally procured her U.S. citizenship. The court’s order was based on its finding that Yetisen lacked the good moral character required to naturalize because she had executed six unarmed civilians and prisoners of war during the 1990s Balkans Conflicts because of their religion and ethnicity. She later concealed her crimes to procure refugee status and U.S. citizenship in the United States.
"War criminals will find no safe haven in the United States," said Principal Deputy Associate Attorney General Jesse Panuccio. "The Justice Department will continue to prosecute those who fraudulently obtain U.S. citizenship and willfully abuse our refugee program."
"Sammy Rasema Yetisen’s denaturalization is yet another example of the Justice Department’s enduring commitment to ensuring war criminals find no sanctuary in our country," said Billy J. Williams, U.S. Attorney for the District of Oregon. "The long passage of time will neither shelter nor immunize those who have defrauded the United States by concealing such heinous crimes."
Yetisen, 46, was part of an elite unit of the Army of the Republic of Bosnia and Herzegovina that attacked the village of Trusina in April 1993, in what is known as the Trusina massacre. The unit targeted Bosnian Croats who resided in the village because of their Christian religion and Croat ethnicity, killing 22 unarmed individuals including women and the elderly. Yetisen played a key role in the massacre, serving as part of a firing squad that lined up and executed six unarmed prisoners of war and civilians. Yetisen was admitted to the United States as a refugee before naturalizing in 2002. In her naturalization application, Yetisen indicated that she had never had any military service "in the United States or in any other place."
In April 2012, Yetisen was convicted in a Bosnian court pursuant to a guilty plea of war crimes against prisoners of war and war crimes against civilians based on the firing squad execution-style killings. In exchange for her plea and cooperation, Yetisen was sentenced to five years and six months in prison. Upon her release from prison, Yetisen returned to the United States and resides in Oregon. The Justice Department previously secured the denaturalization of Edin Dzeko, one of Yetisen’s fellow soldiers and another perpetrator of the Trusina massacre.
Before their war crimes had come to light, Dzeko and Yetisen each requested and received refugee status from the United States, claiming themselves to be victims of persecution. Dzeko and Yetisen concealed and affirmatively misrepresented their criminal history, military service, and persecutory acts throughout their immigration proceedings. Such benefits would have been denied had immigration authorities known about their roles in the Trusina massacre.
"This case exemplifies the work of the Human Rights Violators and War Crimes Center. We will use all available resources, collaborate with all possible partners and explore all mechanisms of the law to bring these cases of horrendous human rights violations to justice," said Mark Shaffer, Chief of the Human Rights Violators and War Crimes Center. "Our inter-disciplinary, inter-agency team continues to delve into the human rights abuses that occurred in the former Yugoslavia and around the world, and we will not rest until we are certain that the United States does not serve as a safe haven for those who would commit such abuses."
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Seattle Office of the Chief Counsel, and the Criminal Division’s Human Rights and Special Prosecutions Section.
The case was jointly prosecuted by Chief Timothy Belsan and Senior Counsel for National Security Aram Gavoor of OIL-DCS’s NS/A Unit and Trial Attorney Steven Platt of OIL-DCS, and Assistant U.S. Attorney Dianne Schweiner of the U.S. Attorney’s Office for the District of Oregon.
Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to call the ICE tip line at 1-866-DHS-2-ICE or to complete its online tip form; or the Justice Department’s Human Rights and Special Prosecutions Section at 1-202-616-2492. Callers may remain anonymous.
Justice Department Secures Denaturalization of Convicted War Criminal Who Fraudulently Obtained Refugee Status and U.S. CitizenshipRead the Press Release
On March 1, Judge Marco A. Hernandez of the U.S. District Court for the District of Oregon entered an order revoking the naturalized U.S. citizenship of a convicted war criminal. The court held that defendant Sammy Rasema Yetisen aka Rasema Handanovic aka Zolja, a native of the former Yugoslavia, illegally procured her U.S. citizenship. The court’s order was based on its finding that Yetisen lacked the good moral character required to naturalize because she had executed six unarmed civilians and prisoners of war during the 1990s Balkans Conflicts because of their religion and ethnicity. She later concealed her crimes to procure refugee status and U.S. citizenship in the United States.
