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18 April 2018
Las Vegas Realtor Indicted for Tax and Bank FraudRead the Press Release
A federal grand jury for the District of Nevada has returned an indictment yesterday, charging a former Las Vegas, Nevada, realtor with tax evasion, corruptly endeavoring to obstruct the internal revenue laws, making a false statement to a bank and failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to the indictment, William Waller evaded over $500,000 in taxes owed for 2004 through 2009 and obstructed the Internal Revenue Service (IRS) by directing third parties to pay nominee entities for services Waller provided, and then using bank accounts in the names of those nominees to pay his personal expenses. Waller also allegedly failed to timely file federal income tax returns for the years 2011 and 2012, despite having an obligation to do so.
The indictment further charges Waller with making a false statement to a bank in order to obtain a loan modification by falsely representing that he had not worked in several years and had no source of income, when in fact he had been employed and received income.
If convicted, the defendant faces a statutory maximum sentence of 30 years in prison for making a false statement to a bank, five years in prison for tax evasion, three years in prison for obstruction of the internal revenue laws, and one year in prison on each failure to file a tax return count. Waller also faces a period of supervised release, monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Andrea Kafka and John Mulcahy, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Las Vegas Realtor Indicted for Tax and Bank FraudRead the Press Release
LAS VEGAS, Nev. – A federal grand jury for the District of Nevada returned an indictment yesterday, charging a former Las Vegas, Nevada, realtor with tax evasion, corruptly endeavoring to obstruct the internal revenue laws, making a false statement to a bank and failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to the indictment, William Waller evaded over $500,000 in taxes owed for 2004 through 2009 and obstructed the Internal Revenue Service (IRS) by directing third parties to pay nominee entities for services Waller provided, and then using bank accounts in the names of those nominees to pay his personal expenses. Waller also allegedly failed to timely file federal income tax returns for the years 2011 and 2012, despite having an obligation to do so.
The indictment further charges Waller with making a false statement to a bank in order to obtain a loan modification by falsely representing that he had not worked in several years and had no source of income, when in fact he had been employed and received income.
If convicted, the defendant faces a statutory maximum sentence of 30 years in prison for making a false statement to a bank, five years in prison for tax evasion, three years in prison for obstruction of the internal revenue laws, and one year in prison on each failure to file a tax return count. Waller also faces a period of supervised release, monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Andrea Kafka and John Mulcahy, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Knife-wielding Coraopolis Man Carjacked a Vehicle then Robbed a Rite Aid Pharmacy of $200K in Prescription MedsRead the Press Release
PITTSBURGH, PA. – A former resident of Coraopolis, Pennsylvania, pleaded guilty in federal court to charges of carjacking, armed robbery of a pharmacy and violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Joshua Williams, age 37, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on May 29, 2017, Williams climbed through the open passenger window of a Chevrolet Malibu vehicle and attempted to poke the driver with a knife. The driver of the car was able to jump out of the vehicle and crawl onto the sidewalk as the defendant fled in the vehicle.
Shortly thereafter, Onstar tracked the vehicle to Noblestown Road. When police responded to the area, they learned that the defendant had just robbed a Rite Aid pharmacy. The defendant jumped over the counter, pointed a large serrated knife at the pharmacist, and demanded Oxycodone, Fentanyl and Adderall. Williams fled the pharmacy with a trashcan full of medications with a street value of nearly $200,000. Onstar continued to track the vehicle and the defendant was apprehended minutes later with the prescription pill bottles stolen from the pharmacy, as well as a knife.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
Jury Finds Tulsa Man Guilty of Violating Federal Firearms and Drug LawsRead the Press Release
United States Attorney Trent Shores announced today that a jury found Kevin Dewayne Leffler, 38, of Tulsa, guilty of possessing an unregistered firearm after prior felony convictions, and possessing and intending to distribute methamphetamine. The jury determined that Leffler illegally possessed six firearms, including a loaded .45 caliber pistol, two conventional shotguns, a rifle, an assault rifle, and a sawed-off shotgun. The jury also found that the sawed-off shotgun was possessed in furtherance of Leffler’s intent to traffic approximately 42 grams of methamphetamine. Leffler was acquitted of knowingly possessing a firearm with an obliterated serial number.
“Today, a jury held Kevin Leffler accountable for his drug and related crimes. I commend the jury for reaching verdicts of guilty and thank them for their service. Jury trials are one of the most important duties undertaken by federal prosecutors. Jury trials are especially significant in our criminal justice system because it is the citizens on the jury who make the final decision,” stated U.S. Attorney Shores. “I am proud of Assistant United States Attorneys Ryan Roberts and Chris Nassar for their deft and professional prosecution of this matter. I am thankful for the skilled investigators at the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tulsa Police Department. This community is safer and this conviction was secured because of their joint efforts.”
District Judge John E. Dowdell, of the United States District Court for the Northern District of Oklahoma, presided over the trial and will sentence Leffler on July 23, 2018 at 10:00 am. Leffler faces a maximum penalty of life in prison, a fine of $250,000, and five years supervised release for the Felon in Possession of Firearm charge and the Possession of a Firearm in Furtherance of a Drug Trafficking Crime charge; a maximum penalty of 20 years in prison, a fine of $1,000,000, and three years supervised release for the Possession With Intent to Distribute Methamphetamine charge; a maximum penalty of 10 years in prison, a fine of $250,000, and 3 years supervised release for the Felon in Possession of an Unregistered Firearm charge.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department. This case was prosecuted by Assistant United States Attorneys Ryan M. Roberts and Christopher J. Nassar.
Jury Convicts Three Men of 2009 Newport News MurderRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted three men late yesterday for their respective roles in a 2009 murder in Newport News.
According to court records and evidence presented at trial, Joseph J. C. Benson, 36, of Boston, Massachusetts, Mark X. Wallace, 36, of Williamsburg, and Bryan L. Brown, 31, of Newport News, were convicted of murder resulting from the home invasion and attempted drug robbery of Louis E. Joseph, Jr. of Newport News on March 13, 2009. Wallace recruited Benson, who traveled from Massachusetts to Virginia to help perpetrate the drug robbery. During the robbery, Benson and another individual entered the home and murdered Joseph, who was shot multiple times. Benson was linked to the crime by DNA evidence found at the scene. Wallace, who was waiting in the car during the crime, left the scene and following the murder Bryan Brown caused the murder weapons to be transported to New York, where they were recovered in an undercover operation.
The men were each convicted of use of a firearm resulting in death, and face a maximum penalty of life in prison when they are sentenced. Bryan Brown’s sentencing is scheduled for July 19, 2018, Joseph Benson’s sentencing is set for July 24, 2018, and Mark Wallace’s sentencing is set for August 6, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Michael C. Grinstead, Acting Chief of Newport News Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdict. Assistant U.S. Attorneys Howard J. Zlotnick and Lisa R. McKeel are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-45.
Johnstown Man Pleads Guilty to Filing False Income Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. pleaded guilty in federal court to charges of filing false income tax returns, United States Attorney Scott W. Brady announced today.
James E. Book, Sr., pleaded guilty to four counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Book knowingly filed false income tax returns for 2010, 2011, 2012, and 2013, in which he understated his income and overstated his expenses, for a total tax loss of $239,940.
Judge Gibson scheduled sentencing for August 9, 2018, at 1 p.m. The law provides for a maximum total sentence of 12 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Book.
Jefferson County, Ohio man guilty of drug distribution and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a two-day trial, Emory Chiles, of Steubenville, Ohio, was found guilty on all counts today by a jury, United States Attorney Bill Powell announced.
After 26 minutes of deliberations, a jury found Chiles, age 43, guilty of one count of “Possession with Intent to Distribute Heroin,” one count of “Use of a Firearm During and in Relation to a Drug Offense,” and one count of “Unlawful Possession of a Firearm.” Chiles distributed heroin and possessed a 9mm pistol in Monongalia County in November 2017. Chiles was previously convicted of a felony in the Northern District of West Virginia
“I appreciate the hard work of our trial team and judgement of the jury. We will continue to aggressively pursue those who violate our drug laws and be particularly vigilant when prohibited individuals have firearms. Firearms and drugs often go hand in hand and keeping our communities safe is our number one priority,” said Powell.
Chiles faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count, faces up to five years incarceration and a fine of up to $250,000 for the second count, and faces up to 10 years incarceration and a fine of up to $250,000 for the third 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.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Monongalia County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.Interns Visit National Center for Missing and Exploited ChildrenRead the Press Release
On Wednesday, April 11th, interns from INTERPOL Washington—the U.S. National Central Bureau—visited the National Center for Missing and Exploited Children (NCMEC) headquarters in Alexandria, Virginia. NCMEC has centers in Florida, New York, Texas, and California. INTERPOL Washington has been in partnership with NCMEC for approximately 20 years. NCMEC provides leads and information about child sexual exploitation and abuse to law enforcement officials via INTERPOL’s I-24/7 secure messaging system. The I-24/7 system quickly disseminates information and leads shared from NCMEC’s CyberTipline to domestic and international investigative law enforcement agencies for potential action.
During the visit, the Spring intern class of 2018 heard from speakers who discussed the units within NCMEC and the support services NCMEC provides to families when a child goes missing whether domestically or internationally. The interns also learned about the various partner organizations that assist in disseminating photos of missing children across the United States.
INTERPOL Washington InternsInternships at INTERPOL Washington offer in-depth insight about the criminal justice system at the domestic and global levels, transnational crime, and law enforcement. Interns are placed within critical mission areas and also receive opportunities to take field trips to nearby law enforcement facilities and training sites. To learn more about internships at INTERPOL Washington, please visit our website.
Illegal Alien Sentenced to Prison for Unlawfully Being in the CountryRead the Press Release
McALLEN, Texas – A 42-year-old Mexican national has been sentenced to prison for illegally re-entering the country after removal or deportation, announced U.S. Attorney Ryan K. Patrick. A federal jury deliberated for only approximately 30 minutes before finding Candelario Lucio-Garza guilty on Jan. 23, 2018.
Today, U.S. District Judge Micaela Alvarez handed Lucio-Garza a 40-month sentence to be followed by three years of supervision after his release from prison. Not a U.S. citizen, Lucio-Garza is again expected to face deportation proceedings following the sentence. At the hearing, additional evidence was also provided that detailed Lucio-Garza’s three prior convictions for illegal re-entry and that he had also been convicted of attempted murder in 1993. In handing down the sentence, the court noted Lucio-Garza’s prior convictions, the fact that he attempted to re-enter the United States just two weeks after being deported and the 32-month sentence he received for his last illegal re-entry conviction in 2015.
