Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 February 2018
Mexican National Sentenced for Immigration and Firearm OffensesRead the Press Release
On February 22, 2018, Edwin Vergara-Cedillo, 32, a citizen of Mexico, was sentenced to a term of 18 months of imprisonment, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Vergara-Cedillo pled guilty on November 7, 2017 to two federal charges, illegal reentry after deportation and possession of a firearm by an illegal alien. Vergara-Cedillo was sentenced to 18 months on each count, to be served concurrently.
At his change of plea hearing in November, Vergara-Cedillo admitted that he was an illegal alien and that he had been previously deported to Mexico. He also admitted that he had unlawfully possessed a handgun and ammunition at the time of his arrest.
Vergara-Cedillo was arrested by O’Fallon, Illinois police on July 2, 2017 for violating an order of protection. Police found and seized a handgun and ammunition from the console of the car which Vergara-Cedillo was driving. Vergara-Cedillo has been continuously confined in federal custody since his arrest in July.
The investigation which resulted in Vergara-Cedillo’s arrest and conviction was conducted by the O’Fallon, Illinois Police Department and by the Immigration and Customs Enforcement Agency (ICE). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Mexican Man Sentenced to Prison for Possession of Fraudulent Identification DocumentsRead the Press Release
A Mexican man who unlawfully possessed fraudulent identification documents was sentenced today to more than two months in federal prison.
Aldair Rodriguez, age 23, a citizen of Mexico unlawfully present in the United States and residing in Albuquerque, New Mexico, received the prison term after a January 3, 2018, guilty plea to unlawful possession of identification documents.
At the guilty plea, Rodriguez admitted he knowingly possessed fraudulent identification cards, specifically a social security card and a permanent resident card. These types of cards are prescribed by law as evidence of authorized stay or employment in the United States. The identification cards bore an alias name and the government-issued numbers on the cards belonged to other persons. The cards were found on October 22, 2017, during a search incident to arrest by the Cedar Falls Police Department on a state criminal charge.
Rodriguez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Rodriguez was sentenced to 73 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2087.
Follow us on Twitter @USAO_NDIA.
Memphis, Tennessee, Man Pleads Guilty to Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Chad Scates Tidwell, age 32, of Memphis, Tennessee pled guilty to Possession With Intent To Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine, or both.
The Indictment alleged that on or about December 4, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 kilograms or more of a mixture or substance containing a detectable amount of marijuana, a Schedule I controlled substance.The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Matthew Krueger Becomes United States Attorney for the Eastern District of WisconsinRead the Press Release
Matthew D. Krueger has taken the oath of office to become the United States Attorney for the Eastern District of Wisconsin. United States Attorney Krueger was nominated by President Donald Trump and confirmed by the U.S. Senate on February 15th. He took the oath of office from Chief United States District Judge William C. Griesbach this afternoon.
“It is truly an honor to serve as the United States Attorney for the Eastern District of Wisconsin,” said United States Attorney Krueger. “I am looking forward to working with the men and women of the United States Attorney’s Office and continuing our strong partnerships with local, state, and federal officials. Our community faces serious problems, including violent crime, too many deaths from opioids, human trafficking, and various fraud schemes. Working together with federal, state, and local partners, we’ll seek to improve the quality of life in eastern Wisconsin.”
As United States Attorney, Mr. Krueger is the top-ranking federal law enforcement official in the Eastern District of Wisconsin. The Eastern District consists of the 28 counties in the eastern portion of the state, and includes the cities of Milwaukee, Green Bay, Racine, Kenosha, Sheboygan, Oshkosh, and Appleton. He will oversee a staff of 77 employees, including 41 attorneys and 36 support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, firearms, narcotics, child exploitation, human trafficking, financial fraud, healthcare fraud, and public corruption. The office also represents the United States in affirmative and defensive civil cases, and collects debts owed to the United States.
Before taking office, United States Attorney Krueger was an Assistant United States Attorney in the Eastern District of Wisconsin. He has served in that role since 2013, first in the Civil Division and then in the Criminal Division. He prosecuted a variety of federal crimes, including firearm offenses, health care fraud, and other financial crimes. United States Attorney Krueger previously worked as an associate at Sidley Austin LLP in Washington, DC. He also served as a Bristow Fellow in the U.S. Department of Justice, Office of the Solicitor General. He clerked for the Honorable Paul V. Niemeyer of the United States Court of Appeals for the Fourth Circuit.
United States Attorney Krueger received his B.S., with honors, from the University of Wisconsin-Madison, and his J.D., summa cum laude, from the University of Minnesota Law School where he served as Editor in Chief of the Minnesota Law Review.
# # # # #
Maryland man guilty of selling heroin in Berkeley County, West VirginiaRead the Press Release
MARTINSBURG, WEST VIRGINIA –Christopher Wigfall, also known as “Frank,” of Randallstown, Maryland, was found guilty today by a jury of selling heroin in the Eastern Panhandle, United States Attorney Bill Powell announced.
