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16 October 2017
Three Men Plead Guilty to Gun and Drug ChargesRead the Press Release
POCATELLO AND BOISE – The U.S. Attorney’s Office continued its district-wide focus on reducing violent crime last week with three separate defendants pleading guilty to drug or firearm offenses, U.S. Attorney Bart Davis announced.
In Pocatello, Marcus Tharpe, 36, of Pocatello, pleaded guilty to possession of a firearm by a prohibited person. Tharpe was indicted by a federal grand jury in Pocatello on June 27, 2017.
According to court records, on February 17, 2017, police received reports that Tharpe had threatened another man with a gun at his residence. Police responded and found Tharpe in his truck a short distance from the residence. On the floorboard of Tharpe’s truck, in plain view, police found an SKS semi-automatic rifle. The SKS rifle was within reach of Tharpe from the driver’s seat, and was loaded with 18 rounds. Tharpe is prohibited from possessing a firearm under federal law because of a felony conviction.
The charge for possession of a firearm by a prohibited person is punishable by up to ten years in prison, a maximum fine of $250,000, and three years of supervised release. Sentencing is set for January 2, 2018, before U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
In separate cases in Boise, Garrett Holmes, 46, of Payette, Idaho, and Jose A. Mouw, 45, of San Diego, California, pleaded guilty to distributing methamphetamine.
According to court records, Holmes distributed methamphetamine in Idaho and Oregon on several occasions between March 6, 2017, and May 18, 2017. Holmes arranged for and delivered methamphetamine in Payette County, Idaho, and Malheur County, Oregon. Investigating officers discovered Holmes’s activities and were able to intervene and arrest him on May 18, 2017. Holmes was indicted by a federal grand jury in Boise on June 15, 2017.
Holmes’s sentencing is set for January 3, 2018, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. He faces imprisonment of not less than five years or more than forty, a term of supervised release of at least four years, and a maximum fine of $5,000,000.
According to court records, on two separate occasions in 2016, Jose Mouw transported methamphetamine from southern California to Idaho for distribution. On Mouw’s second trip to Idaho, officers in Twin Falls, Idaho, pulled him over and discovered 670 grams of pure methamphetamine in the trunk of his car. Mouw was indicted by a federal grand jury in Boise on November 8, 2016.
Based on the amount of methamphetamine involved and Mouw’s prior convictions for drug-related offenses, including felony possession of methamphetamine and drug trafficking, Mouw faces a mandatory minimum sentence of not less than 20 years up to life in prison, a term of supervised release of at least ten years, and a maximum fine of $20,000,000. Mouw’s sentencing is set for November 14, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Tharpe’s case was investigated by the Bannock County Prosecutor’s Office and the Pocatello Police. It is being prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 13 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Holmes’s and Mouw’s cases were investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, the Twin Falls Police Department, and the High Desert Task Force. The High Desert Task Force is a collaboration of law enforcement agencies from Payette County Sheriff’s Office, Payette City Police Department, Fruitland Police Department, Weiser Police Department, Malheur County Sheriff’s Office, and the Ontario Police Department.
Their cases were prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Three Men Arrested on Extortion Charges for the Kidnapping of Two MenRead the Press Release
FORT WORTH, Texas — Fernando Cabrera, 21, Nygul Anderson, 19, and Albert Gonzalez, 18, all of Monterrey, Mexico, were arrested yesterday on a federal criminal complaint stemming from the kidnapping and extortion of two men, announced U.S. Attorney John Parker of the Northern District of Texas.
Cabrera, Anderson and Gonzalez were each charged with one count each of conspiracy to possess extortion proceeds. They are scheduled to make their initial appearance today before U.S. Magistrate Judge Jeffrey L. Cureton.
According to the affidavit filed with the complaint, on September 22, 2017, an individual began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he kidnapped the individual’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed. The next day the ransom demand was lowered to $40,000 and then again to $20,000. Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
On September 29, 2017, the same individual received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them. The deadline for the second ransom drop was Friday, October 13, 2017. On October 13, 2017, the caller agreed to a location at a Home Depot in Fort Worth for the money drop. At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location. A Hispanic male, exited a red Chevrolet Camaro and attempted to retrieve the package after it was dropped. Three individuals in the red Chevrolet Camaro were then arrested by FBI SWAT Team members.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is up to 5 years in federal prison and a $250,000 fine.
The Federal Bureau of Investigation is investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Texas man indicted for having nine pounds of heroinRead the Press Release
A Texas man was indicted after federal court after being arrested with nearly four kilograms of heroin, law enforcement officials said.
Adan Gilberto Munoz, 33, of El Paso, was indicted on one count of possession with intent to distribute 3,996 grams of heroin and one count of using a telephone to facilitate commission of a felony.
Munoz was arrested on Aug. 8 after being pulled over by an Ohio State Highway Patrol trooper in Medina County. Munoz told the trooper he did not have his driver’s license on him and was shaking and trembling, according to court documents.
OSHP used a canine to sniff around Munoz’s car and then searched the automobile. Troopers found four bricks of drugs that later tested to be heroin. Each brick of heroin weighed between 998 and 999 grams, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after reviewing 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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
“Law enforcement did a tremendous job of keeping thousands of doses of heroin off the streets,” U.S. Attorney Justin E. Herdman said.
“With unified efforts between federal, state and local law enforcement agencies, we will continue to combat drug trafficking and remove criminals from our communities making it safer for the citizens of Ohio,” said Colonel Paul A. Pride, Ohio State Highway Patrol superintendent.
DEA Special Agent in Charge Timothy Plancon said: “The seizure of four kilograms of heroin is significant. In this era of daily heroin related overdoses, nothing is more important than bringing the people that are distributing this poison within our communities to justice.”
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the Ohio State Highway Patrol and Drug Enforcement Administration.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texas Attorney Sentenced to 25 Years in Prison for International Money Laundering ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced attorney Perry Don Cortese (54, Little River, Texas) to 25 years in federal prison for conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud. As part of his sentence, the Court entered a money judgment in the amount of $9,288,241.36. Cortese was also ordered to pay restitution to the victims in the amount of $3,767,196.
A federal jury found Cortese guilty on October 21, 2016.
According to the evidence presented at trial, Cortese and his business partner, Priscilla Ann Ellis, as well as Ellis’s daughter, Kenietta Rayshawn Johnson, were members of an international criminal organization that defrauded dozens of victims across the United States and then laundered the funds. Much of the money was sent overseas. Many victims were law firms that had been solicited online to perform legal work, provided counterfeit cashier’s checks for deposit into the firms’ trust accounts, and then directed to wire money to third-party shell businesses controlled by the conspirators. Others victims included title companies defrauded in phony real estate transactions or individuals targeted by fake suitors on dating websites. The conspiracy also employed hackers who compromised both individual and corporate email accounts, ordering wire transfers from brokerage and business accounts to shell accounts controlled by conspirators.
As part of the scheme, victims were instructed to wire money into funnel accounts held by conspirators, known as “money mules.” The funds were then then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records indicated that, from 2012 to 2015, several million dollars’ worth of wire transfers were received into the accounts to be laundered. Conspirators in Canada, Nigeria, South Korea, Senegal, and elsewhere helped coordinate the fraud from abroad.
Cortese, a licensed attorney in Texas, worked for the conspirators by laundering victims’ money through his interest on lawyers trust accounts (“IOLTAs”). He also met with individuals in person to retrieve cash withdrawn from receiver accounts and recruited his paralegal and others to open such accounts to launder funds. Ellis laundered several million dollars’ worth of fraud proceeds through several bank accounts under her control. She also arranged for the creation of high-quality forgeries of checks and other documents. Johnson, then a bank employee at Capital One, helped create the counterfeit checks and monitor money flows between the conspirators’ accounts.
For her role in the conspiracy, Ellis was sentenced to 40 years in prison. As part of her sentence, the Court entered a money judgment against her in the amount of $9,288,241.36 and the forfeiture of various assets. In addition, she was ordered to pay $3,767,196 in restitution to her victims.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the U.S. Postal Inspection Service, and the Toronto Police Service in Ontario, Canada. The case was prosecuted by Assistant United States Attorneys Patrick Scruggs and Eric Gerard.