“War criminals will find no safe haven in the United States,” said Principal Deputy Associate Attorney General Jesse Panuccio. “The Justice Department will continue to prosecute those who fraudulently obtain U.S. citizenship and willfully abuse our refugee program.”
“Sammy Rasema Yetisen’s denaturalization is yet another example of the Justice Department’s enduring commitment to ensuring war criminals find no sanctuary in our country,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The long passage of time will neither shelter nor immunize those who have defrauded the United States by concealing such heinous crimes.”
Yetisen, 46, was part of an elite unit of the Army of the Republic of Bosnia and Herzegovina that attacked the village of Trusina in April 1993, in what is known as the Trusina massacre. The unit targeted Bosnian Croats who resided in the village because of their Christian religion and Croat ethnicity, killing 22 unarmed individuals including women and the elderly. Yetisen played a key role in the massacre, serving as part of a firing squad that lined up and executed six unarmed prisoners of war and civilians. Yetisen was admitted to the United States as a refugee before naturalizing in 2002. In her naturalization application, Yetisen indicated that she had never had any military service “in the United States or in any other place.”
In April 2012, Yetisen was convicted in a Bosnian court pursuant to a guilty plea of war crimes against prisoners of war and war crimes against civilians based on the firing squad execution-style killings. In exchange for her plea and cooperation, Yetisen was sentenced to five years and six months in prison. Upon her release from prison, Yetisen returned to the United States and resides in Oregon. The Justice Department previously secured the denaturalization of Edin Dzeko, one of Yetisen’s fellow soldiers and another perpetrator of the Trusina massacre.
Before their war crimes had come to light, Dzeko and Yetisen each requested and received refugee status from the United States, claiming themselves to be victims of persecution. Dzeko and Yetisen concealed and affirmatively misrepresented their criminal history, military service, and persecutory acts throughout their immigration proceedings. Such benefits would have been denied had immigration authorities known about their roles in the Trusina massacre.
“This case exemplifies the work of the Human Rights Violators and War Crimes Center. We will use all available resources, collaborate with all possible partners and explore all mechanisms of the law to bring these cases of horrendous human rights violations to justice,” said Mark Shaffer, Chief of the Human Rights Violators and War Crimes Center. “Our inter-disciplinary, inter-agency team continues to delve into the human rights abuses that occurred in the former Yugoslavia and around the world, and we will not rest until we are certain that the United States does not serve as a safe haven for those who would commit such abuses.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Seattle Office of the Chief Counsel, and the Criminal Division’s Human Rights and Special Prosecutions Section.
The case was jointly prosecuted by Chief Timothy Belsan and Senior Counsel for National Security Aram Gavoor of OIL-DCS’s NS/A Unit and Trial Attorney Steven Platt of OIL-DCS, and Assistant U.S. Attorney Dianne Schweiner of the U.S. Attorney’s Office for the District of Oregon.
Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to call the ICE tip line at 1-866-DHS-2-ICE or to complete its online tip form; or the Justice Department’s Human Rights and Special Prosecutions Section at 1-202-616-2492. Callers may remain anonymous.
Jury Convicts Springfield Man of Assaulting Secret Service AgentRead the Press Release
DAYTON – A jury has convicted Ronald E. Skelton II, 23, of Springfield, of assaulting a federal agent and assaulting a Clark County Sheriff’s Office deputy assisting the federal agent.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristiforo, Special Agent in Charge, United States Secret Service, and Clark County Sheriff Deborah K. Burchett announced the verdict reached yesterday evening following a week-long trial before U.S. District Judge Walter H. Rice.
According to court documents and testimony presented at trial, agents with the United States Secret Service and a Clark County Sheriff’s Office deputy visited Skelton’s home in March 2015 to interview Skelton regarding posts he made on social media that were perceived as threatening physical harm toward the President of the United States.
