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Thursday 22 February 2018
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
United States Attorney for the Southern District of Georgia, Bobby L. Christine said, “Our office will aggressively prosecute fraudsters and financial criminals who target elderly Americans. We take seriously our obligation to protect some of America’s most vulnerable citizens.” During the sweep period, the U.S. Attorney’s Office for the Southern District of Georgia, working with investigative agencies, prosecuted individuals who stole the identity of an elderly Chatham County resident and withdrew thousands of dollars from the victim’s bank account. All of the participants in that scheme have pled guilty to felony offenses. The U.S. Attorney’s Office also charged four individuals with their roles in a $15 million oil investment fraud scheme that bilked numerous elderly Americans out of hundreds of thousands of dollars; many of those victims lost their life savings.
“One of the top priorities for the Secret Service continues to be combating the computer crimes and frauds perpetrated by domestic and international criminals that target the U.S. financial infrastructure,” said U.S. Secret Service Resident Agent in Charge Glen Kessler. “When those crimes directly affect elderly victims, they don’t recover financially or emotionally. It can be devastating for them. The Secret Service, in conjunction with its many law enforcement partners across the United States and around the world, continues to successfully combat these crimes by working closely with experts from all affected sectors to constantly refresh and adapt our investigative methodologies.”
Actions against mass-mailing fraud industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps’ efforts to reduce elder fraud.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaintsElder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its actions with state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
In the Northern District of Iowa, these prosecutions are part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 13 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police, who executed over 20 warrants, including search warrants on business premises.
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments.
Actions against other elder fraud schemes
Prosecutors across the country have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
For example, over the last year, 11 people were charged in the Northern District of Iowa for their involvement in a scheme to defraud elderly victims across the country. Of the 11, 10 defendants have plead guilty to participating in the scheme. Each of them admitted that while they never made calls to victims, other individuals involved in the scheme called victims on the phone and told these victims that a relative was in jail. The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released. The money was being wired to various participants in the fraud who would pick up the wire transfers. Each of the 10 defendants who have plead guilty were participants in and around Dubuque who received wire transfers from the victims. The proceeds of the fraud were then sent via wire transfer to other participants of the scheme often located in the Dominican Republic. During the course of the scheme, approximately $800,000 was stolen from victims. Court file information is at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 17-CR-1001 and 17-CR-1004.
“Every day, criminals shamelessly prey upon some of the most vulnerable individuals in our society by exploiting their generosity,” said United States Attorney Peter E. Deegan, Jr. “When we can prosecute those responsible for defrauding and stealing from the elderly, we will do so.”
Public Education
The Department has partnered with Senior Corps, a branch of the Corporation for National and Community Service, to educate seniors and prevent further victimization. Senior Corps coordinates a network of senior volunteers, including:
- 245,000 affiliated volunteers,
- 840,000 elderly individuals in need served, and
- 332,100 veterans served.
These volunteers will communicate what law enforcement has learned about elder fraud to potential victims across the country. Senior volunteers will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
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Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
"Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims (link is external) of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 12 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against mass-mailing fraud industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. A list of Elder Fraud cases is provided on this interactive map.Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps’ efforts to reduce elder fraud.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 12 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against mass-mailing fraud industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps’ efforts to reduce elder fraud.
Coordination with state officialsKansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
"Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims (link is external) of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 12 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against mass-mailing fraud industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. A list of Elder Fraud cases is provided on this interactive map.Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps’ efforts to reduce elder fraud.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
Roanoke, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia is prosecuting a pair of cases that are part of the nationwide elder fraud sweep announced earlier today by Department of Justice Officials, United States Attorney Rick A. Mountcastle announced.
Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Fraud against the elderly is a particularly heinous crime that targets some of society’s most vulnerable victims,” U.S. Attorney Mountcastle said. “These frauds come in many forms, from financial frauds to romance schemes, but all weave the common thread of preying on the elderly. Here in the Western District of Virginia we will continue to stay ahead of the curve in combating elder fraud through our work with local elder fraud task forces and by bringing cases like those included in today’s announcement.”
US v. Michel Dean Kent
Kent pleaded guilty in U.S. District Court in Harrisonburg in October 2017 to conspiracy to commit wire fraud related to a timeshare fraud scheme that targeted more than 500 victims, many of whom were elderly. Kent admitted to contacting individuals who owned timeshares, by phone and email, and convincing them, under false pretenses, to sign property transfer contracts and to send him currency under false pretenses.
US v. Linda Jane Hall
Hall was indicted by a grand jury in the Western District of Virginia in October 2017 and charged with wire fraud and money laundering. According to the indictment, Hall targeted four elderly victims, contacting them via telephone, and convinced them to wire her approximately $457,000 between 2009 and 2015. The defendant is scheduled for a jury trial in March 2018.
In addition to casework, prosecutors from the Western District of Virginia sit on elder fraud task forces to coordinate with other local, state and federal law enforcement agencies and community partners on potential risks being faced by the local elderly population.
Elder Fraud Complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
LEXINGTON, Ky. – Today in Washington, Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The Eastern District of Kentucky is no stranger to the types of scams that prey on our elderly population. United States Attorney Robert M. Duncan, Jr., held a Facebook Live event earlier today, to discuss how elder abuse has affected Kentuckians. He spoke about the most prevalent schemes involving elder financial exploitation, such as:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
The United States Attorney’s Office for the Eastern District of Kentucky has prosecuted criminals for taking advantage of seniors, including by convicting the owner of a personal care home for unlawfully misappropriating his clients’ social security money, suing a nursing home for providing little or no care to its patients, and obtaining a liability judgment against an optometrist for providing unnecessary health care to patients at several nursing homes for the purpose of billing the federal government for payment for these services. . “Our Office is a committed partner in this effort and we have used both civil and criminal enforcement tools to combat this ever-growing problem,” said United States Attorney Duncan. “Enforcement actions are vital; but prevention efforts are also critical to protecting this vulnerable community. Family members and friends of elderly individuals must be vigilant in protecting those close to them and should not hesitate to contact enforcement authorities if they suspect their loved ones are being victimized. Additionally, regardless of circumstance, everyone should be wary of responding to unsolicited communications from strangers offering promises of money, companionship, and assistance. If the offer seems too good to be true, it often times is.”
In efforts to help combat this problem, the United States Attorneys for the Eastern District of Kentucky and Western District of Kentucky, along with the Kentucky Attorney General’s Office, federal and state law enforcement agencies, and state agencies with jurisdiction over senior care-related issues have joined together to form the Kentucky Elder Justice Task Force. This group of highly motivated enforcement partners meets frequently to share information, discuss pressing issues, and cultivate plans to protect the senior citizens of Kentucky. “Going forward, this collaboration will be an essential enforcement tool and a strong line of defense for elderly individuals in our Commonwealth,” explained United States Attorney Duncan.
If you or anyone you know has been victimized due to age, these elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps' efforts to reduce elder fraud.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
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Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
MUSKOGEE, OKLAHOMA - United States Attorney Brian J. Kuester announced today that the Department of Justice, along with many of its law enforcement partners, effected the largest coordinated sweep of elder fraud cases in history. These cases involved over 250 defendants from around the globe who victimized more than a million Americans, most of whom were elderly.
The formal announcement was made today by United States Attorney General Jeff Sessions and other federal and state law enforcement leaders. “The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
U.S. Attorney Kuester said, “Education is a key component to this enforcement effort. We want elderly Americans to be aware of the schemes that are designed to take advantage of them. Educational resources are available and I urge senior citizens, those in public service positions, community leaders, and those who care for elderly relatives to make themselves aware of the various ways criminals are defrauding our seniors. We can all play a role in preventing elder scams.”
Educational brochures, links, and victim hotline information regarding Financial Scams and Financial Exploitation can be found below and at https://go.usa.gov/xnecU and https://go.usa.gov/xnecm. Additional information can be found at https://www.elderjustice.gov.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
U.S. Attorney Rosa Emilia Rodríguez-Vélez stated: “Our office has been in collaboration with the Puerto Rico Department of Justice (PRDOJ) to identify and investigate matters involving elderly victims. Law enforcement will not stand by as criminals attempt to fleece a very vulnerable group of our community, our elders. These criminals disrupt their lives by stealing their savings and destroying their credit through calculated and pervasive fraud schemes. I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through stolen identity fraud.”
During the DOJ sweep, the District of Puerto Rico charged two defendants with bank fraud and aggravated identity theft. According to the indictment, the purpose of the conspiracy was for the defendants to unlawfully enrich themselves by obtaining bank account information and personal identifying information (social security number, date of birth, address as well as credit/debit card and PIN numbers), and using that information to withdraw funds from the victims’ accounts for their own benefit and use. The ages of the victims ranged from 69 to 83 years old. In an unrelated case, another defendant was the main receptionist of a one-person Doctor’s office for fourteen years. The Doctor/victim was sixty-six years of age at the time of Indictment. In the last four years of her employment, the defendant embezzled approximately $285,929.75 in Medicare/Medicaid reimbursement funds into her personal account, for her own benefit.
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Announces Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
CHARLOTTE, N.C. – The Justice Department announced today the results of the largest coordinated sweep of elder fraud cases in history. The cases involve more than 250 defendants from around the globe who victimized more than a million Americans, most of whom were elderly.
According to the Justice Department’s announcement, the cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars.
In the Western District of North Carolina, combating the financial exploitation of the elderly is an important part of the U.S. Attorney’s Office broader emphasis on fraud targeting vulnerable populations.