Suburban Man Arrested on Child Pornography Charges for Allegedly Enticing Underage Girls to Produce Sexually Explicit ImagesRead the Press Release
CHICAGO — Federal authorities today arrested a west suburban man for allegedly enticing underage girls to produce sexually explicit images of themselves.
Using the screen name “davidbanks1014,” RICHARD BARNETT chatted with at least four underage girls on the social network musical.ly and enticed them to produce pornographic images of themselves and send them to him, according to a criminal complaint and affidavit filed in federal court in Chicago. Barnett threatened at least one of the victims with physical harm, including threatening to shoot her, if she did not comply with his demands to send the sexually explicit images, the complaint states.
Barnett, 39, of Aurora, was arrested this morning. During a court-authorized search of his residence, agents seized multiple electronic devices and several firearms.
The complaint charges Barnett with one count of producing child pornography and one count of transporting child pornography. A detention hearing is set for Oct. 18, 2017, at 3:00 p.m., before U.S. Magistrate Judge Maria Valdez in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and John P. Selleck, Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance in the investigation was provided by the New Orleans office of the FBI, the Buffalo office of the FBI, the Jacksonville (Fla.) Sheriff’s Office, and the Ouachita Parish (La.) Sheriff’s Office.
According to the complaint, some of the underage victims reported to police that earlier this year they received sexually explicit messages on musical.ly from an individual with the username davidbanks1014. Some of the victims reported that davidbanks1014 claimed to be 13 years old when he corresponded with them, the complaint states.
The investigation revealed that the musical.ly account for davidbanks1014 was created on April 22, 2017, using Barnett’s cellular telephone number, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If convicted on the count of producing child pornography, Barnett faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum potential sentence of 30 years’ imprisonment. If convicted on the count of transporting child pornography, Barnett faces a mandatory minimum sentence of 5 years’ imprisonment and a maximum potential sentence of 20 years’ imprisonment. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Timothy J. Chapman.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Statement of Acting U.S. Attorney Joon H. Kim on the Conviction of Ahmad Khan Rahimi on Terrorism ChargesRead the Press Release
“On September 17, 2016, Ahmad Khan Rahimi attacked our country and our way of life. Inspired by ISIS and al Qaeda, Rahimi planted and detonated bombs on the streets of Chelsea, in the heart of Manhattan, and in New Jersey, hoping to kill and maim as many innocent people as possible. Rahimi’s crimes of hate have been met with swift and resolute justice. Just over a year after his attacks, and following a fair and open trial, Rahimi now stands convicted of his crimes of terror by a unanimous jury of New Yorkers. As a result, he now faces a mandatory sentence of life in prison. Today’s verdict is a victory for New York City, a victory for America in its fight against terror, and a victory for all who believe in the cause of justice.”
St. Louis Man Sentenced to 37 Months in Prison for Gun ChargeRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Joseph K. Rander, 31, of St. Louis, Missouri, was sentenced today in the United States District Court for the Southern District of Illinois to 37 months in federal prison for possessing a firearm as a convicted felon to be followed by three years of supervised release.
Evidence presented showed that on December 5, 2016, agents from the St. Clair County Drug Tactical Unit stopped Rander in his vehicle and found him to be in possession of a .40 caliber semi-automatic pistol. He had previously been convicted of three different felony charges.
The investigation was conducted by the St. Clair County Drug Tactical Unit.
San Juan Capistrano Businesswoman Who Stole more than $1.5 Million from Clients Sentenced to over 5 Years in Federal PrisonRead the Press Release
SANTA ANA, California – The owner and operator of a financial services company that provided accounting, tax and bookkeeping services to small businesses was sentenced today to 63 months in federal prison for embezzling more than $1.5 million from her clients.
Elizabeth Jane Mulder, who also goes by “Lizzie,” a 34-year-old resident of San Juan Capistrano, was sentenced this morning by United States District Judge David O. Carter. Noting that Mulder used the money for “personal aggrandizement,” Judge Carter said the victims in this case represented “a vulnerable section of society because small business is the backbone of our country.”
Mulder, who was the owner of Mulder Financial Consulting, pleaded guilty in June to wire fraud and subscribing to a false income tax return for failing to report the misappropriated funds to the Internal Revenue Service.
According to documents filed in United States District Court, from July 2009 until this past spring, Mulder obtained money from small business clients by gaining the trust of their owners, some of whom allowed her to control their financial accounts.
Mulder convinced nearly all of her victims to make checks payable to “Income Tax Payments” with false promises that the money would be used to satisfy the clients’ past and future tax obligations. Mulder then deposited these checks into the bank account of a fictitious business she created called “Income Tax Payments” and converted the funds for her own personal use.
Mulder, who was personal friends with most of the victims, used a variety of means to defraud the victims, including creating false personas and fraudulent bank accounts. Using fictitious email accounts, Mulder posed as a potential buyer for one business, obtained a power-of-attorney over that business’ accounts and emptied the business’ accounts claiming the funds were being used for expenses associated with the sale of the company. In reality, Mulder had used the business’ money for her own personal expenses.
Mulder’s fraudulent scheme resulted in the theft of approximately $1,538,771 from several Orange County-based businesses, including JAC Wines in San Clemente, Kurtz-Ahlers & Associates in San Juan Capistrano and Andra Builders, Inc. in Costa Mesa.
Mulder used the money obtained from her fraudulent scheme for a variety of personal expenses, including a rental home in Laguna Beach, cosmetic surgery, vacations and an Arabian horse.
“By developing and continuing personal friendships with the victims, [Mulder] was able to assume responsibilities for their small business accounting needs and then proceeded to steal from them,” prosecutors wrote in a sentencing memorandum filed with the court. “[Mulder]’s conduct resulted in various levels of financial loss and emotional distress to the victims, many of whom were required to drain their personal bank accounts or retirement funds in an attempt to avoid bankruptcy.”
In addition to the prison term, Judge Carter ordered Mulder to pay $1,538,781 in restitution to seven victims, including the IRS.
This case was investigated by the Federal Bureau of Investigation; IRS Criminal Investigation; and the Laguna Beach Police Department, Investigations Division.
The case is being prosecuted by Assistant United States Attorney Scott Tenley and Paul C. LeBlanc of the Santa Ana Branch Office.
Ring Leader Sentenced in Marriage Fraud SchemeRead 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 Jamar Thomas, 30, of Rochester, NY, who was convicted of conspiracy to encourage or induce an alien for private or commercial gain to reside in the United States in violation of law, was sentenced to one year in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in October 2015, Homeland Security Investigations (HSI) received information from a confidential informant regarding an ongoing marriage fraud scheme involving Jamar Thomas and United States citizen (USC) females, based in Rochester.
Subsequent investigation determined that the defendant told a Confidential Informant, who was not a United States citizen, but a native and citizen of Nigeria, that he could arrange fraudulent marriages between non-citizen males and United States citizen females known to him. Thomas said non-citizen males could pay $5,000 to marry his female co¬conspirators in order to gain legal status in the United States.
Between November 2015, and September 2016, the defendant met with undercover federal agents and/or confidential informants in Rochester to discuss their sham marriage. Thomas introduced the undercover agents or confidential informants to his co-conspirators and they provided their name, address, date of birth, and telephone numbers so that the undercover agents or confidential informants could file the necessary immigration forms.
During these meetings, the defendant and the undercover agents or confidential informants discussed specific details of the sham marriage process and the ceremony. On at least two occasions, women working for Thomas got married at a Town Clerk's Office within the Western District of New York. On one occasion, the defendant was physically present and acted as a "witness" to one such wedding. However, unknown to Thomas, the Town Clerk who performed the ceremonies was actually an undercover law enforcement agent. Following the weddings, false immigration forms were prepared and mailed in support of applications to adjust the citizenship status of the new "spouses."
