Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 23 October 2017
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national charged with a federal immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Enrique Gonzalez-Francisco, 47, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge F. Dennis Saylor IV sentenced Gonzalez-Francisco to four months in prison and two years of supervised release. Gonzalez-Francisco will face deportation proceedings after serving his sentence.
On April 21, 2017, law enforcement officers in Boston encountered Gonzalez-Francisco and determined him to be illegally present in the United States. Gonzalez-Francisco was previously deported on Dec. 19, 2008, and July 25, 1998.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Fritch Man Sentenced for Transporting Approximately 2,300 Images of Child PornographyRead the Press Release
AMARILLO, Texas — Kelly Neil Black, 24, of Fritch, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and was sentenced to 240 months in federal prison and 15 years supervised release on one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Black has been in custody since the time of indictment in March 2017.
According to documents filed in the case, on September 22, 2016, a search warrant was executed at Black’s residence in Fritch, Texas. Law enforcement located several items that contained child pornography. A forensic examination later revealed that the items seized by law enforcement contained approximately 2,300 images that had been previously identified as known images containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, Texas Rangers, Hutchinson County Sheriff’s Office and the Potter County Attorney’s Office investigated the case. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
Fremont Roofer Indicted on Making False Statements on Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 19, 2017, a federal grand jury returned a two-count indictment against Samuel J. Smith (age 56) of Fremont, Wisconsin. The indictment alleges that Smith made false statements on his 2009 and 2011 Form 1040, U.S. Individual Income Tax Returns.
According to the Indictment, Smith falsely stated on his 2009 income tax return that his gross receipts from Fox Valley Roofing and Siding were $757,134 with a subsequent tax obligation of $2,534. Smith also stated that his 2011 receipts were $5,534,382 with a subsequent tax obligation of $425,931. In both years, the indictment alleges that Smith knew that his gross receipts and subsequent tax obligations for Fox Valley Roofing and Siding were substantially greater than the amounts on the returns.
If convicted of these charges, Smith faces up to 6 years in prison and fines of $500,000. The case was investigated by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Bridget J. Domaszek and Matthew L. Jacobs.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig - (414) 297-1700
Former VA Nurse Pleads Guilty to Stealing Pain MedicationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dorothy Sellari, 61, of Williamsville, NY, pleaded guilty to theft of government property before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of one year in prison and a fine of up to $100,000.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on July 10, 2015, the defendant was employed as a licensed practical nurse (LPN) at the Veterans Affairs Medical Center in Buffalo. Sellari unlawfully took, for her own use, a dose of hydromorphone (Dilaudid) prescribed for a patient. A VA Inspector General’s investigation determined that the defendant had previously taken and used “waste” amounts of medication prescribed for VA patients.
The plea is the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves.
Sentencing is scheduled for February 5, 2018, at 9:00 a.m. before Judge Arcara.
Former Hedge Fund Manager Sentenced for $9.5 Million Investment FraudRead the Press Release
ALEXANDRIA, Va. – A Leesburg man was sentenced today to 10 years in prison for wire fraud in connection with his role in a $9.5 million investment fraud.
Tamer Moumen, 40, pleaded guilty on May 12. According to court documents, Moumen defrauded over 45 clients between 2012 and 2017. Moumen falsely told investors that he was a successful trader who consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners. Moumen encouraged dozens of clients, including many who were nearing retirement age, to liquidate their other investments and retirement accounts, and invest with him. Moumen did not tell investors that he actually had no experience managing a hedge fund, had a history of losing money in the securities market, and was relying on investor money to support his lifestyle and pay personal expenses. For example, Moumen used investor money to help finance the purchase of a $1 million personal residence in Leesburg, Virginia, a new Tesla, and to repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment, but would conceal those facts by providing statements that showed the investment as steadily growing.
According to the statement of facts filed with the plea agreement, beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. Moumen had sole control of the donated funds, some of which he transferred into accounts in his name, where the money was commingled with investor funds. Moumen used tens of thousands of dollars in these accounts to pay personal expenses.
In addition to his prison sentence, Moumen was also ordered to forfeit $9.5 million and pay $7.5 million in restitution to his victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Katherine L. Wong prosecuted 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-77.
Former Global Head of HSBC's Foreign Exchange Cash-Trading Found Guilty of Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
The former head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), was found guilty today for his role in a scheme to defraud an HSBC client through a multimillion-dollar scheme commonly referred to as “front running.”
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
Mark Johnson, 51, a United Kingdom citizen with residences both in the U.K. and the United States, was found guilty after a four-week jury trial of one count of conspiracy to commit wire fraud and eight counts of wire fraud. Sentencing date has not been scheduled. U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York presided over the trial. Johnson was arrested on a criminal complaint in July 2016 and indicted in August 2016.
“This verdict makes clear that the defendant corruptly manipulated the foreign exchange market for the benefit of his bank and his bonus pool, to the detriment of the bank’s client,” said Acting Assistant Attorney General Blanco. “This case demonstrates the Criminal Division’s commitment to protecting the financial system from harm, and holding corporate executives, including at the world’s largest and most sophisticated financial institutions, responsible for their crimes.”
“The jury found that former HSBC banker Mark Johnson exploited confidential information provided by a client of the bank to execute trades that were intended to generate millions of dollars in profits for him and the bank at the expense of their client,” said Acting U.S. Attorney Rohde. “This Office, together with its law enforcement partners, will continue to vigorously investigate and prosecute those who would so abuse their client relationships and, more generally, undermine public confidence in the operation of the financial markets by engaging in fraudulent schemes.”
“This case involved a complex fraud scheme to ‘front run’ a foreign exchange transaction in order to generate millions of dollars in illicit profits for HSBC, which also indirectly benefited individual traders,” said Inspector General Lerner. “Such cases are challenging, but important, to bring against bank insiders who misuse their positions and undermine the integrity of a major international financial institution.”
“Mark Johnson misused confidential information to manipulate currency prices and defrauded a client out of more than $7 million,” said Assistant Director in Charge Vale. “The American people need to be assured that we are working vigorously to ensure integrity is upheld in financial services industries. We will continue to work with our law enforcement partners to investigate and prosecute those who engage in illegal business practices.”
According to the evidence presented at trial, in November and December 2011, Johnson cheated an HSBC client out of millions of dollars by misusing information provided to him by a client that hired HSBC to execute a foreign exchange transaction related to a planned sale of one of the client’s foreign subsidiaries. HSBC was selected to execute the foreign exchange transaction – which was going to require converting approximately $3.5 billion in sales proceeds into British Pound Sterling – in October 2011. HSBC’s agreement with the client required the bank to keep the details of the client’s planned transaction confidential. Instead, Johnson misused confidential information he received about the client’s transaction to cheat the client out of millions of dollars, the evidence showed.
Shortly before the transaction, which occurred in December 2011, Johnson and other traders acting under his direction purchased Pound Sterling for their own benefit in their HSBC “proprietary” accounts. Johnson then caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to “ramp,” or drive up, the price of the Pound Sterling, benefiting their proprietary positions and HSBC at the expense of their client.
As part of their scheme, Johnson and his co-conspirators made misrepresentations to the client about the transaction that concealed the self-serving nature of their actions. In total, Johnson and the traders he supervised generated HSBC profits of roughly $7.5 million from the execution of the FX transaction for the victim company.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. The Criminal Division’s Office of International Affairs provided significant support. Assistant Chiefs Carol Sipperly and Brian Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lauren Elbert of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies. Learn more about the Criminal Division’s Fraud Section at: https://www.justice.gov/criminal-fraud.
Former Global Head of HSBC’s Foreign Exchange Cash-Trading Found Guilty of Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
BROOKLYN, N.Y. – Mark Johnson, the former head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), was found guilty today for his role in a scheme to defraud an HSBC client through a multimillion-dollar scheme commonly referred to as “front running.”
Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC), and Assistant Director-in-Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
Johnson, a United Kingdom citizen with residences both in the U.K. and the United States, was found guilty after a four-week jury trial of one count of conspiracy to commit wire fraud and eight counts of wire fraud. A sentencing date has not been scheduled. United States District Judge Nicholas G. Garaufis of the Eastern District of New York presided over the trial. Johnson was arrested on a criminal complaint in July 2016 and indicted in August 2016.
“The jury found that former HSBC banker Mark Johnson exploited confidential information provided by a client of the bank to execute trades that were intended to generate millions of dollars in profits for him and the bank at the expense of their client,” said Acting U.S. Attorney Rohde. “This Office, together with its law enforcement partners, will continue to vigorously investigate and prosecute those who would so abuse their client relationships and, more generally, undermine public confidence in the operation of the financial markets by engaging in fraudulent schemes.”
“This verdict makes clear that the defendant corruptly manipulated the foreign exchange market for the benefit of his bank and his bonus pool, to the detriment of the bank’s client,” said Acting Assistant Attorney General Blanco. “This case demonstrates the Criminal Division’s commitment to protecting the financial system from harm, and holding corporate executives, including at the world’s largest and most sophisticated financial institutions, responsible for their crimes.”
“This case involved a complex fraud scheme to ‘front run’ a foreign exchange transaction in order to generate millions of dollars in illicit profits for HSBC, which also indirectly benefited individual traders,” said FDIC Inspector General Lerner. “Such cases are challenging, but important, to bring against bank insiders who misuse their positions and undermine the integrity of a major international financial institution,”
“Mark Johnson misused confidential information to manipulate currency prices and defrauded a client out of more than $7 million,” said FBI Assistant Director-in-Charge Vale. “The American people need to be assured that we are working vigorously to ensure integrity is upheld in financial services industries. We will continue to work with our law enforcement partners to investigate and prosecute those who engage in illegal business practices.”
As established by the evidence presented by the government at trial, HSBC was selected to execute a foreign exchange (FX) transaction related to a planned sale of one of a client’s foreign subsidiaries – which would require converting approximately $3.5 billion in sales proceeds into British Pounds Sterling. HSBC’s agreement with the client required the bank to keep the details of the planned transaction confidential. Instead, Johnson defrauded the client out of millions of dollars by misusing that confidential information.
Shortly before the transaction, which occurred in December 2011, Johnson and other traders acting under his direction purchased Pounds Sterling for their own benefit in their HSBC “proprietary” accounts. Johnson then caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to “ramp,” or drive up, the price of the Pounds Sterling, benefiting their proprietary positions and HSBC at the expense of their client.
As part of their scheme, Johnson and his co-conspirators made misrepresentations to the client about the transaction that concealed the self-serving nature of their actions. In total, Johnson and the traders he supervised generated HSBC profits of roughly $7.3 million from the execution of the FX transaction for the victim company.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Assistant Chiefs Carol Sipperly and Brian Young and Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lauren Elbert of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The Defendant:
Mark Johnson
Age: 51
United Kingdom
E.D.N.Y. Docket No. 16-CR-457
Former Financial Advisor Charged in Scheme to Defraud ClientsRead the Press Release
PHILADELPHIA – An indictment, unsealed today, charges Jason C. Weigand, 47, of Denver, PA, in a scheme to defraud clients of his financial advising businesses, Nations First Financial Group (“Nations First”) and First Financial Princeton LLC (“First Princeton”), announced Acting United States Attorney Louis D. Lappen. Weigand is charged with (i) three counts of bank fraud; (ii) four counts of wire fraud; (iii) two counts of mail fraud; (iv) three counts of aggravated identity theft; (v) four counts of accessing a protected computer without authorization; and (vi) four counts of money laundering. According to the indictment, as a result of the alleged scheme, Weigand’s clients lost more than $290,000.