“Each year, millions of older Americans become victims of financial fraud. The impact can be devastating both psychologically and financially. As part of the U.S. Attorney’s Office’s commitment to protecting vulnerable populations, we are enhancing our efforts to educate the elderly about investment fraud schemes and consumer scams to protect them from financial exploitation. We will also investigate and prosecute financial predators who unabashedly steal from older Americans causing irreparable financial harm,” said U.S. Attorney R. Andrew Murray.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions announced today charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
Federal Prosecutions by the U.S. Attorney’s Office
Alan Peter Darcy, 80, of Murphy, N.C., was sentenced on Thursday, February 15, 2018, to 108 months in prison on wire fraud charges, in connection with an investment fraud scheme that defrauded multiple victims, some of whom were elderly, of more than $800,000. In addition to the prison term, Darcy was ordered to serve three years under court supervision and to pay restitution in the amount of $740,028.43. According to court records and the sentencing hearing, between February 2012 to June 2016, Darcy carried out the fraud scheme by inducing his victims to invest in a variety of bogus financial instruments and products. Darcy did so by claiming that he had access to, and multiple successes with, specialized opportunities for obtaining private banking instruments and engaging in lucrative trading opportunities not available to the general public.
Court documents state that Darcy also induced victims to part with their money by lying about how the victims’ money would be used or invested, and about when and how Darcy and his businesses would be compensated. Instead of holding the victims’ money in escrow or in trust accounts for the victims as he had promised, Darcy deposited the money into bank accounts he controlled and spent more than $400,000 of the victims’ money to fund his personal lifestyle, including personal expenditures such as entertainment, travel and the purchase of a used Jaguar automobile.
Public Education
“Education is an important component of our efforts to protect our seniors from suffering financial devastation in the hands scammers. Knowing about the different types of financial investment schemes, what to look out for, what questions to ask, and what to do if contacted by fraudsters is key to avoid getting ripped off by unscrupulous individuals trying to gain access to older Americans’ nest eggs.”
In making today’s announcement, U.S. Attorney Murray cautioned all Americans to look out for scams targeting the elderly, including:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
The U.S. Attorney’s Office has conducted educational seminars for elderly investors on avoiding investment fraud schemes and safeguarding savings from potential fraudsters.
The seminars cover a broad range of topics, including the most common types of investment fraud scams targeting the elderly, red flags to watch out if approached by someone touting an investment opportunity, tips on how to avoid becoming the victim of an investment scheme, and who to contact to report a suspicious investment offer or if you have been the victim of an investment scam.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Jury Rules in Favor of Prison Physician on Eighth Amendment Claim by Federal PrisonerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on February 21, 2018, a jury returned a verdict in favor of a prison physician rejecting a prisoner’s claim that his Constitutional rights were violated. The two-day jury trial was held before United States District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, during the summer of 2011, Mitchell Wall, an inmate at the United States Penitentiary at Allenwood, White Deer, Pennsylvania, fell and fractured his back and was being treated by a prison physician. When Wall’s back did not improve, he received a follow-up consultation with a private neurosurgeon. The neurosurgeon recommended Wall be given a lower bunk and Wall claimed he communicated that directly to the prison physician, but the physician still refused to give him the lower bunk. The prison physician disputed Wall’s claim. On February 16, 2012, Wall fell while getting out of the upper-bunk, was transported to a local hospital, and had surgery five days later.
Wall’s lawsuit claimed that the prison physician’s failure to provide him with a lower bunk assignment as recommended by the private neurosurgeon amounted to deliberate indifference to his serious medical needs in violation of his Eighth Amendment right to be free from cruel and unusual punishment. The jury rejected that claim after deliberating for approximately one hour.
The prison physician was represented by Assistant U.S. Attorney G. Michael Thiel.
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Jury Convicts Stafford Man of Gun and Drug CrimesRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Stafford man last night on charges of unlawfully possessing a firearm while being a convicted domestic batterer, and possessing with the intent to distribute marijuana.
According to court records and evidence presented at trial, Brandon Locke, 27, was twice convicted of misdemeanor crimes of domestic violence: first in 2011 in Georgia, and again in early 2017 in Virginia. Because of this criminal history, federal law prohibited Locke from possessing a firearm. In May 2017, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) learned that Locke had purchased a Ruger pistol two months earlier. When ATF agents then searched Locke’s home with a warrant, they found him with his Ruger pistol, marijuana, and evidence of marijuana distribution.
Locke faces a maximum penalty of 10 years in prison when sentenced on May 25. 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, and Thomas L. Chittum, III, Special Agent in Charge of the ATF Washington Field Division, made the announcement after U.S. District Judge T.S. Ellis, III accepted the verdict. Special Assistant U.S. Attorney Jessica L. Urban and Assistant U.S. Attorney Maya D. Song 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. 1:17-cr-210.
Jury Convicts Man of Bank RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was wanted by law enforcement in the District of Arizona for escaping from a Bureau of Prisons facility was found guilty by a jury yesterday of bank robbery, announced U.S. Attorney Dayle Elieson for the District of Nevada.
After a two-day trial, Richard Lee Canterbury, 68, was convicted of one-count of bank robbery. United States District Judge Kent J. Dawson presided over the trial. Sentencing is scheduled for May 30, 2018.
According to the indictment, on March 16, 2016, Canterbury entered a Nevada State Bank on Southern Highlands Parkway wearing a gray “fisherman” style hat, dark glasses, and a blue and white striped long sleeve shirt under a gray zip up vest, carrying a blue zip top bank bag. He approached a teller and showed a handwritten note which stated: “This Is A Robbery No Tricks Loose Bills Only Cooperate No One Gets Hurt Otherwise Everyone Dies.” The teller complied and placed approximately $1,901 and a GPS tracking device into the bag. Canterbury left the bank.
Soon after, using information from the GPS tracker and the description provided by the bank teller, officers with the Las Vegas Metropolitan Police Department located and stopped Canterbury’s vehicle. Officers located the stolen bank cash, the blue zip top bank bag, the handwritten note, and the tracker in his vehicle. Canterbury was still wearing the clothes that he wore during the robbery. He was arrested and taken into custody. Canterbury was serving a 46 month federal sentence for Felon in Possession of Firearms at the time when he escaped from the facility on January 27, 2016.
At the time of sentencing, Canterbury faces the statutory maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Jared L. Grimmer are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Judge Sentences Getaway Driver in Attempted Robbery to 5 Years in PrisonRead the Press Release
PITTSBURGH - A Western Pennsylvania resident has been sentenced in federal court to 62 months imprisonment, which includes 20 months already served, and five years supervised release, on his convictions for attempted robbery and brandishing a firearm during a crime of violence, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Raymond Denson, 38, of Trafford, Pennsylvania.
According to information presented to the court, on April 27, 2016, Denson and his codefendants, David Lipinski and Anthony Bailey, attempted to rob a van making a delivery of pharmaceutical drugs to the Giant Eagle in Gibsonia. Denson was the getaway driver. A firearm was brandished by Lipinski while he and Bailey tried unsuccessfully to force the driver back into the van. Denson and the others then aborted the robbery attempt.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Firearms, Tobacco ahd Explosives and the Northern Regional Police Department for the investigation leading to the conviction of Denson. The case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. The efforts of PSN led to the successful prosecution of Denson.
John H. Durham Sworn in as United States AttorneyRead the Press Release
John H. Durham, 67, of Groton, was sworn in today as the presidentially appointed United States Attorney for the District of Connecticut by Chief U.S. District Judge Janet C. Hall in New Haven.
Mr. Durham has served as the interim U.S. Attorney since October 28, 2017, after U.S. Attorney General Jeff Sessions signed an order appointing him to the position. President Donald Trump nominated Mr. Durham to serve as U.S. Attorney on November 1, 2017, and the U.S. Senate confirmed his nomination on February 16, 2018.
“I am very honored to serve as Connecticut’s U.S. Attorney and deeply appreciative of all who have supported my nomination,” said U.S. Attorney Durham. “I look forward to continuing to work with the dedicated and skilled people in our office and the brave men and women of our partner law enforcement agencies in the cause of justice for the people of our state and nation.”
Prior to his appointment as U.S. Attorney, Mr. Durham served as an Assistant U.S. Attorney in various positions in the District of Connecticut for 35 years, prosecuting complex organized crime, violent crime, public corruption and financial fraud matters.
From 2008 to 2017, Mr. Durham served as Counsel to the U.S. Attorney; from 1994 to 2008, he served as the Deputy U.S. Attorney, and served as the U.S. Attorney in an acting and interim capacity in 1997 and 1998; from 1989 to 1994, he served as Chief of the Office’s Criminal Division, and from 1982 to 1989, he served as an attorney and then supervisor in the New Haven Field Office of the Boston Strike Force in the Justice Department’s Organized Crime and Racketeering Section.
From 2008 to 2012, Mr. Durham also served as the Acting U.S. Attorney for the Eastern District of Virginia, where he investigated matters relating to the destruction of certain videotapes by the CIA and the treatment of detainees by the CIA. From 1998 to 2008, Mr. Durham served as a Special Attorney for the District of Massachusetts and Head of the Justice Task Force, where he reviewed alleged criminal conduct by FBI personnel and other law enforcement corruption in Boston, led the prosecution of a former FBI Supervisory Special Agent and a former Massachusetts State Police Lieutenant, and handled direct appeals and related proceedings following convictions after trial.
From 1978 to 1982, Mr. Durham served as an Assistant State’s Attorney in the New Haven State’s Attorney’s Office headed by Arnold Markle, and from 1977 to 1978, he served as a Deputy Assistant State’s Attorney in the Office of the Chief State’s Attorney.
From 1975 to 1977, Mr. Durham worked as a Volunteer in Service to America (VISTA) on the Crow Indian Reservation in Montana.
Mr. Durham graduated, with honors, from Colgate University in 1972 and the University of Connecticut School of Law in 1975.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. As U.S. Attorney, Mr. Durham supervises a staff of approximately 68 Assistant U.S. Attorneys and approximately 57 staff members at offices in New Haven, Hartford and Bridgeport.