Wigfall, age 38, was found guilty of two counts of “Distribution of Heroin,” and one count of “Possession with the Intent to Distribute Heroin.” Wigfall sold heroin in December 2014 in Berkeley County.
The trial began on Tuesday, February 20, 2018. The jury deliberated for less than two hours this morning before returning the guilty verdicts.
Wigfall is also facing an additional count of “Unlawful Possession of a Firearm.” He is accused of illegally possessing a .40 caliber pistol in March 2015 in Berkeley County. Wigfall is scheduled to go to trial on the firearm charge in March 2018.
Wigfall faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant U. S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland Man Pleads Guilty to Sending Threats Using FacebookRead the Press Release
Jacksonville, Florida – Seyed Ali Soroushjou (38, Cockeysville, Maryland) has pleaded guilty to sending threatening communications online via Facebook. He faces a maximum penalty of five years in federal prison; a sentencing date has not yet been set. Soroushjou has been in federal custody since his arrest.
According to court documents, on August 29, 2016, a Jacksonville resident (Person A) contacted law enforcement to report that she had received threatening messages through Facebook from an individual she did not know who had identified himself by the user name “MobyDick NahanghaVahshi.” A subsequent investigation identified the user as Soroushjou and revealed that he had sent the messages in response to a photograph that Person A had posted on her Facebook page of her posing with three officers from the New York Police Department. In his first message to the victim, sent on August 24, 2016, Soroushjou threatened to assault the officers depicted in the photo. In a second message three days later, Soroushjou graphically stated that he intended to sexually assault Person A.
Following the execution of a search warrant at Soroushjou’s home in Maryland, he was arrested. Agents also seized three computer devices that he had used to access Person A’s Facebook account.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
Major Gang Arrests Highlight Pioneering Collaborative State, Local, and Federal Violence Reduction InitiativesRead the Press Release
LITTLE ROCK—Multiple gang members are among the dozens of individuals arrested in a major law enforcement operation targeting violent criminals in central Arkansas. Thursday’s early-morning takedown highlights the coordinated work of federal, state, and local agencies to combat drug and gun crime in Little Rock, and is part of both new and continuing efforts by all law enforcement in the area to address the rise in violent crime.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Stephen G. Azzam, Special Agent in Charge of the New Orleans Field Office of the Drug Enforcement Administration (DEA), announced today’s arrests, as well the unsealing of 13 indictments and two complaints charging 49 individuals with dozens of federal gun and drug-trafficking crimes. The indictments were presented as part of a collaborative violent-crime reduction initiative in the greater Little Rock area.
The overall operation, led by the DEA and assisted by the FBI, resulted in 21 people arrested on Thursday morning and is the product of the combined efforts of the law enforcement agencies comprising the GET Rock task force. Early Thursday morning hundreds of officers from multiple agencies executed arrest warrants for the charged suspects. Nine defendants remain fugitives. Included in the arrests were multiple members of Little Rock’s two dominant gangs—Bloods and Crips. Agents also executed 11 search warrants, which resulted in agents seizing 21 illegally possessed guns, body armor, 9.6 pounds of cocaine, 4 ounces of methamphetamine, 7.2 ounces of crack cocaine 12 ounces of marijuana, 5 grams of heroin, 293 ecstasy pills, and 93 pint bottles of promethazine cough syrup. Agents also seized approximately $50,000 in drug proceeds, 4 cars, and 1 motorcycle.
This operation is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, and local law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
“Gangs use violence to try to assert a false sovereignty over our neighborhoods, but they will fail,” Attorney General Sessions said. “The Department of Justice is committed to reducing violent crime in America. That’s why we have restored our Project Safe Neighborhoods program, which customizes our crime reduction strategy in each of our 94 U.S. Attorney districts. Federal, state, and local law enforcement in Arkansas has prioritized dismantling gangs—and together we are producing results. Today’s arrests are the next steps toward taking back our streets.”
Hiland made clear that the people arrested in this operation are the type of criminal he is most determined to remove from our communities.
“A team of over 250 agents and officers from law enforcement agencies across our state came together this morning to begin the process of dismantling violent gangs and removing dangerous people from the streets, with the goal of making our community a safer place,” Hiland said. “These agents also took drugs and violent people off the street today—people we believe endanger the lives of law-abiding citizens and endanger the future of our children with their toxic influence. Since I took this position, I have said that targeting violent offenders will be a priority for this office, and we are committed to that priority. Today’s operation is a victory over gang, gun, and drug violence, but is just the start of what the combined resources of these law enforcement agencies can do.”
“These arrests should serve as a warning and send a clear message—we will relentlessly pursue these violent criminals and drug traffickers plaguing our communities and bring them to justice,” Special Agent in Charge Azzam said. “Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs. These dangerous criminals arrested today were responsible for infesting our communities with more than drugs—they also threatened our citizens with guns and violence. The DEA stands here today with our federal, state, and local law enforcement partners, confident that we have dismantled these violent drug trafficking organizations and made the streets in these communities a safer place to live.”