According to the indictment, Weigand was a registered investment advisor in Pennsylvania between 2009 and 2014 and in New Jersey between 2011 and 2014. During this period, Weigand held himself to clients as a knowledgeable and reputable source of investment advice, recommending investments in both securities and insurance products. However, notwithstanding his obligation to act primarily for the benefit of his clients and to observe high standards of commercial honor, the indictment alleges that he diverted the funds of his clients, using it for personal, business, and other purposes unrelated to the investment objective of those clients.
According to the indictment, AR met Weigand when he became the homeowners’ insurance agent for AR and her husband. In April, 2005, Weigand attended AR’s husband’s funeral and, around that time, suggested that he become AR’s investment advisor. Feeling vulnerable, AR agreed. She directed Weigand to keep her money safe for retirement and not to invest it in any high risk assets. Instead, however, Weigand used $60,000 of AR’s money to fund accounts in the name of another client and then Weigand withdrew that money for his own personal and business purposes. Further, according to the indictment, Weigand used forged documents to open a different account in AR’s name at a brokerage, and induced AR to fund that account with almost $200,000 of her own funds. Unbeknownst to AR, that account had check writing privileges, which Weigand used to write checks of at least $98,000 for his own benefit.
Later, according to the indictment, AR started to become suspicious of Weigand’s management of her funds. In an effort to cover up his own misconduct, the indictment alleges that Weigand hacked into AR’s email, used forged documents to open an account in AR’s name at another brokerage, and funded that account with money stolen from other clients. Weigand then impersonated that client in telephone calls and emails with that brokerage.
If convicted, Weigand faces a maximum statutory sentence of more than 20 years in prison, possible fines, a minimum sentence of 2 years, and up to three years of supervised release. Weigand would be required to pay a $2,000 special assessment. A notice of forfeiture for $290,000 is also attached.
The case was investigated by the United States Postal Inspection Service, the Pennsylvania Department of Banking and Securities, and the Pennsylvania Insurance Department, Enforcement Division and is being prosecuted by Assistant United States Attorney Paul Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Dallas County Probation Officer Indicted for Soliciting Payments from ProbationersRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas this month, and unsealed last week, charges Tim Jones, 46, of Dallas, Texas, with offenses related to a scheme to illegally solicit payments from probationers, announced John Parker, U.S. Attorney for the Northern District of Texas.
Specifically, Jones is charged with eight counts of use of interstate facility to commit travel act violation. Jones will remain on bond pending trial which is set for December 18, 2017.
The indictment alleges that from January 2015 through October 2015 Jones was employed by the Dallas County Community Supervision and Corrections Department as a court probation officer. Jones was responsible for defendants who have been referred from field probation offices to the court level. Court probation officers are expressly prohibited from accepting payment from probationers for probation fees and other sums owed.
The indictment alleges, during Jones’ employment as a court probation officer he concocted and executed a scheme whereby he solicited and received cash and money orders from probationers in exchange for granting permission to travel, granting early release from probation, withholding arrest warrants, dispensing of community service hours, waiving probation requirements, and reducing the balance of probation fees.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, Jones faces not more than 5 years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
# # #
Former 22nd JDC District Attorney’s Office Investigator Charged with Solicitation and Receipt of BribesRead the Press Release
Acting United States Attorney Duane A. Evans announced that MICHAEL J. COTTON, age 68, of Bogalusa, was charged today in a one-count Bill of Information with soliciting sexual favors from a woman in exchange for obtaining a bond reduction for her boyfriend.
According to the Bill of Information, COTTON worked as an Investigator with the Office of the District Attorney for the 22nd Judicial District, which included St. Tammany and Washington Parishes. COTTON was responsible for investigating matters involving the issuance of bad checks, including initiating cases, reviewing records, interacting with victims, collecting fees and restitution from offenders, and obtaining warrants from municipal judges. COTTON also possessed and displayed a law enforcement badge and credentials, represented the DA’s Office in interactions with criminal defendants and witnesses in ongoing law enforcement investigations, and had access to sensitive case-related information. Furthermore, COTTON regularly corresponded with, had access to, and provided case-related recommendations to Assistant District Attorneys. On July 10, 2015, COTTON is alleged to have demanded sexual favors from a female identified as “Victim 1” in exchange for seeking a bond reduction for her boyfriend from $25,000 to a $30 signature bond.
“We are grateful for the joint efforts between our office and the U.S. Attorney's Office in Louisiana's Eastern District. Those efforts resulted in today's filing of a bill of information against Mr. Cotton,” said Louisiana State Attorney General Jeff Landry. “I am committed to ensuring the strong ongoing partnership between law enforcement partners on every level to investigate, arrest, and prosecute criminals.”
If convicted, COTTON faces a maximum term of imprisonment of ten years, followed by up to a lifetime of supervised release, and a $250,000 fine.
Acting United States Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Special thanks for the assistance provided by the Louisiana State Attorney General’s Office. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution
Florida Man Pleads Guilty to Mail Fraud and Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Kornaker, 46, of Jacksonville, NY, pleaded guilty to mail fraud and tax evasion before U.S. District Judge Richard J. Arcara. The charges carry a maximum sentence of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that between June 2014 and April 9, 2016, the defendant devised a scheme to defraud companies which were holding unclaimed funds. The funds were advertised on a website belonging to the California State Controller’s Office.
Specifically, Kornaker sent documentation of entitlement to unclaimed funds to the victim companies using false and fraudulent identities, including the name “Vinnie Sciarrino,” and entities, including “Insurance Marketing Resources.” Any funds received from victim companies were deposited into bank accounts maintained by the defendant.
In addition, between June 11, 2015, and November 9, 2015, Kornaker made a claim for unclaimed property held by Jackson National Life Insurance Company using the names Vinnie Sciarrino and Insurance Marketing Resources.
As part of the scheme to defraud, the defendant identified at least 113 companies and submitted fraudulent documentation to change the entity’s mailing address to addresses under his control in the Western District of New York. As a result, the defendant was paid in excess of $415,000 in funds to which he was not entitled.
In addition, for the tax years 2014 and 2015, Kornaker filed forms which substantially understated the amount of income he received by $416,786.73. The defendant claimed that his taxable income for those years was the sum of $43,554, and that the amount of tax due was $8,532. Kornaker’s actual taxable income was $509,986 and the amount of tax due was $165,065.
The plea is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; and the New York State Department of Financial Services, Criminal Investigations Unit, under the direction of Superintendent Maria T. Vullo.
Sentencing is scheduled for February 7, 2018, at 12:30 p.m. before Judge Arcara.
Florida Federal Court Permanently Shuts Down Tax Return PreparersRead the Press Release
A federal court in West Palm Beach, Florida, has permanently barred defendants Fred Pickett Jr., Jalisa Steele, and Fred Pickett III, as well as Five Star Tax Agency LLC, Five Star Financial Services Inc., and Millenium Tax Professionals Inc. from owning, operating, or franchising a tax return preparation business and preparing tax returns for others. The defendants consented to the order, which also requires them to provide the government with a list identifying their tax preparation customers.
According to the complaint, Pickett Jr., with the assistance of Steele and Pickett III, created and maintained a tax return preparation business operating under Five Star Tax Agency LLC, Five Star Financial Services Inc., or Millenium Tax Professionals Inc. that prepared tax returns for their customers which understated tax liabilities and claimed bogus refunds. Their alleged scheme involved unlawfully (i) fabricating businesses and business-related profits or losses, (ii) manipulating, maximizing, or falsely claiming the Earned Income Tax Credit, (iii) claiming false education credits, (iv) claiming spurious fuel tax credits, (v) fabricating retirement account contributions and deductions, and (vi) failing to provide customers with complete copies of their tax returns. In August, the Court denied a motion to dismiss filed by the defendants and held that the allegations in the complaint “connect each defendant to a tax return preparation scheme that violates §§ 6694 and 6695 [of the Internal Revenue Code].”
Return preparer fraud is one of the Internal Revenue Service (IRS)’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Jury Convicts Ovid Man of Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Christopher Eberhardt, 34, of Ovid, NY, of distribution, receipt, and possession of child pornography. The charges carry a minimum sentence of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorneys Kyle Rossi and Craig Gestring, who handled the prosecution of the case, stated that Eberhardt was part of a network of more than 70 individuals engaged in the trade of child pornography. The network was first discovered by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) working in Hartford, Connecticut. Agents from the Buffalo, New York Field Office of HSI uncovered a digital trail, which led to the arrest the defendant. In total, Eberhardt was found to be in possession of more than 2,000 images and 132 videos of child pornography. He was also found to have distributed child pornography to other individuals.
The trial verdict is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major Richard Allen.
Sentencing is scheduled for January 23, 2017, at 2:15 p.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
Father-and-Son Executives of Tutoring Companies Sentenced to Federal Prison in Connection with $11 Million Fraud SchemeRead the Press Release
CHICAGO — The father-and-son executives of two suburban Chicago tutoring companies have been sentenced to federal prison for orchestrating an $11 million fraud scheme that bilked more than 100 school districts around the country, including Illinois.
From 2008 to 2012, JOWHAR SOULTANALI and his son, KABIR KASSAM, fraudulently obtained funds from the school districts by misrepresenting the nature of their companies’ tutoring services and falsely inflating invoices for tutoring work that was never performed. Soultanali and Kassam also paid bribes to school officials and teachers to make sure the fraud was not detected. The bribes included a Caribbean cruise for an assistant principal in Texas and an outing to a gentleman’s club for a state education official in New Mexico.
Soultanali, 62, of Morton Grove, Ill., and Kassam, 38, of Wheeling, Ill., each pleaded guilty last year to one count of mail fraud. U.S. District Judge Amy J. St. Eve on Friday sentenced Soultanali to six years in prison, and Kassam to five years and ten months in prison.
The sentencings were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; John P. Selleck, Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Thomas D. Utz Jr., Special Agent-in-Charge of the North Central Region of the U.S. Department of Education Office of Inspector General. The Chicago Public Schools Office of Inspector General assisted in the investigation.
“Defendants abused the trust that the Department of Education placed in them to carry out a massive fraud that was not merely extensive, but also egregious,” Assistant U.S. Attorneys Kruti Trivedi and Barry Jonas argued in the government’s sentencing memorandum. “The fraud in this case had a significant impact on both the failing school districts that allocated their federal funds to defendants and on the students at those school districts.”
Soultanali served as director of operations for BRILLIANCE ACADEMY INC. and its wholly owned subsidiary, BABBAGE NET SCHOOL INC., both based on Niles, Ill. Kassam was the president of both companies. The firms contracted with school districts to provide tutoring services to students on-site at schools and via laptop computers.
According to the charges, Soultanali and Kassam furnished the school districts with false applications and marketing materials that fraudulently inflated the companies’ services. The companies falsely stated that they provided pre-testing of enrolled students, created customized tutoring programs, provided ongoing progress reports to schools and parents, and compiled accurate student improvement results after the tutoring was completed. In total, Brilliance and Babbage received $33 million from more than 100 school districts and small schools throughout the country.
The fraud scheme also involved numerous bribes paid to some school officials, with the expectation that the officials would assist in procuring federal funds for the tutoring services.
In addition to Soultanali and Kassam, the investigation resulted in criminal charges against Brilliance and Babbage, as well as three school officials in Texas and one state education official in New Mexico who pocketed the bribes.
Erie Man Pleads Guilty in Two Fraud Schemes Targeting Auto Loan ProvidersRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit wire fraud and wire fraud in two separate cases, Acting United States Attorney Soo C. Song announced today.
Adam Brayton Coover, 35, pleaded guilty to eleven counts at Criminal No. 16-28 Erie and thirteen counts at Criminal No. 16-30 Erie before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around May 2015, to in and around March 2016, Coover and a co-defendant engaged in a scheme to defraud auto loan providers by using straw purchasers to buy cars from the co-defendant knowing that the vehicles would not actually be in the possession of the straw purchasers. Coover and a co-defendant also falsified the loan applications to make the straw purchasers appear more credit worthy.