On at least one occasion, women working for the defendant accompanied the undercover agent to Buffalo and participated in an immigration interview with United States Citizenship and Immigration Services.
The undercover agents or confidential informants paid money directly to Thomas and his female co-conspirators for their roles in the sham marriages.
Also charged and convicted in this case:
• Khaaliqa Kegler-sentenced to three years probation to include six months home confinement; • Chimere Brooks-sentenced to two years probation; and
• Nadia Thomas-awaiting sentencing.“Fittingly, defendant Thomas was sentenced on the same day and in the same federal courthouse in which over 50 individuals participated in a naturalization ceremony during which they became lawful U.S. citizens,” said Acting U.S. Attorney Kennedy. “The folks who participated in that Naturalization ceremony followed the rule of law and, in so doing, demonstrated a basic understanding of and respect for the fundamental idea that in America, with rights come responsibilities. By acting responsibly and following the rules, those individuals commendably walked out of the courthouse that day with all of the rights and privileges that come with citizenship to the United States. These fraudsters, on the other hand, who sought to circumvent the rule of law and essentially to sell the privilege of citizenship to our great Nation to the highest bidder, also left the courthouse with exactly what they deserved—federal criminal convictions and sentences which include terms of probation or imprisonment.”
“Marriage fraud undermines our nation’s legitimate immigration system and creates a potential vulnerability for law-abiding citizens,” said Kevin Kelly, Special Agent-in- Charge of HSI Buffalo. “Anyone who engages in marriage fraud is taking an illegal shortcut to U.S. citizenship. HSI will continue to aggressively investigate this type of criminal activity.”
The convictions in this case are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Child Exploitation Unit, under the direction of Special Agent-in-Charge Kevin Kelly.
Reserve Man Indicted for Violation of Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
Acting U.S. Attorney Duane Evans announced that DERRELL JOSEPH, 38, of Reserve, was charged last week in a four-count Indictment for violations of the Federal Controlled Substances Act. Specifically, JOSEPH was charged with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, and violations of the Federal Gun Control Act, including use of a firearm in furtherance of a drug trafficking crime.
If convicted, JOSEPH faces a mandatory minimum sentence of 5 years of imprisonment and a maximum sentence of 40 years of imprisonment, up to a $5,000,000 fine, at least 4 years of supervised release, and a $100 Mandatory Special Assessment Fee as to the drug charge. Additionally, if convicted of use of a firearm in furtherance of a drug trafficking crime, JOSEPH faces an additional 5 year consecutive term.
Acting U.S. Attorney Evans reiterates that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John Parish Sheriff’s Office for investigating this crime. Assistant United States Attorney James S. C. Baehr is in charge of the prosecution.
Portland Man Receives Federal Prison Sentence for Theft of Mail from a U.S Postal Service VehicleRead the Press Release
PORTLAND, Ore. – On Monday, October 16, 2017, United States District Judge Ann Aiken sentenced Wayne Eugene Price, 36, to 12 months and one day in prison following his plea of guilty to theft of mail. Judge Aiken ordered Price to serve his federal prison sentence consecutive to the sentence he is serving currently for an unrelated identity theft conviction in Multnomah County Circuit Court.
According to court documents, Price broke the windows of U.S. Postal Service vehicles to steal parcels and the personal belongings of postal carriers in Northeast Portland in December 2015. As part of his plea agreement, Price admitted that he stole packages from an U.S. Postal Service vehicle on December 7, 2015 and admitted that his offenses had more than ten victims. Price has an extensive criminal history in the Portland metro area.
Judge Aiken ordered Price to pay restitution of $5,055.07 to the victims of the offense and to the U.S. Postal Service to repair the vehicle damage.
United States Attorney Billy Williams praised the investigation done by the U.S. Postal Inspection Service, and stated: "This sentence serves notice that we will aggressively pursue anyone who breaks into Postal Service vehicles and of the serious consequences for stealing U.S. Mail."
This case was investigated by the U.S. Postal Inspection Service, and was prosecuted by Quinn Harrington, Assistant United States Attorney for the District of Oregon.
Pennsylvania man sentenced for oxycodone distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Bruce Mathis, 53, of Biglerville, Pennsylvania, was sentenced today to 24 months incarceration for distributing oxycodone, United States Attorney William J. Powell announced.
Mathis pled guilty to one count of “Possession with Intent to Distribute Oxycodone” in February 2017. The crime took place in Jefferson County in March 2016.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Owner of Former Tax Service Pleads Guilty to Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 13, 2017, Gabriel Nwanosike (45) of Milwaukee pleaded guilty to two-counts of aiding and assisting in the filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to documents filed in court, Nwanosike operated a Milwaukee tax return business under the name CBeyond Global Resources, LLC, doing business as CBeyond Tax Services. During the period from January 2013 through April 15, 2015, Nwanosike prepared and submitted numerous false income tax returns to IRS fraudulently seeking tax refunds of more than $550,000. To accomplish this, Nwanosike filed tax returns falsely claiming that the taxpayer had earned self-employment income, which fraudulently increased the taxpayer’s Earned Income Credit and the resulting fraudulent tax refunds.
More particularly, during this period, Nwanosike prepared and filed more than 700 tax returns with the IRS. Of the returns, more than 300 included a Schedule C reporting business income, but no expenses, from a sole proprietorship.
As part of the plea agreement, Nwanosike agreed to pay the IRS restitution of $197,777.76, which represents the amount he collected in fees in preparing the tax returns filed with the IRS. He faces up to six years imprisonment and a $500,000 fine. Nwanosike’s
sentencing has been scheduled for January 25, 2018, before the Honorable Pamela Pepper, U.S. District Judge.
This case was investigated by the IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For Additional Information Contact:
Public Information Officer Dean Puschnig
Omaha Man Sentenced to Six Years for Receiving Child PornographyRead the Press Release
Patrick Amen, 31, was sentenced in federal court Monday in Omaha, Nebraska, for receiving child pornography. Chief Judge Laurie Smith Camp sentenced Amen to 72 months’ imprisonment. There is no parole in the federal system. After his release from prison, amen will begin a five-year term of supervised release. He must also register as a sex offender.
On January 26, 2017, officers from the Douglas County Sheriff’s Office and agents of the FBI Cyber Crimes Task Force served a search warrant at Amen’s residence. Amen admitted to downloading child pornography from the Internet. A search of his computer and digital devices recovered 200 videos of children engaged in sexually explicit conduct. Most of the children depicted ranged from two to 12 years of age.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha FBI's Cyber Crime Task Force (CCTF).
Omaha Man Sentenced to 12 Years for Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced Monday that Joel Palmer, 39, of Omaha, Nebraska, was sentenced in federal court for possession of child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Palmer to 12 years of prison. There is no parole in the federal system. After his release from prison, Palmer will begin a 15-year term of supervised release and will continue to register as a sex offender.
Palmer was convicted of possessing child pornography in 2012 in Sarpy County. He received a two-year sentence. After his release from state prison, he immediately began to download child pornography. He shared some of those images with a woman in Florida. They chatted about Palmer engaging in sexual relations with the woman’s 11- and 13-year-old daughters.
On February 16, 2017, a member of the FBI Cyber Crimes Task Force searched Palmer’s Omaha residence. Nine videos and 59 images of child pornography were found on Palmer’s devices. The videos and images involved prepubescent children, some as young as a toddler, engaged in sexual acts.
When imposing sentence, Chief Judge Smith Camp observed that Palmer’s state conviction for possessing child pornography was not sufficient to deter him from again possessing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Ohio man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Edward L. Haynes, Jr., of South Euclid, was sentenced today to 100 months incarceration for cocaine distribution, United States Attorney William J. Powell announced.
Haynes, age 44, pled guilty to “Distribution of Cocaine Base” in August 2017. Haynes admitted to selling cocaine on April 1, 2017 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
New Kensington Man Sentenced to 18 Years’ Imprisonment for Conspiracy to Distribute HeroinRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Keith Robinson, 31, of New Kensington, Pennsylvania, was sentenced by United States District Court Chief Judge Christopher C. Conner on October 12, 2017, to serve 18 years’ imprisonment for conspiracy to distribute 224.11 grams of heroin, which is the equivalent of 8,964 individual doses of heroin, with a retail value of $89,644 at $10 per bag.