The DEA served as lead agency while working in conjunction with GET (Gang Enforcement Task Force) Rock during the operation. GET Rock was formed at the request of Arkansas Governor Asa Hutchinson in response to the escalation in gang and gun violence in Little Rock, highlighted by the July 1, 2017, mass shooting at the Power Ultra Lounge in Little Rock that injured 28 people. Nine central Arkansas law enforcement agencies—the U.S. Attorney’s office, FBI, DEA, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. Marshal’s Service, Little Rock Police Department (LRPD), Pulaski County Sherriff’s Office (PCSO), Arkansas State Police (ASP), and Arkansas Community Correction—comprise GET Rock, which is coordinated out of the FBI Little Rock field office and continues to serve as the clearinghouse for all gang-related law enforcement actions in Little Rock.
“With these arrests and indictments, we are serving notice that Arkansas will not tolerate the reign of terror by those who traffic in illegal drugs, illegal guns, and rule by intimidation,” Governor Hutchinson said. “I applaud the work of all of the agencies who participated in this investigation and dangerous round-up of suspects. Our newly formed GET Rock team has demonstrated that cooperation across agencies at all levels is an effective approach to identifying and apprehending gang members and others who threaten the lives of our citizens. These officers have taken great risks on our behalf, and I thank them on behalf of all those whose neighborhoods are a little safer today.”
“Violent street gangs, including the Wolfe Street Crips and the Monroe Street Hustlers, have a long history of crime and violence in the Little Rock community,” FBI Little Rock Field Office Special Agent in Charge Diane Upchurch said. “We are determined to hold accountable these individuals who have paralyzed our community. We appreciate and applaud the efforts of this amazing team of law enforcement agencies.”
Little Rock Mayor Mark Stodola, a former prosecutor, praised the city’s law enforcement officers in the successful operation.
“The impact of today’s arrests will go a long way toward bringing safety back to the streets of Little Rock,” Mayor Stodola said. “Our citizens deserve to live without fear, without the nightly crack of gunfire piercing the darkness of night. Drugs and guns are a deadly mix which often ends in a homicide. Those who insist on mixing the two with criminal activity must be taken off the streets. Our thanks to the 250 law enforcement officers from our federal, state and local law enforcement agencies who, with the actions taken today, are making our streets safer.”
Hiland announces new program designed to produce more federal prosecutions
On Thursday, the heads of federal, state, and local law enforcement agencies attended a press conference announcing these arrests, during which time Hiland also announced a major PSN initiative his office is implementing that is designed to marshal the combined resources of federal and state law enforcement to remove violent, repeat criminals from the streets of central Arkansas.
Overall, violent crime increased approximately 5.52% from 2016 to 2017 in Little Rock, including increases in homicides, rapes, and burglaries. The largest increase was in the number of aggravated assaults, which jumped from 2,229 in 2016 to 2,556 in 2017. Guns are used in a vast majority of these assaults.
At the press conference, Hiland introduced Joann Rhodes, a Little Rock grandmother who was nearly killed last Friday afternoon when a bullet pierced her windshield inches from her head while she was driving on 12th Street in Little Rock. Rhodes also lost a son to gun violence four years ago.
“In response to a continued spike in violent crime, the Little Rock Police Department joined resources with our local, state and federal partners,” LRPD Chief Kenton Buckner said. “Our collective efforts have resulted in a significant takedown of many individuals responsible for crimes in our community. Little Rock is grateful to everyone who has assisted to keep the capital city safe. We remain committed to pursuing the individuals responsible for heinous crimes in our city.”
Recognizing the need to address the acute and immediate threat that gun violence is having on our communities—which includes people like Ms. Rhodes—Hiland seeks to use the full force of his office and federal firearms statutes, which provide significant punishment for repeat offenders and felons who possess guns. Without similar punishments in the state system, it is prosecution in the federal system—which has no parole—that provides a recognizable deterrent for these violent criminals.
“To those who have held our communities hostage to your violence, to those who have declared war in our neighborhoods with little fear of retribution, we are coming for you,” Hiland said. “We will seek your removal by any means available to me under federal law. The announcement of this program is your warning—my office, along with the shared resources of all of our local, state, and federal partners—stands ready to do what needs to be done to take you off the streets, and make our communities safer places. Everyone in the law enforcement community shares this goal.”
Under this PSN initiative, the Eastern District of Arkansas will greatly increase its capacity to federally prosecute violent crimes involving guns and drugs by enlisting the help of attorneys currently working for various state offices. These attorneys will be deputized as Special Assistant United States Attorney’s (SAUSAs) and given authority to prosecute cases in federal court.
Six county prosecuting attorney’s offices (Pulaski, Faulkner, Saline, Jefferson, Lonoke, and White) have offered prosecutors to assist in federal court. Additionally, the Attorney General’s office and the Governor’s office have volunteered attorneys to serve as SAUSAs. In total, approximately 13 SAUSAs will initially serve the Eastern District of Arkansas, allowing the office to prosecute far more cases in federal court.