During the trial, law enforcement testified that Lucio-Garza had been apprehended hiding on the Pharr International Bridge just 150 yards south of the Pharr Port of Entry shortly after midnight on Oct. 16, 2017. At that time, he admitted to being a Mexican national. Record checks revealed he had also been previously removed from the United States on three separate occasions and that he had no lawful status to be in the country.
The defense attempted to convince the jury that he had not actually entered the United States because he was still on the international bridge and that it was his intent to seek asylum in the United States even though he was found hiding from law enforcement agents after the bridge was closed and had not attempted to approach the processing center.
The jury did not believe his claims and found him guilty as charged.
Lucio-Garza has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation with the assistance of the Pharr Police Department. Assistant U.S. Attorneys David M. Paxton and Linda Requénez prosecuted the case.
Illegal Alien Sentenced to Federal Prison for Document FraudRead the Press Release
A Guatemalan man who unlawfully used fraudulent identification documents was sentenced April 17, 2018, to four months in federal prison.
Cesar Mendez-Chavez, age 26, a citizen of Guatemala illegally present in the United States and residing in Tama, Iowa, received the prison term after a February 12, 2018, guilty plea to three counts of unlawful use of identification documents.
Evidence in the case showed that on June 9, 2016, and June 13, 2016, Mendez-Chavez, an illegal alien, used a fraudulent social security card when completing employment forms to obtain jobs using an alias name in Tama and Northwood, Iowa. Mendez-Chavez also used the social security card on February 12, 2012, to obtain employment in Postville, Iowa. The social security account number on the card used by Mendez-Chavez was not his. Mendez-Chavez falsely claimed to be a United States citizen on the employment forms.
On January 26, 2018, Mendez-Chavez used a different social security card in applying for a State of Iowa Identification Card using a different alias name in Tama, Iowa. The social security account number and name on the social security card used by Mendez-Chavez belonged to a real United States citizen. Mendez-Chavez also used a fraudulent birth certificate in that alias name as proof of identity. These documents were seized by the Iowa Department of Transportation.
On January 31, 2018, Mendez-Chavez was arrested by immigration officers at his place of employment in Tama, Iowa, where he worked under an alias.
Mendez-Chavez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Mendez-Chavez was sentenced to four months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Mendez-Chavez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations, and the Iowa Department of Transportation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-04-LRR.
Follow us on Twitter @USAO_NDIA.
Honduras Man Sentenced to Time Served (over Seven Months) for Entering the U.S. After RemovalRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Mario Ernesto Garcia-Zavala, 22, a citizen of Honduras, was sentenced today in U.S. District Court by George Z. Singal to time served (about 221 days) after being found guilty of having entered the United States after being removed. He was convicted following a non-jury trial on March 21, 2018.
The evidence at trial showed that Garcia-Zavala unlawfully entered the United States in about March 2014 and was ordered removed to Honduras on March 29, 2014. Four days later, immigration authorities returned him to Honduras. Garcia-Zavala did not apply for permission to reenter the United States. He was arrested in Portland on September 9, 2017 after a Maine State Trooper stopped the van in which he was a passenger for traffic violations.
U.S. Attorney Frank said: “We have a lawful system of immigration. We appreciate it when our state and local law enforcement partners help us identify people who cross our borders illegally, often, as here, repeatedly.”
The investigation was conducted by the Department of Homeland Security, Office of Removal Operations and the Maine State Police.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
United States Attorney Duane A. Evans announced that LAZARO VILLATORO-BODDEN (“VILLATORO-BODDEN”), age 36, was sentenced today after pleading guilty on January 10, 2018, to a one-count Bill of Information for illegal use of a social security number in violation of Title 42, United States Code, Section 408(a)(7)(B). United States District Judge Ivan L.R. Lemelle sentenced VILLATORO-BODDEN to one year of imprisonment, three years of supervised release, and a mandatory special assessment fee of $100.
According to court records, VILLATORO-BODDEN knowingly and with the intent to deceive, falsely represented that a social security number was assigned to him by the Commissioner of Social Security when, in fact, as VILLATORO-BODDEN knew, the social security number had not been assigned to him. His deception and illegal use of the social security number was done for the purpose of obtaining boat registration documents from the Louisiana Department of Wildlife and Fisheries.
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Michael M. Simpson is in charge of the prosecution.
Hanover Man Found Guilty of Dumping Sewage into West Virginia StreamRead the Press Release
Defendant was dumping truckloads of sewage into Little Huff Creek in Wyoming County
BECKLEY, WV -- Mike Blankenship was found guilty after a two day jury trial, announced United States Attorney Mike Stuart. Mike Blankenship, 54, of Hanover, West Virginia, was convicted of two felony Clean Water Act violations and faces a total sentence of up to six years of incarceration, a $500,000 fine, supervised release for three years, and a special assessment of $200 when he is sentenced on August 1, 2018 by United States District Judge Irene C. Berger. United States Attorney Mike Stuart praised the work of the Environmental Protection Agency and the West Virginia Department of Environmental Protection, who were also assisted by the Federal Bureau of Investigation and the West Virginia State Police.
“Environmental crimes are serious, serious matters,” said United States Attorney Mike Stuart. “After presentation of the evidence and in front of a jury of his peers, Mr. Blankenship was convicted for a serious environmental crime. Great work by my team and by the EPA and West Virginia Department of Environmental Protection.”
“The defendant in this case showed reckless disregard for the environment and public health,” said Susan Bodine, assistant administrator of EPA’s Office of Enforcement and Compliance Assurance. “Working together, EPA, FBI and the State of West Virginia are sending a clear message that those who violate laws designed to protect our communities will be held responsible.”
On September 29, 2015, a sewage truck owned by Blankenship was seen dumping untreated sewage into Little Huff Creek, a tributary of the Guyandotte River in Southwestern West Virginia. Inspectors with the West Virginia Department of Environmental Protection (WVDEP) responded to the truck’s location in Hanover, West Virginia. They saw the sewage truck with a hose placed in the creek, observed sewage in the water and on the ground, and quickly requested the assistance of the West Virginia State Police. Returning to the truck, WVDEP agents were able to take samples from the truck and pad. Lab tests confirmed the presence of fecal coliform, an indicator of raw or untreated sewage. Later, agents with the FBI, EPA, and WVDEP spoke to Blankenship. Blankenship owns a porta-john and sewage business under the name Hanover Contracting Company. Blankenship admitted that it was his sewage truck dumping sewage into the water on the day the WVDEP inspectors observed it. Blankenship also admitted to dumping sewage into Little Huff Creek on other occasions. Neighbors provided photographic evidence that they testified showed Blankenship’s trucks dumping sewage and porta-john waste into the creek on various dates in 2015 and 2016. The jury also heard testimony from the law enforcement agents and experts in water quality assessment.
Assistant United States Attorneys Erik S. Goes and Special Assistant United States Attorney Perry McDaniel represented the United States during the jury trial.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Guatemalan Man Sentenced to Prison for Illegally Returning to the United States Following Prior DeportationRead the Press Release
A Guatemalan man who illegally returned to the United States was sentenced April 17, 2018, to almost three months in federal prison.
Vicente Raymundo-Lopez, age 51, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a February 15, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Raymundo-Lopez admitted he had previously been deported from the United States on July 30, 2008, and that he illegally reentered the United States without the permission of the United States government. On January 12, 2018, Raymundo-Lopez was found by immigration officers at the Linn County Jail in Cedar Rapids, Iowa, following his arrest for a traffic offense. Raymundo-Lopez claimed to have illegally reentered the United States in 2012.
Raymundo-Lopez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Raymundo-Lopez was sentenced to 83 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Raymundo-Lopez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-02-LRR.
Follow us on Twitter @USAO_NDIA.
Great Falls Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
GREAT FALLS – Antonio Todd Tigart, a 21-year-old Great Falls resident, was sentenced today to 14 months in prison followed by 2 years supervised release after pleading guilty to prohibited person in possession of firearms on January 17, 2018. U.S. District Judge Brian M. Morris handed down the sentence.
On June 26, 2017, officers with the Great Falls Police Department ran Tigart for warrants after he walked past a civil standby. Tigart had an active arrest warrant for the revocation of his felony, criminal endangerment conviction in February 2017. A loaded Springfield Armory .40 caliber semi-automatic pistol was tucked into his waistband. Further investigation revealed that the firearm was stolen in December 2016.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Great Falls Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Glenville Man Charged with Attempted Coercion and Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Brendan Chandler, age 34, of Glenville, New York, was arrested yesterday and charged today with attempting to meet a 14-year-old girl for sex.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, Chandler used the Kik messaging application to solicit sex from someone he thought was a 14-year-old girl, but who was actually a New York State Police Investigator acting in an undercover capacity. Chandler was arrested in a parking lot in Albany County, where he thought he was going to pick up the girl in his car so that they could have sex. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Chandler appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted, Chandler faces at least 10 years and up to life in prison. He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Four Women Admit Conspiracy to Distribute Thousands of Oxycodone Pills in Hunterdon County, New JerseyRead the Press Release
TRENTON, N.J. – Four women appeared in federal court this week to admit their respective roles in an oxycodone distribution conspiracy in Flemington, New Jersey, and elsewhere, U.S. Attorney Craig Carpenito announced.
Alicia Balaban, 35, of Wellington, Florida; Marie DeJulia, 42, of Lodi, New Jersey; and Michele Call, 63, and Nelida Rios, 55, both of Flemington, were previously charged by complaint. They entered their guilty pleas – to informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone – before U.S. District Judge Freda Wolfson in Trenton federal court.
According to the documents filed in the case and statements made in Court:
Balaban, is Call’s daughter and DeJulia’s friend. From April 2016 through December 2017, Balaban, Call, and Rios worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to DeJulia from Call’s and Rios’ Flemington residences for resale. The conspirators distributed thousands of 30 mg oxycodone pills.