Mr. Durham is the 52nd U.S. Attorney for the District of Connecticut, an office that was established in 1789.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
United States Attorney Scott W. Brady of the Western District of Pennsylvania added, “Financial exploitation of the elderly often has devastating effects, including depleted life savings, lost homes and personal emotional harm, for people who worked hard and played by the rules all of their lives. In many cases, the fraud is perpetrated by someone the senior knows and trusts. If you suspect you may be the target or victim of a financial scam, please contact law enforcement right away. We are committed to doing everything in our power to keep seniors in Western Pennsylvania safe from criminals who would exploit them, and will investigate and prosecute them to the fullest extent of the law.”
U.S. Attorney Brady pointed to two recent prosecutions in which individuals in Western Pennsylvania who targeted seniors were held accountable for their actions.
In October, Keith A. Bassi pleaded guilty to three counts of mail. Beginning in 2013, Bassi, a licensed attorney, misappropriated for personal use approximately $505,000.00 in funds belonging to the estate of an elderly person diagnosed with dementia. Bassi held a power of attorney for the victim, and then engaged in a series of financial transactions in which he diverted the victim’s assets into bank accounts he created and controlled. In one instance, Bassi made insurance premium payments using the victim’s funds on a whole life policy purchased in the name of someone other than the victim, and then later cancelled the policy and kept the surrendered cash proceeds for himself. He also used the victim’s estate funds to operate a publishing company he owned. Sentencing is scheduled for March 14, 2018.
In January, John F. Hogan was sentenced to 10 years in prison followed by three years of supervised release on his conviction of mail fraud. Hogan, formerly a licensed insurance agent in Swissvale, Pennsylvania, defrauded clients out of approximately $8.2 million dollars in a Ponzi scheme. He persuaded his clients to invest in an illusory ‘Promissory Note’ investment program in which Hogan promised to invest their funds and earn sizeable interest rate returns for his clients. Instead, Hogan used the funds to maintain real estate holdings and office expenses. Victims of Hogan’s fraud testified that they were advised by Hogan to open whole life insurance policies, and then to borrow money against cash values to invest with him.
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Italian National Sentenced to 11 Months in Prison for Illegally Exporting and Attempting to Export Military TechnologyRead the Press Release
Earlier today, in federal court in Brooklyn, Giovanni Zannoni, an Italian national and member of the Italian armed services, was sentenced by United States District Judge Pamela K. Chen to 11 months’ imprisonment for illegally exporting and attempting to export controlled military technology from the United States to Italy. Zannoni previously pled guilty to the sole count of the information on December 21, 2017. Zannoni was also ordered to forfeit gun parts, night vision goggles and thermal imaging devices, including an Army/Navy PVS-7D night vision goggle, a mini thermal monocular, numerous parts and magazines for AR-15 and M4 semi-automatic assault rifles and image intensifiers. As part of his plea agreement, Zannoni also agreed to forfeit $436,673.73.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentencing. Mr. Donoghue thanked the Department of Defense, Defense Criminal Investigative Service, Northeast Field Office (DCIS), and U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, for their hard work and dedication over the course of this investigation and prosecution.
According to court filings, between June 2013 and May 2017, Zannoni illegally exported and attempted to export night vision goggles and assault rifle components that have been designated as defense articles on the United States Munitions List. To lawfully export these devices, the United States Department of State requires the obtaining of a license because these items make a significant contribution to the military potential and weapons proliferation by other nations, which could be detrimental to the foreign policy and national security of the United States.
To carry out this scheme, the defendant purchased export-controlled devices from U.S.-based manufacturers or distributors or through Internet-based marketplaces like eBay.com. Zannoni then directed the sellers of the export-controlled products to ship them to freight forwarders in the United States, and made false statements to the freight forwarders about the contents and values of the packages, so that the packages would be exported to Italy without the required licenses. Records show that the defendant purchased approximately 2,700 night vision or thermal imaging devices, image intensifiers and pieces of body armor, and that he paid approximately $530,000 for these export-controlled devices between June 2013 and May 2017.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution, with assistance from Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
GIOVANNI ZANNONI
Age: 35
Residence: Gavorrano, ItalyE.D.N.Y. Docket No. 17-CR-565 (PKC)
Investiture Ceremony for Mike Stuart as United States Attorney for the Southern District of West VirginiaRead the Press Release
CHARLESTON, W.Va. – The Investiture Ceremony for Mike Stuart, United States Attorney for the Southern District of West Virginia (SDWV), will take place on Friday, March 2, 2018, at 2:00 p.m. Stuart will be joined by United States Senator Shelley Moore Capito, Congressman Evan Jenkins, American war hero and Medal of Honor recipient Woody Williams, members of the Judiciary, distinguished guests and family to celebrate his appointment.
WHAT: Investiture Ceremony for Michael B. Stuart as United States Attorney, SDWV
WHEN: Friday, March 2, 2018, at 2:00 p.m.
WHERE: Robert C. Byrd United States Courthouse
300 Virginia Street, East
Charleston, WV
Seventh Floor Ceremonial Courtroom
NOTE: All media must present government-issued photo identification (such as a driver’s license) and valid media credentials. Media may begin arriving at 1:00 p.m. and must have cameras set by 1:30 p.m. Media should RSVP to [email protected].
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Illegal Alien Previously Convicted of Drug Conspiracy Pleads Guilty to Unlawfully Re-entering United StatesRead the Press Release
Gulfport, Miss. – Eugenio Delgado-Rivera, 48, an illegal alien from Mexico, pled guilty today before U.S. District Judge Louis Guirola, Jr., to the federal crime of unlawfully re-entering the United States as an illegal alien having been previously convicted of an aggravated felony, announced U.S. Attorney Mike Hurst and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Delgado-Rivera was found guilty of the offense and is scheduled to be sentenced by U.S. District Judge Sul Ozerden on June 5, 2018. He faces a maximum penalty of 20 years in prison and a $250,000 fine.
On December 28, 2017, a rented Nissan Altima which Delgado-Rivera was driving, was stopped by a member of the South Mississippi Metro Enforcement Team on Interstate-10 in Jackson County, Mississippi, for speeding. Delgado-Rivera did not have a driver’s license and provided a Mexican identification document with a different name. The U.S. Border Patrol was notified, and a Border Patrol Agent responded to the scene.
Delgado-Rivera admitted that he was illegally present in the United States. Official record checks revealed that he had been previously ordered removed by a U.S. Immigration Judge, and had been physically removed from the United States on October 5, 2000. Thereafter, Delgado-Rivera unlawfully returned to the United States, and, in 2007, was convicted in the U.S. District Court for the Eastern District of North Carolina, of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. Delgado-Rivera’s prior conviction qualified as an aggravated felony and, after serving time in federal prison, he was again removed from the United States on April 21, 2009. Prior record checks determined that Delgado-Rivera had used, or been known by, over 10 different names during his time illegally present in the United States.
"Those who have violated our immigration laws and continue to do so with impunity will be met by this office with swift prosecution and punishment. If drug dealers like this defendant continue to cross our borders illegally, we will have a jail cell waiting for them when they arrive.
Such arrogant disregard for our laws will not be tolerated, as we will do all we can to protect our country and our people," said U.S. Attorney Mike Hurst.
The case was investigated by the U.S. Department of Homeland Security, the U.S. Border Patrol, and the Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Hutchins Man Arrested for the Murder of a U.S. Postal Service EmployeeRead the Press Release
DALLAS — Following a collaborative effort by the Dallas Police Department and United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation, Donnie Arlondo Ferrell, 25, of Hutchins, Texas, is in federal custody on a federal criminal complaint for the February 19, 2018 murder of a United States Postal Service employee. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Ferrell is charged with one count of murder of an officer or employee of the United States or of any agency in any branch of the United States government, while such officer or employee was engaged in or on the account of the performance of official duties. Ferrell will make his initial appearance today before U.S. Magistrate Judge Rebecca Rutherford.
“While our family of federal employees is saddened by the tragic loss of one of our own, I am proud of the cooperative effort by our federal and local law enforcement partners to solve this heinous crime, especially the United States Postal Inspection Service and the Dallas Police Department,” said U.S. Attorney Nealy Cox. “With this arrest, we take a crucial step towards ensuring that the person allegedly responsible for this senseless murder is brought to justice.”
“On behalf of the U.S. Postal Inspection Service, I would like to extend our deepest sympathy to the Mosby family for the tragic loss of their loved one,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division, U.S Postal Inspection Service. “The cooperation among federal and local law enforcement agencies in this matter is a prime example of how we work best when we work together. I would like to thank the dedicated Postal Inspectors and staff as well as the Dallas Police Department, our federal partners, and U.S. Attorney Erin Nealy Cox and her staff for their dedication and partnership in seeing this case brought to prosecution.”
According to the affidavit filed with the criminal complaint, on February 19, 2018, shortly after 2:00 a.m., an United States Postal Service (“USPS”) employee left the Dallas Main Post Office in a USPS box truck. Minutes later, at least three gunshots were fired at the USPS employee and his truck. One of the shots fatally struck him in his head.
On the morning of February 21, 2018, two individuals visited the FBI’s office in Fort Worth, Texas, and stated that they had information related to the killing.
According to interviews of the two individuals, on the night of February 18, 2018, they met two other individuals, including Ferrell, at a restaurant in Dallas, Texas. Later that night, after several stops, all four of these individuals left a pool hall in Dallas at approximately 1:30 a.m. in the early morning of February 19, 2018. Ferrell was sitting in the front passenger seat of the vehicle.
According to additional information provided during the interview, the driver of the vehicle began driving erratically and, at one point, was right behind a large USPS truck. The driver attempted to drive the vehicle around the USPS truck by passing it on the truck’s left hand side. Moments later, Ferrell fired several shots from a handgun in the direction of the USPS truck. The occupants of the vehicle observed smoke and sparks coming from the truck and the truck eventually crashing into the barrier. One of the occupants asked Ferrell why he had shot the gun toward the truck and Ferrell responded that the driver of the USPS truck had made a hand gesture towards their vehicle and that angered him.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The penalty for the offense as charged is any terms of years or for life and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorneys P.J. Meitl, Keith Robinson, Nicole Dana, Errin Martin, and Brian Portugal.