In addition, from in and around May 2015, to in and around March 2016, Coover and two co-defendants engaged in a scheme to defraud auto loans providers by utilizing two straw purchasers to buy vehicles in their own names from Rick Weaver Buick GMC. The vehicles would then actually remain in Coover’s possession. The three facilitated the scheme by falsifying the loan applications to make the straw purchasers appear more credit worthy and by not revealing that the straw purchasers were buying multiple vehicles at the same time. The value of many of the vehicles was also inflated to increase the funds received by the co-conspirators.
Judge Cercone scheduled sentencing for March 19, 2018. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both for Criminal No. 16-28 Erie and a total sentence of 340 years in prison, a fine of $8.5 million or both for Criminal No. 16-30 Erie. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department conducted the investigation that led to the prosecution of Coover.
Enid Resident Sentenced to 33 Months for Theft of Treasury Checks and Treats to Federal AgentRead the Press Release
OXFORD, Miss. – Robert H. Norman, Acting United States Attorney for the Northern District of Mississippi; Ruben Florez, Special Agent in Charge of the Treasury Inspector General for Tax Administration, Mid-States Field Division, and Jerome R. McDuffie, Supervisory Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, New Orleans Field Office, announce that:
Veronica Lloyd, 46 of Enid, Mississippi, was sentenced Thursday, October 19, 2017, by United States District Judge Glen H. Davidson, in Aberdeen, Mississippi. Lloyd was sentenced to serve a total of thirty-three (33) months in federal prison following by 3 years supervised release and was ordered to pay $52,341.67 in restitution to her victims.
On June 21, 2017, Lloyd pled guilty to converting to her own use a Treasury Check issued to another person, using threats of force to impede a Department of the Treasury Special Agent, and committing wire fraud.
The charges were the result of a joint investigation by the United States Attorney’s Office, the Department of the Treasury Inspector General for Tax Administration, and the Internal Revenue Service Criminal Investigation Division, into allegations that Enid, MS residents had monies from their yearly income tax refunds taken illegally and that subsequently they were contacted by a fictitious “IRS agent” and told not to contact the IRS about the issues. Lloyd also threatened to strike an agent of the Department of Treasure with a shovel, and later investigation revealed her use of interstate wire communication to commit fraud.
“It is the Treasury Inspector General for Tax Administration’s mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax Administration’s (TIGTA’s) Mid-States Field Division. “TIGTA and its law-enforcement partners will investigate individuals that attempt to assault its employees and interfere with the administration of the internal revenue laws through impersonation schemes, and will do everything within its power to ensure that those involved are prosecuted to the fullest extent of the law.”
Special Agent in Charge, Jerome R. McDuffie, stated, “Veronica Lloyd will serve time in prison for her victimization of Mississippi taxpayers. She stooped to means such as stealing the tax refunds of her identity theft victims, and impersonating an IRS employee in an effort to obstruct the efforts of federal law enforcement officers. Every day of her prison term is a well-deserved reward for her actions.”
This case was investigated jointly by the United States Attorney’s Office, the Department of the Treasury Inspector General for Tax Administration, and the Internal Revenue Service Criminal Investigation Division, and was prosecuted by Assistant United States Attorneys Jamiel Wiggins and Clay Joyner.
***
Department of Justice Awards Nearly $9 Million to Advance Community Policing Efforts and Increase First Responder Safety through Active Shooter TrainingRead the Press Release
Attorney General Jeff Sessions today announced nearly $9 million in funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) to advance the practice of community policing in law enforcement and to provide critical training to help law enforcement officers prepare for active shooter situations. The announcement was made during the Attorney General’s remarks at the International Association of Chiefs of Police (IACP) conference in Philadelphia. The IACP will also be receiving over $200,000 for its Institute for Community and Police Relations.
"Community policing builds trust and mutual respect between communities and law enforcement, and that helps us reduce crime," Sessions said. "Over the last 23 years, the Department of Justice has invested more than $14 billion in community policing—and I have no doubt that it has saved lives across America. The investment the Department makes today builds on those efforts, and it underscores the Trump Administration’s commitment to support law enforcement. This investment will be put to good use: providing better training and safety for law enforcement officers and better relations with communities. That will benefit all of us. Under President Trump's strong leadership, this Department of Justice will continue to provide law enforcement officers with the resources and tools they need to make this country safe.”
Through the Community Policing Development (CPD) Program, the COPS Office will fund approximately $3.6 million to grantees that will provide training and technical assistance and develop innovative community policing strategies, applied research, guidebooks, and best practices. Grant awards were made in the following categories:- Field-Initiated Law Enforcement Microgrants;
- Officer Safety and Wellness Resources;
- Enhancing Officer Safety through Increased Respect for Law Enforcement; and
- Online Training Development.
A full list of grant awardees is available on the COPS Office website: http://www.cops.usdoj.gov/default.asp?Item=2895
Additionally, the COPS Office is awarding approximately $5.4 million in grant funding through the Preparing for Active Shooter Situations (PASS) Training Program to the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University. This funding is intended to increase law enforcement and public safety through scenario-based training that prepares officers and other first responders to safely and effectively handle active-shooter and other violent threats. Additional details on the PASS grant awardee are available on the COPS Office website: http://www.cops.usdoj.gov/default.asp?Item=2946Complaint Filed Against Granite City Man for RobberyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that a complaint has been filed in federal court charging a Granite City man with the robbery of Granite City Steel Credit Union on October 20, 2017.
The Complaint alleges that Torricelli A. Johnson walked into the Granite City Steel Credit Union in Granite City, Illinois and told the credit union teller, "this is a stick up" and demanded money in $100 bills. The robbery of a credit union carries up to a maximum of 20 years imprisonment, to be followed by up to three years of supervised release and a fine up to $250,000.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation is being conducted by the Federal Bureau of Investigation and the Granite City Police Department.
Columbia Man Sentenced to 23 Years for Producing Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for producing child pornography.
Sergio Antonio Dominguez-Gonzalez, 23, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to 23 years and four months in federal prison without parole.Dominguez-Gonzalez, who pleaded guilty on May 15, 2017, admitted that he sexually abused a 2-year-old child victim to produce child pornography, which he distributed over the Internet.
An undercover detective in Washington, D.C., posted numerous online bulletin messages on specific social media forums, which were Web sites frequented by individuals with a sexual interest in children and incest. The bulletin messages were intended to attract individuals with a sexual interest in children. On Feb. 21, 2017, Dominguez-Gonzalez sent an e-mail to the undercover detective.
During the course of their e-mail conversation and later instant messaging, Dominguez-Gonzalez stated that he had sexual contact with a 2-year-old victim for the first time “recently” and had made two videos of himself molesting the victim. Dominguez-Gonzalez admitted he sent one of the videos, as well as screen shots from the video, to the undercover detective. He also told the undercover detective that he showed images of adult pornography to the victim “so she knows that (sic) girls do.”
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Washington, D.C. Metropolitan Police Department and the Boone County Sheriff’s Department Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."California Man Admits Role in Cross-Country Cocaine and Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Los Angeles man today admitted his role in a conspiracy to traffic five kilograms of cocaine and four kilograms of heroin that were smuggled inside large pieces of hydraulic machinery, Acting U.S. Attorney William E. Fitzpatrick announced.
Eduardo Barragan Zuninga, 30, pleaded guilty before U.S. District Court Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiring to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
From March of 2015 through March of 2016, Zuninga, Fermin Nunez, 45, also of Los Angeles, and others engaged in a conspiracy to ship cocaine and heroin, and the proceeds from narcotics transactions, across the country hidden inside large pieces of hydraulic machinery.
Nunez arranged for the drugs to be shipped from California to the east coast for distribution by Zuninga and others in the New York metropolitan area. Nunez, with Zuninga’s assistance, similarly arranged for the shipment of the distribution proceeds back to California.
Execution of two search warrants at the conclusion of an investigation conducted by the FBI, in cooperation with local law enforcement partners in Los Angeles, resulted in the seizure of approximately five kilograms of cocaine and four kilograms of heroin from a warehouse in Pennsylvania, and over $260,000 in suspected narcotics proceeds from a piece of hydraulic machinery in a California storage facility.
The conspiracy charge to which Zuninga pleaded guilty today carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is scheduled for Jan. 29, 2018.
Nunez previously pleaded guilty to his role in the conspiracy and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT) and the Los Angeles Police Department, under the direction of Police Chief Charlie Beck, with the investigation.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Buffalo Man Sentenced on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Mark Gonzalez, 22, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin, was sentenced to time served (24 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between July 2014, and September 28, 2015, the defendant became active in a heroin distribution organization headed by Daniel Molina-Rios. Gonzalez handled a phone provided to him by the organization to sell heroin. On five occasions, the defendant sold 28 bags of heroin to undercover officers. On each occasion, the undercover officer and Gonzalez would make contact by telephone to arrange a controlled purchase of heroin. The defendant utilized the phone provided to him by the drug trafficking organization. Gonzalez was intercepted by law enforcement utilizing a phone to sell heroin to other individuals as well, during this time period.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brownwood Man Sentenced to 168 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — A 22-year-old Brownwood, Texas, man, Sebastian Contreras, who pleaded guilty in July 2017 to two counts of receipt of child pornography, was sentenced last week by Senior U.S. District Judge Sam R. Cummings to 168 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas. Contreras will begin serving his prison sentence on December 1, 2017.
According to documents filed in the case, in December 2016 and February 2017, Contreras used the Internet to download images of child pornography depicting female minors under the age of 18 years engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Brown County Sheriff’s Office, and the Brownwood Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
# # #
Broward County Resident Sentenced to 292 Months in Prison for Sex Trafficking of a MinorRead the Press Release
Leon Roberts was sentenced by United States District Judge James I. Cohn to 292 months in prison, to be followed by 25 years of supervised release for sex trafficking a minor.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The trial evidence showed that the defendant Leon Roberts, 27, of Ft. Lauderdale, convinced a 14-year-old girl into staying with him and his girlfriend, C.A., at the Crosslands Hotel. Once in his hotel room, he pressured the 14-year-old to prostitute for him for a two month period. The minor (victim) claimed to be 19 years old, but C.A. believed that she was significantly younger.
On June 22, 2016, C.A. and the minor were fed up with Roberts and left the hotel to go stay with a friend for the night. Upon returning back to the hotel in the morning, Roberts was furious at C.A. for taking the minor away for the night. The disagreement escalated to the point where Roberts called the police to report his girlfriend was pimping out the minor. When the police arrived the minor disclosed that Roberts was her pimp. Roberts was arrested after the minor’s Backpage ads were found going back to his email address. The jury found Roberts guilty after three hours of deliberation.
Mr. Greenberg commended the investigative efforts of the FBI. This case was prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bakersfield Man Charged with Illegal Possession of FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment on October 19, 2017, against Luvell Ronell Blinks, age 34, of Bakersfield, charging him with being a previously convicted felon in possession of a firearm, United States Attorney Phillip A. Talbert announced.
According to court documents, on September 25, 2017, Bakersfield police officers attempted to stop the vehicle Blinks was driving when he took off at a high rate of speed. Following a vehicle pursuit and a subsequent foot chase, Blinks was apprehended and found in possession of a loaded .357 caliber Smith and Wesson Revolver.
This case was the product of an investigation by the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Attorney General Jeff Sessions Gives Key Department of Justice Task Force New Tools to Dismantle MS-13Read the Press Release
Taking another step toward fulfilling President Trump’s goal of stamping out the brutal transnational criminal organization MS-13, Attorney General Jeff Sessions today formally designated the gang as a priority for the Department of Justice’s Organized Crime Drug Enforcement Task Forces (“OCDETF”).