Hiland’s office has already begun increasing its caseload. In December and January, the U.S. Attorney’s office opened approximately 50 new gun cases, many of which originated with an arrest by a local police department. Thus far in February the office is reviewing another 20 gun cases, and Hiland pledges to work with the Pulaski County prosecutor’s office to review every gun arrest that occurs in Pulaski County for potential federal prosecution.
“I am proud to join U.S. Attorney Cody Hiland in the important fight against violent crime,” Arkansas Attorney General Leslie Rutledge said. “The addition of Special Assistant United States Attorneys will help law enforcement curtail unnecessary violence and lock criminals up for the gun crimes they commit. No Arkansan should live in fear and I am confident that prosecuting and removing dangerous criminals from our streets will make our neighborhoods safer.”
“This initiative will enhance coordination and cooperation among the local, state, and federal agencies tasked with keeping our communities safe, and in reducing gun violence in particular,” Pulaski County Prosecutor Larry Jegley said. “I can say with confidence that prosecutors throughout the counties of the Eastern District of Arkansas welcome this outreach effort and will put it to good use for the public we serve. The violence on our streets must stop, and this is a terrific effort to that end.”
Hiland’s gun initiative would not be possible without the assistance of both the local prosecuting attorney’s offices and the local police departments, as well as federal partners such as the ATF. Many of the cases these SAUSAs will prosecute in federal court will begin with arrests by the LRPD, PCSO, North Little Rock Police Department and the Arkansas State Police, and then move into the federal system with the help of the ATF. The ATF will provide expertise and the logistical and technical support of special agents to allow cases that began with state arrests to proceed in the federal system.
“ATF remains committed to the detection, investigation, and prosecution of individuals who would illegally possess and utilize firearms in crimes of violence,” ATF Little Rock Resident Agent in Charge Jeff Reed said. “We applaud this new effort to enforce federal gun laws on violent criminals who want to take the law into their own hands. ATF will work in lockstep with the United States Attorney’s Office to accomplish the removal of the threat posed by those individuals who would enforce their will upon the citizens of Arkansas by illegally possessing and using of firearms.”
The new SAUSAs are expected to begin prosecuting federal cases in the coming weeks. On Thursday, thirty-one of the 49 defendants included in the operation are charged in two indictments. In 2017, law enforcement identified Clifton Thomas and Marvin Collins as founders of a local Bloods-affiliated gang, Real Hustlers Incorporated (RHI). The gang, known to frequent the area of Monroe and Brown Streets in Little Rock, started as the Monroe Street Hustlers and changed its name to RHI due to mounting and unwanted attention from the LRPD. RHI, which promotes itself as an organization for rap artists, utilizes 5108 31st Street in Little Rock as a music studio, and as a location for distribution of heroin, cocaine, marijuana, oxycodone, and other controlled substances.
The mass shooting at Power Ultra Lounge was precipitated by the rivalry between RHI and the Wolfe Street Crips, which is a local Crips-affiliated gang in Little Rock. Police identified various RHI members as having participated in the Power Ultra Lounge shooting, and in subsequent retaliatory shootings involving Dewquan Johns, James Langford, Rodney Scott, Damien Young, and Edmond Blue (all of whom are indicted as part of this operation), among several others.
The DEA, using court-authorized wiretaps of various phones, identified gang members and the drug and gun crimes the gang was committing. Charges in the Thomas indictment include conspiracies to distribute cocaine, heroin, and marijuana, felon in possession of firearms, and possession of firearms in furtherance of drug trafficking. Included among the defendants is Bilal Johns Muhammad, identified as a long-time leader in RHI, and formerly the Monroe Street Hustlers. Two of Bilal Johns Muhammad’s sons—Bilal Sean Muhammad and Kain Jordan—were also indicted in the case.
The DEA and GET Rock also identified another 18 defendants as part of a drug trafficking organization headed by Robert Turpin III. The investigation revealed that Turpin was distributing ounce quantities of methamphetamine, cocaine, heroin, and marijuana, as well as thousands of oxycodone and alprazolam (Xanax) pills in the central Arkansas area. Turpin was found to be importing pharmaceutical drugs from India for illicit distribution, and during the course of the conspiracy more than 150,000 pills were obtained and distributed.
Furthermore, the Turpin organization was responsible for the transportation and distribution of methamphetamine, cocaine, heroin, marijuana, pharmaceutical controlled substances and money to and from Texas, Massachusetts, and North Carolina using personal and commercial vehicles, the United States Postal Service and FedEx. This organization also trafficked in firearms and has engaged in firearm-related violence in the Little Rock area. Law enforcement agents carried out the operation that resulted in the arrests of 15 of the 18 indicted members of the Turpin organization on February 14, 2018.