According to United States Attorney Bruce D. Brandler, on September 10, 2015, a federal grand jury in Williamsport previously returned a two-count indictment charging Robinson and two other residents of Westmoreland County, Cesare Biagio Palumbi, and Natawsha Durand with conspiracy to distribute 224.11 grams of heroin. During the traffic stop of a rental vehicle on State Route 487 near Interstate 80, Scott Township Police department officers recovered the heroin, along with a digital scale and empty bags used to package heroin for sale.
Palumbi, Durand, and another co-conspirator, Erica O’Neal, who was charged separately pleaded guilty to the drug conspiracy charge. Palumbi received a 60-month prison term imposed by Chief Judge Conner on November 2, 2016, and O’Neal is serving a 30-month prison term imposed by U.S. District Judge Malachy E. Mannion on March 20, 2017. Natawsha Durand’s sentencing proceedings are pending.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The investigation was conducted by the Federal Bureau of Investigation together with the Scott Township Police Department, South Centre Township Police, the Columbia County Drug Task Force, and the Columbia County District Attorney’s Office. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
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Mexican Citizen Sentenced to 27 Years in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Jose Apolinar Arreola Avalos, aka “J. Apolinar Arreola Avalos, 43, a citizen of Mexico and in the United States illegally, was sentenced today before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Avalos was sentenced to 324 months in federal prison following his guilty plea in June 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Avalos has been in custody since his arrest in March 2016.
Avalos was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, eighteen have pleaded guilty, five have been sentenced and three are awaiting trial.
According to documents filed in the case, between September 25, 2015 through March 18, 2016, Avalos and his coconspirators conspired to distribute methamphetamine and on several occasions discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine.
On March 18, 2016, law enforcement executed a search warrant at Avalos’ residence, which was used to store, prepare and distribute methamphetamine. The methamphetamine seized by law enforcement converted to approximately 63 kilograms of ice methamphetamine. Law enforcement also seized firearms, and several thousand dollars in United States Currency. As part of the plea agreement Avalos agreed to forfeit the items seized, including two firearms and approximately $295,000.00.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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Member of Cherry Hill’s Hillside Drug Distribution Conspiracy Sentenced to 25 Years in Federal PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On October 13, 2017, United States District Judge George L. Russell, III sentenced Leonard Chase a/k/a “Nard”, age 23, of Baltimore, Maryland, to 25 years in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise including, but not limited to, the murder of Freddie King. Chase admitted that he was a member of Hillside, a drug trafficking organization that operated for 14 years in the Cherry Hill section of Baltimore.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone, and marijuana, primarily at the Cherry Hill Shopping Center and other locations throughout Cherry Hill. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Chase, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Chase and other Hillside members used colored topped vials or colored the drugs with food coloring.
Chase admitted that they distributed heroin, marijuana, cocaine, and other narcotics.
During Chase’s involvement in the Hillside drug conspiracy, it was reasonably foreseeable to him that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.
Members of Hillside, including Chase, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on September 8, 2012, Chase, and other members of Hillside shot and killed Freddie King.
Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman,” and “Coppin Court.”
Acting United States Attorney Stephen M. Schenning praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Schenning thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Medina man sentenced to nearly seven years in prison for stealing from construction companyRead the Press Release
A Medina man was sentenced to nearly seven years in prison for stealing $245,000 from his employer and using the money to pay for a country club membership, vehicles and purchases at Victoria’s Secret and GNC, law enforcement officials said.
Brian K. Stepp, 51, previously pleaded guilty to two counts of conspiracy to commit wire fraud, two counts of wire fraud and one count of making false statements on loan application.
“This defendant is a serial fraudster who caused a business to close and 80 employees to lose their jobs,” U.S. Attorney Justin E. Herdman said. “He used this company’s coffers as his own personal bank.”
“Mr. Stepp conspired in a variety of fraudulent financial schemes to steal money for car and country club membership purchases and exorbitant retail purchases,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to root out financial fraudsters and hold them accountable for their criminal actions.”
Stepp worked at Variety Contractors, Inc., a company based in Medina County that provided general contracting services for large public and commercial retail construction projects in Ohio and other states.
Stepp joined the company as vice president with the plan to eventually buy the company. He served as acting president but never purchased the company, according to court documents and statements
Stepp incorporated S&S Kelsey LN, a shell company that did not engage in any actual business. He submitted a variety of fake invoices from S&S and other vendors to Variety Contractors of goods and services that were not provided. Stepp caused Variety Contractors to make payments on those fraudulent invoices, according to court documents.
For example, in September 2014, a check request for $31,500 was made for payment to G.C.I. for “Deposit for Exterior Metal Panels”. Three days later, a check in the same amount made payable to Ganley, which Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to court documents.
Stepp also fraudulently used a company credit card to pay for personal expenses, such as membership and related fees at Weymouth Country Club, payments made to purchase vehicles to himself and his family, local hotel charges, legal fees, and charges at stores including Victoria’s Secret and GNC, according to court documents.
The loss to Variety Contractors was $245,120. The company went out of business in 2015 and approximately 80 employees lost their jobs, according to court documents and statements
Stepp also made numerous false statements in attempting to get several loans, according court documents.
Stepp, while on supervised release, also hired someone to break the jaws of two people who had been critical of him, according to court documents.
U.S. District Judge Chirstopher Boyko sentenced Stepp to six years in prison for fraud, to be followed by six months for violating the terms of his supervised release in hiring someone to assault others.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Ranya Elzein following an investigation by the Federal Bureau of Investigation.
Massachusetts Man Sentenced to over 15 Years for Heroin, Fentanyl and Cocaine DistributionRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Anibal Orsini, 35, of Lawrence, Massachusetts was sentenced today in U.S. District Court by Judge D. Brock Hornby to 188 months in prison and 5 years of supervised release for conspiring to distribute 100 grams or more of heroin, and quantities of fentanyl and cocaine hydrochloride. Orsini entered a guilty plea on March 28, 2017.
Court records reveal that between October 2014 and August 2016, Orsini distributed heroin and other drugs from Lawrence, Massachusetts. Between January and July 2015, three Maine heroin dealers were arrested as they returned from Massachusetts in possession of distributable quantities of heroin they acquired from Orsini. Law enforcement officers also purchased drugs from Orsini and his co-conspirators.
This case was investigated by the U.S. Drug Enforcement Administration – Portsmouth Tactical Diversion Squad; the Ogunquit Police Department; and the Maine Drug Enforcement Agency.
Manhattan U.S. Attorney Announces Charges Against Former U.S. Soldier for Conspiring to Kidnap and Murder as Part of A Murder-For-Hire Scheme OverseasRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Ray Donavan, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced that a grand jury had returned a Superseding Indictment, which charged JOSEPH MANUEL HUNTER, a U.S. citizen and former member of the U.S. Army, and two co-defendants with offenses relating to the February 2012 murder of a woman in the Philippines. HUNTER’s co-defendants, ADAM SAMIA and CARL DAVID STILLWELL, were previously arrested in North Carolina in July 2015 and are scheduled to start trial on the offenses charged in the Superseding Indictment on April 2, 2018. HUNTER is expected to arrive in the Southern District of New York on October 25, 2017. The case has been assigned to the Honorable Ronnie Abrams.
According to the allegations in the Superseding Indictment against HUNTER, SAMIA, and STILLWELL returned today[1]:
HUNTER served from 1983 to 2004 in the United States Army, where he attained the rank of sergeant first class. While in the Army, HUNTER led air-assault and airborne infantry squads; served as a sniper instructor; and trained soldiers in marksmanship and tactics as a senior drill sergeant. Since leaving the Army in 2004, HUNTER has arranged for the murders of multiple people in exchange for money, among other completed acts of violence undertaken for pay.