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Houston Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that MILTON CARLOS SEGURA-SANCHEZ, a/k/a “Milton Reyna Segura-Sanchez,” a/k/a “Milton Carlos Segura Reyna,” a/k/a “Carlos,” age 36, from Houston, Texas, has pleaded guilty to one count of Conspiracy to Distribute One Kilogram or more of Cocaine. The defendant faces a sentence of between five and forty years imprisonment.
SEGURA-SANCHEZ admitted that in July 2016, he directed another person to deliver approximately four kilograms of cocaine from Houston to Lowell, Massachusetts. That person was later stopped by law enforcement on Interstate 12 near Hammond, Louisiana, and the cocaine was seized.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Houma Woman Sentenced for Conspiracy to Obstruct JusticeRead the Press Release
U.S. Attorney Duane A. Evans announced that TONYA BAKER, age 42, a resident of Houma, Louisiana, was sentenced today after previously pleading guilty to one count of conspiracy to obstruct justice, in violation of 18 U.S.C. § 1512(k).
U.S. District Judge Ivan L.R. Lemelle sentenced BAKER to a term of imprisonment of 70 months, 3 years of supervised release, and a $100 mandatory special assessment.
According to court documents, BAKER conspired with others to conceal a Ruger 9mm handgun and a Hi-Point 9mm handgun with the intent to impair their availability for use in an official proceeding. The firearms were related to a conspiracy to distribute and possess with intent to distribute methamphetamine.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, and the Terrebonne Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys James S.C. Baehr and J. Ryan McLaren were in charge of the prosecution.
Houma Man Sentenced to 15 Years for Cross-Country Methamphetamine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that AKARI WILLIAMS, age 34, a resident of Houma, was sentenced today by U.S. District Judge Susie Morgan to 188 months in prison for charges stemming from a conspiracy to mail methamphetamine from California to south Louisiana for distribution.
WILLIAMS was tried in November 2016 and he was found guilty after a four-day trial. According to evidence received at trial, WILLIAMS and two other men from south Louisiana conspired to distribute methamphetamine. One of them would fly to southern California to arrange for the purchase of methamphetamine. The package would then be sent to residents in the Houma area who were friends or family of WILLIAMS. The San Bernardino Sheriff’s Department intercepted one package that contained 1.3 kilograms of methamphetamine that tested to be 98.7% pure. The Terrebonne Parish Sheriff’s Department took possession of that package and executed a controlled delivery during which WILLIAMS and another conspirator were arrested. In total, witnesses testified that, during this conspiracy, WILLIAMS received at least five kilograms of similarly pure methamphetamine for distribution in the Houma area.
The jury convicted WILLIAMS of both counts in which he was charged. Judge Morgan sentenced WILLIAMS to 188 months for conspiracy to distribute 500 grams or more of methamphetamine, and she gave him the same sentenced for possession with the intent to distribute 50 grams or more of methamphetamine. Judge Morgan also sentenced WILLIAMS to five years of supervised release as to each count. She ordered the sentences for both counts to run concurrently.
U.S. Attorney Evans praised the work of the Terrebonne Parish Sheriff’s Department and the United States Drug Enforcement Administration. U.S. Attorney Evans thanked the San Bernardino Sheriff’s Office and the Jefferson Parish Sheriff’s Department for their assistance in investigating this case. Assistant United States Attorneys Matthew Payne, Andre Jones, and Shirin Hakimzadeh handled the prosecution.
Houlton Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that John Martin, 39, of Houlton, Maine pleaded guilty today in U.S. District Court to illegally possessing firearms.
According to court records, between October and December 2016, the defendant purchased three pistols and two rifles from a business in Maine. On July 26, 2017, a search warrant was executed at the defendant’s residence and officers seized one of the rifles. The defendant was prohibited from possessing firearms because of an April 2016 conviction in Maine for misdemeanor domestic violence assault.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Houlton Police Department. This case is brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun crime. PSN Maine uses a targeted enforcement strategy for offenders who have prior domestic violence convictions.
Honduran Man Sentenced to Prison for Fraudulently Using Someone Else’s Social Security NumberRead the Press Release
A Honduran who illegally used someone else’ social security account number was sentenced today, to more than three months in federal prison.
Maximo Ernesto Torres, age 43, a citizen of Honduras illegally present in the United States and residing in Calmar, Iowa, received the prison term after a December 5, 2017, guilty plea to one count of misuse of a social security number.
At the guilty plea, Torres admitted he illegally used a social security account number not assigned to him for tax purposes. On May 8, 2017, Torres used a fake name and someone else’s social security number to complete federal W-4 tax forms and other employment paperwork in Lawler, Iowa. Torres used the same name and fraudulent identification documents to obtain employment in Lawler in 2012. Torres also used fraudulent identification documents to obtain work in Cedar Rapids, Iowa, in 2008 and 2009. Torres came to the attention of immigration officials in September 2017 after Torres attempted to register a vehicle under the fake name and social security account number.
Torres was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Torres was sentenced to 106 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Torres 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2079.
Follow us on Twitter @USAO_NDIA.
Hobbs Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Louis Garcia, 31, of Hobbs, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to drug trafficking and firearms charges. Garcia entered the guilty plea under a plea agreement that recommends a 15-year prison sentence followed by a term of supervised release to be determined by the court.
Garcia was arrested in Dec. 2017, on a criminal complaint charging him with committing drug trafficking and firearms offenses on Nov. 20, 2017, in Lea County, N.M. According to the criminal complaint, officers of the Hobbs Police Department found a loaded firearm, two ounces of methamphetamine, drug paraphernalia and $544 in Garcia’s vehicle during a routine traffic stop.
During yesterday’s change of plea hearing, Garcia pled guilty to a three-count felony information charging him with possession of methamphetamine with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. In entering the guilty plea, Garcia admitted that on Nov. 20, 2017, he possessed approximately 54 grams of a mixture containing methamphetamine and a loaded handgun for protection in relation to his drug trafficking activity. Garcia admitted that he was prohibited from possessing firearms or ammunition because of his prior methamphetamine trafficking conviction in 2007.
Garcia remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Hobbs Police Department and is being prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Hawaii Man Arrested for Decade-Long Scheme to Defraud Banks and Investment FirmsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that LAWRENCE H. WOLF, a/k/a “Larry,” was arrested yesterday for defrauding banks and financial institutions around the country. WOLF was presented today in the U.S. District Court for the Southern District of Texas, before U.S. Magistrate Judge Dena Hanovice Palermo.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Lawrence Wolf swindled and attempted to swindle banks around the country out of millions of dollars while masquerading as an oil and gas tycoon. Now, thanks to the dedicated work of our partners at the FBI, Wolf’s alleged scheme has finally run dry.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “In lieu of actual collateral, Wolf, as alleged, offered lies in exchange for multimillion-dollar loans and credit opportunities that served to advance his own interests. At the expense of the victim firms, Wolf made lavish purchases with this illicitly obtained money, ultimately owing one firm more than $13 million. Wolf’s arrest brings us one step closer to restoring assets to the victims of this fraud.”
According to the allegations in the Complaint filed yesterday in Manhattan federal court:[1]
LAWRENCE H. WOLF defrauded, and attempted to defraud, financial institutions and an investment firm by engaging in a scheme (the “Oil Scheme”) to solicit multimillion-dollar loans and credit facilities by pledging oil and gas assets as collateral. The assets WOLF typically pledged included interests in eight particular wells drilled into a subsurface oil and gas formation in Natrona and Fremont Counties in Wyoming (the “Wyoming Wells”). Specifically, WOLF would pledge royalty interests in income from the extraction of oil and gas from the Wyoming Wells (the “Wyoming Wells Royalty Interests”).
In truth, however, a family partnership (the “Family Partnership” or “Partnership”), not WOLF, owned the Wyoming Wells Royalty Interests. WOLF did not have any interest in, or have legal association or business affiliation with, the Family Partnership.
In investigating the Oil Scheme, the FBI has identified at least five different banking or investment firms (Victim Firms 1 through 5, collectively, the “Victim Firms”) that WOLF deceived as part of his scheme. In connection with negotiations with the Victim Firms, WOLF repeatedly made false representations about his wealth or assets, and repeatedly transmitted to Victim Firms false and forged documents – ranging from bank account balance statements to tax filings to deed assignments – in furtherance of the Oil Scheme. WOLF sought to avoid detection of the Oil Scheme by obtaining new funds to cover old liabilities. Typically, as one loan approached maturity, WOLF approached another lender, expressed interest in moving his oil and gas business to a new bank, and negotiated another credit facility.
The Oil Scheme succeeded for years. On or about June 5, 2008, WOLF executed a promissory note with Victim Firm-1 establishing an approximately $3.5 million credit facility. On or about March 27, 2014, WOLF executed a promissory note with Victim Firm-2 establishing an approximately $40 million line of credit. On or about July 9, 2014, WOLF executed a credit agreement with Victim Firm-3 establishing an approximately $7 million credit facility. On or about July 31, 2015, WOLF and Victim Firm-3 executed a revised credit agreement expanding the loan facility to $13 million.
In or about October 2016, WOLF attempted to continue the scheme by seeking a loan from Victim Firm-4. After Victim Firm-4 caught WOLF misrepresenting his relationship to the Family Partnership, WOLF tried obtain credit financing from Victim Firm-5, a global investment firm headquartered in New York. When Victim Firm-5 discovered WOLF’s reliance on forged documents, Victim Firm-5 contacted law enforcement.
WOLF utilized fraudulently obtained funds, in part, to spend on lavish personal expenses, including an approximately $63,000 purchase at an art gallery on August 3, 2015, an approximately $66,000 purchase on November 12, 2015, through a “VIP Concierge” service, an approximately $17,500 purchase on December 28, 2015, at Cartier, and numerous purchases of private jet services.