Also arrested Thursday morning was Chris Alexander, a member of the Wolfe Street Crips and purported community activist who has promoted anti-gang and violence programs in Little Rock in the past. Alexander, along with fellow gang member Kenya Davis, who is still a fugitive, was indicted on marijuana conspiracy and distribution charges. Alexander was also charged with being a felon in possession of firearms and possession of firearms in furtherance of drug trafficking.
These cases were investigated by the DEA Little Rock District Office Task Force Group 2—composed of DEA special agents and task force officers from the ASP, PCSO, Jefferson County Sheriff’s Office, Saline County Sheriff’s Office, and Benton Police Department. Also involved in the investigation was FBI, ATF, United States Marshals Service, LRPD, North Little Rock Police Department, Arkansas Community Corrections, and the Arkansas National Guard Counter-Drug Task Force. Assistant United States Attorney Anne Gardner is heading the prosecution of these cases.
An indictment or complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line athttp://www.justice.gov/edar
Twitter: @EDARNEWS
Defendant List Thomas Filed Indictment Turpin Filed IndictmentLouisville Financial Planner Charged During Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
Justice Department coordinates largest nationwide elder fraud sweep – more than one million victims
Louisville financial planner allegedly defrauded mostly elderly customers of over $800,000
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced today the grand jury indictment this week, of a Louisville financial advisor, charged with multiple counts of investment advisor fraud, money laundering, aggravated identity theft, and wire fraud. Today’s announcement is part of 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.
In the Western District of Kentucky, Derek Payne Burcham, 34, who was the former principal owner of Cornerstone Benefit Advisors, LLC., was charged with fraudulently obtaining over $800,000 by misappropriating monies that investors had provided to Cornerstone to invest, then using those funds to support his lifestyle and to cover operating expenses.
Specifically, between 2011 and August of 2016, Burcham, as Cornerstone’s sole investment adviser representative, had a fiduciary duty to act in his clients’ best interests. During that time, Burcham is alleged to have made numerous false statements, assurances, and representations to clients regarding the nature of their investments. Further, Burcham is alleged to have posted and solicited business through false advertising; induced clients to provide him access to their accounts at brokerage and financial planning companies; forged client signatures on official investment documents; charged unearned advisory fees and repeatedly concealed those over-charged advisory fees; and between 2012 and August of 2016, allegedly reported to the Kentucky Department of Financial Institutions his maximum advisory fee charged by Cornerstone was 1%, when the unearned investment advisory fees from client accounts were in excess of the 1%.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the United States Secret Service (USSS), the Kentucky Department of Financial Institutions, the Internal Revenue Service Criminal Investigation, and Louisville Metro Police Department.
This morning in Washington, Attorney General Jeff Sessions was joined in the announcement of the elder fraud national sweep, 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.
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.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
burcham_indictment.pdf
Leader of Guatemalan Drug Trafficking Organization Sentenced to Life in PrisonRead the Press Release
Earlier today, Eliu Elixander Lorenzana-Cordon, 46, previously residing in La Reforma, Guatemala, was sentenced to life in prison following a trial in March 2016, where he was found guilty of conspiring to illegally import into the United States and distribute multi-ton quantities of cocaine.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Raymond P. Donovan of the Drug Enforcement Administration’s (DEA) Special Operations Division made the announcement.
The sentence was issued by U.S. District Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia.
“Lorenzana-Cordon was a leader of a major international drug trafficking organization with close ties to the Sinaloa Cartel, one of the most violent and sophisticated transnational criminal organizations operating in the world today,” said Acting Assistant Attorney General Cronan. “In that capacity, Lorenzana-Cordon was responsible for receiving and distributing tons of cocaine destined for the United States, where it would be sold on our streets, causing untold harm to our communities and the lives of our citizens. This sentence sends an unmistakable message that the Department will continue to relentlessly pursue and prosecute international drug traffickers who endeavor to send drugs to the United States, wherever they may be.”
“Global criminal networks operate every day through drug trafficking and violence to assault the rule of law in the United States and around the world,” said Special Agent in Charge Donovan. “DEA and our foreign counterparts have worked tirelessly to ensure that Lorenzana-Cordon would spend a significant portion of his life in a U.S. prison cell for his crimes against our great country.”
The defendant was convicted on one count of conspiring to unlawfully distribute cocaine for illegal importation into the United States. As proven at trial, the defendant along with his brother, co-defendant Waldemar Lorenzana-Cordon, established himself as a leader of an international drug trafficking organization with close ties to the Sinaloa Cartel. Between 1996 and 2009, the defendant and his co-conspirators received, stored and distributed multi-ton quantities of cocaine from Colombia at their properties in Zacapa, Guatemala, for importation into Mexico and then ultimately into the United States. The cocaine delivered to the defendant’s properties during the course of the conspiracy arrived via extensive and varying means, including the use of go-fast boats, non-commercial light aircraft, and vehicles with hidden compartments. The defendant and his associates also used firearms during their criminal activity, and relied on threats of violence to promote their drug trafficking objectives.
On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated the defendant and his brother, Waldemar Lorenzana-Cordon, as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act due to their significant roles in international narcotics trafficking and their ties to the Sinaloa Cartel.
The DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program, the Criminal Division’s Office of International Affairs, the Chicago Police Department and the governments of El Salvador and Panama provided support and assistance. Finally, and in particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration and assistance in the investigation, extradition and prosecution of this case.
Trial Attorneys Michael Lang, Stephen Sola and Emily Cohen of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
Las Vegas Man Sentenced to More Than 12 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was found guilty by a jury for receiving over 100 child pornography photos and 100 videos was sentenced today to 150 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo for the Las Vegas Metropolitan Police Department.
Frankie Allen Peraza, 39, was convicted last year of one-count of receipt of child pornography. In addition to the prison term, Peraza was sentenced to lifetime supervision and is required to register as a sex offender under the Sex Offender Registration and Notification Act. United States District Judge Andrew P. Gordon presided over the four-day jury trial and sentencing hearing.
According to the indictment and other court documents, in March 2013, a detective with the Las Vegas Metropolitan Police Department, in an undercover capacity, used a peer-to-peer file-sharing program and identified an IP address as advertising for sharing numerous file names indicative of child pornography. During an interview with Peraza, the IP address owner, he admitted that he downloaded child pornography. After a forensic examination, law enforcement found 110 photos and 110 videos of child pornography on devices belonging to Peraza.
The case was a joint investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Alexandra Michael prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
###
Las Vegas Man Sentenced to 10 Years in Prison for Possession of A Stolen FirearmRead the Press Release
LAS VEGAS, Nev. – A convicted felon who carried a stolen 9mm handgun into an Alcoholics Anonymous meeting, then aimed the gun at a police officer was sentenced today to a total of 120 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Marcus Richard Thomas, 36, of Las Vegas, was sentenced today after previously pleading guilty to one-count of possession of a stolen firearm. United States District Judge Jennifer A. Dorsey presided over the sentencing hearing.
According to the plea agreement, Thomas admitted that, on March 31, 2017, he brought a stolen Glock 9mm firearm to an Alcoholics Anonymous meeting. When approached by law enforcement, Thomas aimed the firearm at the police officer, who in turn fired at Thomas, striking him. Thomas admitted that he knew the firearm was stolen.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted 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.
###
Kansas Tax Return Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A Holcomb, Kansas, tax return preparer pleaded guilty today to filing a fraudulent income tax return and aiding and assisting in the preparation of fraudulent tax returns announced Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas.
According to documents and information provided to the court, Marcelino Almaraz owned Accounting Services, a business that provided tax preparation and other services. Almaraz admitted that he fraudulently sought to obtain refunds for individuals by including false filing statuses such as head of household and adding phony dependents in an effort to trigger and inflate child tax credits. Almaraz also admitted to falsifying his own income tax returns for 2010 and 2011 by underreporting his income. Almaraz agreed to pay $397,552 in restitution to the Internal Revenue Service (IRS) for the tax losses he caused.
U.S. District Court Judge Julie A. Robinson scheduled sentencing for May 14. Almaraz faces a statutory maximum sentence of three years in prison for each count. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Jabari Wamble, who are prosecuting the case, and former Tax Division Trial Attorney Ryan R. Raybould, who previously worked on the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
KC Woman Sentenced for Obstruction of Justice After Forging Court Order for ReleaseRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman who forged a court order to get another inmate released from prison, was sentenced in federal court today for obstruction of justice.
Margie P. Shephard, 53, of Kansas City, Mo., was sentenced by U.S District Judge Roseann Ketchmark to three years and five months in federal prison without parole.
Shephard was incarcerated as an inmate at Federal Prison Camp-Bryan in Bryan, Texas, after being sentenced to 10 years for conspiracy to commit bank fraud and identity theft, aggravated identity theft and obstruction of justice.
Shephard, who pleaded guilty on Aug. 3, 2017, admitted that, while incarcerated, she fabricated a document purporting to be an Amended Judgment in a Criminal Case for fellow inmate Leann Raejeana Turner of Blue Springs, Mo. Turner was also incarcerated at Federal Prison Camp-Bryan after being sentenced to three years in prison for her role in an $11 million mortgage fraud scheme. The fake court order, with a reduced sentence of 120 days of imprisonment for Turner (which would have resulted in her immediate release), included the forged signature of U.S. District Judge Greg Kays.
Shephard mailed the fake court order to her sister, who then faxed it to prison officials from a Sunfresh grocery store in Kansas City, Mo., on Nov. 9, 2014, and again on Nov. 28, 2014. The forged document raised suspicions because of the reduction of Turner’s sentence and typographical errors. Upon receiving the document, prison officials determined it was a forgery.
Shephard’s extensive criminal history includes 29 prior felony convictions (this offense is her 30th felony conviction) and 11 misdemeanor convictions, most of which involved fraudulent conduct. Twice while being held in lawful custody for a felony conviction, she escaped. Both times she was convicted of aggravated escape from custody.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the FBI.