SAMIA is a self-described “Personal Protection/Security Industry” professional. According to SAMIA’s résumé, he has worked as an “Independent Contractor” for clients in the Philippines, China, Papua New Guinea, the Democratic Republic of the Congo, and the Republic of the Congo; and has training in tactics and weapons, including handguns, shotguns, rifles, sniper rifles, and machineguns. According to STILLWELL’s résumé, he has training and experience in the field of information technology and has worked at a firm in North Carolina that provides firearms training.
In 2011 and 2012, HUNTER, SAMIA, and STILLWELL agreed to commit murders-for-hire in overseas locations in exchange for monthly salaries and bonus payments for each victim. In early 2012, SAMIA and STILLWELL traveled from North Carolina to the Philippines, where HUNTER provided them with, among other things, information about their intended victims and firearms to use to commit the murders.
In January and February 2012, SAMIA and STILLWELL surveilled their intended victims in the Philippines as they formulated their plans for the murders. On February 12, 2012, SAMIA and STILLWELL killed one of their intended victims – a Filipino woman – in the Philippines by shooting her multiple times in the face (“Victim-1”). After killing Victim-1, SAMIA and STILLWELL disposed of her body on a pile of garbage. HUNTER paid SAMIA and STILLWELL $35,000 each for completing the murder, and SAMIA and STILLWELL sent thousands of dollars from the payments they received to the United States using, among other methods, structured wire transfers in amounts under $10,000.
In late February and early March 2012, SAMIA and STILLWELL returned from the Philippines to North Carolina, where they continued to reside until their arrests.
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HUNTER, 52, of Owensboro, Kentucky, SAMIA, 43, of Roxboro, North Carolina, and STILLWELL, 49, of Roxboro, North Carolina, have each been charged with one count of conspiring to commit murder-for-hire and one count of committing murder-for-hire, each of which carries a maximum sentence of life in prison and mandatory minimum sentence of life in prison; one count of conspiring to murder and kidnap in a foreign country and one count of using and carrying a firearm during and in relation to a crime of violence, each of which carries a maximum sentence of life in prison. SAMIA and STILLWELL are also each charged with conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison.
The charges against the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Atlanta Field Division, Raleigh Resident Office; the Durham Police Department; the Raleigh Police Department; the Harnett County Sherriff’s Office; the Wake County Sherriff’s Office; the Person County Sherriff’s Office; the Cary Police Department; the North Carolina State Bureau of Investigations; and the Customs and Border Protection’s National Targeting Center. Mr. Kim also thanked the United States Attorney’s Office for the Middle District of North Carolina for its support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Rebekah Donaleski, Patrick Egan, and Emil J. Bove III are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Luzerne County Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Cleveland Linder, Jr, 33, of Plymouth, Pennsylvania, pleaded guilty on October 13, 2017 before Senior U.S. District Court Judge James M. Munley, to conspiring to distribute heroin in Luzerne County during February through November 2014.
According to United States Attorney Bruce D. Brandler, Linder admitted to conspiring with Shaliek Stroman and others to distribute between 60 and 80 grams of heroin (which is approximately between 2400 and 3200 retail bags of heroin). Linder is one of 11 people charged in the investigation.
Desmond Mercer, the leader of the drug conspiracy, previously pleaded guilty and was sentenced to 14 years in prison. Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Linder’s sentencing for January 23, 2018.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 maximum penalty under federal law for this offense is 20 years in prison, a term of supervised release following imprisonment, and a fine. 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.
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Lawrence Man Involved in Federal Fentanyl Sweep Pleads GuiltyRead the Press Release
BOSTON - A Lawrence man pleaded guilty today in federal court in Boston to his role in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.
Luis F. Lugo, 21, pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 18, 2018.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Lugo was arrested and charged along with Patrone and approximately 30 co-conspirators.
Lugo was a courier for the Patrone drug trafficking organization, who worked a daily shift in exchange for payment from Patrone. Specifically, Lugo delivered fentanyl and cocaine at Patrone’s direction to customers in the Lawrence area. Based on intercepted phone calls, the government alleges that Lugo was responsible for delivering approximately two kilograms of fentanyl and approximately 1.2 kilograms of cocaine to customers in Lawrence.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
La Vista Man Sentenced to 4 Years for Possessing Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced Monday that Keith B. Noden, 45, of La Vista, Nebraska, was sentenced in federal court for possessing child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Noden to four years of imprisonment. There is no parole in the federal prison system. After his release from prison, Noden will begin a five-year term of supervised release and be required to register as a sex offender.
On July 27, 2016, officers of the Sarpy County Sheriff’s Office and the FBI Cyber Crimes Task Force served a search warrant on Noden’s residence. The IP address assigned to Noden had been observed on numerous occasions with images of child pornography available for sharing. The videos included prepubescent children, including a 6-year-old child, engaged in sexual acts with adults. Noden admitted to downloading child pornography. Although no videos were found on his computer, various search terms indicative of searching for and downloading child pornography were recovered.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Sarpy County Sheriff’s Office and the Omaha FBI's Cyber Crime Task Force (CCTF).
Juries Convict Two Schuele Boys Gang Members Following Back-To-Back Trials in Federal CourtRead 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 following back-to-back jury trials completed in federal court in Buffalo late last week, two members of the Schuele Boys Gang, Aaron Hicks and Roderick Arrington, both of Buffalo, NY, were convicted of crimes arising out of their involvement with that gang. On September 25, 2017, Schuele Boys Gang member Roderick Arrington was convicted on multiple counts including RICO conspiracy, murder in aid of racketeering, and attempted murder in aid of racketeering. Arrington shot and killed Quincy Balance on August 30, 2012. While Arrington was originally charged together with Hicks, Hicks’s case was severed from Arrington’s, and following Arrington’s trial, another jury heard Hicks’s case and convicted him of the charge of conspiracy to distribute marijuana. Marcel Worthy, a third Schuele Boys Gang member charged with Arrington and Hicks, was also recently convicted, upon his plea of guilty, for his role in the death of 16-year-old Kevin Gray in December 2006.
In both cases, the trials were conducted and the convictions obtained by Assistant U.S. Attorneys Paul Parisi and Wei Xiang. While the jury in Arrington’s trial acquitted him of several counts with which he was charged and the jury in Hicks’s trial acquitted Hicks of one and was unable to reach a verdict on another of the counts against him, Arrington, like Worthy, is facing a maximum possible sentence of life in prison, while Hicks is facing 10 years in prison.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. Hicks, Arrington and Worthy are three of 28 Schuele Boys Gang members and associates arrested in this case. To date, 27 of the 28 defendants arrested have been convicted.
Additionally, convicted by guilty plea was one of the gang’s major cocaine and marijuana suppliers, Julio Contreras of Mission, TX. Contreras sent millions of dollars’ worth of drugs to Buffalo, and firearms and ammunition to Mexico. On November 6, 2011, Drug Enforcement Administration agents arrested Schuele Boys member Letorrance Travis and two representatives/couriers of Contreras. Agents recovered approximately 24 kilograms of cocaine that had been delivered to or were destined for the Schuele Boys enterprise. Agents also seized approximately $170,000 in U.S. currency from 34 Crossman Avenue in Buffalo. These funds were proceeds of the Schuele Boys’ cocaine trafficking. Contreras and Travis were both convicted of racketeering conspiracy and face a maximum possible sentence of life in prison.
The verdicts are the culmination of an investigation on the part of the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, the Edinboro University Police Department in Pennsylvania, the West Tennessee Judicial Drug Task Force, the City of McAllen, Texas Police Department, HSI Harlingen, Texas, and the FBI offices in Houston, Texas and Jackson, Mississippi.
Judge Sentences Indiana Investment Advisor to Prison for Fraud and Filing False Tax ReturnsRead the Press Release
PITTSBURGH - Acting United States Attorney Soo C. Song announced today that an Indiana County investment advisor was sentenced to 87 months imprisonment, three years supervised release and ordered to pay $1,212,663.93, on his conviction at trial of one count of securities fraud, one count of mail fraud and four counts of filing false tax returns.