Each defendant faces a maximum penalty of 20 years in prison and a fine of up to $1 million or twice the gross gain or loss caused by the offense. Sentencing for Rios and Balaban is scheduled for July 20, 2018, and for Call and DeJulia, July 24, 2018.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: DeJulia: John Azzarello Esq., Morristown, New Jersey
Balaban: Clifford Lazzaro Esq., Elizabeth, New Jersey
Call: Jason LeBoeuf Esq., Newark
Rios: Michael Pedicini Esq., Chatham, New JerseyFounder of Not for Profit Organization Convicted of Stealing United Nations Grant Funds SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Steve S. Jabar, of Tonawanda, NY, who was convicted following a jury trial of conspiracy to commit wire fraud, wire fraud and making false statements, was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Marie P. Grisanti and MaryEllen Kresse, who prosecuted the case, stated that Jabar, and co-defendant Deborah Bowers, founded a not for profit organization OKI, Opportunities for Kids International, Inc. In June 2004, Jabar and Bowers, through OKI, applied for and received a $500,000 grant from United Nations to create, maintain and operate a radio station in Iraq. The mission of the radio station was to further women’s rights issues in Iraq.
Within 24 hours of receiving a portion of the grant money, the defendants began to divert some of the funding for their own personal use. Jabar and Bowers diverted more than $65,000 for their own personal use. Jabar used some of the funding to pay off personal debts, including the payment of property taxes owed on his residence and business, as well as mortgage, utility, credit card payments and personal loan payments. Bowers also utilized some of the funding to pay personal credit card debt and make mortgage payments.
During the investigation, the defendants made false statement to investigator with the Internal Revenue Service in order to conceal with criminal behavior.
Deborah Bowers is awaiting sentencing.
“Following a five-week trial, a jury returned a verdict convicting defendant Jabar of conspiring to commit wire fraud, engaging in wire fraud, and making materially false statements,” said U.S. Attorney Kennedy. “Notwithstanding that verdict, the trial judge found that the government’s evidence regarding harm to be lacking such that defendant’s wire fraud convictions could not be sustained. Notably, however, the Court found no infirmity in the defendant’s conviction for making a materially false statement to Special Agents of the Internal Revenue Service and the Federal Bureau of Investigation. That statement came when the defendant falsely told agents that the entire $350,000 grant from the United Nations was sent to Iraq for the radio station, with the exception of expenses totaling no more than $10,000. In truth and in fact, however, the defendant used tens of thousands of dollars of the UNIFEM grant money to pay his personal loans and expenses. Such monies were not sent to Iraq for purposes of the radio station. Despite the defendant’s criticism of the government, his anger is misplaced. The only person he has to be mad at is himself. The job of the prosecutors in my Office and the job of our law enforcement partners is impartially to enforce the law. That is precisely what happened here—nothing more and nothing less. I commend Assistant United States Attorneys Marie Grisanti and Mary Ellen Kresse and the fine men and women of the IRS and the FBI for their efforts in this case. The defendant could have avoided this entire ordeal simply by being completely honest, forthright, and transparent in all of his dealings with the government. His refusal to do that is precisely what landed him before a federal judge for sentencing today.”
Today’s sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Fort Peck Meth Dealer Sentenced to PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that Landon Dupree, a 32-year-old resident of Poplar, was sentenced to 70 months in prison, four years of supervised release, and a $100 special assessment. U.S. District Judge Brian Morris presided over the hearing.
Dupree previously entered a guilty plea to conspiracy to possess with intent to distribute methamphetamine. In January 2017, Dupree was arrested on an outstanding warrant for violating the terms of his supervised release, drugs and drug paraphernalia on his person during the subsequent arrest.
In July 2017, the Montana Highway Patrol stopped the vehicle Dupree was driving and following a search of the vehicle, located a digital scale, methamphetamine, and syringes. Dupree was a mid-level distributor selling methamphetamine on the Fort Peck Indian Reservation, primarily in Poplar.
In a sentencing memorandum filed in federal court, federal prosecutors noted, “Methamphetamine … is destroying lives, breaking up families, and undermining tribal cultures”. It continued “Dupree’s conduct contributed directly to this problem. He provided meth to people needing a quick fix and seemingly fails to understand the broad implications of his criminal conduct.”
Judge Morris sentenced Dupree to more than five years in federal prison, with four years of supervised release to follow. Because there is no parole in the federal system, Dupree will likely serve all of the time imposed by the court. In the federal system, Dupree does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The Dupree case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice, Montana Highway Patrol, and other federal, state, and local agencies.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Former Waterbury Resident Sentenced to Prison for Violating Conditions of ProbationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEA CRUZ, 20, formerly of Waterbury, was sentenced today by U.S. Magistrate Judge Sarah A. L. Merriam in New Haven to six months of imprisonment, followed by one year of supervised release, for violating the conditions of her probation.
According to court documents and statements made in court, in July 2016, as part of a DEA New Haven Task Force investigation that followed an overdose death, law enforcement officers made two controlled purchases of heroin from CRUZ’s boyfriend, Teddy Stuart Lopez, Jr., in Waterbury. On July 5, 2016, at Lopez’s direction, CRUZ delivered 20 bags of heroin to an individual for $100. CRUZ and Lopez were arrested on July 19, 2016.
On December 1, 2016, CRUZ pleaded guilty to one count of possession of a controlled substance, a misdemeanor offense. On February 27, 2017, Judge Merriam sentenced CRUZ to three years of probation and ordered her to pay a $1,000 fine at a rate of $40 per month.
Lopez pleaded guilty to a related heroin distribution offense and was sentenced to 15 months of imprisonment.
While on probation and under the supervision of U.S. Probation officers in Virginia and, most recently, Rhode Island, where she was residing, CRUZ tested positive for marijuana nine times and, on one occasion, provided a diluted urine specimen. She also failed to report to probation officers and failed to submit to drug screenings on multiple occasions, and failed to participate in substance abuse treatment as ordered. In addition, CRUZ violated her probation by associating with Lopez, a convicted felon, through email and the telephone. She also failed to make any installment payments on her court-ordered fine even though she had the ability to do so, and had made more than 50 payments totaling more than $1,800 to Lopez’s prison account.
At the conclusion of today’s court proceeding, CRUZ was remanded to the custody of the U.S. Marshals Service to begin serving her sentence.
This case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Former U.S. Soldier and Two North Carolina Men Found Guilty for Conspiring to Kidnap and Murder as Part of A Murder-For-Hire Scheme OverseasRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOSEPH MANUEL HUNTER, a U.S. citizen and former member of the U.S. Army, and two co-defendants, ADAM SAMIA and CARL DAVID STILLWELL, both U.S. citizens, were convicted by a federal jury today of offenses relating to the February 2012 murder of a woman in the Philippines. The defendants’ conviction followed a 12-day trial before U.S. District Judge Ronnie Abrams of the Southern District of New York. Sentencing has been scheduled for HUNTER on September 7, 2018, and for SAMIA and STILLWELL for September 14, 2018, before Judge Abrams.
U.S. Attorney Geoffrey S. Berman said: “This horrifying real-life murder-for-hire case included details usually seen in action movies. Hunter, Samia, and Stillwell conspired to end the lives of people overseas whom they had never met. Today a unanimous jury convicted them for their craven indifference to human life. I commend the DEA for bringing this tragic story to a just ending.”
According to the Superseding Indictment against HUNTER, SAMIA, and STILLWELL, other filings in Manhattan federal court, and the evidence admitted at trial:
HUNTER served from 1983 to 2004 in the U.S. Army, where he attained the rank of sergeant first class. While in the Army, HUNTER led air-assault and airborne infantry squads; served as a sniper instructor; and trained soldiers in marksmanship and tactics as a senior drill sergeant. Since leaving the Army in 2004, HUNTER has arranged for the murders of multiple victims in exchange for money, among other completed acts of violence undertaken for pay.
SAMIA is a self-described “Personal Protection/Security Industry” professional. According to SAMIA’s résumé, he has worked as an “Independent Contractor” for clients in the Philippines, China, Papua New Guinea, the Democratic Republic of the Congo, and the Republic of the Congo; and has training in tactics and weapons, including handguns, shotguns, rifles, sniper rifles, and machineguns. STILLWELL also purported to have training and experience in the field of information technology and to have worked at a firm in North Carolina that provides firearms training.
In 2011 and 2012, HUNTER, SAMIA, and STILLWELL agreed to commit murders-for-hire in overseas locations in exchange for salaries and bonus payments for each victim. In early 2012, SAMIA and STILLWELL traveled from North Carolina to the Philippines, where HUNTER provided them with, among other things, information about their intended victims and firearms to use to commit the murders.
In January and February 2012, SAMIA and STILLWELL surveilled their intended victims in the Philippines as they formulated their murder plans. On February 12, 2012, SAMIA and STILLWELL killed one of their intended victims – a Filipino woman – in the Philippines by shooting her multiple times in the face (“Victim-1”). After killing Victim-1, SAMIA and STILLWELL disposed of her body on a pile of garbage, where it was later found by local authorities. HUNTER paid SAMIA and STILLWELL $35,000 each for completing the murder, and SAMIA and STILLWELL sent thousands of dollars from the payments they received to the United States using, among other methods, structured wire transfers in amounts under $10,000.
In late February and early March 2012, SAMIA and STILLWELL returned from the Philippines to North Carolina, where they continued to reside until their July 2015 arrests on these charges.
* * *
HUNTER, 52, of Owensboro, Kentucky, SAMIA, 43, of Roxboro, North Carolina, and STILLWELL, 50, of Roxboro, North Carolina, were each convicted of one count of conspiring to commit murder-for-hire and one count of committing murder-for-hire, each of which carries a maximum sentence of life in prison and mandatory minimum sentence of life in prison; and one count of conspiring to murder and kidnap in a foreign country and one count of using and carrying a firearm during and in relation to a crime of violence, each of which carries a maximum sentence of life in prison. SAMIA and STILLWELL were also each convicted of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges against the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Manila Country Office; DEA’s Atlanta Field Division, Raleigh Resident Office; DEA’s Louisville Field Division; the Durham Police Department; the Raleigh Police Department; the Harnett County Sherriff’s Office; the Wake County Sherriff’s Office; the Person County Sherriff’s Office; the Cary Police Department; the North Carolina State Bureau of Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Greensboro Field Office; the Customs and Border Protection’s National Targeting Center; the Royal Thai Police; the Philippines National Bureau of Investigation; and the Philippines National Police; and the Department of Justice’s Office of International Affairs. Mr. Berman also thanked the United States Attorney’s Office for the Middle District of North Carolina and the Department of Justice’s Computer Crime and Intellectual Property Section for their support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Rebekah Donaleski, Patrick Egan, and Emil J. Bove III are in charge of the prosecution.