Law enforcement had earlier received a call stating Skelton had posted threats on Twitter. A review of Skelton’s Twitter revealed messages saying, in part, “After @BarackObama and @HillaryClinton are cooked Heading over to @JebBush to kill him and daddy” and “After I chop up @BarackObama, remember, @HillaryClinton, My ginsu is coming for YOU!”
Skelton had also posted graphic threats on social media about killing police officers and their children.
Specifically, he tweeted, “I ain’t gonna cause a great big scene or anything #Police #Cops #LawEnforcement If you wish to die Please Step Foot on my land No probs” and “I’m tired of you #Terrorist rat bastards getting away #Police #Cops #LawEnforcement And I’m done You can get a #2ndAmendment to the skull”.
Law enforcement officials approached Skelton in front his home during the March 2015 visit and identified themselves, showing their credentials. As they attempted to speak to Skelton, he began yelling anti-government comments and became defiant and belligerent.
The Sheriff’s deputy approached Skelton so he could be checked for weapons. At that point, Skelton swung and struck the deputy in the head and stuck one the Secret Service agents in the face, breaking the agent’s nose and requiring surgery.
A grand jury indicted Skelton in March 2015. Skelton agreed to plead guilty to the charges in January 2016 but was later permitted to withdraw his guilty plea. At trial, the jury rejected Skelton’s claim that he was insane at the time of the offenses.
“Secret Service agents provide physical protection to our nation’s highest elected leaders,” said U.S. Attorney Glassman. “Working together with local law enforcement, they run down, assess, and defuse potential threats virtually every day. It’s a dangerous job, and we have their backs. Yesterday’s jury verdict vindicates the need to provide whatever protection we can to the men and women who protect us.”
Assaulting a federal agent and inflicting bodily injury is a crime punishable by up to 20 years in prison. Assaulting a law enforcement officer who is assisting a federal agent carries a potential maximum of eight years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the Secret Service and Clark County Sheriff’s Office, as well as Assistant United States Attorneys Andrew J. Hunt and Dominick S. Gerace, who are representing the United States in this case.
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Juan Pablo Sanchez-Delgado Pleads Guilty to a Conspiracy to Harbor AliensRead the Press Release
United States Attorney Joe Kelly announced that Juan Pablo Sanchez-Delgado, 40, of Mexico, entered a plea of guilty today to conspiring to harbor aliens. The guilty plea was entered in Lincoln, Nebraska, before United States Magistrate Judge Cheryl R. Zwart. Sentencing was scheduled before Chief Judge John M. Gerrard on May 31, 2019, at 11 a.m. in Lincoln. Conspiring to harbor aliens, when done for financial gain, is punishable by up to 10 years’ imprisonment and a fine of up to $250,000. As part of his plea agreement with the government, Sanchez-Delgado agreed to forfeit four residences in Las Vegas, Nevada, with more than $1,000,000 in equity. He will further forfeit bank accounts and cash totaling more than $178,000. The real estate and cash were proceeds of the harboring conspiracy.
Sanchez-Delgado admitted that between January 2015 and July 2017, he conspired with supervisors at multiple agricultural corporations to supply those companies with alien workers who were not authorized to work or remain in the United States. The corporations contracted with Sanchez-Delgado in an attempt to avoid criminal responsibilities for labor violations. Sanchez-Delgado, an alien himself, provided hundreds of illegal workers.
Sanchez-Delgado was paid by the companies. He also took money from the alien workforce by purporting to withhold state and federal employment taxes and converted this money to his own use. The aliens were also required to cash their paychecks at one of Sanchez-Delgado’s businesses and pay a $50 to $75 check cashing fee. Sanchez-Delgado generated approximately $5,648,519 through this scheme.
This case was investigated by Homeland Security Investigations.
Inmate indicted on assault chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daivon Duren, an inmate at FCI Hazleton Federal Correctional Institution in Bruceton Mills, West Virginia, was indicted by a federal grand today on an assault charge, United States Attorney Bill Powell announced.
Duren, age 32, was indicted on one count of “Assault of a correctional Officer Involving Physical Contact.” Duren is accused of assaulting a corrections officer while on duty in November 2018 in Preston County.