Receiving the sentence from United States District Judge Reggie B. Walton was Bernard Parker, age 56.
According to Assistant United States Attorneys Robert S. Cessar and Rachael L. Mamula, who prosecuted the case, the evidence presented at trial established that Parker, the principal of Parker Financial Services, solicited his clients, by signing of “Investors Contracts,” to invest in tax lien certificates, municipal bonds, computer software, real estate, and other undefined investments. Parker then used the vast majority of the monies taken from these investors for his personal expenses instead of the various investments agreed upon with his clients. Further, Parker filed false federal tax returns for tax years 2010, 2011, 2012 and 2013, each of which failed to report his income.
The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service conducted the investigation that led to the conviction of Bernard M. Parker.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Terry Edwards, of Charles Town, West Virginia, was sentenced today to 120 months incarceration for a firearms charge, United States Attorney William J. Powell announced.
Edwards, age 38, pled guilty to one count of “Unlawful Possession of a Firearm” in July 2017. Edwards, having been previously convicted of a felony in U.S. District Court for the Northern District of West Virginia, admitted to possessing two pistols and a rifle in March 2017 in Jefferson County.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charles Town Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
James Matthew Bradley, Jr., Pleads Guilty to Transporting Undocumented Aliens Resulting in DeathRead the Press Release
In San Antonio, 61-year-old James Matthew Bradley, Jr., pleaded guilty to federal charges in connection with an undocumented alien smuggling operation that resulted in ten deaths announced United States Attorney Richard L. Durbin, Jr., and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Appearing before United States Magistrate Judge Henry Bemporad this afternoon, Bradley pleaded guilty to one count of conspiracy to transport aliens resulting in death and one count of transporting aliens resulting in death. By pleading guilty, Bradley admitted that on July 23, 2017, he conspired to transport and did transport undocumented aliens in the United States for financial gain; to further their illegal entry into this country; with reckless disregard that they entered this country illegally; and, which resulted in the death of ten undocumented aliens.
Bradley, who faces up to life in federal prison, remains in custody pending sentencing scheduled for 9:00am on January 22, 2018, before Senior United States District Judge David A. Ezra. Bradley also agreed to forfeit to the Government his tractor-trailer rig, plus approximately $5,600 in U.S. currency and a .38 caliber pistol recovered from inside the cab.
According to court records, which Bradley admitted were factually correct, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23, 2017. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. Of the 39 aliens found at the scene ten (10) died, eight (8) died in the trailer and two (2) died later in area hospitals. There were four juveniles, aged 14-17 years old, within the group of aliens in Bradley’s trailer who were unaccompanied by an adult.
Court records further state that the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported.
“Today’s admission of guilt by Mr. Bradley helps to close the door on one of the conspirators responsible for causing the tragic loss of life and wreaking havoc on those who survived this horrific incident,” said Shane M. Folden, special agent in charge, HSI San Antonio. “This case is a glaring reminder that alien smugglers are driven by greed and have little regard for the health and well-being of their human cargo, which can prove to be a deadly combination. HSI is committed to aggressively targeting human smugglers and smuggling organizations, who continually victimize people for profit.”
Bradley’s co-defendant, 47–year-old Pedro Silva Segura, an undocumented alien residing in Laredo, TX, faces one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in death; one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in serious bodily injury and placing lives in jeopardy; and, two counts of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy. Those charges stem from a superseding federal grand jury indictment handed down on September 20, 2017.
Silva, who was arrested in Laredo on an alien smuggling charge, is in custody and awaiting transfer to San Antonio.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol. Assistant United States Attorneys Christina Playton and Matthew Lathrop are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Silva is considered innocent until proven guilty in a court of law.
Investment Advisor Sentenced to Federal Prison for Investment Fraud SchemeRead the Press Release
Francisco Reynier Arias, Jr., 49, of Winter Park, Florida and formerly of Nashville, was sentenced today to 70 months in prison for operating an investment fraud scheme, which defrauded investors of over $6.5 million dollars, announced U.S. Attorney Donald Cochran of the Middle District of Tennessee.
Arias was indicted in 2011 and pleaded guilty in October 2015 to money laundering and wire fraud. According to court documents and evidence presented at the sentencing hearing, Arias owned and operated Adieus, an investment company in Nashville, which purportedly specialized in foreign currency trading. Arias lied to investors about his abilities as a foreign currency trader by claiming that he had a special insight into the market when in fact he did not. He also lied to investors by claiming that he was a decorated war hero who helped capture Saddam Hussein.
Instead of investing client funds, Arias diverted funds for his own personal use, including paying down the mortgage on his home; paying a family member’s college tuition at Vanderbilt University; family trips, including a gambling trip to Las Vegas; landscaping for his house, including the construction of a swimming pool; and purchasing motorcycles to add to his motorcycle collection. Arias continued his investment scheme by paying off some of the investors with subsequent investments. This scheme caused some of the investors to lose their retirement accounts and life savings.
In addition to the term of prison imposed, U.S. District Court Judge Marvin E. Aspen, ordered Arias to serve three years of supervised release and to pay $6,749,563.50 in restitution to the victims of the offense.This case was investigated by the FBI and the IRS-Criminal Investigation. Assistant United States Attorneys Ryan R. Raybould and Cecil W. VanDevender prosecuted the case.
Inland Empire Man Pleads Guilty to Using Internet to Entice Boy to Make Sexually Explicit VideosRead the Press Release
RIVERSIDE, California – An Inland Empire man pleaded guilty late this afternoon to a federal child exploitation offense after coercing at least six boys around the nation to send him sexually explicit videos – some of which were posted on the internet when victims refused to send additional images and videos.
Francisco Javier Soledad, 25, of Eastvale, pleaded guilty today to one count of using the internet to induce a minor to engage in criminal sexual activity.
In a plea agreement filed in United States District court, Soledad admitted victimizing six boys between the ages of 12 and 15 over the course of several months in 2016. Soledad found the victims – who lived across the nation, from California to Georgia – on social media sites he accessed under the handle “linkinparkrocks.” Soledad pleaded guilty to one count related to a victim in Illinois, but he admitted engaging in similar conduct with at least five other boys he communicated with via Snapchat, text messages and email.
According to court documents, Soledad assumed different personas – sometimes a 13-year-old boy, and other times an adult woman – to convince the victims to send him explicit photographs and videos. When several of the victims refused demands to send additional images, Soledad threatened to publish the previously sent images on social media platforms. In at least one instance, Soledad published one of the victim’s nude images on Twitter along with the victim’s Twitter handle.
Soledad further admitted in his plea agreement that he possessed on his digital devices more than 5,000 images and videos of child pornography and child erotica. The majority of the child pornography images appear to have been produced by the children depicted. Law enforcement is reviewing the thousands of images and is continuing to try to identify all of the children Soledad appears to have victimized.
Soledad pleaded guilty before United States District Judge Jesus G. Bernal, who scheduled a sentencing hearing on January 22.
The charge of enticing a minor to engage in criminal sexual activity carries a mandatory minimum sentence of 10 years in prison and a maximum possible sentence of life. In the plea agreement, prosecutors have agreed not to seek a sentence of longer than 14 years.
Once he completes any prison sentence he receives, Soledad will be required to register as a sex offender, and he will be prohibited from having unsupervised contact with minors and going to places to where young people congregate.
This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham of the Riverside Branch Office.
Hyattsville, Maryland Woman Sentenced to 30 Months in Federal Prison for Mail and Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –On October 12, 2017, United States District Judge Roger W. Titus sentenced Ana Maritza Gomez, age 45, of Hyattsville, Maryland, to 30 months in prison followed by 3 years of supervised release for conspiracy to commit mail and wire fraud arising from a scheme to defraud victims through a foreclosure rescue scam. Judge Titus also ordered Gomez to pay $205,280.25 in restitution.