Former Police Officer Sentenced for Sexually Assaulting an Individual in His CustodyRead the Press Release
Jerry Lynn Gragg Jr., 41, a former police officer with the Savanna Police Department in Pittsburg County, Oklahoma, was sentenced today in federal court in Muskogee, Oklahoma, to 100 months in federal prison followed by four years of supervised release. Gragg previously pleaded guilty to one count of violating the civil rights of a female whom he sexually assaulted during a routine traffic stop. As part of his sentence, Gragg must forfeit his law enforcement certification and comply with federal and state sex offender registration requirements.
According to court documents, on Jan. 21, 2017, Gragg, while on-duty, stopped a vehicle during the early hours of the morning while it was still dark outside. After approaching the vehicle, Gragg brought the female driver back to his marked patrol unit and directed her to sit in the front passenger seat. Given the coercive power of Gragg’s position as a law enforcement offer, and the physical disparity in size between Gragg and the victim, she could not escape from the patrol car. Thereafter, Gragg caused the victim to perform a sexual act on him against her will. Gragg admitted that he knew what he was doing was wrong and against the law, yet he did so anyway. Gragg further admitted that his acts included aggravated sexual abuse, which under federal law, requires force or putting the victim in fear of serious bodily injury, kidnapping, or death.
“The Department of Justice will not tolerate the actions of law enforcement officers who exploit their authority and sexually abuse individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Gragg’s sentencing today reflects the Justice Department’s commitment to holding officers who violate an individual’s civil rights accountable for their egregious actions. The Civil Rights Division will continue to vigorously prosecute these cases.”
"I commend the victim for her strength and courage to come forward and provide law enforcement with the information necessary to hold the Defendant accountable for committing this heinous act and for violating his oath to protect and serve his community." said U.S. Attorney Brian Kuester. "While the majority of law enforcement officers follow the laws they are sworn to uphold, this Office will continue to investigate and prosecute those who choose otherwise."
“This deliberate abuse of authority is a disgrace and embarrassment to all members of the law enforcement community,” said FBI’s Oklahoma City Division Special Agent in Charge Kathryn Peterson. “There is an added sense of betrayal when a fellow law enforcement official preys on the citizens he has sworn to protect.”
This case was investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Pittsburg County District Attorney’s Office and the Savanna Police Department. It was prosecuted by Assistant United States Attorney Shannon Henson of the Eastern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Police Officer Sentenced for Sexually Assaulting an Individual in CustodyRead the Press Release
WASHINGTON – Jerry Lynn Gragg Jr., 41, a former police officer with the Savanna Police Department in Pittsburg County, Oklahoma, was sentenced today in federal court in Muskogee, Oklahoma, to 100 months in federal prison followed by four years of supervised release. Gragg previously pleaded guilty to one count of violating the civil rights of a female whom he sexually assaulted during a routine traffic stop. As part of his sentence, Gragg must forfeit his law enforcement certification and comply with federal and state sex offender registration requirements.
According to court documents, on Jan. 21, 2017, Gragg, while on-duty, stopped a vehicle during the early hours of the morning while it was still dark outside. After approaching the vehicle, Gragg brought the female driver back to his marked patrol unit and directed her to sit in the front passenger seat. Given the coercive power of Gragg’s position as a law enforcement officer, and the physical disparity in size between Gragg and the victim, she could not escape from the patrol car. Thereafter, Gragg caused the victim to perform a sexual act on him against her will. Gragg admitted that he knew what he was doing was wrong and against the law, yet he did so anyway. Gragg further admitted that his acts included aggravated sexual abuse, which under federal law, requires force or putting the victim in fear of serious bodily injury, kidnapping, or death.
“The Department of Justice will not tolerate the actions of law enforcement officers who exploit their authority and sexually abuse individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Gragg’s sentencing today reflects the Justice Department’s commitment to holding officers who violate an individual’s civil rights accountable for their egregious actions. The Civil Rights Division will continue to vigorously prosecute these cases.”
"I commend the victim for her strength and courage to come forward and provide law enforcement with the information necessary to hold the Defendant accountable for committing this heinous act and for violating his oath to protect and serve his community." said U.S. Attorney Brian Kuester. "While the majority of law enforcement officers follow the laws they are sworn to uphold, this Office will continue to investigate and prosecute those who choose otherwise."
“This deliberate abuse of authority is a disgrace and embarrassment to all members of the law enforcement community,” said FBI’s Oklahoma City Division Special Agent in Charge Kathryn Peterson. “There is an added sense of betrayal when a fellow law enforcement official preys on the citizens he has sworn to protect.”
This case was investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Pittsburg County District Attorney’s Office and the Savanna Police Department. It was prosecuted by Assistant United States Attorney Shannon Henson of the Eastern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Pasco County Aircraft Mechanic Sentenced to 15 Years for Child Exploitation OffensesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Russel Lee Orr (42, Trinity) to 15 years in federal prison for attempted online enticement of a child to engage in sexual activity, attempted production of child pornography, and for soliciting for child pornography online. A federal jury found Orr found guilty on July 1, 2016. Prior to his arrest, Orr had worked as an aircraft mechanic in the Tampa area.
According to testimony and evidence introduced during the four-day trial, between March 10 and May 20, 2015, Orr engaged in a series of text messages and email conversations with an individual he believed to be a 14-year-old girl. The “child” was actually a detective with the St. Johns County Sheriff’s Office. During the course of the conversations, Orr discussed in detail his desire to meet the “child” for sex. He also repeatedly solicited the “child” to produce and send photos of her genitalia to him.
On May 21, 2015, FBI agents and other law enforcement officers executed a search warrant at Orr’s apartment and arrested him. During the search of the home, the agents located and seized a smart phone that Orr had used to communicate with the “child” and also to search the internet for materials related to the sexual exploitation of children.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the Pasco County Sheriff’s Office, and the FBI in Jacksonville and Tampa. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Housing Authority Executive Director Sent to PrisonRead the Press Release
McALLEN, Texas ‐ The former director of the La Joya Housing Authority and another man have been ordered to federal prison for a bid rigging scheme, announced U.S. Attorney Ryan K. Patrick. Juan Jose Garza, 50, of La Joya, and Mexican national Armando Jimenez, 53, pleaded guilty to wire fraud May 3, 2017.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Garza to serve 37 months in prison, while Jimenez received an 18-month-prison term. In imposing the sentence, the court ruled Garza abused his position of trust to facilitate the wire fraud scheme, commenting that “the public trusts people in public office to do the right thing.” Judge Hinojosa further noted in regard to Garza “that trust was broken.” Garza will also serve two years of supervised release. Not a U.S. citizen, Jimenez is expected to face deportation proceedings following his sentence.
From 1999 through 2016, Garza was the executive director of the La Joya Housing Authority. From July 2013 through March 2013, Garza and Jimenez engaged in bid rigging for construction contracts with the Alamo and Donna Housing Authorities. They submitted false bids to guarantee Jimenez Construction would be the low bidder and then awarded construction projects. Jimenez then falsely submitted invoices for work he claimed his construction company did, but that had been completed by subcontractors working for Garza.
Garza and Jimenez were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Housing and Urban Development - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Former Flint Police Officers Plead Guilty to Theft Conspiracy Targeting Flint Police DepartmentRead the Press Release
Two former police officers of the Flint Police Department (FPD) pleaded guilty today in U.S. District Court for the Eastern District of Michigan to conspiring to commit theft from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Richard Besson, 53, of Davison, Michigan, served as an FPD officer from 1989 to 2011 and Jason Groulx, 44, of Flint, Michigan, served as an FPD officer from 1998 to 2018. From June 2011 to June 2013, Besson and Groulx conspired together and with others to steal traffic crash reports from the FPD in exchange for cash payments. Many of the stolen reports were marked “unapproved” and were not publicly available.
Sentencing is scheduled for July 31. Besson and Groulx face a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case, and thanked the U.S. Attorney’s Office for the Eastern District of Michigan for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Elementary School Teacher Sentenced to Five Years in Prison for Possessing Child PornographyRead the Press Release
SAN JOSE – Robert Krietzman was sentenced to five years in prison and ordered to pay $5,000 in restitution for possession of child pornography, announced Acting United States Attorney Alex G. Tse and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable Beth L. Freeman, U.S. District Judge.
On April 17, 2018, Krietzman, 53, of Watsonville, Calif., pleaded guilty to possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4). According to the plea agreement, Krietzman admitted to possessing over 600 images and videos depicting minors engaged in sexually explicit conduct. Many of the images depicted prepubescent female children engaged in masturbation, sexual intercourse with adult males, or in bondage. The images were discovered in May of 2016 by Santa Cruz Police detectives executing a search warrant at Krietzman’s home in Watsonville. The case later was referred for federal prosecution. Krietzman was a credentialed first grade teacher in Watsonville at the time the images were located on electronic devices in his home.
Krietzman was charged by information on September 6, 2017, with one count of possession of child pornography. Pursuant to his April 17, 2018, plea agreement, pleaded guilty to this count. He was sentenced the same day.
In addition to the prison term and restitution, Judge Freeman also sentenced the defendant to a five-year period of supervised release and required him to pay a $5,100 special assessment fee. The Court also imposed forfeiture of all devices recovered from Krietzman’s home containing child pornography. Judge Freeman also ordered Krietzman to register as a sex offender and participate in sex offender treatment and counseling. The defendant was immediately remanded into custody to begin serving his sentence.
Assistant U.S. Attorney Marissa Harris is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the HSI and the Santa Cruz Police Department.
Former Director of East St. Louis Public Library Indicted for Fraud and EmbezzlementRead the Press Release
Marlon P. Bush, 47, formerly the Director of the East St. Louis Public Library, was charged in a six-count Indictment with three counts of Wire Fraud and three counts of Embezzlement from the City of East St. Louis Public Library, A Unit of Government That Received Federal Funds, Don Boyce, United States Attorney for the Southern District of Illinois, announced today. Counts One through Three of the Indictment, Wire Fraud, each carry a maximum penalty of up to 20 years in prison, while Counts Four through Six, Embezzlement, each carry a maximum penalty of up to 10 years in prison. Each of the offenses is punishable by a fine of up to $250,000, with mandatory restitution.