As of February 7, 2018, WOLF owed Victim Firm-3 more than approximately $13 million.
* * *
WOLF, 57, of Hawaii, is charged with one count of wire fraud affecting financial institutions and one count of aggravated identity theft. The wire fraud count carries a maximum penalty of 30 years in prison. The aggravated identity theft count carries a mandatory sentence of two 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 defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Hartford Man Sentenced to 5 Years in Prison for Threatening Judge, Lying to Federal InvestigatorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DUSAN MLADEN, also known as David Mladen, 63, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for threatening a U.S. Bankruptcy Court judge and lying to federal law enforcement officers investigating the crime. Judge Meyer also ordered MLADEN to pay a $20,000 fine.
According to court documents and statements made in court, MLADEN was a litigant in a proceeding pending before the U.S. Bankruptcy Court in the District of Connecticut, captioned In re: Eternal Enterprise, Inc. MLADEN formerly owned Eternal Enterprise, Inc., which owns several residential apartment properties in Hartford, and he had continued to be active in the management and decision making for the company while it was in bankruptcy.
On July 5, 2017, the judge presiding over the Eternal Enterprise matter discovered in the mailbox of her residence an anonymous handwritten note containing the phrases “BACK OFF,” “YOU ARE OVERSTEPPING AUTHORITY” and “JUST WARNING FOR NOW.”
On July 10, the judge received a phone call that had been placed to her home phone number. During the call, the caller stated that he had visited the judge’s house last week and “I left a message for you.” He said that he wanted her to file an order tomorrow “extending the deadline to September 30,” and “then maybe everything will be ok.” Although the caller refused to identify himself, the judge recognized the voice as MLADEN’s. The U.S. Marshals Service subsequently confirmed that the cell phone used to make the call was at a location in the vicinity of MLADEN’s residence, and that it had been purchased by MLADEN under a fictitious name.
On July 11, deputy U.S. Marshals interviewed MLADEN at his residence. During the conversation, MLADEN denied having gone to the judge’s house the previous week and having called the judge on July 10, and he stated that he did not have the judge’s phone number. Each of these statements was false. Pursuant to a court-authorized search of MLADEN’s car, the U.S. Marshals discovered that the judge’s home address was programmed into the defendant’s GPS unit.
The investigation also revealed that MLADEN had a gun with him when he delivered the threatening note to the judge’s home.
MLADEN has been detained since his arrest on July 11, 2017. On October 13, he pleaded guilty to one count of making a false statement to a federal law enforcement agent.
This matter was investigated by the U.S. Marshals Service with the assistance of the Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney William J. Nardini.
Harrison County man sentenced for illegal firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Paul Crofford, of Salem, West Virginia, was sentenced today to 18 months incarceration for the unlawful possession of a firearm, United States Attorney Bill Powell announced.
Crofford, age 35, pled guilty to one count of “Unlawful Possession of a Firearm” in October 2017. Crofford, having previously been convicted of a felony in Smith County, Texas Circuit Court, admitted to possessing a 12-gauge shotgun in January 2017 in Harrison County, West Virginia.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anmoore Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harrison County man sentenced for firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Matthew Smith, of Clarksburg, West Virginia, was sentenced today to 36 months incarceration for a firearm charge, United States Attorney Bill Powell announced.
Smith, age 40, pled guilty to one count of “Unlawful Possession of a Firearm” in October 2017. Smith, having been previously convicted of a felony and a misdemeanor in the Circuit Court in Harrison County, West Virginia, admitted to possessing a .357caliber revolver in Harrison County in September 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Hammonton Man Charged with Enticement of A MinorRead the Press Release
Joseph Picchi, 49, of Hammonton, NJ, was charged today by Indictment[1] with one count of enticement of a minor announced United States Attorney Louis D. Lappen. The indictment alleges that on or about July 20-21, 2017, attempted to entice a minor online, who he believed had not attained the age of 18 years, to engage in sexual activity, for which any person could be charged with a criminal offense.
If convicted the defendant faces a maximum possible sentence of lifetime imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), the Borough of Conshohocken Police Department, and the East Norriton Police Department and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Greenville Man Sentenced in Federal Court on Gun ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Dustin Gregory Martin, age 47, of Greenville, was sentenced in federal court in Greenville for felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). United States District Judge Michelle Childs imposed a sentence of 115 months followed by three years of supervised release.
Evidence presented at the change of plea hearing established that on April 5, 2017, Greenville County Sheriff’s Deputies responded to a motel room on Augusta Road in reference to locating a wanted person. Martin was in the room when the Deputies arrived and a Glock .9mm pistol was seized from under the pillow on the bed in the room.
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. This case is part of the Real Time initiative. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
The Real Time initiative is part of South Carolina’s continued application of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Greensburg Drug Lab Owner and Kentucky Psychiatrist Charged in Kickbacks for Referrals SchemeRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pa., and a resident of Louisville, Ky., were indicted by a federal grand jury in Pittsburgh on a charge of conspiracy, United States Attorney Scott W. Brady announced today.
The indictment, returned on February 21, named William J. Hughes, 70, of Pittsburgh, Pa., and Dr. Varanise C. Booker, 62, of Louisville, Ky.
According to the indictment presented to the court, Universal Oral Fluid Labs (UOFL) was a clinical drug testing and drug screening lab located in Greensburg, Pa. William J. Hughes was the owner and operator of UOFL. Dr. Varanise C. Booker was a Kentucky licensed physician in the area of psychiatry, who owned and operated Family and Children Behavioral Health Services, in Louisville, Ky.
Both Dr. Booker and UOFL were enrolled providers in the Medicare program and the Kentucky Medicaid program. As a condition of becoming a Medicare and/or Medicaid provider and being authorized to bill Medicare and/or Medicaid, Dr. Booker and UOFL were required to certify on their enrollment applications, Medicare Form 885B, that they would comply with all applicable federal and state laws, regulations, policies, procedures, and program requirements.
UOFL billed, and was paid by, Medicare and KentuckyMedicaid for performing drug tests and related services for Medicare and Medicaid beneficiaries who were referred to UOFL by physicians enrolled in the program, including Dr. Booker. UOFL also billed, and was paid by, various private health care insurance companies in the business of providing health care insurance to individuals and entities under various insurance policies, pursuant to which the private insurers paid UOFL for drug tests and related services performed for insureds who had been referred to UOFL by physicians.
From in or around October, 2011, and continuing thereafter until at least August, 2013, Dr. Booker conspired with Mr. Hughes and others to commit offenses against the United States, that is, to solicit and receive remuneration, directly and indirectly, overtly and covertly, in cash and in kind, namely kickbacks, from Mr. Hughes and UOFL in return for referring patients to UOFL for the furnishing and arranging for the furnishing of items and services, that is, the referral of patient lab work, for which payment was made in whole or in part under a federal health care program,
namely, Medicare and Medicaid, contrary to Title 42, United States Code, Section 1320a-7b(b)(1)(A).
Dr. Booker received cash payments from Mr. Hughes and UOFL in exchange for referring Medicare and Medicaid patients to UOFL. Likewise, Dr. Booker received monthly checks from Mr. Hughes/UOFL in exchange for referrals, including Medicare and Medicaid referrals. Mr. Hughes and Dr. Booker also agreed on the value of the "kickbacks" that Mr. Hughes/UOFL would pay Dr. Booker for each referral of lab work sent to UOFL by Dr. Booker. Specifically, the monthly "kickback" checks Mr. Hughes paid to Dr. Booker were paid pursuant to the terms of a "Joint Venture Agreement" that Dr. Booker entered into with Mr. Hughes/UOFL. Under this "Joint Venture Agreement," Dr. Booker referred her patients, including Medicare and Medicaid beneficiaries, to UOFL for saliva drug testing. Mr. Hughes/UOFL, in turn, billed third-party payors, including Medicare and Medicaid, for such tests, and then "kicked back" to Dr. Booker, for each referred patient, reimbursement amounts for the tests that exceeded the agreed upon threshold of $150.00. Dr. Booker received these "joint venture" payments from Mr. Hughes in exchange for the referrals Dr. Booker provided to UOFL, and not in exchange for the performance of any other services.
Between September, 2012 and August, 2013, Dr. Booker received $843,242.31 in "kickbacks" from Mr. Hughes/UOFL for referrals. UOFL then received millions of dollars from third party payors (including Medicare), based on Dr. Booker’s referrals.
The law provides for a maximum sentence, for each defendant, of five years in prison and a fine of $250,000 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 Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service-Criminal Investigation, and the Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted this investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgians sentenced to prison for scheme to purchase luxury vehicles using stolen identitiesRead the Press Release
ATLANTA – Nadir Anwar Jabbar and Scarlett Capri King have been sentenced to federal prison for conspiring to defraud various car dealerships and car loan financing institutions by using stolen identities to purchase luxury vehicles.
“The five victims in this case never knew their personal information had been compromised, nor did they know of the potential damage to their credit,” said U.S. Attorney Byung J. “BJay” Pak. “Jabber and King sought over a million dollars in riches on the backs, and credit, of the victims. They thought, as all thieves do, that they would get away undetected. Fortunately, they were discovered and will now serve time in a federal prison. As criminals get more creative, encourage every citizen to regularly check their credit and closely monitor their accounts for any suspicious activity.”
“Through no fault of their own, five unknowing victims personal lives have been disrupted for years as they try to recover their identities and financial security,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “That is why the FBI and the U.S. Attorney’s Office are determined to prosecute suspects like Jabbar and King, and any others who will try steal the identities of innocent persons.”
According to U.S. Attorney Pak, the charges and other information presented in court: From October 2013 to May 2014, Jabbar and King ran a scheme to defraud car dealerships and car loan financing institutions by using stolen identities to purchase luxury vehicles. The defendants targeted out-of-state dealerships and carried out their scheme without visiting dealerships by using the Internet, e-mail, phone and mail to submit fraudulent information.