Two co-defendants, Rene De Jesus De Leon, age 49, and Pedrina Rodriguez Bonilla, age 39, both of Silver Spring, Maryland, have also pleaded guilty to conspiracy to commit mail and wire fraud for their involvement in the same scheme.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Chief Henry P. Stawinski III of the Prince George’s County Police Department; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to evidence presented at the six-day trial, from at least late 2011 to August 2015, Gomez and her co-conspirators claimed that they could help homeowners who wanted to modify their mortgage loans and prevent foreclosure of their homes. The conspirators sold the victims on a “principal reduction” program that included an upfront fee, typically between $3,000 and monthly payments for 10 to 15 years. Gomez and her co-conspirators told the victims to make monthly payments to the conspirators and to companies they controlled, in lieu of to the homeowners’ lenders. The companies controlled by Gomez’s co-conspirators were named Marketing Multiservices LLC and Innovative Solutions Services LLC.
According to the indictment and court documents, the conspirators mailed monthly invoices to the homeowner victims that falsely indicated that the “principal balance” was being paid down. Some of the victims paid Gomez in person each month at her residence; or some of the victims deposited their payments directly into bank accounts controlled by Gomez’s co-conspirators. The conspirators told the victims not to open any mail from their lenders and instead provide it to the conspirators. The conspirators did not, however, negotiate with lenders of behalf of the homeowners. Many of the victims lost their homes.
Sentencing for Rene De Leon is scheduled for December 14, 2017 at 10 a.m. and Pedrina Bonilla is scheduled for sentencing on December 13, 2017 at 9:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG, HUD-OIG, U.S. Postal Inspection Service, Prince George’s County and Montgomery County Police Departments, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Kristi N. O’Malley and Special Assistant United States Attorney Jolie F. Zimmerman, who prosecuted the case.
Huntley Businessman Pleads Guilty to Causing Union Benefit Funds to File False Statements and Failing to Pay $600,000 in Federal FICA TaxesRead the Press Release
ROCKFORD — A Huntley businessman pleaded guilty today before U.S. District Judge Frederick J. Kapala to causing false statements to be made on forms required by the Employee Retirement Income Security Act (ERISA) to be filed, and failing to collect and pay Federal Insurance Contribution Act (FICA) taxes.
THOMAS MANNING, 60, president of T. Manning Concrete Inc. in Huntley, admitted in a written plea agreement that as president of T. Manning Concrete he hired union laborers and cement masons in northern Illinois. The unions provided benefits to their members through various employee benefit plans. Each benefit plan was required to file an annual report stating the total contributions received. T. Manning Concrete was required by collective bargaining agreements to submit monthly reports to the benefit plans that stated the number of hours each covered employee worked, and to pay the company’s contributions to those benefit plans.
According to the plea agreement, since at least 2007 Manning defrauded the benefit plans by understating the number of hours worked by T. Manning Concrete’s covered employees in the monthly reports, and under-paying the monthly contributions that were required on behalf of its covered employees. Manning admitted that in order to conceal the understatement of hours and defraud the benefit plans, he caused the covered employees to be paid for the additional hours “under the table,” using checks drawn upon non-payroll bank accounts under Manning’s control.
Manning admitted that between 2007 and 2010 he failed to report and pay almost $2 million due to the employee benefit funds. Manning further admitted that by falsely reporting the number of hours worked by covered employees he caused the benefit plans to make false statements in their annual reports they were required by ERISA to file.
Manning also admitted that between 2007 and 2010, as president of T. Manning Concrete, he failed to collect, account for, and pay $600,680 for its employees’ share of FICA taxes due to the IRS on the wages paid using “under the table” checks.
The charge of filing a false statement and concealment of facts in relation to documents required by ERISA, and the charge of willful failure to collect or pay FICA taxes, each carry a maximum penalty of five years’ imprisonment and a $250,000 fine. Each count also carries a maximum period of up to three years of supervised release following imprisonment. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Manning is set for Jan. 24, 2018, at 2:30 p.m.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-In-Charge of the Chicago Region of the U. S. Department of Labor, Office of Inspector General; Jeffrey A. Monhart, Regional Director for the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago; and Craig Goldberg, Postal Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Home Improvement Contractor Sentenced to 10 Years in Prison for Defrauding Customers of Hundreds of Thousands of Dollars and Hiding Assets from Creditors in Bankruptcy ProceedingsRead the Press Release
WASHINGTON - Michael L. Rosebar, 54, of Washington, D.C., was sentenced today to 10 years in prison for defrauding customers of his home improvement business and personal creditors of hundreds of thousands of dollars, making false statements in bankruptcy proceedings, and defrauding a government program for needy families.
The sentencing was announced by U.S. Attorney Jessie K. Liu and Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division.
A jury found Rosebar guilty on June 20, 2017, following a trial in the U.S. District Court for the District of Columbia, of six federal counts of concealment of bankruptcy assets, three federal counts of false oaths and statements in bankruptcy, and three counts of wire fraud. He also was found guilty of violating District of Columbia laws, including three counts of first-degree fraud related to his home contracting business and one count of first-degree fraud related to a scheme to defraud the District of Columbia’s public assistance (or welfare) program. The Honorable Senior Judge Thomas F. Hogan sentenced him today.
Judge Hogan stated that he will issue an order of restitution at a later date. Additionally, he ordered Rosebar to pay a $75,000 forfeiture money judgment. Following his prison term, Rosebar will be placed on three years of supervised release.
“Michael Rosebar coldly took advantage of people who trusted him with home improvement work, stealing hundreds of thousands of dollars from customers who paid him for projects that he half-started or didn’t start at all,” said U.S. Attorney Liu. “In some cases, he caused his victims, including senior citizens, to live in dangerous conditions for years. He also treated our court system as his personal weapon against victims, and repeated his fraud by lying to judges and creditors in fraudulent bankruptcy and other civil proceedings. Now he is being held accountable for these crimes.”
“After being solicited through the mail, many unfortunate victims in this case were harmed twice. Not only did they lose their original payments, they had to pay more money for additional repairs. Postal Inspectors will continue to protect consumers with our pursuit of criminals who misuse the mail to further their fraud schemes,” said Inspector in Charge Wemyss.
Rosebar’s wife, Erin M. Rosebar, 41, pled guilty on Oct. 10, 2017, to a charge of first-degree fraud. She is to be sentenced on Jan. 23, 2018.
According to the government’s evidence, Rosebar operated businesses under several names, including EMR Construction Contractors. From at least February 2008 through January 2015, according to the evidence, he misrepresented himself to clients as a licensed home-improvement, electrical and heating/ventilation/air conditioning (HVAC) contractor. However, at no time during that period did Rosebar have a business or professional license from the District of Columbia Department of Consumer and Regulatory Affairs.
Rosebar recruited customers at home improvement stores, through referrals, and by acting as a sub-contractor on projects. According to the government’s evidence, he negotiated contracts with customers for substantial home improvement or HVAC projects, which he could not, and did not intend to, complete. During the trial, the government presented evidence related to numerous home renovation projects and a project to install air conditioners at an apartment complex in Atlanta. According to the government’s evidence, Rosebar received more than $800,000 from 2008 through 2013 for these projects. Rosebar not only abandoned these projects before completion, his demolition and other improper and unskilled work destroyed many residents’ homes. One senior citizen victim paid Rosebar over $380,000, and her home was an uninhabitable disaster with no proper roof when Rosebar abandoned the job. This woman lost her life savings to Rosebar, and was forced to live in a small portion of the home for seven years.
According to the government’s evidence, Rosebar’s fraud extended beyond the victims who testified at trial. All told, the government has estimated that victims lost more than $1.3 million as a result of Rosebar’s conduct from 2001 through 2016.
While scamming numerous victims, Rosebar filed for bankruptcy protection three times in the period between 2008 and 2013. The jury found him guilty of charges related to false statements he made during these proceedings, in which he understated his income and overstated his expenses.
The jury also found Rosebar guilty of receiving benefits to which he was not entitled from the District of Columbia’s Department of Human Services. From 2010 until 2014, Rosebar earned hundreds of thousands of dollars from his contracting fraud victims, and yet received benefits through the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program after falsely reporting that he had no income, was unemployed, and had no assets other than his family home.