Duren faces up to eight years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Federal Bureau of Prisons Special Investigative Services investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Injunction Sought to Prohibit Illegal Radio Station from Broadcasting in WorcesterRead the Press Release
BOSTON – The United States filed a civil action to prevent an unlicensed radio station from operating in Worcester.
According to the complaint, Vasco Oburoni and Christian Praise International Church have been operating a radio broadcast station in Worcester, on frequency 97.1 MHz, without a license from the Federal Communications Commission (FCC). The complaint alleges that Oburoni and the Church previously operated an unlicensed radio station on frequency 102.3 MHz.
The FCC issued multiple warnings to the illegal operators and issued a forfeiture order in the amount of $15,000 against Oburoni for repeated violation of the Communications Act of 1934. Oburoni agreed to a payment plan, but later began broadcasting again without a license on a different frequency. The FCC has received complaints, including from a licensed broadcaster, that the unlicensed station is interfering with radio signals.
“It is a potential hazard to public safety for pirate radio stations to broadcast illegally and interfere with critical radio communication,” said United States Attorney Andrew E. Lelling. “Like any member of the community, the operators of these illegal stations could have applied for radio licenses and operated their stations in compliance with the law. When they choose to operate illegally, and continue those operations after being warned multiple times, action must be taken.”
“This groundbreaking step, for an injunction to stop a pirate radio operator’s illegal activities, is part of our continued efforts to combat illegal broadcasting,” said Rosemary Harold, Chief of the FCC's Enforcement Bureau. “As we work with our law enforcement colleagues to use every tool in our toolbox to combat pirate radio, I welcome the Justice Department's renewed use of its Section 401(a) injunction authority. Along with fines, equipment seizures, and warnings, this action underlines our continued interest in combatting this serious problem. We sincerely thank the Massachusetts U.S. Attorney's Office and commend the outstanding work of our hardworking FCC Field agents.”
The Communications Act of 1934 prohibits the operation of radio broadcasting equipment above certain low-intensity thresholds without a license issued by the FCC. The Act authorizes the Department of Justice, at the request of the FCC, to seek an injunction ordering compliance with the Communications Act against operators broadcasting without an FCC license. The number of available radio frequencies is limited, and unlicensed broadcasting can interfere with the broadcasting of legitimate licensed radio stations, potentially causing chaos in the radio spectrum.
U.S. Attorney Lelling and FCC Enforcement Chief Harold made the announcement today. Assistant U.S. Attorney Carol E. Head of Lelling’s Asset Recovery Unit is handling the matter.
Hartford Man Sentenced to Federal Prison for Possessing Loaded HandgunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSHANE ELLIS, 26, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for illegally possessing two loaded firearms.
According to court documents and statements made in court, on August 5, 2018, at approximately 10:15 pm, Hartford Police officers responded to a report that a man named “Oshane” was waving a gun in the air and threatening to kick a woman’s apartment door down. Ellis was found in the vicinity sitting in a car. A search of the car revealed a loaded .357 caliber revolver and a loaded Glock 21, .45 caliber pistol. The .357 caliber revolver had been reported stolen from a Hartford residence in June 2018.
Ellis’s criminal history includes state felony convictions for burglary and larceny offenses, and was on special parole at the time he possessed the two firearms.
Ellis has been detained in state custody since his arrest on August 5, 2018, and he is currently serving a state sentence for violating his parole. Ellis’s state sentence is scheduled to expire in August 2022.
On November 26, 2018, Ellis pleaded guilty in federal court to one count of possession of firearms by a convicted felon.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Harrison County woman indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stormey Angel Lois-Hite, of Anmoore, West Virginia, was indicted by a federal grand today on firearms charges, United States Attorney Bill Powell announced.
Lois-Hite, age 25, was indicted on one count of “Unlawful Transfer of Firearm to Prohibited Person” and one count of “False Statement to Federal Agent.” Lois-Hite is accused of purchasing a .22 caliber pistol for a convicted felon and lying to federal agents about it. The crimes allegedly took place in January 2018 in Harrison County.
Lois-Hite faces up to 10 years incarceration and a fine of up to $250,000 for the unlawful transfer count and faces up to 5 years incarceration and fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.