They directed car dealerships to mail paperwork to various addresses in Georgia and Florida and provided forged documents to support the loan applications. The defendants also arranged for the delivery of the vehicles to various addresses in metro Atlanta. Jabbar used a network of runners to pick up the stolen vehicles. King fraudulently notarized documents to support the fraudulent loan applications and assisted with picking up vehicles. In total, 14 cars were purchased using stolen identities, with a total loss of approximately $1.1 million dollars.
Nadir Anwar Jabbar, 44, of Ellenwood, Georgia, has been sentenced to seven years in prison, three years of supervised release, and ordered to pay $209,734.13 in restitution. Jabbar was convicted on November 8, 2017, after he pleaded guilty.
Scarlett Capri King, 40, Stone Mountain, Georgia, has been sentenced to two years, seven months in prison, one year of supervised release, and ordered to pay restitution in the amount of $6,000. King was convicted on November 8, 2017, after she pleaded guilty.
This case was investigated by the FBI.
Assistant U.S. Attorney Bernita B. Malloy and Special Assistant U.S. Attorney Diane Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fulton Residents Among 10 Defendants Sentenced for $6.6 Million K2 ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that six Fulton, Mo., residents were among 10 co-defendants sentenced in federal court for their roles in a conspiracy to distribute more than $6.6 million of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.
Jason Lee Houston, 38, of Fulton, was sentenced by U.S. District Judge Stephen R. Bough on Wednesday, Feb. 21, 2018, to seven years in federal prison without parole. Co-defendant Raja Amer Nawaz, also known as “Rex,” 43, of Roseville, Calif., was sentenced to eight years in federal prison without parole.
Both Houston and Nawaz pleaded guilty to conspiracy to commit mail fraud, which was related to the distribution of synthetic cannabinoids. Houston also pleaded guilty to participating in a money-laundering conspiracy.
Nawaz and other conspirators in California sold synthetic cannabinoids to several Calloway County businesses. Houston, one of the owners of those businesses, admitted that he and other co-conspirators received at least 251 shipments of synthetic cannabinoids, primarily from Nawaz but also from other co-conspirators. According to court documents, the conspiracy generated $6,656,843 in gross proceeds.
The packages of synthetic cannabinoids bore misbranded labels that misidentified the contents as “incense,” “aroma therapy” or “potpourri” that were “not for human consumption.” In fact, these products were drugs intended for human consumption as a drug. Conspirators mislabeled packages of synthetic cannabinoids for the purpose of avoiding government regulation over these drugs, and to protect the continued sale of these drugs.
Houston and Nawaz were among 10 defendants who were sentenced in separate hearings on Wednesday, Feb. 21, 2018. All 13 defendants in this case have pleaded guilty.
Curtis Whayne Gonzales, 57, and Michael James Butler, 41, both of Sacramento, California, were each sentenced to six months in prison. Shawn Michael Browning, 27, Timothy Christopher Sandfort, 31, Joshua Adam Sheets, 32, and Brandon Derek Rader, 33, all of Fulton, were each sentenced to three months in prison. Dara Leanne Shirley, 31, of Fulton, was sentenced to five years of probation. Nawaz’s wife, Sheila Marie Nawaz, 41, of Roseville, was sentenced to one year of probation.
Casey Dewayne Miller, 33, of Columbia, Mo., was sentenced on Nov. 30, 2017, to nine months in prison. Billie L. Bruce, 37, of Jefferson City, Mo., was sentenced on Feb. 9, 2017, to time served. Aleksandr Polyanskiy, 35, of Sacramento, pleaded guilty and awaits sentencing.
Houston, Sandfort, Rader, Shirley, Miller and others operated First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto. First Stop Last Stop Pawn & Aromatherapy represented itself as a “pawn shop” and “potpourri store.” Inscentives Resale was represented to be a “buy, sell, and trade business.” Inscentives Auto held a Missouri motor vehicle dealer’s license. Browning, Sheets, Bruce and others operated Esscentials Resale and S&J Tobacco.
Inscentives Resale sold synthetic cannabinoids from locations in Auxvasse, Mo., and Fulton. Esscentials Resale and S&J Tobacco sold synthetic cannabinoids from locations in Holts Summit, Mo.
Between Jan. 16, 2013, and April 18, 2015, Nawaz received at least $1,986,442 as payment for synthetic cannabinoids from Houston, Sandfort, and Rader, through First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto.Between Jan. 16, 2013, and April 18, 2015, Nawaz received at least $932,965 as payment for synthetic cannabinoids from Browning and Sheets through Esscentials and S&J Tobacco.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.
Former Soldier Stationed at Fort Bragg Pleads Guilty to Cigarette SmugglingRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday in federal court, before United States District Judge Terrance W. Boyle, JONATHON REX LEACH, 33, of Raleigh, pled guilty to one count of Conspiracy to Trafficking in Contraband Cigarettes.
LEACH was indicted on November 21, 2017, along with 4 others members of this criminal enterprise.
During the defendant’s guilty plea hearing, the Government summarized the evidence supporting the defendant’s guilty plea. LEACH, a former member of the U.S. Army, participated in an organized contraband cigarette smuggling enterprise operating between Fort Bragg, North Carolina and New York, New York. LEACH is one of three soldiers who used their privileges as a member of the United States Armed Forces to purchase over 47,000 cartons of cigarettes at AAFES (Army Air Force Exchange Service) or Commissary stores on Fort Bragg. After purchasing the cigarettes, LEACH along with his co-conspirators would transport the cigarettes to a storage facility in Fayetteville or Raleigh, where other members of this criminal enterprise were waiting. LEACH helped package the cartons of cigarettes into suitcases that would be loaded onto commercial passenger buses or mailed via UPS to New York City. This organization also utilized tractor trailers to transport the cigarettes to New York City.
Between April 16, 2014 and November 25, 2015, more than 47,587 cartons of cigarettes were purchased at Fort Bragg by LEACH and other soldiers. These cigarettes were then transported to New York City for resale, resulting in the evasion of New York State and New York City excise taxes totaling $2,783,840. In addition, by purchasing these cigarettes on Fort Bragg, $158,642 of North Carolina sales tax was avoided.
At sentencing, the defendant faces a maximum of 5 years imprisonment and $250,000.00 fine.
The Internal Revenue Service Criminal Investigation, Department of Homeland Security, and the Defense Criminal Investigative Service (DCIS) investigated the case. Assistant United States Attorney Susan B. Menzer is prosecuting this case on behalf of the government.
Former Seattle Resident Pleads Guilty to Federal Crime for Use of ‘Molotov Cocktail’ at May Day 2016 ProtestRead the Press Release
A former Seattle resident pleaded guilty today in U.S. District Court to unlawful possession of a destructive device for making and throwing bottles filled with gasoline at police officers on May 1, 2016, announced U.S. Attorney Annette L. Hayes. WIL CASEY FLOYD, 33, of Elkhart Lake, Wisconsin, was arrested in April 2017, after a lengthy investigation that linked him to a so-called ‘Black Bloc’ of protestors who threw unlit incendiary devices at Seattle Police during a May Day protest. FLOYD faces up to ten years in prison when sentenced by Chief U.S. District Judge Ricardo S. Martinez on June 1, 2018.
According to the plea agreement and other records in the case, FLOYD went online to research building Molotov cocktails. He purchased the necessary supplies and constructed six of the explosive devices using beer bottles. He placed the bottles filled with gasoline in a black bag. FLOYD dressed in black, wore a black hood and a gas mask and joined the protest on the evening of May 1, 2016. FLOYD threw five of the unlit destructive devices at Seattle Police Officers. One of the Molotov cocktails thrown at police shattered at the feet of an officer and ignited his trousers when a flash-bang grenade went off. The officer suffered burns to his leg. FLOYD dropped the bag containing one remaining bottle of gasoline and changed his clothes and appearance before police could arrest him. The evidence left at the scene on 4th Avenue South and South Seattle Boulevard and a variety of videos and ultimately helped identify FLOYD as a suspect.
Under the terms of the plea agreement, prosecutors agree to recommend a sentence of no more than 37 month in prison. The ultimate sentence will be determined by Judge Martinez.
The case was investigated by the FBI’s Joint Terrorism Task Force and the Seattle Police Department, both through its membership on the JTTF and with additional investigative groups.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Tom Woods.
Former Research Oceanographer Sentenced for Accepting a Salary from the People’s Republic of ChinaRead the Press Release
A former research oceanographer in the Atlantic Oceanographic and Meteorological Laboratory (AOML) of the National Oceanic and Atmospheric Administration (NOAA), an agency of the U.S. Department of Commerce, has been sentenced for accepting a salary from the People’s Republic of China.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, George Lee, Special Agent in Charge, U.S. Department of Commerce (DOC), Investigations and Threat Management Division, Duane Townsend, Special Agent in Charge, U.S. Department of Commerce, Office of Inspector General (DOC-OIG), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court documents, Chunzai Wang, 56, of Miami, was one of the foremost experts on ocean-atmosphere interaction, climate change, and hurricanes in the world. NOAA is an agency of the United States Department of Commerce. While a NOAA/AOML employee, Wang knowingly and willfully received a salary for his services as an employee of NOAA/AOML, from the People’s Republic of China, Changjiang Scholars Program, in violation of Title 18, United States Code, Sections 209(a) and 216(a)(2).
Specifically, beginning in 2010, and while employed at NOAA, Wang entered into contractual agreements to work on China’s Changjiang Scholars Program, Thousand Talents Program, and was also involved in China’s 973 Program which mobilizes scientific talents to strengthen basic research in line with national strategic targets of the People’s Republic of China.
Wang was sentenced to a term of time served.