The Indictment charges that from September 2014 through December 2016, Bush took excess salary and charged personal purchases to the East St. Louis Public Library’s credit card that included professional sports tickets, concert tickets, personal apparel, jewelry, firearm accessories, and personal travel expenses. Specific counts of the Indictment charge Bush with using the Library’s credit card to purchase tickets for the Dallas Mavericks and the entertainer Bootsy Collins, as well as throwing knives, a machete, and an axe.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Metro-East Public Corruption Task Force, consisting of the Federal Bureau of Investigation, Internal Revenue Service/Criminal Investigations, and the Illinois State Police. Anyone with information concerning public corruption can call the Southern Illinois Public Corruption Task Force Tip Line: 618-589-7353. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Detroit Deputy Chief of Police Sentenced to 12 Months in Prison for BriberyRead the Press Release
Former Deputy Chief of Police for the Detroit Police Department, Celia Washington, 57, of Detroit, was sentenced to twelve months in prison today based on her conviction for conspiring with Gasper Fiore to commit bribery in connection with the corruption of towing permits in Detroit, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Timothy Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Washington was sentenced today before United States District Judge David Lawson who also ordered Washington to pay a fine of $2,500 and be under supervision of the court for a period of two years following completion of her sentence.
While serving as a Deputy Police Chief and the legal advisor to the Chief of Police, Washington accepted multiple bribes from the owners of towing companies while Washington’s responsibilities included overseeing the Detroit Police Department’s permitting, licensing, and use of private towing companies. Washington was convicted of bribery conspiracy in January 2018 after she admitted accepting $4,000 in cash from tow company owner Gasper Fiore. Previously, in December 2017, Fiore had pleaded guilty to bribing Clinton Township Trustee Dean Reynolds in connection with a Clinton Township towing contract.
At her guilty plea hearing, Washington had admitted that she knew that Fiore was using the cash bribe to seek to influence her in the selection of tow rotations in the City of Detroit for Fiore’s towing companies. Under the city’s towing rotation, private towing companies are called by the police to tow cars that are seized by the police or had been stolen. When she accepted the bribe, Washington was aware that Fiore was violating the City of Detroit’s rules prohibiting a towing company owner from having more than one company in the rotation for a particular police precinct or district. After she accepted the $3,000 cash bribe from Fiore, Washington assisted in issuing a police towing rotation list that continued to allow Fiore to violate the city’s towing rules and that significantly benefited Fiore’s companies.
Besides accepting $4,000 in cash from Fiore in 2016, Washington had accepted other bribes from Fiore and another owner of a towing company. Fiore had paid over $800 for drinks at Washington’s birthday party at the Granite City restaurant. Washington also accepted $2,400 in repairs on her personal car from another tow company owner, as well as a $2,700 cash “loan” from that same owner, half of which Washington claimed she paid back. Finally, Washington purchased a car for $5,000 from one tow company owner, and then Fiore gave Washington $5,000 in cash to pay for the car purchase for her.
United States Attorney Schneider said, “Former Deputy Police Chief Washington’s corruption was particularly egregious because she was a high-level police official and a licensed attorney at the same time. While the grand majority of police officers are honest and dedicated, we will not tolerate bribery by any police officer charged with protecting the rule of law and our community.”
“Former Deputy Police Chief Washington violated the public’s trust by accepting bribes for her own financial gain,” said Timothy R. Slater, Special Agent in Charge, Detroit FBI. “These actions are not representative of the dedicated men and women of the Detroit Police Department. The FBI will continue to investigate individuals who commit criminal acts that erode the public’s confidence.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
Five More Sentenced for Role in Heroin EnterpriseRead the Press Release
Harrisonburg, VIRGINIA – An additional five defendants out of 13 convicted of trafficking more than 1,000 grams of heroin from Baltimore to Front Royal were sentenced Tuesday in U.S. District Court in Harrisonburg, United States Attorney Thomas T. Cullen announced.
Tuesday in Federal Court, three Front Royal residents were sentenced for their roles in the conspiracy. Da’Shawn Lee Edwards, 22, was sentenced to 168 months in prison, Keon Rasheed Hackley, 20, was sentenced to 36 months in prison and Tiara Lachay Bailey, 24, was sentenced to 16 months in prison.
In addition, a pair of Baltimore men involved in the conspiracy were sentenced for their roles in the trafficking enterprise. Antwan Lucas, 21, was sentenced Tuesday to 108 months in prison and Antwan Wilson Cottman, 29, was sentenced to 180 months.
All five of the defendants sentenced Tuesday, as well as three members of the conspiracy sentenced Monday in federal court, and five defendants scheduled for sentencing Wednesday, were involved in a multi-year trafficking enterprise that brought significant amounts of heroin from Baltimore to Front Royal.
“Our office is committed to working with state and local law enforcement in the Northern Shenandoah Valley to disrupt opioid distribution networks and aggressively prosecute the dealers who are poisoning our communities,” U.S. Attorney Thomas T. Cullen said today. “With the help of our local partners, we will be increasing enforcement and federal prosecutions in this region.”
According to information and evidence presented at previous hearings by Assistant United States Attorney Donald R. Wolthuis, the conspiracy began as early as 2013 with the goal of trafficking heroin from Baltimore to the Front Royal area. On average, members of the conspiracy distributed one kilogram of heroin per week during the life of the conspiracy, which operated between 2013 and April 2016.
To insulate the identity of the sellers from the identity of the buyers, heroin customers in Virginia contacted a phone number in Maryland, either by voice call or text, which was controlled by conspiracy members and was known only as the “Chris phone.” “Chris” was not a real person, but rather was a fake name associated with the phone number customers contacted to place heroin orders. At the time an order was placed, customers were provided a street address in Baltimore where their order was to be picked up. When a customer arrived at the pre-determined address, the customer’s car was approached by other members of the conspiracy, a drug transaction took place, and the Virginia customers drove back to Front Royal. No socializing or small talk took place between the customer in the car and the seller on the street. The Virginia customers made these trips every day, sometimes multiple times per day. Once they returned to Front Royal, the customers used the heroin and sold it to others.
The investigation of the case was conducted by the Drug Enforcement Administration’s Winchester Office, the Front Royal Office of the Virginia State Police Northwest Regional Drug and Gang Task Force, the Baltimore City Police Department, the Baltimore County Police Department, the Frederick, Maryland Sheriff’s Office, the Loudoun County, Virginia, Sheriff’s Office and the Howard County, Maryland, Sheriff’s Office. Assistant United States Attorney Donald R. Wolthuis is prosecuting the case for the United States.
Five More Defendants Sentenced to Federal Prison for Marijuana Trafficking and Money Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Five defendants were sentenced to federal prison this week after having pled guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Yesterday, the following defendants were sentenced on both charges:
- Charles Zachariah Sindylek, 32, of Pensacola, 90 months in prison and
- David DelGiacco, 56, of Lake Forest, California, 30 days in custody of the Bureau of Prisons.
Today, the following defendants were sentenced on both charges:
- Brandon Craig Remeyer, 35, of Trabuco Canyon, California, 72 months in prison and
- Andrew Paul Marcelonis, 32, of Pensacola, 18 months in prison.
Also today, Steven Ryan Michael Sholly, 31, of Milton, was sentenced to 59 months in prison on conspiracy to distribute marijuana.
Co-defendants Sanford Eugene Johnson III, William Brett Brownell, and his father William Ezra Brownell had previously pled guilty and were sentenced last November.
Between 2014 and 2017, the defendants conspired to distribute more than 100 kilograms of marijuana in the Northern District of Florida. Johnson, William Brett Brownell, Sholly, and others in the Pensacola area ordered the marijuana from Sindylek and Remeyer, who shipped packages of marijuana from California to Florida with the assistance of DelGiacco. Johnson, William Brett Brownell, and Sholly then sold the marijuana in Florida with the assistance of Marcelonis, William Ezra Brownell, and others. The cash proceeds of the marijuana distribution were laundered through bank accounts, and later mailed to addresses in California. More than $3.5 million in cash proceeds from the sale of marijuana was laundered during the time frame of the conspiracy.
This case resulted from an investigation by the Drug Enforcement Administration, the Internal Revenue Service–Criminal Investigation, the Pensacola Police Department, the Mobile Police Department, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Okaloosa County Sheriff’s Office, the Gulf Breeze Police Department, and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. Assistant United States Attorney Alicia H. Forbes prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fifth Defendant in Multi-State Dog Fighting Prosecution Sentenced to Two Years in PrisonRead the Press Release
TRENTON, N.J. – The fifth defendant to plead guilty in a multi-state dog fighting case was sentenced today to 24 months in prison for his role in dog fighting activities that took place in New Jersey and Virginia, U.S. Attorney Craig Carpenito of the District of New Jersey and Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division announced.
Mario Atkinson, 42, of Asbury Park, New Jersey, previously pleaded guilty June 15, 2017, before U.S. District Judge Peter G. Sheridan an information charging him with one count of sponsoring and exhibiting a dog in a dog fight, and one count of unlawful possession of a dog intended to be used for the purpose of dog fighting. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents in this and other cases and statements made in court:
Atkinson admitted that in 2016, he had fought his dog in a dog fight in Virginia for a $1,000 wager. The investigation revealed that Atkinson’s dog perished after the dog fight while Atkinson was driving home, and that Atkinson placed the dog’s body in a trash receptacle. On June 1, 2016, agents seized 18 pit bull-type dogs from Atkinson. Some of these dogs had scarring and injuries consistent with fighting and were found near dog fighting equipment, including an electric treadmill specially outfitted with side panels and a leash clip to force dogs to run on the treadmill. Agents also found blood splatters in three areas of Atkinson’s basement that tested positive for canine blood.
Four other defendants in this case previously pleaded guilty and were sentenced to a total of 111 months. The court set a trial date of Oct. 8, 2018, for the four remaining defendants in the case.
“Federal and local law enforcement agencies in New Jersey have ramped up their efforts recently to track down animal fighters and bring them to justice,” U.S. Attorney Carpenito said. “We will continue to root out dog fighting in New Jersey and to work with our local and state partners to bring the offenders to justice.”