Justice Department Obtains over $2 Million for Servicemembers Who Terminated Their Motor Vehicle Leases with BMW Financial ServicesRead the Press Release
The Justice Department today announced that BMW Financial Services, N.A. (BMW FS) has agreed to pay over $2 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to refund a type of up-front lease payment to 492 servicemembers who lawfully terminated their motor vehicle leases early. This is the first case brought by the Department involving a motor vehicle lessor’s failure to refund lease amounts to servicemembers who exercised their SCRA rights to terminate their leases.
The SCRA provides servicemembers with protections that permit them to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance.
BMW FS is a New Jersey-based auto financing company that provides auto leasing for customers of BMW, MINI, and Rolls-Royce. Individuals who lease vehicles from BMW FS, including servicemembers, often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, or rebates or other credits. A portion of this up-front amount can be applied to the first month of the lease and certain up-front costs such as licensing and registration fees. The remainder, which is called the capitalized cost reduction (CCR) amount, operates to reduce the monthly payment the lessee must make over the term of the lease.
The Department received complaints from two servicemembers who were denied refunds of pre-paid CCR amounts by BMW FS. In October 2014, Kristi Steck, then a Senior Master Sergeant (SMSgt) in the U.S. Air Force stationed at Andrews Air Force Base in Maryland, leased a vehicle from BMW FS. Through the trade in of her previous car and a dealer rebate, she paid BMW FS an up-front CCR amount of approximately $4,000. SMSgt Steck made regular monthly lease payments for the next ten months. After receiving orders from the Air Force ordering her to relocate to Japan, SMSgt Steck terminated her lease. BMW FS refused to refund any of the $4,000 she paid when entering into the lease.
Similarly, in February 2015, Technical Sergeant (TSgt) A. Menard, who was also stationed at Andrews Air Force Base, leased a vehicle from BMW FS. TSgt Menard, through a trade in and rebate, paid an up-front CCR amount of approximately $5,000. After making regular monthly lease payments for seven months, TSgt Menard received orders from the Air Force to deploy to Afghanistan. BMW FS refused to refund Tsgt Menard any part of the $5,000 he had paid at the lease signing.
After learning about SMSgt Steck’s and TSgt Menard’s stories, the Department launched an investigation, which was handled jointly by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey. The Department’s investigation revealed that BMW FS had failed to refund any portion of the pre-paid CCR amounts to 492 servicemembers who had lawfully terminated their auto leases.
“We ask a great deal of those who serve our nation, including asking them to drop their affairs to deploy or serve in a new location, sometimes at a moment’s notice,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Our men and women in uniform should be able to devote their entire energy to their service and defense of our nation, and the Justice Department is committed to protecting these rights when their obligations to the American people force them to change their plans.”
“The men and women who serve in the armed forces have made enormous sacrifices while selflessly protecting our nation from danger,” said U.S. Attorney Craig Carpenito. “We must honor their sacrifice by ensuring that their rights are protected when duty calls for their relocation or deployment overseas. Through this agreement, we are pleased that hundreds of service members will be compensated for the damages they suffered when they were not refunded pre-paid car lease payments after they were deployed.”
The agreement resolves a suit filed today by the United States in the United States District Court for the District of New Jersey. It covers all leases terminated by servicemembers since August 24, 2011.
The agreement requires BMW FS to refund to each servicemember portions of the pre-paid CCR amount based on how many days were remaining in the lease. In addition, BMW FS will pay indirect damages to each servicemember of three times the refund or $500, whichever is larger. The agreement requires BMW FS to deposit $2,165,518.84 into an escrow account to compensate the 492 servicemembers whose rights were violated under the SCRA. BMW FS also must pay $60,788 to the United States Treasury.
The agreement also requires BMW FS to revise its policies and procedures to ensure that servicemembers who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Justice Department Obtains over $2 Million for Service Members Who Terminated Their Motor Vehicle Leases with BMW Financial ServicesRead the Press Release
NEWARK, N.J. – BMW Financial Services N.A. (BMW FS) has agreed to pay over $2 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to refund certain up-front car lease payments to 492 service members who lawfully terminated their motor vehicle leases early, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division announced today.
This is the first case brought by the Justice Department involving a motor vehicle lessor’s failure to refund lease amounts to service members who exercised their SCRA rights to terminate their leases.
The SCRA provides service members with protections that permit them to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When service members lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance.
BMW FS is a New Jersey-based auto financing company that provides auto leasing for customers of BMW, MINI, and Rolls-Royce. Individuals who lease vehicles from BMW FS, including service members, often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, or rebates or other credits. A portion of this up-front amount can be applied to the first month of the lease and certain up-front costs such as licensing and registration fees. The remainder, which is called the capitalized cost reduction (CCR) amount, operates to reduce the monthly payment the lessee must make over the term of the lease.