Mr. Greenberg commended the investigative efforts of the United States Department of Commerce and the FBI. The case was being prosecuted by Assistant United States Attorney Michael Walleisa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Radnor Township Board of Commissioners President IndictedRead the Press Release
PHILADELPHIA – The federal indictment against Philip Ahr, a/k/a “DaddyX” and “DaddyXX,” of Radnor, Delaware County, PA, was unsealed today in federal court. The indictment charges Ahr with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography, all stemming from his trafficking in hundreds of images and videos of child pornography on the Internet. The indictment charges Ahr with committing these crimes for almost three years, beginning in 2013.
Ahr’s initial appearance in federal court was held today. The Honorable Lynne A. Sitarski detained him on the Government’s request pending a detention hearing scheduled for February 26, 2018.
If convicted, Ahr faces a statutory maximum sentence of 100 years’ incarceration, a 5-year mandatory minimum sentence of imprisonment, 5 years up to a lifetime of supervised release, a $1,250,000 fine, and $10,500 in special assessments.
The case was investigated by the FBI, Task Force Officer Kenneth Bellis and Special Agent Jennifer Morrow, in conjunction with the Delaware County District Attorney’s Office and the Internet Crimes Against Children Unit (ICAC). It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Former Nassau County Chief Deputy County Executive Indicted for Obstruction of Justice and Lying to the FBIRead the Press Release
Earlier today, a two-count indictment was unsealed in federal court in Central Islip, New York, charging Richard “Rob” Walker, the former Chief Deputy County Executive under Nassau County Executive Edward Mangano, with obstruction of justice and making false statements. Walker’s arraignment on the indictment will take place at 12:00 p.m. this afternoon before United States Magistrate Judge Anne Y. Shields in Courtroom 830.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, the defendant Walker, while holding public office, attempted to obstruct a grand jury investigation and then lied to the FBI,” stated U.S. Attorney Donoghue. “Lying and obstructing justice by those who are sworn to serve the public will never be tolerated. This Office, together with our law enforcement partners, is committed to holding officials who violate the public trust accountable for such crimes.” Mr. Donoghue expressed his thanks to Internal Revenue Service Criminal Investigation for its help during the investigation.
“As alleged, Rob Walker, while serving as a public official, accepted money from a contractor who was performing work for Nassau County. When he found out the FBI was hot on his trail, he tried to cover up his corrupt behavior, even going so far as to attempt to convince the contractor to lie to a grand jury,” stated FBI Assistant Director-in-Charge Sweeney. “Walker and others who engage in similar schemes are reminded today that there’s no way to undo what’s already been done.”
As alleged in the indictment and other court papers, in 2014, the defendant, who was the Chief Deputy Nassau County Executive at the time, accepted a $5,000 cash payment from a Nassau County contractor who was performing work for Nassau County pursuant to a county contract. In 2017, once the defendant learned that the United States Attorney’s Office for the Eastern District of New York and the FBI had opened a grand jury investigation of potential corruption in Nassau County government, including the circumstances surrounding the $5,000 payment made by the contractor to the defendant, the defendant spoke with the contractor on several occasions in an attempt to convince the contractor to conceal the existence of the $5,000 payment from the grand jury. Further, the defendant urged the contractor to provide a false explanation to the grand jury concerning the reasons for the payment. Finally, the defendant arranged to meet the contractor in a park in Hicksville, New York in order to return the $5,000. The FBI surveilled the meeting, and at that meeting, the defendant gave the contractor an envelope containing $5,000, which was then turned over to law enforcement. Thereafter, the defendant, when interviewed by the FBI concerning the payment, denied ever having received any cash payments from the contractor.
The charges announced today are merely allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Raymond A. Tierney and Lara Treinis Gatz are in charge of the prosecution.
The Defendant:
Richard Walker (also known as “Rob” Walker)
Age: 43
Hicksville, New YorkE.D.N.Y. Docket No. 18-CR-087 (JMA)
Former Logan County Schools Superintendent indicted for fraud schemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that former Logan County Schools Superintendent Phyllis Doty, 68, of Logan, was indicted by a federal grand jury today for charges relating to a scheme to defraud the Logan County Board of Education of money and property. U.S. Attorney Stuart was joined in the announcement by officials from the FBI and the West Virginia Legislature Commission on Special Investigations.
“The numbers as alleged in the indictment are not massive in scale, but corruption in any amount, the theft of precious taxpayer dollars, violations of the public trust by public officials is a true cancer to society,” said United States Attorney Mike Stuart. “There is no such thing as a little bit of public corruption. We will not tolerate it. Standing in defiance of public corruption is a fundamental priority for this United States Attorney and the United States of America,” continued Stuart.
U.S. Attorney Stuart commended the investigative work of the FBI and the West Virginia Legislature Commission on Special Investigations and Assistant United States Attorney Gabriele Wohl for handling the prosecution.
The indictment alleges that Doty, who retired from Logan County Schools in 2016, stole over $12,000 in electronic devices purchased by the Logan County Board of Education and used public funds to decorate and supply her son's August 2015 wedding. The scheme began in 2011 when the Logan County Board of Education regularly purchased Apple iPods and iPads for Logan County Schools staff. Between 2011 and 2015, Doty is alleged to have stolen at least 20 of these devices, and either sold them on eBay for profit, or gave them to family members as gifts. Doty directed the purchase of the devices or purchased them herself, and then sold them online or gave them away to her family.
According to the indictment, the scheme included ordering over $6,500 in wedding supplies with Logan County Board of Education money. These items included bread baskets, easels, drink dispensers, columns, and decorative urns. Doty claimed that these items were requested by Logan County teachers, however, the teachers knew nothing of these orders and the items mostly remained in boxes until they were used for the wedding. It is further alleged that Doty gave some of these items away to the wedding planner following the wedding.
The indictment also accuses Doty of covering up her scheme once an investigation into suspicious spending became public. It is alleged that the cover-up occurred by Doty attempting to influence a Logan County Board of Education staff member of the falsehood that she had permission to take iPods purchased by the Logan County Board of Education, and then by Doty asking the wedding planner to return the gifted items to a Logan County school.
The indictment charges Doty with two counts of wire fraud, which carries a penalty of up to 20 years in federal prison for each count; two counts of theft from a program receiving federal funds, which carries a penalty of up to 10 years in federal prison for each count; and one count of mail fraud, which carries a penalty of up to 20 years in federal prison.
Attached, please find the indictment.
Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Former Business Owner Pleads Guilty to Impeding the Due Administration of the Internal Revenue CodeRead the Press Release
GRAND JUNCTION – Sergio Murillo, age 42, of Aurora, Colorado pled guilty to obstructing or impeding the due administration of the Internal Revenue Code on February 22, 2018, before U.S. District Court Magistrate Judge Gordon P. Gallagher, who recommended that the U.S. District Court accept the plea. The guilty plea was announced by the United States Attorney’s Office for the District of Colorado and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Murillo was previously indicted by a federal grand jury in Grand Junction on April 6, 2017, for tax evasion. As part of his change of plea, Murillo agreed to be charged by information and plead guilty to the charge of obstructing or impeding the due administration of the Internal Revenue Code.
According to the information and plea agreement, Sergio Murillo owned and was the sole proprietor of Mountain High Window Cleaning, which cleaned windows, removed snow and provided a few other real estate related services in Colorado. From 2007 through 2010, Murillo instructed Mountain High’s clients to make checks payable in his name rather than making them payable to Mountain High. He then deposited most of the checks into bank accounts under his name, as opposed to a bank account in the name of his business. For these same calendar years, he filed personal tax returns that did not report his true income. During audits, Murillo falsely told an IRS Revenue Agent that his clients determined whether to make checks payable to Mountain High or to him, and he also falsely told another Revenue Agent that all of Mountain High’s income was deposited into one bank account and he had no other bank accounts.
On February 22, 2018, Murillo admitted in his plea agreement that the total tax loss stemming from his conduct is $188,578, plus interest.
Murillo is scheduled to be sentenced on May 7, 2018, at 9:00 a.m.
This case was investigated by Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Peter Hautzinger is prosecuting this matter for the United States.
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Finney County Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
KANSAS CITY, KAN. – A tax preparer from Finney County pleaded guilty Thursday to filing false federal tax returns, U.S. Attorney Stephen McAllister said. The defendant agreed to pay restitution of more than $397,000.
Marcelino Almaraz, 60, Holcomb, Kan., pleaded guilty to one count of aiding and assisting in the preparation of a false income tax return and one count of filing a false tax return. Almaraz, who owned La Popular, a convenience store in Holcomb, also owned Accounting Services, a business that provided tax preparation and accounting services. In 2016, he was charged in an indictment alleging that customers came to him because they had heard he prepared income tax returns that generated large federal income tax refunds.
In his plea, Almaraz admitted providing false information on tax returns. In one case, he prepared a return for a client claiming four grandchildren as dependents. In fact, the grandchildren lived with the man’s wife in Mexico. In another case, Almaraz filed a false return substantially understating his own business income.
Sentencing is set for May 14. He faces a penalty of up to three years in federal prison and fine up to $250,000 on each count. McAllister commended the Internal Revenue Service, Assistant U.S. Attorney Jabari Wamble, John Mulcahy and Ryan Raybould of the Justice Department’s Tax Division for their work on the case.
Felon Who Shot at Plant City Police Officers Ordered to Serve Statutory Maximum Sentence of 15 YearsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Isaac Thomas (Winter Haven, 25) to 15 years in federal prison for possessing a firearm as a convicted felon and for possessing a firearm in a school zone. Judge Merryday said Thomas is an immediate and lethal threat to the community and stated that the court had only “one intelligent” option, before sentencing him to the statutory maximum sentence. Thomas pleaded guilty on August 24, 2017.