Addressing the International Association of Chiefs of Police, the Attorney General explained that the formal priority designation of MS-13 allows OCDETF to utilize an expanded toolkit in its efforts to dismantle the organization. This means that OCDETF should look to all laws in its investigative and prosecutorial efforts, including drug laws, gun laws, tax laws, RICO, and anything else that will cripple the gang. In his speech, the Attorney General said:
“But this work is not finished. I am announcing today that I have designated MS-13 as a priority for our Organized Crime Drug Enforcement Task Forces. These task forces bring together a broad coalition of our federal prosecutors, DEA, FBI, ATF, ICE, HSI, the IRS, the Department of Labor Inspector General, the Postal Service Inspectors, the Secret Service, the Marshals Service, and the Coast Guard. And they all have one mission: to go after drug criminals and traffickers at the highest levels.
"Now they will go after MS-13 with a renewed vigor and a sharpened focus. I am announcing that I have authorized them to use every lawful tool to investigate MS-13—not just our drug laws, but everything from RICO to our tax laws to our firearms laws. Just like we took Al Capone off the streets with our tax laws, we will use whatever laws we have to get MS-13 off of our streets.”
For the Attorney General’s full speech click here.
To learn more about the mission of the Department of Justice’s Organized Crime Drug Enforcement Task Forces click here.Ardmore Woman Pleads Guilty to Embezzlement and Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DENISE TAYLOR, age 55, of Ardmore, Oklahoma, pled guilty to EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATION, in violation of Title 18, United States Code, Section 1163, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from on or about March 19, 2017, to on or about March 29, 2017, in the Eastern District of Oklahoma, the defendant, DENISE TAYLOR, did steal, embezzle and knowingly and willfully convert to her own use goods, assets, and other property, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Chickasaw Nation’s Ardmore Smoke Shop # 1, an Indian tribal organization.
The charge arose from an investigation by the Bureau of Indian Affairs.
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 Edward Snow represented the United States.
30 Members and Associates of the "Nine Trey Gangster Blood" Gang Federally IndictedRead the Press Release
Federal agents have arrested 17 members and associates of the Nine Trey Gangster Bloods criminal street gang on charges of RICO conspiracy and related charges stemming from an indictment returned by a federal grand jury in the Northern District of Georgia on Oct. 12, which was unsealed yesterday. A total of 30 gang members and associates were indicted.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia and Special Agent in Charge David J. LeValley of the FBI Atlanta Field Office made the announcement.
“This indictment continues the Department’s efforts to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Acting Assistant Attorney General Kenneth A. Blanco. “By charging those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters, we are making our neighborhoods and communities safer.”
“The alleged crimes relate to drug distribution in the Atlanta area and acts of violence perpetrated largely against the gang’s own members,” said U.S. Attorney Pak. “Shockingly, the Nine Trey Gangsters in this case appear willing to kill someone or to commit violence over the smallest perceived slight. Thanks to the hard work of federal and local law enforcement officials, these individuals will now face prosecution for their alleged crimes.”
“The federal grand jury indictment and the resulting arrests sweeps made by the FBI and its many law enforcement partners stem from an intensive and exhausting FBI led Safe Streets Gang Task Force effort to remove these violent gang members, collectively known as Nine Trey Gangsters, from our streets,” said Special Agent in Charge LeValley. “The FBI continues to provide significant investigative resources directed toward the dismantling of these types of organized and violent criminal enterprises that do so much harm to our communities and the joint law enforcement operation clearly illustrates this.”
According to the indictment, beginning at least in 2013, the defendants named in the RICO conspiracy charge committed murder, attempted murder, conspired to commit murder, robbery, extortion, firearm crimes, drug trafficking, obstruction of justice and other crimes in furtherance of the Nine Trey Gangsters.
The RICO conspiracy charge names the following alleged Nine Trey Gangster members as defendants:
-
- Gordon Evans, aka QB, 36, of Atlanta;
- Patrick Caple, aka Zoe, 52, of Atlanta;
- Gary Sartor, aka G-Stacks, aka Stacks, 33, of Atlanta;
- Tyrone Clark, aka Tight-Eye, 36, of Marietta;
- Joseph Riley III, aka Joe Blow, 33, of Atlanta;
- Khajavius Mitchell, aka KJ, 23, of Atlanta;
- Tashied Reed, aka Row, aka Tykune, 24, of Atlanta;
- Michael Jackson, aka Self-Made, aka MJ, 23, of Clayton County, GA;
- Brandon Asberry, aka B5, 28, of Atlanta;
- Jimmy Rosser, aka Lil’ Jimmy, aka Baby Hazo, 25, of Atlanta;
- Kierra Maheia, aka Erra, 26, of Atlanta;
- Cetera Bowles-Griffin, aka Bella, 28, of Atlanta;
- Alfonzo Nalls, aka Offset, 29, of Atlanta; and
- Raekwon Williams, aka B-Ray, 20, of Atlanta.
In addition to the RICO conspiracy, the Indictment alleges multiple counts of attempted murder and conspiracy to commit murder in aid of racketeering against the following alleged Nine Trey Gangster members: Evans; Caple; Sartor; Clark; Riley; Mitchell; Tashied Reed; Jackson; Asberry; Rosser; Bowles-Griffin; Nalls; Williams; Westly Shivers, a/k/a “Owon,” 27, of Atlanta; and Wajzim Reed a/k/a “Wazi,” 23, of Atlanta.
Further, the Indictment alleges a drug trafficking conspiracy that includes trafficking in methamphetamine, marijuana, prescription medications and heroin, against the following alleged Nine Trey Gangster members and associates: Mitchell; Caple; Sartor; Clark; Riley, Tashied Reid; Jackson; Asberry; Rosser; Bowles-Griffin; Williams; Marcus Russell aka Double M, 26, of Jessup, Georgia; Calmetrius Dawkins, 22, of Atlanta; J’mon Hawkins, a/k/a “Monto Pronto,” 21, of Atlanta; Earl Smiley, 27, of Greeneville, South Carolina; Linnie Andrews, 34, of Atlanta; Adrian Ansley, 27, of Bethlehem, Georgia; Fred Arceneaux, 58, of Bonaire, Georgia; Erick Balcazar, 34, of Marietta; Sheena Brown, 32, of Marietta; Tremaine Garrison, aka Paperwork, 35, of Marietta; Cedrick Hill, aka Ced, 25, of Marietta; Monique Preston, 30, of Marietta; Demario Ridley, aka Lil Yo, 23, of Atlanta and Travis Todd aka T-Raw, 25, of Atlanta.
Maheia and Mitchell are charged with maintaining a drug premises that the gang used as a base to conduct their illegal activities. Mitchell and Williams are also charged with possessing firearms during their drug trafficking activities.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI Atlanta’s Safe Streets Gang Task Force, composed of members of the FBI, Atlanta Police Department (PD), Alpharetta PD, Clayton County PD, Cobb County PD, DeKalb PD, Georgia Department of Community Supervision, Georgia Department of Corrections, Gwinnett County PD, Marietta PD and U.S. Postal Inspection Service. Investigative assistance was also proved by the Georgia State Patrol, Covington PD, Clayton County District Attorney’s Office and Gwinnett County District Attorney’s Office. The case is being prosecuted by Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Northern District of Georgia.
-
Friday 20 October 2017
Wilkes-Barre Couple Charged with Renting Room in Their Home for Methamphetamine ProductionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Laurey and Amy Casey, both age 38, of Wilkes-Barre, Pennsylvania, were indicted on October 17, 2017, by a federal grand jury for renting space at their residence in Wilkes-Barre for the purpose of producing methamphetamine. The indictment was unsealed yesterday following the arrest of the defendants.
According to United States Attorney Bruce D. Brandler, between June 21, 2016 and June 29, 2017, Laurey and Casey rented rooms within their residence to two individuals who were operating a methamphetamine lab. The defendants allegedly allowed the drug manufacturers to live rent free in exchange for methamphetamine being produced within the home.
The case was investigated by the Federal Bureau of Investigation, the Wilkes-Barre Police Department, the Kingston Police Department, and Pennsylvania State Police. Assistant United States Attorney Evan Gotlob is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendants are facing a maximum of 20 years in prison and a $500,000 maximum fine, and term of supervised release. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Westlake man arrested following indictment for defrauding the Cleveland Clinic out of $2.8 millionRead the Press Release
A Westlake man was indicted in federal court for his role in a conspiracy to defraud the Cleveland Clinic out of at least $2.8 million, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Wisam Rizk was charged in a 29-count indictment with one count of conspiracy to commit wire fraud and honest services wire fraud, 27 counts of wire fraud and honest services wire fraud and one count of obstruction of justice. He was arrested Thursday evening.
Rizk worked as Chief Technology Officer at Interactive Visual Health Records, a company formed by Cleveland Clinic Innovations to develop a visual medical charting concept of certain Clinic physicians into a functioning, marketable product, according to the indictment.
Rizk was hired at IVHR by Gary Fingerhut, the former executive director at Cleveland Clinic Innovations. Fingerhut has pleaded guilty to his role in the conspiracy and is awaiting sentencing.
Rizk and Fingerhut, as a condition of their employment, were prohibited from receiving any financial benefit or having any personal or familial financial interests in companies the Clinic did business with, unless they were expressly disclosed to, and approved by, the Clinic.
Rizk and others caused to be incorporated a shell company known as iStarFZE LLC (ISTAR) that did not actually perform or provide any goods or services. It was established in the name of a nominee owner. Rizk caused ISTAR to establish a web site and email addresses and a mailing address in New York City to create the false impression it was an operational business, according to the indictment.
Rizk caused ISTAR to submit a bid to the Clinic to develop and design IVHR’s software and to increase the price the Clinic paid for the software design and development, all without disclosing his financial interest in ISTAR, according to the indictment.
Rizk periodically paid Fingerhut a “referral” or “commission” fee in return for Fingerhut not disclosing the fraud scheme, according to the indictment.
“This defendant was hired to help develop advanced medical technology and instead defrauded the Cleveland Clinic out of millions of dollars,” Herdman said. “We will continue to aggressively prosecute corruption and self-dealing.”
“Rizk utilized the trust that had been placed in him and his immense technical and organizational skill as weapons against the very company and associates who had entrusted him for the purpose of stealing close to $3 million,” Anthony said.
The investigation is ongoing.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
W. Warwick Man Sentenced for Drug Trafficking, Bank FraudRead the Press Release
PROVIDENCE – Christian M. Domenech, 24, of West Warwick, was sentenced today to 36 months in federal prison for his participation in a conspiracy to traffic heroin, cocaine and crack cocaine, and for bank fraud.
Domenech pleaded guilty on July 14, 2017, to an indictment charging him with conspiracy to distribute heroin, three counts of distribution of heroin, 14 counts of distribution of crack cocaine, possession with the intent to distribute heroin, possession with the intent to distribute cocaine, possession with the intent to distribute crack cocaine and bank fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Domenech to serve 3 years supervised release upon completion of his prison term. The government and the defense recommended to the Court a sentence of 36 months of incarceration be imposed. The U.S. Sentencing Guideline imprisonment range in this matter is 41 to 51 months.
Domenech’s sentence is announced by Acting United States Attorney Stephen G. Dambruch, Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Domenech, and a co-defendant in this matter, Robert Wilkins, 26, of West Warwick, were arrested on July 12, 2016, following a three-month FBI Safe Streets Task Force investigation into the defendants’ drug trafficking activities. Wilkins pleaded guilty on July 28, 2017, to conspiracy, trafficking heroin, cocaine and crack cocaine, and for bank fraud. He is scheduled to be sentenced on November 20, 2017.