“Animal cruelty like the conduct in this case has no place in a civilized society,” said Acting Assistant Attorney General Wood. “Today’s sentencing sends a strong message that we are bringing to justice those who engage in illegal dog fighting and that anyone who engages in this conduct does so at the risk of significant jail time.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General said “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
In addition to the prison term, Judge Sheridan sentenced Atkinson to three years of supervised release and fined him $1,000.
The case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
Fifth Defendant in Multi-State Dog Fighting Prosecution Sentenced to 24 Months in PrisonRead the Press Release
The fifth defendant to plead guilty in a multi-state dog fighting case was sentenced today in federal court in Trenton, New Jersey, for his role in dog fighting activities that took place in New Jersey and Virginia. Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.
U.S. District Judge Peter G. Sheridan sentenced Mario Atkinson, 42, of Asbury Park, New Jersey, to serve 24 months in prison to be followed by three years supervised release, and a $1000 fine. Atkinson pleaded guilty on June 15, 2017, to one felony count of sponsoring and exhibiting a dog in a dog fight, and one felony count of unlawful possession of dogs intended to be used for the purpose of dog fighting.
Atkinson admitted that, in 2016, he had fought his dog in a dog fight in Virginia for a $1,000 wager. The investigation revealed that Atkinson’s dog perished after the dog fight while Atkinson was driving home, and that Atkinson placed the dog’s body in a trash receptacle. On June 1, 2016, agents seized 18 pit bull-type dogs from Atkinson. Some of these dogs had scarring and injuries consistent with fighting and were found near dog fighting equipment, including an electric human treadmill specially outfitted with side panels and a leash clip to force dogs to run on the treadmill. Agents also found blood splatters in three areas of Atkinson’s basement that tested positive for canine blood.
Four other defendants in this case previously pleaded guilty and were sentenced to a total of 111 months in prison. Trial for the remaining four defendants in the case is set for October 8, 2018.
“Animal cruelty like the conduct in this case has no place in a civilized society,” said Acting Assistant Attorney General Wood. “Today’s sentencing sends a strong message that we are bringing to justice those who engage in illegal dog fighting and that anyone who engages in this conduct does so at the risk of significant jail time.”
“Federal and local law enforcement agencies in New Jersey have ramped up their efforts recently to track down animal fighters and bring them to justice,” U.S. Attorney Carpenito said. “We will continue to root out dog fighting in New Jersey and to work with our local and state partners to bring the offenders to justice.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Federal Jury Convicts Man of Possession of a Firearm by a Convicted Felon Who Brandished a Firearm Adjacent to a Local Business Following a Verbal ConfrontationRead the Press Release
St. Thomas, USVI- After a one day trial, a federal jury on Monday found Rehelio Trant, 39, of St. Thomas, guilty of possession of a firearm by a convicted felon, United States Gretchen C. F. Shappert announced.
Trant faces a maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for August 16, 2018.
According to the evidence presented at trial, on October 16, 2017, the Virgin Islands Police Department (VIPD) received a report from an individual that Trant brandished a firearm after a verbal confrontation with the individual adjacent to a local business. Trant had a prior conviction for a crime punishable by imprisonment for a term exceeding one year and firearms are not manufactured in the Virgin Islands.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Erie Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count indictment named Kenneth L. Blanks, 36, as the sole defendant.
According to the indictment presented to the court, Blanks received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and the Erie Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Sentenced in Pharmaceutical Fraud CaseRead the Press Release
U.S. Attorney Duane A. Evans announced that DR. RAFAEL PRATS, age 64, a resident of Miami, Florida, was sentenced to three years probation today after previously pleading guilty to a twelve-count indictment charging conspiracy to commit theft of medical products, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
According to court documents, beginning sometime prior to December 2012, PRATS and others conspired to use Marea Distributors and Logistics, LLC, in Louisiana and Marea Distributors, LLC, in Florida to fraudulently re-sell diverted pharmaceuticals. Working together, the defendants would collect dispensed drugs of known and unknown origin, counterfeit drugs, expired drugs, and drugs not authorized for resale and then fraudulently reintroduce them into the pre-retail, wholesale market for eventual sale under false pretenses to pharmacies and end users. According to court documents PRATS served as a broker in obtaining the diverted pharmaceuticals from various sources.
Among other things, the defendants would create and scan fraudulent invoices and send them from Marea Distributors in Florida to Marea Distributors & Logistics in Louisiana by email. In Louisiana, Marea Distributors & Logistics would then send the fraudulent invoices by email from Louisiana to wherever the diverted pharmaceuticals were shipped. When necessary, Marea Distributors & Logistics in Louisiana would create invoices for the products and email them to customers who were making purchases.
During the course of the conspiracy the defendants opened or caused to be opened bank accounts in the names of various entities, including Marea Distributors & Logistics and Marea Distributors. The defendants used those accounts to deposit the proceeds obtained from the sale of diverted pharmaceuticals and then to further distribute those proceeds to bank accounts controlled by them.
U.S. Attorney Evans praised the work of the United States Drug Enforcement Administration, the Internal Revenue Service, the Food and Drug Administration, and the Miami Dade Police Department in investigating this matter. Assistant U.S. Attorneys Theodore R. Carter, III and David Haller were in charge of the prosecution.
Delta Sonic Employee Pleads Guilty in Connection with Oil Discharge into Cayuga CreekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Yount, 46, of Lancaster, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to making a materially false statement. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on July 18, 2016, the New York State Department of Environmental Conservation responded to an alleged oil spill in Cayuga Creek in Niagara Falls, NY. The NYS-DEC Spills Unit found a significant amount of suspected waste oil in the creek along Niagara Falls Boulevard near Tuscarora Road and in a large storm sewer water pipe along Niagara Falls Boulevard.
As part of a subsequent investigation, a DEC Environmental Programs Technician began looking into potential sources of the oil discharge—which the Technician estimated to be between 300 and 500 gallon oil spill—and whether a violation of the Clean Water Act had occurred. The Technician contacted the defendant, who was the Environmental Compliance Officer for Delta Sonic Car Wash Systems, Inc., which has a location on Niagara Falls Boulevard, approximately a half a mile from Cayuga Creek. During a meeting at the Delta Sonic location on Niagara Falls Boulevard, the Technician learned that Delta Sonic was renovating the oil change and lube shop garage, which involved the removal of concrete floors by a subcontractor. At that time, Yount stated that there had not been any problems except for a minor spill of approximately two gallons of oil which was immediately cleaned up.
The Technician returned to Delta Sonic the following day and observed an absorbent boom with oil on it in a storm sewer receiver located in the parking lot outside of the oil change garage. While the Technician was looking into the storm sewer receiver with the defendant, Yount, sought to mislead the Technician by stating that booms were often left in sewers and that the boom in question may have been in there for some time. However, the defendant knew that booms were not often left in the sewers at Delta Sonic and that this boom had been placed in the storm sewer receiver approximately six days earlier. Such boom had been placed in the storm sewer receiver as a result of a complaint by another Delta Sonic employee that oily wastewater was being pumped into it as a result of the renovation of the Delta Sonic oil change and lube shop garage.
“The Great Lakes, the Niagara River, and its tributaries are among the most precious natural resources in our community,” stated U.S. Attorney Kennedy. “We will continue to work vigilantly with our federal, state, and local partners to preserve and protect those valuable resources and to prosecute those whose actions bring them harm.”
“The failure of this defendant to supply accurate and timely information on this spill delayed a speedy response to rectify this environmental threat,” said NYS-DEC Commissioner Basil Seggos. “DEC’s spill response experts are on the frontlines every day protecting New Yorkers when incidents happen and need correct information to guide on-the-ground remediation efforts. I applaud the work of our DEC Investigators, the United States Attorney’s Office for the Western District of New York and the Environmental Protection Agency for bringing this case to fruition.”
The plea is the result of an investigation by the Environmental Protection Agency –Criminal Investigation Division, under the direction of Special Agent-In-Charge Tyler Amon; the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain John Burke; and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
Sentencing is scheduled for August 23, 2018 at 3:00 p.m. before Judge Wolford.
Cyber Criminal Sentenced to 36 Months in Prison for Attempting to Steal More Than $3 Million from a Financial Institution and Government AgenciesRead the Press Release
Earlier today, in federal court in Brooklyn, Dwayne C. Hans, was sentenced by United States District Court Judge Sterling Johnson to 36 months’ imprisonment and ordered to pay $134,000.00 in restitution for orchestrating a series of frauds between July 2015 and October 2016, including by masquerading as an authorized representative of a U.S. financial institution and as a defense contractor. Hans previously pleaded guilty to one count of wire fraud and one count of computer intrusion.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Robert A. Westbrooks, Inspector General, Pension Benefit Guaranty Corporation (PBGC), announced the sentence.
“Hans has been held accountable for engaging in brazen fraud schemes intended to steal millions of dollars by using U.S. government websites,” stated United States Attorney Donoghue. “Investigating and prosecuting cyber criminals is a priority of this Office, in order to protect the integrity of computer systems that help our government and the private sector operate.”
“Hans advanced his own interests at the expense of various government entities responsible for distributing taxpayer dollars,” stated FBI Assistant Director-in-Charge Sweeney. “We have a responsibility to uphold the public’s confidence in the security of both government and private sector computer networks. Today’s sentencing brings us one step closer to achieving this goal.”
“We want to thank our law enforcement partners and the U.S. Attorney’s Office for bringing to justice those who attempt to steal from the Pension Benefit Guaranty Corporation,” stated PBGC Inspector General Westbrooks. “The PBGC protects the retirement benefits of more than 40 million American workers and retirees. The Corporation does not receive tax dollars and relies upon premium income. Our office will remain vigilant in safeguarding PBGC insurance programs and the integrity of its web applications.”
Between July 2015 and December 2015, Hans submitted bids to the Defense Logistics Agency (DLA), an agency within the United States Department of Defense, for contracts in the names of two different companies he created. The contracts on which Hans bid related to the provision of various items to the DLA, including electrical measurement equipment. Hans falsely claimed that those companies had numerous employees and were capable of filling the contracts. In reality, the companies had no employees and no ability to service the contracts. The DLA awarded at least 52 contracts, worth approximately $533,209.70, to Hans’s companies and sent at least $11,999.32 to those companies.