According to evidence presented during the six-hour sentencing hearing, in January 2017, Thomas and several others were ejected from a Plant City High School basketball game for fighting. They then moved to a parking lot near the school, where fighting again broke out. When officers from the Plant City Police Department responded to the scene in marked vehicles with lights and sirens activated, all but Thomas dispersed. He stood in the middle of the road as the officers arrived, aimed his weapon toward the oncoming vehicles, and fired. He then led the officers on a foot and high-speed vehicle chase that ended with Thomas’s vehicle crashing into a local business. Thomas then exited the damaged vehicle, pointed his firearm at another officer, and was ultimately shot in the buttocks.
This case was investigated by the FBI and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Felon Sentenced to Twelve Months for Illegal ReentryRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Sergio Cuandon-Alvarez (23, Mexico) to one year in federal prison for illegal reentry after deportation. He pleaded guilty on November 7, 2017.
According to court documents, Cuandon-Alvarez, a Mexican citizen, was removed from the United States on three occasions in 2013. On April 30, 2013, he was convicted of illegal entry, a federal misdemeanor.
Following his conviction, Cuandon-Alvarez again illegally reentered the U.S. and has been arrested numerous times resulting in convictions for driving under the influence, possession of cocaine, leaving the scene of an accident without giving information, careless driving, and operating a motor vehicle without a license. On August 28, 2017, after immigration officers encountered Cuandon-Alvarez following his arrest for driving under the influence with property damage or personal injury, he was charged with illegal reentry after deportation.
“This case is an example of ICE’s focus on smart, effective immigration enforcement that prioritizes criminal aliens,” said Michael W. Meade, acting field office director for the Miami Field Office of Enforcement and Removal Operations.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, both on assignment from the Office of Principal Legal Advisor, ICE, in the Middle District of Florida.
Federal prisoner sentenced for running a taxi service for escaped inmatesRead the Press Release
ATLANTA – U.S. Penitentiary inmate Deldrick D. Jackson has been sentenced to an additional one year, six months in federal prison for running an inmate taxi service and a contraband smuggling operation and with his fiancée Kelly Bass.
“Inmates who escape from prison threaten the safety of our communities and undermine our criminal justice system,” said U.S. Attorney Byung J. “BJay” Pak. “In this case, Jackson not only escaped from prison, but shockingly ran a contraband smuggling scheme and a for-profit taxi service for escaped inmates. To those inmates tempted to escape, when you are caught, the consequences will be severe.”
“Not only did Jackson escape from custody and smuggle contraband into a federal prison, but he and his fiancée facilitated the escape of other prisoners while profiting from it,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “This kind of audacity cannot be tolerated and this additional sentence should send a message to anyone inclined to attempt an escape.”
“Prison is where criminals go to be punished, not a place to take joyrides and commit even more crimes,” said Atlanta Police Chief Erika Shields. “I’m proud that our team worked closely with the FBI and the U.S. Attorney’s Office to ensure this activity was put to a stop.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the U.S. Penitentiary in Atlanta, Georgia, (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates.
In May 2013, Jackson was convicted in federal court of conspiring to distribute cocaine and conspiring to launder money. From July 2016 to April 2017, Jackson was assigned to USP Atlanta. Prison visitation records showed that Bass is Jackson’s fiancée.
From approximately November 2016 to April 2017, Jackson and Bass provided escaped inmates with transportation from USP Atlanta to nearby restaurants, hotels, or residences. For example, on January 28, 2017, Bass picked up Jackson and other escaped inmates from outside USP Atlanta, drove them to a nearby hotel, and hours later, returned Jackson and the other inmates to USP Atlanta. During the course of the conspiracy, Jackson and Bass also smuggled contraband into USP Atlanta to be sold to other prison inmate.
Finally, on April 13, 2017, Bass drove Jackson from USP Atlanta to a local fast food restaurant. Shortly thereafter, law enforcement officers stopped Bass’s vehicle and arrested Bass and Jackson. Upon searching the SUV, officers recovered two cell phones, 83 packs of cigarettes, and eight bottles of whiskey. In total, Jackson and Bass provided escaped inmates with transportation from USP Atlanta and/or smuggled contraband into the prison on approximately 15 occasions. Jackson and Bass received approximately $4,000 from the escaped inmates or their families in exchange for rides and from the purchase of contraband.
Deldrick D. Jackson, 41, of DeKalb County, Georgia, was sentenced to an additional one year and six months in prison – to be served after he completes his current ten years, eight month sentence for conspiring to distribute cocaine and conspiring to launder money. On May 16 and November 14, 2017, Jackson pleaded guilty to conspiracy to escape from custody and to escape from custody, respectively. He was indicted on April 25, 2017, on conspiratorial and substantive escape charges.
On September 13, 2017, Kelly M. Bass, 38, of DeKalb County, Georgia, was sentenced to six months in prison followed by eight months of home confinement. Bass pleaded guilty to conspiratorial and substantive escape charges on June 5, 2017. She was also indicted on April 25, 2017, on conspiratorial and substantive escape charges.
The FBI and Atlanta Police Department investigated this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Jury in San Antonio Convicts Senator Carlos Uresti and FourWinds Logistics Consultant Gary L. Cain on All ChargesRead the Press Release
In San Antonio today, a federal jury convicted San Antonio attorney and District 19 Texas State Senator Carlos I. Uresti and his business partner, Gary L. Cain, on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars, announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio.
Following a four-week-long trial, jurors convicted Uresti and Cain of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Jurors also convicted Uresti of five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker. Jurors also convicted Cain of seven counts of engaging in monetary transactions with property derived from specified unlawful activity. Prior to jury selection, former FourWinds Logistics, Inc. (FourWinds) Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.
“Today’s verdict powerfully reaffirms the core American belief in equal justice under law—a belief so important to our system of government that it is engraved on the front of the U.S. Supreme Court. No matter who you are, no matter your title or status or position in the community, you will be held accountable for your actions, particularly when you inflict harm on your fellow citizens. I could not be prouder of this Office’s prosecution team and our law-enforcement partners in achieving justice for the victims of the fraudulent investment scheme at the heart of this case,” stated United States Attorney John F. Bash.
“At the same time, this is in many ways a somber day for our community. A man who long held a position of public trust was found to have deceived those who placed their trust in him—for mere personal enrichment. So while I am deeply gratified that justice has been done in this case, I am concerned that the criminality revealed by today’s verdict could further erode the public’s faith in our democracy. For that reason, the public should know that this Office will relentlessly fight fraud and corruption by public officials,” Bash added.
Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production. Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds. Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes.
Evidence also showed that Uresti recruited investors under false pretenses by lying about investing his own money in FourWinds as well as failing to disclose his receipt of a commission and a percentage of the profits resulting from investments in FourWinds. Evidence also revealed that Uresti was not registered as a broker with the Securities and Exchange Commission (SEC).
Evidence and testimony also revealed that Uresti and Cain engaged in money laundering with the proceeds of wire fraud.
For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction. For each money laundering charge, the defendants face up to ten years in federal prison upon conviction. Uresti faces up to 20 years in federal prison upon conviction of being an unregistered securities broker. Uresti and Cain remain on bond pending sentencing scheduled for 1:00pm on June 25, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, Internal Revenue Service-Criminal Investigation (IRS-CI), Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
Federal Jury Finds Miami and Orlando Men Guilty of Multi-Kilo Cocaine Conspiracy, Trafficking, and Firearms ChargesRead the Press Release
Orlando, Florida – A federal jury has found five individuals guilty of conspiracy to distribute and to possess with the intent to distribute more than 5 kilograms of cocaine and more than 280 grams of “crack” cocaine. Jimmy Remy Fernetus (30, Miami), Edson Gelin (40, Orlando), Raymond Mike Ayap (Orlando, 41), Kissinger St. Fleur (36, Orlando), and Gerardson Norgaisse (33, Orlando) were found guilty of separate counts of distribution of cocaine or possession with the intent to distribute cocaine or “crack” cocaine. The jury also found Fernetus and Gelin guilty of two counts each of possession of a firearm in furtherance of a drug trafficking offense. Ayap, a citizen of Haiti, faces a minimum mandatory penalty of 10 years, up to life, in federal prison, and potential deportation from the United States. Because of their prior felony drug offenses, the remaining individuals each face a minimum mandatory penalty of 20 years, up to life, in federal prison. Fernetus and Gelin each face additional consecutive sentences for the firearms convictions. The sentencing hearings are scheduled for May 15, 2018.
According to court documents and evidence presented at trial, these individuals were members of a drug trafficking organization with ties to Miami. Fernetus and other conspirators sold cocaine and “crack” cocaine from two houses south of downtown Orlando. Gelin, who was stopped on the Florida Turnpike by law enforcement in June 2016 while heading toward Orlando with two kilograms of cocaine, had also been selling cocaine in Orlando. Fernetus and Gelin were armed with handguns when purchases were made from the houses. Gelin also later sold cocaine from a third house in Orlando. Ayap, St. Fleur, and Norgaisse each purchased distribution amounts of cocaine or “crack” cocaine on numerous occasions during the course of the investigation. Agents recovered multiple firearms, cocaine, drug paraphernalia, and thousands of dollars in cash during searches conducted at the three houses.
Members of the Orlando organization had also been expecting to receive at least a portion of the cocaine being transported from Haiti to Miami on a 160-foot cargo ship named the Lady Philomena, which was seized from the Miami River. On March 25, 2017, 47 kilograms of cocaine were unloaded from that ship.
Eric Jean Gilles (37, Miami), Ronny Joseph (33, Orlando), and Cristobal Sotomayor-Cebollero (32, Orlando) previously pleaded guilty to charges related to this investigation and are awaiting sentencing. The cocaine trafficked into Orlando was determined to originate from Miami. Numerous others have been convicted or are awaiting trial in related cases.
This case was investigated by the Drug Enforcement Administration and the Metropolitan Bureau of Investigation, with assistance from the Orlando Police Department, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Miami-Dade Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys E. Jackson Boggs Jr. and Shawn Napier.