According to information presented to the Court, in March 2016, the FBI Safe Streets Task Force developed information that Robert Wilkins was involved in the distribution of heroin and crack cocaine while on federal supervised release from a previous drug trafficking conviction and term of incarceration. The investigation included several purchases of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each transaction was monitored by law enforcement. Domenech was present for nearly all of the transactions.
Additionally, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. According to information presented to the Court, Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew a total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
The defendants have been detained since their arrest.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The FBI Safe Street Tasks Force consists of members of the Providence, Cranston, Woonsocket and Central Falls Police Departments, Rhode Island State Police and investigators from the Rhode Island Department of Corrections.
###
Two from Cleveland indicted for straw purchase of a firearm for a felonRead the Press Release
Two people from Cleveland were indicted for a case involving the straw purchase of a firearm for a felon, said U.S. Attorney Justin Herdman and ATF Special Agent in Charge Trevor Velinor.
Indicted are Tremaine Jackson, 28, and Valerie Woods, 29.
Jackson was indicted on one count of being a felon in possession of a firearm. Jackson had a FN Herstal .57-caliber pistol and ammunition on Nov. 25, 2016, despite previous convictions that prohibited him from having a firearms, including drug trafficking, carrying a concealed weapon and having a weapon while under disability.
Woods was indicted on one count of making false statements to a firearms dealer. She purchased the FN Herstal .57-caliber pistol on Oct. 28, 2016 at Stonewall Range in Broadview Heights. She represented to the dealer that she was the actual buyer of the firearm when she was not, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Kelly Galvin following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Convicted Felons Sentenced to Lengthy Federal Prison Terms for Gun and Drug CrimesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today the sentencings of two defendants with prior felony convictions for federal firearms and narcotics crimes.
United States v. Leo F. Haymond, III
In the first case, Chief United States District Court Judge Brian A. Jackson has sentenced LEO F. HAYMOND, III, 37, to serve 116 months in federal prison following his convictions for federal firearm, drug, and other violations. HAYMOND was also ordered to serve five years of supervised release following imprisonment, forfeit all property involved in his crimes, and pay a $200 special assessment.
HAYMOND was charged earlier this year in a multi-count indictment with federal firearm and drug offenses. On June 15, 2017, HAYMOND pled guilty to possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute heroin. In his plea agreement, HAYMOND admitted that he sold significant amounts of drugs, and that he possessed a Glock, model 30, .45 caliber pistol to further his drug trafficking.
HAYMOND previously was ordered to serve a 63-month term of imprisonment, and a 3-year term of supervised release, following a 2011 conviction for distribution of cocaine base in the Middle District of Louisiana. The terms of his supervised release barred HAYMOND from committing another federal, state, or local crime. During yesterday’s hearing, however, HAYMOND admitted that he committed the above offenses while serving out his term of supervised release.
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Ascension Parish Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Ryan Rezaei.
United States v. Tarzareo L. Jones
In the second case, Chief United States District Court Judge Brian A. Jackson sentenced TARZAREO L. JONES, age 27, of Baton Rouge, Louisiana, to 70 months in federal prison as a result of his conviction for possessing a firearm while a convicted felon. The Court further sentenced JONES to three years of supervised release following his term of imprisonment.
On January 8, 2017, a Louisiana State University Police Department Officer attempted to conduct a traffic stop of a vehicle operated by JONES near the LSU campus, but the vehicle did not immediately stop. After a brief car and foot pursuit, JONES was stopped and taken into custody. The officer recovered a .9mm pistol near the vehicle, which the officer had observed JONES discard, along with ammunition matching the caliber of the firearm inside the vehicle. An investigation of the firearm revealed that it had been reported stolen from an evidence room at the old Livingston Parish Sheriff’s Office. JONES had previously been convicted of attempted illegal carrying of a firearm and illegal use of a weapon, both felony offenses. On June 14, 2017, JONES pled guilty to one count of possession of a firearm by a convicted felon.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Louisiana State University Police Department, with the cooperation of the East Baton Rouge Parish District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Demetrius D. Sumner.
***
Acting U.S. Attorney Amundson stated, “In the HAYMOND case, we have sent a strong message about our commitment to working with our law enforcement partners to get an armed drug trafficker off of our streets. Similarly, in the JONES case, it is not difficult to imagine the real danger the defendant’s decision to flee a lawful traffic stop posed to others that night. I sincerely appreciate the hard work by the Ascension Parish Sheriff’s Office, the LSU Police Department, and the ATF in bringing these defendants to justice.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated: “The Bureau of Alcohol, Tobacco, Firearms, and Explosives will continue to work closely with our federal, state, and local partners to provide a safe environment for everyone to live. ATF is proud to work with the United States Attorney’s Office to take a potentially violent offender from our streets and neighborhoods.”
The U.S. Attorney’s Office—Violent Crime Initiative
______________________________________________________________
Earlier this month, the U.S. Attorney’s Office for the Middle District of Louisiana launched an initiative targeting violent crime in and around Baton Rouge. The initiative accelerates the focus on federal gun prosecutions and places an emphasis on using federal tools to pursue violent offenders and drug traffickers. The initiative brings together resources from Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Department of Homeland Security, the Organized Crime and Gang Section of the U.S. Department of Justice, the U.S. Marshal’s Service, the Baton Rouge Police Department, the East Baton Rouge Sheriff’s Office, the Louisiana State Police, the District Attorney’s Office, and the Constable’s Office.
Through a newly-created Violent Criminal Enterprises Strike Force, the U.S. Attorney’s Office is targeting and attacking the most violent groups in our area. For more information about the U.S. Attorney’s Office’s Violent Criminal Enterprises Strike Force, please contact Assistant United States Attorney Christopher Dippel, who serves as a Deputy Criminal Chief within the USAO, at (225) 389-0443.
Two Columbia Men Charged with Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Columbia, Mo., men have been charged in federal court, in separate cases, with illegally possessing firearms.
Ladame T. Smith, 23, and Lajuan Marquis Martin, 23, both of Columbia, were each charged with being a felon in possession of a firearm in separate criminal complaints filed in the U.S. District Court in Jefferson City, Mo., on Thursday, Oct. 19, 2017. Martin and Smith are in federal custody and will have their initial court appearances today.
The first federal criminal complaint alleges that Smith, a felon, was in possession of a Zastava 7.62-caliber assault rifle and a Smith and Wesson 9mm semi-automatic handgun. The second federal criminal complaint alleges that Martin, a felon, was in possession of a Glock 9mm semi-automatic handgun.
According to affidavits filed in support of the criminal complaints, Columbia police officers were conducting surveillance and observed Smith get into a red Pontiac Grand Prix. Because Smith had an active parole absconder arrest warrant, officers stopped the vehicle, which was driven by Martin. A detective saw the loaded Glock handgun on the driver’s side floorboard at Martin’s feet and the loaded assault rifle between the passenger seat and doorjamb where Smith was seated. As Smith was exiting the vehicle, the detective also saw the loaded Smith and Wesson on the front passenger seat where Smith had been seated.
Officers also smelled the strong odor of burnt marijuana emanating from the inside of the vehicle and observed Smith smoking a “blunt” (marijuana cigar). Officers found eight grams of heroin packaged in 15 individual baggies and two Alprazolam pills in Martin’s pants pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has prior felony convictions for unlawful possession of a firearm, unlawful use of a firearm, burglary and stealing. Martin has a prior felony conviction for resisting arrest.
Larson cautioned that the charges contained in these complaints are simply accusations, and not evidence of guilt.These cases are being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. They were investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Taunton Woman Sentenced for Social Security and Housing Assistance FraudRead the Press Release
BOSTON – A Taunton woman was sentenced today in federal court in Boston for concealing information and making false statements in order to receive Social Security disability benefits and Section 8 housing assistance to which she was not entitled.
Marisha Ebanks, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to four months in prison, three years of supervised release, with the first three months to be served in home confinement, and ordered to pay restitution of $178,722. In June 2017, Ebanks pleaded guilty to one count of Supplemental Security Income fraud and one count of making false statements.
In 1999, Ebanks began receiving housing assistance payments from the United States Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program; and in January 2003, she began receiving Supplemental Security Income (SSI) disability benefits from the Social Security Administration (SSA). Eligibility for both Section 8 housing and SSI is based, in part, on the applicant having limited income and resources. In assessing a married individual’s eligibility for these benefits, the income of the applicant’s spouse is considered if they live together.
When Ebanks applied for SSI benefits in September 2002, she truthfully reported that she was married, but falsely stated that she and her husband did not live together, when, in fact, she and her husband were living together with their two children. SSA sent Ebanks annual reminders of her obligation to report any changes in her household composition, including any change in income of any household member, but Ebanks concealed her husband’s true residence. During an eligibility redetermination with SSA in October 2010, Ebanks continued to report that she was married, but falsely stated her husband was not a member of her household.
Similarly, in May 2002, in order to continue receiving Section 8 housing, Ebanks falsely reported that her husband had moved out of her residence. She repeatedly omitted her husband from the list of household members on recertification questionnaires in subsequent years, and she falsely stated that no member of her family received income from any employment, even though her husband was working.
Ebanks fraudulently received approximately $70,655 in disability benefits and $108,067 in Section 8 housing assistance benefits.
Acting United States Attorney William D. Weinreb; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit prosecuted the case.
Swansea Man Involved in Fatal Car Accident Sentenced for Possessing Firearm as a FelonRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Eric L. Eiskant, 33, of Swansea, was sentenced yesterday in the United States District Court for the Southern District of Illinois to 33 months in federal prison for possessing a firearm as a convicted felon to be followed by three years of supervised release. The Honorable Judge Staci M. Yandle ordered that the sentence imposed run consecutively to any sentence on charges Eiskant faces in the Circuit Court of St. Clair County.
Evidence showed that on January 20, 2017, Eiskant was involved in a fatal vehicle accident that occurred in the area of St. Clair Avenue and 79th Street in East St. Louis. A witness on scene told officers that he went to check on Eiskant’s well-being following the accident, and Eiskant handed him a loaded firearm stating, "I got to get out of here. I’m going to get in trouble." The witness dropped the firearm on the ground and kicked it under Eiskant’s vehicle, and after officers arrived on scene, he directed them to where the firearm was located. Agents then located a loaded .25 caliber Beretta pistol under the vehicle Eiskant had been driving. Records showed that Eiskant’s deceased grandfather had originally purchased the pistol.
Eiskant is currently indicted in St. Clair County Case Number 17-CF-727 with four counts of Aggravated Driving Under the Influence, two counts of Reckless Homicide, and one count of Possession of a Controlled Substance.
The investigation was conducted by the Illinois State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Laura V. Reppert.
St. Roch Resident Sentenced to 20 Years Imprisonment for Cocaine Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LAZANDY DANIELS, age 40, of the St. Roch neighborhood, was sentenced yesterday for his role in distributing kilograms of cocaine in the New Orleans area. Following a three-day trial, a jury found DANIELS guilty of conspiracy to distribute five kilograms or more of cocaine hydrochloride (powder) and 28 grams or more of cocaine base (“crack”); and two counts relating to the distribution of crack cocaine.
U.S. District Judge Jane Triche Milazzo sentenced DANIELS to 240 months imprisonment, followed by 10 years supervised release, and a $100 special assessment.
According to the evidence presented at trial, co-defendant CRAIG JAMES was a Houston-based cocaine supplier who, during 2014 and 2015, transported up to 30 kilograms of cocaine per month from Houston to New Orleans. JAMES’S method for transportation was to hide the cocaine in the door panels of used cars, load the cars onto a flatbed truck, and drive the truck from Houston to a salvage yard in New Orleans East. Upon arrival at the salvage yard, DANIELS and others would assist JAMES in unloading the drugs; distributing the drugs to local kilogram-level dealers like co-defendants LEON JACKSON and JOPPA JACKSON; and then collecting the drug proceeds that would then be used to purchase more cocaine for resale. The evidence further showed that DANIELS sold quantities of crack and powder cocaine from a home near the intersection of North Derbigny Street and Mandeville Street in the St. Roch neighborhood. DANIELS and JAMES were arrested on December 2, 2015, at the Super 8 Hotel on Chef Menteur Highway in New Orleans East. At the time of the arrest, the men were in possession of 164 grams of crack cocaine, numerous items used to weigh and package cocaine, and almost $300,000 in cash drug proceeds.