In early 2016, Hans created numerous bank accounts in the name of a U.S. financial institution (Financial Institution 1). In April 2016, Hans accessed a website maintained by the United States General Services Administration that allowed companies that worked with the U.S. government to provide information about how the government should disburse money to those companies. Hans modified payment information in an entry associated with Financial Institution 1 in order to redirect payments to accounts he controlled. As a result, a U.S. government agency transferred approximately $1.521 million to Hans instead of to Financial Institution 1. Those transfers were ultimately detected and disrupted before Hans withdrew or transferred the money.
In addition, between April 2016 and June 2016, Hans used a computer to initiate electronic transfers of approximately $134,000 from two corporate bank accounts held by Financial Institution 1. Hans directed the fund transfers to purchase publicly traded stock, invest in real estate in Brooklyn and to pay utility bills.
Finally, between June 2016 and October 2016, Hans accessed a website maintained by the PBGC, a U.S. government agency that insures certain pension plans, through which the administrators of pension plans can submit claims for reimbursements. Hans, who was not the administrator of any pension plan, created an account on the PBGC website and then submitted requests to be reimbursed a total of $1.633 million for expenses related to three pension plans. The three plans for which Hans requested reimbursements did not exist, and he had incurred no such expenses. The PBGC detected the fraud before any payments were issued.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney David K. Kessler is in charge of the prosecution with assistance from the DLA and PBGC Office of Inspector General.
The Defendant:
DWAYNE C. HANS
Age: 28
Residence: Richland, WashingtonE.D.N.Y. Docket No. 17-CR-256 (SJ)
Cultural Resource Analysts, Inc. Reaches Agreement with United States to Resolve Unauthorized Archaeological SurveyRead the Press Release
NASHVILLE, Tenn. – April 17, 2018 – Cultural Resource Analysts, Inc. (CRA), headquartered in Lexington, Kentucky, has entered into a deferred prosecution agreement with the United States to resolve violations of the Archaeological Resources Protection Act (ARPA), announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
On December 22, 2017, National Park Service Rangers with the Natchez Trace Parkway issued a notice of violation to CRA for conducting an unauthorized archaeological survey on Parkway lands, in connection with the proposed Stephen’s Valley development in Davidson and Williamson Counties in Tennessee.
According to the notice of violation, in November 2016, CRA conducted excavation activities, without the required ARPA permits, which resulted in the removal of Native American archaeological artifacts, which were more than 100 years old. The excavation was in advance of a proposed tree planting effort to screen the development from Parkway visitors’ view.
The agreement between the United States and CRA defers prosecution for criminal violations of the ARPA and requires CRA to pay a penalty in the amount of $15,024, the amount of damages determined from the unauthorized excavation, and to return all artifacts discovered during the process.
“The U.S. Attorney’s Office is committed to enforcing laws that Congress enacted to protect archaeological resources,” said U.S. Attorney Cochran. “This agreement is fair and just and properly mitigates the damage by deferring criminal prosecution, requiring the return of the artifacts and imposing a penalty for failing to secure the required permits.”
“This situation could have easily been avoided had CRA applied for and received an ARPA permit,” said Superintendent Mary Risser, of the Natchez Trace Parkway. “Archaeological resources on National Park Service property belong to everyone and we have a responsibility to prevent their unauthorized removal. Parkway staff will use the funds paid by CRA to preserve cultural resources on the Parkway.”
This action was initiated by Rangers of National Park Service – Natchez Trace Parkway. Assistant U.S. Attorney Sara Beth Myers handled the case on behalf of the government.
Charlotte Man Sentenced to Prison for Refund Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, United States District Judge Max O. Cogburn, Jr. sentenced Boakai Boker, 29, of Charlotte, to 57 months in prison, followed by two years of supervised release, in connection with a stolen identity refund fraud scheme, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office (USSS); David M. McGinnis, Inspector in Charge of the United States Postal Inspection Service; and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to court documents, trial, evidence, witness testimony, and today’s sentencing hearing, beginning in January 2014, Boker executed a scheme to submit fake tax returns to the IRS, using stolen personal identifying information, including names, dates of birth, and Social Security numbers for dozens of individuals. For example, according to trial evidence, Boker used the personal information of an individual identified as “E.P.” to file a fake tax return, which resulted in Boker gaining access to more than $40,000 in fraudulent proceeds.
Court records show that Boker directed the IRS to send the fraudulent refund checks to addresses in Mooresville, N.C. which he controlled. Boker then deposited the proceeds of the scheme into fraudulent bank accounts to which he had access. In July 2017, a federal jury convicted Boker of wire fraud, bank fraud, false claims, and aggravated identity theft in connection with the scheme.
U.S. Attorney Murray thanked the Secret Service, USPIS, and IRS-CI for conducting the investigation and the Charlotte-Mecklenburg Police Department for its assistance with this case.
Assistant U.S. Attorney Taylor Phillips of the U.S. Attorney’s Office in Charlotte prosecuted the case.
For 2018, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Among other things, the IRS maintains an identity protection website with information and guidance that can be found at:
https://www.irs.gov/identity-theft-fraud-scams/identity-protection.
Cedar Rapids Marijuana & Cocaine Dealer Sentenced to PrisonRead the Press Release
A Cedar Rapids man who sold over 100 pounds of marijuana was sentenced on April 17, 2018, to 23 months in federal prison.
Vichit Kho, age 37, from Cedar Rapids, Iowa, received the prison term after a December 6, 2017, guilty plea to one count of conspiracy to distribute marijuana and cocaine. At the guilty plea, Kho admitted he agreed to distribute more than 110 pounds of marijuana and quantities of cocaine in the Cedar Rapids area between 2011 and 2016.
Kho was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Kho was sentenced to 23 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Kho is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-00063.
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Castleton Man Sentenced to Five Years Imprisonment for Selling Heroin and Unlawful Possession of a Stolen FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Leon Russell, 36, of Castleton was sentenced to five years imprisonment by Chief Judge Geoffrey Crawford in U.S. District Court in Rutland. Judge Crawford also sentenced Russell to three years supervised release, which is a period of supervision by the U.S. Probation Office, which will begin upon Russell’s release from prison.
According to court records, Russell previously pled guilty to possession of a firearm by a felon and distributing heroin. The firearm charge stems from Russell’s theft of a .380 caliber Bersa semiautomatic pistol from a vehicle parked in a Fair Haven driveway on December 6, 2016. Later that day, Russell traded that firearm in exchange for four small bags of heroin from another heroin dealer in the Walmart parking lot in Rutland. The firearm was subsequently recovered. Russell was disqualified from possessing a firearm under federal law because he was previously convicted of a 2009 burglary of American Legion Post #50 in Castleton, Vermont. Possession of a firearm by a felon is subject to a maximum sentence of ten years. Federal law also makes it a crime to knowingly possess a stolen firearm, regardless of whether a person has a prior felony conviction. This offense is also subject to a maximum ten years imprisonment.
The heroin offense to which Russell also pled guilty, concerned Russell’s sale of a bundle of heroin (ten small bags) in Castleton on May 27, 2015. The maximum sentence for this offense is twenty years.
In July 2017, with the support of the U.S. Attorney’s Office, the Court released Russell from jail to allow him to participate in residential drug rehabilitation and then the Federal Drug Court program in Rutland. If Russell had successfully completed the Drug Court program he would have received no further jail time; that is, a time-served sentence. In November 2017, however, Judge Crawford revoked Russell’s conditions of release based on the government’s allegations that Russell had resumed distributing heroin and crack cocaine and that he had continued to use drugs while in Drug Court.
At sentencing, the government argued that instead of proving through Drug Court that he could be trusted to be a law-abiding citizen, Russell proved just the opposite; that is, he remained a danger to the community. In sentencing Russell to 60 months imprisonment, Judge Crawford emphasized the potential dangerous consequences of trading guns for drugs.
U.S. Attorney Christina E. Nolan commended the collaboration of federal and local law enforcement in the investigation and prosecution of Russell, citing specifically the substantial contributions of the Fair Haven and Rutland Police Departments and the DEA and ATF. She added, “trading firearms to drug dealers is inherently dangerous and creates an unacceptable public safety risk. The U.S. Attorney’s Office will work closely with our law enforcement partners to prioritize identification and prosecution of those who mix unlawful firearms activity with the drug trade. Further, federal prosecutors will pursue appropriate sanction for those who brazenly violate Court orders, as occurred in this case.”
This prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: http://www.projectsafeneighborhoods.gov/
This case was investigated jointly by the Vermont State Police Drug Task Force, the Fair Haven Police Department, the Rutland Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This matter was prosecuted by Assistant U.S. Attorney Joe Perella. Russell is represented by Richard Bothfeld, Esq. of Burlington.
Carthage Man Sentenced for $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Carthage, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute more than $1 million worth of methamphetamine in southern Missouri and in the Kansas City, Mo., area.
Jarub Ray Baird, 27, of Carthage, was sentenced by U.S. Chief District Judge Greg Kays to 11 years and 10 months in federal prison without parole.
On July 31, 2017, Baird pleaded guilty to one count of conspiracy to distribute methamphetamine from Jan. 1, 2014, to Nov. 17, 2016, and one count of conspiracy to commit money laundering.
Co-defendant Michael Ryan Nevatt, 28, of Springfield, was convicted at trial on Friday, April 6, 2018, of all seven counts contained in a Nov. 17, 2016, federal indictment. Co-defendant Kenneth Lake, 56, of Strafford, Mo., was the original head of the organization, coordinating vehicle transport shipments of methamphetamine from a Mexican cartel source in Texas to Springfield. Conspirators in Springfield divided the methamphetamine for distribution to the Lebanon, Mo., and Kansas City, Mo., areas. Lake has pleaded guilty and awaits sentencing.
Nevatt subsequently became the head of the organization. Nevatt and other conspirators made regular trips, and sometimes travelled several times a week, to pick up multiple-pound supplies of methamphetamine. For example, Nevatt traveled to Texas regularly to pick up 10 pounds of methamphetamine and bring it back to Springfield. Nevatt would later return to Texas with approximately $100,000 in cash to pay for it. On one occasion, Nevatt met sources in Dallas, Texas, to purchase 40 pounds of methamphetamine. Mexican sources also delivered multiple-pound shipments of methamphetamine by truck or car to Springfield.