The Department received complaints from two service members who were denied refunds of pre-paid CCR amounts by BMW FS. In October 2014, Kristi Steck, then a Senior Master Sergeant (SMSgt) in the U.S. Air Force stationed at Andrews Air Force Base in Maryland, leased a vehicle from BMW FS. Through the trade in of her previous car and a dealer rebate, she paid BMW FS an up-front CCR amount of approximately $4,000. SMSgt Steck made regular monthly lease payments for the next 10 months. After receiving orders from the Air Force ordering her to relocate to Japan, SMSgt Steck terminated her lease. BMW FS refused to refund any of the $4,000 she pre-paid when entering into the lease.In February 2015, Technical Sergeant (TSgt) A. Menard, who was also stationed at Andrews Air Force Base, leased a vehicle from BMW FS. TSgt Menard, through a trade in and rebate, paid an up-front CCR amount of approximately $5,000. After making regular monthly lease payments for seven months, TSgt Menard received orders from the Air Force to deploy to Afghanistan. BMW FS refused to refund Tsgt Menard any part of the $5,000 he had paid at the lease signing.
After learning about SMSgt Steck’s and TSgt Menard’s stories, the Department launched an investigation, which was handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Department’s Civil Rights Division. The investigation revealed that BMW FS had failed to refund any portion of the pre-paid CCR amounts to 492 service members who had lawfully terminated their auto leases.
“The men and women who serve in the armed forces have made enormous sacrifices while selflessly protecting our nation from danger,” said U.S. Attorney Carpenito. “We must honor their sacrifice by ensuring that their rights are protected when duty calls for their relocation or deployment overseas. Through this agreement, we are pleased that hundreds of service members will be compensated for the damages they suffered when they were not refunded pre-paid car lease payments after they were deployed.”
“We ask a great deal of those who serve our nation, including asking them to drop their affairs to deploy or serve in a new location, sometimes at a moment’s notice,” said Acting Assistant Attorney General Gore. “Our men and women in uniform should be able to devote their entire energy to their service and defense of our nation, and the Justice Department is committed to protecting these rights when their obligations to the American people force them to change their plans.”
The agreement resolves a suit filed today by the United States in the U.S. District Court for the District of New Jersey. It covers all leases terminated by service members since Aug. 24, 2011.
The agreement requires BMW FS to refund to each service member portions of the pre-paid CCR amount based on how many days were remaining in the lease. In addition, BMW FS will pay indirect damages to each service member of three times the refund or $500, whichever is larger. The agreement also requires BMW FS to deposit $2,165,518.84 into an escrow account to compensate the 492 service members whose rights were violated under the SCRA. BMW FS also must pay $60,788 to the U.S. Treasury.
The agreement also requires BMW FS to revise its policies and procedures to ensure that service members who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. The SCRA provides protections for service members in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Service members and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Individuals who believe their civil rights have been violated may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division; Assistant U.S. Attorney Christopher Amore, Civil Division; and Trial Attorney Alan Martinson, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Justice Department Coordinates Nationwide Elder Fraud Sweep of more than 250 DefendantsRead the Press Release
BEAUMONT, Texas – 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.”
"Fraud directed at the elderly puts at risk the financial fruits of the labors of those who spent a lifetime improving our communities and our nation,” said Eastern District of Texas U.S. Attorney Alan R. Jackson. “They should be able to enjoy their hard earned savings without worrying about swindlers. It is important that we use all means at our disposal to bring con artists who target the elderly to justice.”
In the Eastern District of Texas, a 67-year-old Houston man, Lawrence Allen Deshetler, was sentenced on Nov. 6, 2017, to 60 months in federal prison and ordered to pay restitution to his victims. Deshetler, a certified financial planner and investment advisor, devised an investment scheme to defraud his victims, many of whom were elderly, of nearly $2 million.
In support of the Department's Elder Fraud Sweep, U.S. Attorney Jackson has assured the appointment of an Elder Justice Coordinator (EJC) for the Eastern District of Texas. The mission of the EJC is to serve as the district’s legal counsel on matters relating to elder abuse and to facilitate the prosecution of elder abuse cases. The EJC will work with our federal, state and local law enforcement partners to determine how best to efficiently and aggressively investigate and prosecute elder fraud cases and as well as how best to conduct community outreach. There is one EJC for each of the four federal judicial districts in Texas. All four EJCs have made preliminary coordination efforts with a view to combining efforts statewide where possible.
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.
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 Shawn N. Anderson, Districts of Guam and the NMI, announced local outreach efforts to facilitate effective prosecutions that involve federal crimes against the elderly. The U.S. Attorney’s Office recently met with the Department of Public Health (DPHSS), Division of Senior Citizens and the Guam Coalition Against Sexual Assault & Family Violence, as part of an ongoing collaborative effort to raise awareness about the Department of Justice’s efforts.
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 on mass-mailing fraud sweep and cases.
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 enforcementExceptional 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 ReportFraud.ftc.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 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 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.
Follow us on Twitter @USAO_NDIA.
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.
###
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.
# # #
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.
###
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].
- Follow us on Twitter: SDWVNews and USAttyStuart
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.
# # #
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.