Co-defendants CRAIG JAMES and LEON JACKSON, JR., both previously pled guilty to conspiracy to distribute 5 kilograms or more of a mixture containing cocaine hydrochloride and 28 grams or more of a mixture containing cocaine base (crack). JAMES was sentenced to 156 months imprisonment, followed by 10 years supervised release, and a $100 special assessment. LEON JACKSON was sentenced to 70 months imprisonment, followed by 5 years supervised release, and a $100 special assessment.
Co-defendant JOPPA JACKSON previously pled guilty to conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride and was sentenced to 78 months imprisonment, followed by 8 years supervised release, and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, New Orleans Police Department, Plaquemines Parish Sheriff’s Office, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter were responsible for the prosecution.
Springfield Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield to unlawfully possessing firearms.
Kenneth Finch Jr., 30, pleaded guilty to two counts of being a convicted felon in possession of a firearm before U.S. District Court Judge Mark G. Mastroianni. Sentencing is scheduled for Jan. 18, 2018. Finch has a prior felony conviction in North Carolina for being a felon in possession of a firearm.
In June 2015, law enforcement received information that Finch was a source for firearms in the Springfield area. On June 3, 2015, Finch sold a Ruger Model P-90 .45 caliber pistol and six rounds of .45 caliber ammunition to two undercover officers in exchange for $1,200. Finch was later arrested on May 12, 2016, and charged. The following day, Finch called his girlfriend from jail and directed her to a firearm that he had concealed in her apartment. Law enforcement later recovered a Duetsche Werke 7.65 mm caliber pistol from Finch’s girlfriend at her apartment in Springfield. On Nov. 10, 2016, Finch was charged with an additional count of being a felon in possession of a firearm.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office is prosecuting the case.
Sacramento Man Charged with Escape from Fresno FacilityRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment yesterday against Juhun Merrell Brown, 42, of Sacramento, charging him with escaping from custody, United States Attorney Phillip A. Talbert announced.
According to court documents, Brown was sentenced to federal prison for distributing methamphetamine in 2014. In January 2017, Brown was transferred to the federal halfway house facility in Fresno as part of his sentence. On March 13, 2017, officials found that he failed to return to the facility as required. Brown was subsequently arrested and appeared in court on October 5, 2017, and he appeared for arraignment on the indictment today.
This case was the product of an investigation by the United States Marshals Service. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Brown faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roofing Company Owner and Former Facilities Manager at Sierra Army Depot Indicted for Conspiracy to Defraud the United StatesRead the Press Release
UPDATE
The defendants in this case, Kenneth Keyes and Leroy Weber, were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in the Eastern District of California returned an indictment yesterday against two individuals for allegedly conspiring to defraud the United States, the Department of Justice announced.
The indictment alleges that Kenneth Keyes, a former facility manager at Sierra Army Depot (SIAD), and Leroy Weber, the owner of a roofing company, participated in a conspiracy to defraud the United States from as early as February 2012, and continuing through at least July 23, 2013, by obstructing the lawful functions of the United States Army through deceitful or dishonest means.
“Yesterday’s indictment demonstrates the Antitrust Division’s commitment to pursuing individuals who seek to enrich themselves by misusing federal programs at the expense of taxpayers,” said Assistant Attorney Makan Delrahim of the Justice Department’s Antitrust Division.
SIAD is a United States Army facility located in Northern California. In 2012, SIAD earmarked $40 million for construction and renovation projects at its site using contractors who qualified under the Small Business Administration’s 8(a) Development Program. The program provides assistance and benefits to small businesses owned and controlled by socially and economically disadvantaged individuals.
The indictment alleges that Keyes, Weber, and other unidentified co-conspirators:
- Recruited eligible 8(a) contractors to work as primary contractors at SIAD;
- Represented to those contractors that Weber controlled the work and allocation of SIAD contract awards;
- Caused prime contracts to be assigned to selected 8(a) contractors;
- Used proprietary government pricing information to inflate contract prices for the SIAD contracts;
- Required selected 8(a) contractors to award work to companies owned or controlled by Weber; and
- Required a contractor to pay Weber in exchange for being awarded certain subcontracts by 8(a) contractors.
The indictment also alleges that Weber caused a company under his control to issue weekly paychecks to a relative of Keyes, and himself caused $10,000 to be paid directly to Keyes.
The purpose of this conspiracy was to enable Keyes and Weber to unjustly enrich themselves and their family members by diverting government funds intended to rebuild and repair the SIAD Army facility to themselves and their companies.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Weber and Keyes each face a maximum penalty of 5 years in prison and a fine of $250,000.
The charges are the result of an ongoing federal antitrust investigation handled by the Department of Justice Antitrust Division’s San Francisco Office with assistance from the U.S. Small Business Administration Office of Inspector General, the U.S. Army Criminal Investigation Command, and the General Services Administration Office of Inspector General. Anyone with information concerning the conspiracy should contact the Antitrust Division’s San Francisco Office at 415-934-5300.
Real Estate Investor Indicted for Bid Rigging in Eastern District of CaliforniaRead the Press Release
A federal grand jury in Sacramento returned an indictment yesterday charging a California real estate investor with bid rigging at public real estate foreclosure auctions, the Department of Justice announced.
Real estate investor Yama Marifat has been charged with conspiring with other real estate investors to rig bids when purchasing selected properties at foreclosure auctions in San Joaquin County, California, beginning in or about April 2009 and continuing until in or about October 2009.
The indictment, filed in the U.S. District Court for the Eastern District of California, alleges that Marifat and co-conspirators carried out the conspiracy by agreeing not to bid against each other on selected properties. Instead of bidding against one another, they designated one conspirator to bid at the public auction, then held second, private auctions and made payoffs to each other. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
“Bid rigging subverts the competitive process, undermines consumers’ confidence in the market, and will not be tolerated,” said Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division. “The Division remains committed to prosecuting the individuals who commit these crimes.”
Yesterday's indictment carries a maximum penalty of ten years in prison and a one million dollar fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is part of an ongoing investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. As a result of this ongoing investigation, 12 individuals have pleaded guilty or been convicted in the U.S. District Court for the Eastern District of California. Ten of these individuals have been sentenced to serve prison terms ranging from five to eight months. In addition, the defendants have been ordered to pay a total of more than six million dollars in criminal fines and restitution.
The investigation is being conducted by the Antitrust Division’s San Francisco office and the FBI’s Sacramento Division. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-394-5300, visit www.justice.gov/atr/contact/newcase.html, or contact the FBI’s Sacramento Division at 916-481-9110
Ravenna man convicted of domestic violence indicted for having eight firearms and 1,300 rounds of ammunitionRead the Press Release
A Ravenna man previously convicted of domestic violence was indicted for having eight firearms and and more than 1,300 rounds of ammunition, said U.S. Attorney Justin E. Herdman.
Seth Alan Powers, 31, was indicted by a federal grand jury on one count of unlawful possession of firearms and ammunition by a prohibited person.
The indictment alleges that on March 13, 2017, Powers possessed the following firearms and ammunition, after having been convicted of domestic violence in the Portage County Municipal Court in 2005: Bersa, model Thunder 45, .45 caliber pistol, serial number A59814; Keltec, model PF-9, 9mm pistol, serial number SP089; Ruger, model SR-22, .22 caliber pistol, serial number 365-33720; Walther, model HK416D, .22 caliber pistol, serial number WH013613; Mossberg, model 500A, 12 gauge shotgun, serial number R657562; Taurus, model Rossi, .22 caliber rifle, serial number 5JS244294; Taurus, model Rossi, .22 caliber rifle, serial number 5JS244352; Taurus, model Rossi, .22 rifle caliber, serial number 5JS244203; seven rounds of Hornady ammunition, .45 caliber; seven rounds other ammunition, 9 mm; nine rounds Remington ammunition, .22 caliber; two rounds assorted ammunition, 12 gauge; 1,050 rounds assorted ammunition, unknown caliber; 279 rounds assorted ammunition, unknown caliber.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Portage County Drug Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Port Angeles Naturopath Sentenced to Prison for Distributing Hormone Drug for Weight LossRead the Press Release
A Port Angeles, Washington naturopath, who lost his license for illegally distributing a human hormone (HCG) in 2013, was sentenced to prison today for his second felony conviction for similar conduct related to misbranded prescription drugs, announced U.S. Attorney Annette L. Hayes. RICHARD MARSCHALL, 65, operates the Natural Healing Clinic in Port Angeles, and despite having his license to practice naturopathy and his DEA registration number suspended, continued to provide hormones to patients for weight loss – including patients he never examined but only met via the phone or internet. U.S. District Judge Ronald B. Leighton sentenced MARSCHALL to two months in prison and a $2,000 fine saying, “Dr. Marschall tempted fate after a prior conviction. This is a serious offense.”
“This defendant flouted the laws that are designed to keep patients safe,” said U.S. Attorney Annette L. Hayes. “Even after he was convicted for acting illegally, Richard Marschall continued to provide hormones to patients without any basis in medical science. This prison sentence is necessary to send the message that this conduct must end.”
According to federal court records, MARSCHALL was convicted and sentenced to two years of probation in 2011 for introducing misbranded drugs into commerce. Following that conviction, the Washington State Department of Health (DOH) suspended MARSCHALL’s naturopathy license in November 2013. Despite that suspension, DOH learned MARSCHALL continued to practice and ordered a further 18 month suspension. MARSCHALL has not had a valid license to practice naturopathy since November 2013. Nevertheless, MARSCHALL continued to treat patients and illegally provided them with a type of human hormone that is sometimes prescribed for infertility. MARSCHALL was providing it and promoting HCG as a weight loss drug.
In September 2016, two DOH investigators went undercover as patients and listened as MARSCHALL touted HCG for weight-loss and described how he would set up a program of injections for them. Later that fall, MARSCHALL communicated via email with an undercover FDA, Office of Criminal Investigations (OCI) investigator and conducted a one-hour telephone screening before sending her HCG through the mail. MARSCHALL never met or examined the ‘patient’ before mailing the drugs to her at a Portland, Oregon address. MARSCHALL obtained the HCG from pharmacies by lying about the status of his license and his DEA registration number.
As part of his sentence MARSCHALL will be on one year of supervised release. U. S. Probation will work with Washington State Department of Health regarding the status of MARSCHALL’s currently suspended naturopath license.
The case was investigated by the Washington State Department of Health and the Food and Drug Administration Office of Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Matthew Diggs.
Paducah Office Manager Guilty of Embezzling over $700,000 from Her EmployerRead the Press Release
PADUCAH, Ky. – The office manager for Utilities Dynamics, Inc. entered a guilty plea today in United States District Court before Senior Judge Thomas B. Russell to charges of wire fraud and identity theft as part of a scheme to defraud the company of over $700,000 announced United States Attorney Russell M. Coleman.
Kristen Renee Roberts, 39, of Calvert City, Kentucky, was charged in a criminal Information with one count of wire fraud and one count of aggravated identity theft as part of a scheme to defraud her employer of at least $700,000 during an eight-year period.
According to the plea agreement, Roberts acknowledged that beginning in June of 2009 and continuing until October of 2016, while office manager for Utilities Dynamics, Inc. (“the Company”), she was responsible for all of the Company’s accounts payable, accounts receivable, employee payroll, QuickBooks functions, and banking requirements. She also had access to the Company’s company credit cards and banking account information.