Baird assisted Nevatt with obtaining and distributing more than five kilograms of methamphetamine and with collecting drug proceeds for the methamphetamine that was distributed. On Aug. 28, 2015, Lake and co-defendant Kara Rene Baze, 25, of Springfield, were arrested during a search warrant at a hotel room in Springfield. Officers recovered $102,787, a loaded handgun and a small amount of methamphetamine. Nevatt and Baird arrived in a black Corvette and after a brief chase were apprehended. Baze has pleaded guilty and awaits sentencing.
Baird is among 15 defendants who have been convicted in this case, and the third defendant to be sentenced. Scott Bryan Sands, 53, of Springfield, was sentenced on April 12, 2018, to 10 years and 10 months in federal prison without parole. Aaron Randall Stull, 53, of Springfield, was sentenced on Feb. 8, 2018, to eight years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades and Special Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the Internal Revenue Service, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Postal Inspection Service and the Central Oklahoma Metro Interdiction Team.
Campbell County Man Sentenced to 262 Months for Production of Child PornographyRead the Press Release
COVINGTON, Ky. – On Tuesday, Nathan W. Balser, 31, of Campbell County, Kentucky, was sentenced to nearly 22 years in prison, by United States District Judge David Bunning, for Production of Child Pornography.
Balser previously admitted that, in January 2017, he took sexually explicit videos of his daughter, who was only 11 years old at the time. Balser pleaded guilty to the charges in December 2017.
Under federal law, Balser must serve 85 percent of his prison sentence; and upon release, he will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge, Homeland Security/ICE and Chief Craig Sorrell, Campbell County Police Department, jointly made the announcement.
The Department of Homeland Security Investigation, Immigration and Customs Enforcement and the Campbell County Police Department conducted the investigation. Former Assistant United States Attorney Robert K. McBride and Assistant United States Attorney Wade T. Napier represented the United States.
California Resident Pleads Guilty to Conspiring to File Fraudulent Tax Returns Seeking More Than $9.7 Million in RefundsRead the Press Release
A Salinas, California, resident pleaded guilty today to conspiring to file fraudulent claims for income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Alex G. Tse for the Northern District of California.
According to documents and information provided to the court, during 2012, Ana Bajo a/k/a Ana Covarrubias, 43, conspired with others to obtain the personal identifying information of others and use it to file more than 2,300 fraudulent income tax returns with the Internal Revenue Service (IRS). These returns reported fake wages and fraudulently claimed dependents, education expenses and tax credits. In total, the returns sought approximately $9.7 million in refunds, of which the IRS paid more than $7.5 million. Bajo, and her co-conspirators, directed the fraudulently obtained refund checks into bank accounts that they controlled.
U.S. District Court Judge Koh scheduled sentencing for Sept. 26. Bajo faces a statutory maximum sentence of ten years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Tse commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael G. Pitman and Trial Attorney Christopher Magnani of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Resident Pleads Guilty to Conspiring to File Fraudulent Tax Returns Seeking More Than $9.7 Million in RefundsRead the Press Release
SAN FRANCISCO – Salinas resident Ana Bajo, a/k/a Ana Covarrubias, pleaded guilty today to conspiring to file fraudulent claims for income tax refunds, announced Acting U.S. Attorney Alex G. Tse and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, during 2012, Bajo, 43, conspired with others to obtain the personal identifying information of others and use it to file more than 2,300 fraudulent income tax returns with the Internal Revenue Service (IRS). These returns reported fake wages and fraudulently claimed dependents, education expenses, and tax credits. In total, the returns sought approximately $9.7 million in refunds, of which the IRS paid more than $7.5 million. Bajo and her co-conspirators directed the fraudulently obtained refund checks into bank accounts that they controlled. On July 13, 2017, a federal grand jury indicted Bajo charging her with conspiracy to submit false claims, in violation of 18 U.S.C. § 286. Pursuant to today’s plea agreement, she pleaded guilty to the charge.
U.S. District Judge Lucy H. Koh scheduled Bajo’s sentencing hearing for September 26, 2018. Bajo faces a statutory maximum sentence of ten years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Assistant U.S. Attorney Michael G. Pitman and Trial Attorney Christopher Magnani of the Tax Division are prosecuting this case. This prosecution is a result of an investigation by the IRS Criminal Investigation.
Buffalo Man Sentenced to 20 Years on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Clarence Adams, 35, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 250 months in prison and 10 years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on May 13, 2016, law enforcement officers seized three packages containing cocaine that were shipped from Texas to Buffalo. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set-up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo. The packages contained a total of five kilograms of cocaine. Adams recruited five individuals to receive the packages. He and co-defendant Robert Hall paid those receiving the packages in money or crack cocaine. A total of 19 packages were shipped from Texas to Buffalo, and each package contained at least one kilogram of cocaine.
Robert Hall was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Buffalo Man Pleads Guilty to Tax Evasion; Owes over 1 Million Dollars to the IRSRead the Press Release
Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney James P. Kennedy, Jr. announced today that Dorian Wills, 52, of Buffalo, NY, pleaded guilty to tax evasion before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
According to documents and information provided to the court, between April 2010 and October 2013, the defendant operated a debt collection business under various names, including Heritage Capital Services LLC; Performance Payment Processing LLC; Performance Payment Service LLC; Pinnacle Payment Service LLC; and Velocity Payment Solutions LLC. Wills resided in the Western District of New York but spent significant time in Cleveland, Ohio, and Atlanta, Georgia, where the debt collection companies were located. From approximately November 2010 through approximately October 2013, the defendant operated a business called Freestar World LLC, through which he did work for the debt collection companies.
The debt collection companies engaged in illegal debt collection practices such as making threatening and harassing phone calls, and collecting on debt that did not exist or debt to which the debt collection companies did not have title. To avoid detection by state and federal law enforcement authorities, Wills solicited two individuals to assist him with his businesses.
The defendant had these individuals incorporate several debt collection companies in Georgia and Ohio, open dozens of bank accounts in the names of the debt collection companies, and submit applications for merchant accounts in the names of the debt collection companies.
Between 2010 and 2013, none of the debt collection companies filed a tax return. In addition, Wills failed to file his 2011 and 2013 personal income tax returns, despite some of the debt collection companies earning approximately $4,000,000 in gross receipts.
For the tax year 2012, the defendant filed a personal income tax return but the return did not include income information from any businesses, some of which earned nearly $5,000,000 in gross receipts in 2012, except for Freestar.
As a result of unreported income and the unpaid 2012 taxes, the defendant owes $1,209,537.88 in federal income taxes for tax years 2011 through 2013.
Previously, Wills and the debt collection companies were the subject of a civil investigation by the Federal Trade Commission, with the defendant and the FTC stipulating to a final order for permanent injunction on August 8, 2014.
U.S. District Judge Elizabeth A. Wolford scheduled sentencing for Aug. 23, 2018. Wills faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, AUSA Marie P. Grisanti, and Tax Division Trial Attorneys Jason M. Scheff and Thomas F. Koelbl, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Buffalo Man Pleads Guilty to Tax Evasion; Owes over $1,000,000 to the IRSRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division announced today that Dorian Wills, 52, of Buffalo, NY, pleaded guilty to tax evasion before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
According to documents and information provided to the court, between April 2010 and October 2013, the defendant operated a debt collection business under various names, including Heritage Capital Services LLC; Performance Payment Processing LLC; Performance Payment Service LLC; Pinnacle Payment Service LLC; and Velocity Payment Solutions LLC. Wills resided in the Western District of New York but spent significant time in Cleveland, Ohio, and Atlanta, Georgia, where the debt collection companies were located. From approximately November 2010 through approximately October 2013, the defendant operated a business called Freestar World LLC, through which he did work for the debt collection companies.
The debt collection companies engaged in illegal debt collection practices such as making threatening and harassing phone calls, and collecting on debt that did not exist or debt to which the debt collection companies did not have title. To avoid detection by state and federal law enforcement authorities, Wills solicited two individuals to assist him with his businesses.
The defendant had these individuals incorporate several debt collection companies in Georgia and Ohio, open dozens of bank accounts in the names of the debt collection companies, and submit applications for merchant accounts in the names of the debt collection companies.
Between 2010 and 2013, none of the debt collection companies filed a tax return. In addition, Wills failed to file his 2011 and 2013 personal income tax returns, despite some of the debt collection companies earning approximately $4,000,000 in gross receipts.
For the tax year 2012, the defendant filed a personal income tax return but the return did not include income information from any businesses, some of which earned nearly $5,000,000 in gross receipts in 2012, except for Freestar.
As a result of unreported income and the unpaid 2012 taxes, the defendant owes $1,209,537.88 in federal income taxes for tax years 2011 through 2013.
Previously, Wills and the debt collection companies were the subject of a civil investigation by the Federal Trade Commission, with the defendant and the FTC stipulating to a final order for permanent injunction on August 8, 2014.
Judge Wolford scheduled sentencing for Aug. 23, 2018. Wills faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties.Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, AUSA Marie P. Grisanti, and Tax Division Trial Attorneys Jason M. Scheff and Thomas F. Koelbl, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Baltimore Man Sentenced to 100 Months in Prison for RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On April 17, 2018, United States District Judge Marvin J. Garbis sentenced Sean Shorb, age 38, of Frederick, Maryland to 100 months in prison, followed by 3 years of supervised release, for Hobbs Act robbery.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Division; and Chief Edward G. Hargis of the Frederick City Police Department.
According to his plea agreement, in March of 2017, Shorb committed two robberies of businesses in Frederick, Maryland. On March 19, 2017, Shorb walked into a fast food restaurant on Thomas Johnson Drive, pointed a handgun at an employee, and stated that he would shoot the employee unless the employee handed over money. The employee complied and handed over the money from the store’s cash register.
Later that same week, on March 23, 2017, Shorb walked into a convenience store on Amber Drive, pointed a pistol at an employee, and stated in substance: “Give me the money, give me the money, and don’t say anything.” The employee complied and handed over money from the store’s cash register.
Frederick City Police Department (“FPD”) investigators obtained red light camera footage that showed Shorb’s vehicle fleeing from one of the robberies. When an FPD police officer later attempted to conduct a traffic stop of Shorb for speeding, Shorb fled from police. Shorb was apprehended and later admitted to committing the robberies and said that he used a handgun that he tossed into a sewer in Baltimore.
United States Attorney Robert K. Hur praised the ATF and the Frederick City Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who prosecuted the case.