Roberts admitted to using both her own company credit cards and the company credit card of another employee for unauthorized purchases for the benefit of herself and her family. Roberts would also use company funds to pay off her own personal credit cards and the personal credit cards of her family.
Finally, because Roberts controlled the Company’s payroll, she also was able to overpay herself using direct deposits from the Company’s bank account into her personal bank account. Roberts would conceal these overpayments to herself by creating fake payroll payments to other employees within the Company and then deposit that money into her own account. She would also conceal these overpayments by creating fake invoices within the Company’s QuickBooks accounting software to various vendors used by the Company where the payments to these vendors were actually payments into her personal bank account.
At sentencing, Roberts could receive up to 22 years in prison, fined up to $500,000, and be required to serve up to three years of supervised release.
Roberts remains free on bond, with sentencing scheduled before Senior Judge Russell on January 31, 2017 at 12:15pm in Paducah.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the McCracken County Sheriff’s Office.
Operation Jungle Book Targets Wildlife Trafficking, Leading to Federal Criminal Cases and Recovery of Numerous Animal SpeciesRead the Press Release
LOS ANGELES – Operation Jungle Book, a law enforcement initiative led by the United States Fish and Wildlife Service that targeted wildlife smuggling, has resulted in federal criminal charges against 16 defendants who allegedly participated in the illegal importation and/or transportation of numerous animal species – including a tiger, monitor lizards, cobras, Asian “lucky” fish, turtles, exotic songbirds and several coral species.
“We are combatting an ever-growing black market for exotic animals. An insatiable desire to own examples – both living and dead – of these vulnerable creatures is fueling this black market,” said Acting United States Attorney Sandra R. Brown. “This is a truly international problem that threatens the survival of iconic species and vulnerable animal populations. The United States Attorney’s Office is prosecuting a wide array of cases that highlight the pervasive problem of wildlife trafficking and the associated issues of invasive species, disease transmission and the extinction of certain species.”
In conjunction with the announcement of the criminal cases filed by federal prosecutors based in Los Angeles, the United States Fish and Wildlife Service (USFWS) is holding a media event today to showcase the broad range of species that are being smuggled into the United States and recognize its law enforcement and community partners who provide substantial assistance in the fight against wildlife trafficking.
“Wildlife trafficking does not stop at international borders, and it is our duty to protect imperiled species both at home and abroad,” said Ed Grace, USFWS Acting Chief of Law Enforcement. “I commend our special agents who worked collaboratively with our state and federal partners to investigate, arrest, and prosecute these criminals. I would also like to thank the zoos, sanctuaries, and educational centers that shelter, care for, and rehabilitate the live animals we seize. Together, we are saving imperiled animals while bringing to justice those who attempt to profit from the illegal wildlife trade.”
At today’s media event, USFWS officials will be joined by representatives of the United States Attorney’s Office, U.S. Customs and Border Protection (CBP), U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife (DFW). Some of the animals that have been recovered are currently being cared for by the Los Angeles Zoo, the San Diego Zoo Global, the Turtle Conservancy, and the STAR Eco Station – organizations that will also be represented at today’s event.
Over the past several months, prosecutors from the Environmental and Community Safety Crimes Section of the United States Attorney’s Office have filed and litigated a series of cases that demonstrate the scope of the underground market for protected wildlife. The cases further illustrate the various means used by traffickers to avoid detection in the harvesting and illegal smuggling of various species.
The black market for protected wildlife increases the demand for wildlife and their parts, which threatens to decimate vulnerable species. The prosecution of these cases will educate the public about the laws protecting wildlife and deter future wildlife crimes.
Tiger
A Florida man was arrested yesterday afternoon on charges of being involved in the illegal sale and transportation of a Bengal tiger that was seized from a residence in Ventura County.
Nicholas Bishop, also known as “Nick the Wrangler,” 27 – who currently resides in Hollandale, Florida, but at the time of the offense lived in Henderson, Nevada – was named in a criminal complaint filed late last month that charges him with the federal felony offense of aiding and abetting the purchase of a prohibited wildlife species. The State of California also prohibits the possession of tigers and other large cats (certain licensed individuals and organizations have exceptions).
According to the affidavit in support of the complaint, Bishop falsified documents used to purchase the tiger in March 2014 from an Indiana organization called Wildlife In Need, Wildlife Indeed. In a statement he later gave to investigators, Bishop said that he had purchased the tiger for Michael Ray Stevenson, a rapper who uses the stage name Tyga.
The following month, the tiger was seen in a backyard in Ventura and reported to the DFW, which later located and seized the animal in Piru. The two individuals who possessed the tiger in Piru were convicted in state court. When it was recovered, the tiger weighed approximately 100 pounds; it now weighs well over 400 pounds.
Bishop allegedly falsified purchase records and caused the interstate transport of the tiger without the necessary documentation and permits required by the USFWS and the United State Department of Agriculture.
Bishop was taken into custody yesterday afternoon. He is expected to make his initial court appearance this afternoon in United States District Court in Fort Lauderdale, Florida. If he were to be convicted of the criminal charge, Bishop would face a statutory maximum sentence of five years in federal prison.
King cobras
A Monterey Park man pleaded guilty last month to smuggling king cobras – reptiles that were illegally brought into the United States after being hidden in potato chip cans shipped from Hong Kong.
Rodrigo Franco, 34, was arrested in July and charged with smuggling the cobras that were intercepted by CBP in March, along with Chinese albino soft-shelled turtles. At the time the cobras were seized, Franco was already under investigation because of a prior shipment of three protected turtles – two big-headed turtles and a pig-nosed turtle (or “Fly River” turtle) – that USFWS had intercepted in January.
After the cobras were seized in March, USFWS agents searched Franco’s residence, where they found, in a child’s bedroom, a Morelet’s crocodile, five diamond back terrapins and various turtles – all of which are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty among 183 nations that is designed to ensure that international trade in specimens of wild animals and plants does not threaten their survival.
When he pleaded guilty, Franco admitted smuggling a total of 23 cobras that had a black market value of approximately $46,000. The three cobras seized by CBP in March were sent to the San Diego Zoo, where one ultimately died.
Franco pleaded guilty on September 7 and is scheduled to be sentenced by United States District Judge George H. Wu on December 7, at which time he will face a statutory maximum sentence of 20 years in federal prison.
Monitor lizards
An Inglewood man pleaded guilty last month to smuggling five monitor lizards into the United States – two of which died while they were being shipped.
Gayle Simpson, 33, pleaded guilty on September 27 to one count of smuggling monitor lizards that were shipped from the Philippines.
The case against Simpson stems from a package intercepted by CBP in April. The package, which was labeled as “speakers” and was addressed to Simpson’s son, contained five monitor lizards: three spiny-necked water monitor lizards, one Samar water monitor lizard, and one Palawan water monitor lizard. Two of the monitor lizards arrived dead, and a third had suffered a crushed foot. All five monitor lizards are protected under CITES. A subsequent search warrant executed by USFWS at Simpson’s residence resulted in the seizure of four yellow-headed water monitor lizards and two spiny-necked water monitor lizards.
Simpson is scheduled to be sentenced by United States District Judge Manuel L. Real on November 20, at which time he will face a statutory maximum penalty of 20 years in federal prison.
In another case involving monitor lizards, a Long Beach man is scheduled to be arraigned on November 7 after being charged earlier this month with smuggling two species that had been shipped from the Philippines.
Bryan Cho, 41, allegedly was set to receive five monitor lizards in a package that was intercepted by USFWS October 2016. After a shipping company delivered the package, USFWS agents went to Cho’s business, where agents saw the same species of lizards in the store.
In May, USFWS learned about another package from the Philippines that was sent to Cho’s business address in Long Beach. While the package was described as containing “Toy Cars,” Cho admitted to ordering two or three monitor lizards from the Philippines.
If he convicted of the smuggling offense, Cho would face a statutory maximum penalty of 20 years in federal prison.
Arowana fish (“lucky” fish)
A Westminster man who sold arowana fish – said to be the world’s most expensive aquarium fish – pleaded guilty yesterday to smuggling the protected fish thought to be symbols of luck and prosperity in parts of Asia, as well as various turtle species.
Kevin Duc Vu, 45, pleaded guilty to a felony charge that carries a maximum sentence of 20 years in federal prison.
In September 2016, CBP intercepted a package addressed to Vu’s wife that contained six arowanas and seven big-headed turtles. The intercepted package also contained seven four-eyed turtles, six Asian box turtles and one black-breasted turtle. Six of the turtles ultimately died as a result of the smuggling efforts.
On October 5, 2016, USFWS agents searched Vu’s residence and recovered two black-breasted turtles and four dead arowanas that were concealed in a freezer.
Evidence uncovered during the USFWS investigation revealed that Vu had previously ordered wildlife, including arowanas, from an overseas supplier. According to court documents, Vu sold arowanas for $1,900, big-headed turtles for $850, and a pair of black-breasted turtles for $2,000.
Vu is scheduled to be sentenced by United States District Judge Christina A. Snyder on February 5.
Arowanas are also at issue in a three-count indictment returned by a federal grand jury last month, which charges an Orange County man and a foreign national with conspiring to smuggle the protected fish into the United States.
The indictment charges Shawn Naolu Lee, 29, of Garden Grove, and Mickey Tanadi, 21, of Jakarta, Indonesia, with conspiracy, smuggling protected fish into the United States and submitting a false record for wildlife intended for importation.
According to court documents, Lee ordered eight arowanas from Tanadi, agreeing in January to pay $2,000 for the fish plus shipping costs. Tanadi put the fish into bags of water that were concealed in porcelain pots to evade detection, which he then allegedly shipped in February.
A CBP officer noticed that a package labeled as “Porcelain Herbal Pots” was leaking water, and CBP intercepted the shipment. Following a controlled delivery of the shipment to Lee’s residence, USFWS agents recovered the arowanas. However, all eight fish ultimately died as a result of the smuggling scheme.
Lee has pleaded not guilty to the charges in the indictment, and is scheduled to go on trial before United States District Judge Otis Wright II on November 14. Tanadi remains at large. If they are convicted of the three charges in the indictment, Lee and Tanadi would each face a statutory maximum penalty of 30 years in federal prison.
A Florida man was charged earlier this month with a misdemeanor offense of engaging in the unlawful trade of arowana fish. Cory Pham, 43, of Sunrise, Florida, was named in a criminal complaint that alleges he brought five arowanas on a flight from Vietnam to Los Angeles International Airport on October 5.
Pham allegedly concealed the fish in black bags that were hidden in a plastic container placed in his luggage. Pham did not declare the arowanas to customs officials, nor did he have any permits that would allow him to legally bring the fish into the United States.
Pham is scheduled to be arraigned in this case on November 14. If he was convicted, Pham would face a maximum sentence of one year in federal prison.
Asian songbirds
An Orange County man was ordered this week to serve one year in federal prison, and another six months in home detention, after pleading guilty to smuggling protected Asian songbirds into the United States.
Kurtis Law, 50, of Fountain Valley, was sentenced by United States District Judge Manuel L. Real after pleading guilty last summer to smuggling and attempted entry of goods by means of false statements.
Law was arrested in May after bringing 93 Asian songbirds, worth nearly $100,000, on a flight from Vietnam. All but eight of the birds died in transit or soon after arriving at Los Angeles International Airport.
Earlier this week, a Westminster man pleaded guilty to conspiring to smuggle Asian songbirds – specifically, Chinese Hwamei – into the United States.
Sonny Dong, 55, admitted hiring another man to illegally import the birds from Vietnam. The birds were smuggled by hiding them under clothes or in baggage on airline flights.
Dong pleaded guilty before United States District Judge S. James Otero, who scheduled a sentencing hearing for May 14, 2018. Dong faces a statutory maximum sentence of five years in federal prison.
Feathers from protected birds
A Santa Ana man is scheduled to go on trial December 12 on misdemeanor charges of illegally selling feathers on Facebook from protected migratory birds and bald eagles.
Tyler Rene Vela, 27, could be sentenced to up to one year in prison if he is convicted of selling feathers from a bald eagle and up to six months in prison if convicted of selling feathers from a red-tailed hawk and a turkey vulture.
Corals
Late last month, prosecutors obtained three indictments charging a total of three individuals and two companies with engaging in the unlawful trading of protected live corals. Arraignments for all of the defendants are scheduled for early November.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The cases brought as part of Operation Jungle Book are being handled by Assistant United States Attorneys Erik M. Silber, Amanda Bettinelli, Dennis Mitchell and Heather Gorman of the Environmental and Community Safety Crimes Section.
Nigerian Citizen Sentenced to 6 ½ Years in Prison for $12 Million Tax Refund Fraud, Voter Fraud, and Illegal ReentryRead the Press Release
A Nigerian citizen, who resided in St. Louis, Missouri, was sentenced to 78 months in prison for mail fraud, aggravated identity theft, voter fraud, and re-entering the United States after having been removed, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie Costantin for the Eastern District of Missouri.
According to documents filed with the court, Kevin Kunlay Williams, a.k.a. Kunlay Sodipo, 56, and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2,000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also stole several return preparer’s Electronic Filing Identification Numbers (EFINs) and used them to secure tax-related bank products and services that facilitated the issuance of tax refunds, to include blank check stock and debit cards. Williams used the blank stock to print checks funded by the fraudulent refunds and directed some of the refunds onto debit cards.
Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. In 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and voted in the 2012 and 2016 presidential elections.
In addition to the term of prison imposed, Chief U.S. District Judge Rodney W. Sippel ordered Williams to pay restitution of $889,712 to the Internal Revenue Service, in addition to forfeiture of money orders totaling $10,810 seized during the investigation. Williams is in custody and also faces deportation.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan, Alabama Police Department and Alexander City, Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who prosecuted this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New Orleans Man Pleads Guilty in Methamphetamine-Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CLARK McALPIN, age 37, of New Orleans, pled guilty Wednesday to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, McALPIN pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine.
According to court documents, in 2016, codefendant STEVEN LYONS was a New Orleans-based drug trafficker who was receiving parcels of methamphetamine via common mail carriers. McALPIN would assist LYONS in distributing the quantities of methamphetamine in the New Orleans area.
LYONS pled guilty to conspiracy to distribute between 15 and 45 kilograms of methamphetamine and is scheduled to be sentenced on November 1, 2017.
For his role in the conspiracy, McALPIN faces a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for McALPIN on January 24, 2018.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Navajo Man Sentenced to Life Imprisonment for Kidnapping, Sexually Assaulting and Murdering 11-Year-Old Navajo ChildRead the Press Release
ALBUQUERQUE – U.S. District Judge William P. “Chip” Johnson of the District of New Mexico sentenced Tom Begaye, Jr., 29, to a term of life imprisonment without the possibility of release for his conviction on murder, aggravated sexual abuse and kidnapping charges arising out of the abduction, rape and murder of an 11-year-old Navajo child on May 2, 2016.
President Russell Begaye of the Navajo Nation, Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, and Director Jesse Delmar of the Navajo Nation Division of Public Safety made the announcement.
“The Nation has mourned the loss of our daughter Ashlynne Mike ever since learning of her horrific death. The sheer brutality of the crimes committed against this child were so deplorable that it was difficult to fathom justice in this matter,” said Navajo Nation President Russell Begaye. “Tom Begaye Jr., received life in prison today for kidnapping, raping, strangling and ultimately killing Ashlynne Mike. In hearing the details of these tragic crimes, we feel just as Ashlynne’s family and her home community feel: can justice truly be served in this case? No child deserves to die in this way and the Navajo Nation will continue to work to strengthen protections for all our children and tribal members.”
“Today’s hearing brings to a close the criminal case against Tom Begaye, Jr., and the sentence of life imprisonment holds him fully accountable for kidnapping, sexually assaulting and murdering Ashlynne Mike and for the trauma he inflicted on her brother. Although the prosecution is over, the pain and loss experienced by Ashlynne’s family and community will continue well into the future,” said Acting U.S. Attorney James D. Tierney. “I commend the FBI and the Navajo Nation Department of Public Safety for their extraordinary and tireless efforts during the investigation of Begaye’s heinous crimes. I also thank all the law enforcement partners who came together with the common goal of finding Begaye and bringing him to justice.”
“The man responsible for one of the worst tragedies to hit the Navajo Nation is going to prison for a long time,” said Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI. “The FBI and its tribal and other partners worked together to bring Ashlynne's killer to justice. Many people who never met Ashlynne joined to share their grief with her family, and we hope today's sentencing gives them some measure of solace.”
“This case was very unfortunate because of the age of the victim. The Navajo people cherish our little young ones, and so this case was so extreme and so shocking to us all. It was especially hard for the law enforcement personnel who had to deal with this case directly,” said Director Jesse Delmar of the Navajo Nation Division of Public Safety. “I thank the Navajo Nation law enforcement personnel, the FBI, the San Juan County Sheriff’s Office, and the U.S. Attorney’s Office for their work on this case and for bringing Justice to the victim and her family today. Today has been an emotional day for all of us as we continue to grieve the loss of our little one, our Ashlynn Mike.”
The FBI and Navajo Nation Division of Public Safety arrested Begaye, an enrolled member of the Navajo Nation from Waterflow, N.M., on May 4, 2016, on a criminal complaint charging Begaye with kidnapping, sexually abusing and murdering an 11-year-old Navajo child on May 2, 2016, on the Navajo Indian Reservation in San Juan County, N.M. On May 24, 2016, a federal grand jury returned an indictment charging Begaye with six offenses: first-degree murder, felony murder, kidnapping resulting in death, aggravated sexual abuse resulting in death (two counts), and kidnapping of a minor. According to the indictment, Begaye killed a female child under the age of 12 years by striking her with a tire iron, and caused her death while kidnapping and sexually assaulting her. The indictment also charged Begaye with kidnapping a second victim, a male child under the age of 18 years.
Begaye pled guilty on Aug. 1, 2017, to all six-counts of the indictment. In his plea agreement, Begaye admitted kidnapping the 11-year-old victim and her nine-year-old brother on May 2, 2016, by tricking the children into getting into his van by offering to drive them to their home. Instead, Begaye drove them to a location near the Shiprock Monument where he led the victim away from the van to an area beyond her brother’s field of view. Begaye sexually assaulted the victim before killing her by strangling her and repeatedly hitting her on the head and face with a tire iron. Begaye then returned to his van, directed the victim’s brother to get out of the van, and drove away, leaving the child behind.
The FBI and Navajo Nation Division of Public Safety investigated the case with assistance from the FBI Child Abduction Rapid Deployment Team, U.S. Marshals Service, New Mexico State Police, San Juan County Sheriff’s Office and the Farmington Police Department. Assistant U.S. Attorneys Niki Tapia-Brito and Jennifer M. Rozzoni prosecuted the case.
The U.S. Attorney’s Office prosecuted Begaye under its anti-violence initiative, which targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Mexican Citizen Sentenced for Immigration FraudRead the Press Release
ALBANY, NEW YORK – Rodolfo Calvo-Aguilar, age 53, and a citizen of Mexico, was sentenced today to time served (112 days in jail) for immigration fraud.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Calvo-Aguilar admitted that he possessed a counterfeit alien registration receipt card (a/k/a green card) when Border Patrol Agents encountered him in Burke, New York, on July 1, 2017. Calvo-Aguilar also admitted that he is a citizen of Mexico, and that he was in the United States unlawfully.
Following his sentencing, Calvo-Aguilar was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jaime Marquez-Venancio, age 50, and a citizen of Mexico, pled guilty yesterday to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Marquez-Venancio was previously removed from the United States to Mexico on April 28, 2017 and again on May 4, 2017. On September 28, 2017, Marquez-Venancio illegally entered the United States from Canada by walking across the border near Mooers, New York. As Marquez-Venancio walked south away from the border, he was arrested by a Border Patrol Agent.
Marquez-Venancio faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on February 15, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Members of Marijuana and Money Laundering Conspiracy SentencedRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced that in federal court on October 18 and October 19, 2017, United States District Judge Terrence W. Boyle sentenced five members of a marijuana and money laundering organization to active prison sentences. Each of the defendants previously pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 kilograms or more of marijuana and conspiracy to launder monetary instruments.
ALEXANDER WRIGHT FERGUSON, 31 years of age, from Suffolk, V.A., was sentenced to 42 months in prison for each count, to run concurrently. FERGUSON will be on supervised release for 5 years upon his release from the Bureau of Prisons. Additionally, Judge Boyle entered an order of forfeiture directing FERGUSON to forfeit $250,000 representing the gross proceeds of his drug trafficking. FERGUSON paid $10,000 towards the amount owed at sentencing.
SAMUEL SETH SMITHWICK, 33 years of age, from Washington, N.C., was sentenced to 33 months in prison for each count, to run concurrently. SMITHWICK will be on supervised release for 3 years upon his release from the Bureau of Prisons. Additionally, Judge Boyle entered an order of forfeiture directing SMITHWICK to forfeit $36,270 seized upon SMITHWICK’S arrest.
MICHAEL THOMAS HAAS, 55 years of age, from Pinehurst, N.C., was sentenced to 20 months in prison for each count, to run concurrently. HAAS will be on supervised release for 3 years upon his release from the Bureau of Prisons. Additionally, Judge Boyle entered an order of forfeiture directing HAAS to forfeit $1,000,000 representing the gross proceeds of his drug trafficking. HAAS received a credit towards the amount owed for the $177,195.97 that was seized from his bank accounts upon his arrest.
BRYAN EDWARD BOUGH, 37 years of age, from Fernley, N.V., was sentenced to 18 months in prison for each count, to run concurrently. BOUGH will be on supervised release for 4 years upon his release from the Bureau of Prisons. Additionally, Judge Boyle entered an order of forfeiture directing BOUGH to forfeit $250,000 representing the gross proceeds of his drug trafficking.
GEORGE ZORIO, 58 years of age, from Roseville, C.A., was sentenced to 33 months in prison for each count, to run concurrently. ZORIO will be on supervised release for 4 years upon his release from the Bureau of Prisons. Additionally, Judge Boyle entered an order of forfeiture directing ZORIO to forfeit $250,000 representing the gross proceeds of his drug trafficking.
The investigation revealed the marijuana and money laundering conspiracy began no later than 2010 and continued until 2014. FERGUSON and SMITWICK had shipments of marijuana, supplied by BOUGH and ZORIO, sent from California and NEVADA to North Carolina and Virginia through the U.S. mail. Later during the conspiracy, four shipments totaling 375 pounds of marijuana were transported via private jets, rented by HAAS. FERGUSON and SMITHWICK reimbursed HAAS for the jet rentals, and paid HAAS a portion of the net proceeds of the marijuana sales. The marijuana was distributed to FERGUSON and SMITHWICK’S customers in North Carolina, Virginia, and Hawaii. The total amount of marijuana distributed during the conspiracy was in excess of 600 pounds. Drug proceeds in the amount of $1,834,098 were laundered through various bank accounts in amounts less than $10,000 to evade the federal transaction reporting requirement.
The investigation was conducted by several federal, state, and local law enforcement agencies, including the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, North Carolina Alcohol Law Enforcement, the North Carolina State Bureau of Investigation, the Dare County Sheriff’s Office, and the Greenville Regional Drug Task Force.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.