In announcing the sentence, U.S. Attorney Liu and Inspector in Charge Wemyss commended the work of those who investigated the case from the U.S. Postal Inspection Service, Washington Division. They also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Inspector General, the Metropolitan Police Department (MPD), and the District of Columbia Office of the Attorney General.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Nicole Hinson and Mark Fitzgerald; former Criminal Investigator Juan Juarez; Paralegal Specialists Aisha Keys and Jessica Mundi; Supervisory Litigation Technology Specialist Joshua Ellen; Assistant U.S. Attorney Arvind K. Lal, Chief of the Office’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Philip A. Selden, now with the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the work of Assistant U.S. Attorneys John Marston and Anthony Saler, who prosecuted the case.
Hartford Man Sentenced to 8 Years in Federal Prison for Distributing Crack, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BOBBY HEMINGWAY, 36, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in February 2016, the FBI’s Northern Connecticut Violent Crimes Task Force received information that HEMINGWAY was distributing crack cocaine in the Enfield Street and Westland Street area of Hartford. Between February and April 2016, investigators made four controlled purchases of crack from HEMINGWAY.
HEMINGWAY was arrested on April 21, 2016. On that date, a search of his Westland Street residence revealed a loaded .22 caliber handgun and approximately 26 grams of marijuana.
HEMINGWAY has been detained since his arrest. On January 23, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
HEMINGWAY’s criminal history includes five felony convictions, including a conviction for first-degree assault stemming from his role in a drive-by shooting in Hartford in 2008.
In November 23, 2009, HEMINGWAY was sentenced in U.S. District Court in Portsmouth, New Hampshire, to 44 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine. He was released from prison in January 2013 and was on federal supervised release when he engaged in the criminal activity that led to his most recent federal conviction.
Judge Thompson sentenced HEMINGWAY to 84 months of imprisonment on the drug distribution offense, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.
The FBI’s Northern Connecticut Violent Crimes Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Guilty Plea Entered for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Alfredo Cardenas-Suastegui (“Cardenas”), 56, a native and citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced. Cardenas also agreed to pay restitution to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.
According to court documents, co-defendants Sair Maldonado-Soto, 22, and Coral Herrera, 21, both of Perris, California, were linked to two separate grow sites in the Lucas Creek drainage and an area known as the "Box 6" site in the Sequoia National Forest after a four-month investigation. The investigation revealed that they were supplying material, equipment, and personnel to the grow sites, which consisted of a total of 10,396 marijuana plants. They were also responsible for transporting Cardenas and co-defendant Abel Toledo-Villa, 34, of Michoacán, Mexico, away from the Box 6 grow site after it was raided. Both Cardenas and Toledo-Villa tended to the marijuana plants at the Box 6 grow site. A rifle, ammunition, and processed marijuana were seized from the vehicle occupied by the four defendants as it drove away from the Box 6 grow site.
The marijuana cultivation operations at both sites caused extensive damage to the land and natural resources. Harmful pesticides and fertilizers, miles of plastic irrigation lines, and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Cardenas, who has been detained as a flight risk and danger to the community, is scheduled for sentencing on February 12, 2018. He faces a statutory mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison, along with a $5 million fine. Herrera and Maldonado previously entered guilty pleas and are scheduled for sentencing on December 4 and 18, respectively. Any sentence 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. Toledo-Villa previously entered a guilty plea and was sentenced to 5 years in prison.
Government Contractor Pays $2.6M to Settle False Claims Act SuitRead the Press Release
ALEXANDRIA, Va. – Triple Canopy, Inc. (Triple Canopy), located in Reston, has agreed to pay $2.6 million to settle civil False Claims Act allegations that the company submitted false claims for payment to the Department of Defense for unqualified security guards stationed in Iraq.
“Contractors must be held accountable for their actions, especially when the safety of government personnel is at stake” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This settlement should remind contractors of the high value we place on safeguarding our personnel abroad.”
The allegations stem from Triple Canopy’s one-year contract with the Joint Contracting Command in Iraq (JCC-I), an entity established to provide contracting support related to the government’s relief and reconstruction efforts in Iraq. Under the 2009 contract, Triple Canopy was required to perform a variety of security services at Al Asad Airbase, the second largest air base in Iraq.
The government’s complaint in intervention alleges that Triple Canopy knowingly billed the United States for security guards who could not pass contractually required firearms proficiency tests. The tests were designed by the Army to ensure that the guards hired to protect U.S. and allied personnel were capable of firing their assigned weapons safely and accurately. The government further alleges that Triple Canopy concealed the guards’ inability to satisfy the firearms testing requirements by creating false test scorecards that Triple Canopy was required to maintain for government review, in an effort to induce the government to pay for the unqualified guards.
The government’s claims are based on a whistleblower suit initially filed by a former employee of Triple Canopy in 2011. The suit was filed in the federal district court for the Eastern District of Virginia under the qui tam provision of the False Claims Act, which allows private persons to file suit on behalf of the United States. Under the False Claims Act, the government has a period of time to investigate the allegations and decide whether to intervene in the action or to decline intervention and allow the whistleblower, also called the relator, to go forward alone. The government intervened in the relator’s suit in June 2012. The False Claims Act also provides the whistleblower a share of the government’s recovery. As part of the resolution, the whistleblower will receive approximately $500,000.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Defense Criminal Investigative Service, and the Army Criminal Investigation Command. The matter was investigated by Assistant U.S. Attorneys Richard Sponseller and Christine Roushdy.
The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Fresno Resident Pleads Guilty to Conspiring to Sell Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Maria Victoria Perez-Vasquez, 32, of Fresno and a citizen of Mexico, pleaded guilty today to conspiring to transfer, possess, and sell false identification documents, United States Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and June 2016, Perez-Vasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the California Department of Motor Vehicles, Investigations Division. Assistant United States Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Perez-Vasquez and five co-defendants were arrested for the scheme. Four of the other co-defendants pleaded guilty and have been sentenced. Charges are pending against the remaining co-defendant, Fidel Vasquez-Velazquez, who failed to appear in court for a bond forfeiture hearing on August 22, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Perez-Vasquez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O'Neill on January 16, 2018. She faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Robins Air Force Base Employee Sentenced to Ten Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Arthur D. Clark, age 60 of Perry, Georgia, was sentenced on October 16, 2017, by United States District Court Judge Leslie J. Abrams in Macon, Georgia to 10 years in federal prison for attempted online enticement of a minor. Mr. Clark was formerly employed as a member of the Air Force Civil Service on Robins Air Force Base in Warner Robins, Georgia. There is no parole in the federal system. His term of imprisonment will be followed by 25 years of supervised release and registration as a sex offender.
Mr. Clark entered a plea of guilty to the charge on May 18, 2017. On June 15, 2016, Mr. Clark responded to an online advertisement posted during an undercover operation conducted by the Air Force Office of Special Investigations. From June 15, 2016, through July 7, 2016, Mr. Clark chatted online with whom he believed to be a 14-year-old female named “L.” In reality, “L.” was an undercover agent. During his conversations with “L.,” Mr. Clark indicated that “I wanna do it all with you. Sex and all….” Mr. Clark was eventually told that “L.” would be alone at her parents’ residence located on Robins Air Force Base on July 7, 2016. On this same date, he traveled to a park on Base and sent a text message to “L.” indicating that he was awaiting her arrival. Mr. Clark was subsequently arrested by law enforcement officers, who found unused condoms and personal lubricant in his vehicle after his arrest. Subsequent to his arrest, Mr. Clark agreed to speak with law enforcement and acknowledged that he came on the base to meet “L.” who he knew was a 14-year-old minor. He also confirmed that the condoms and personal lubricant were for their encounter and that he used both his cell phone and work computer to communicate with “L.”
“With ten years to serve in prison without parole and a quarter of a century of intense supervision by federal authorities after that, it is gratifying to know that at 60 years of age Mr. Clark is extremely unlikely to sexually abuse another child as he was so earnestly trying to do in this case,” said United States Attorney Peterman.
This case was investigated by the Air Force Office of Special Investigations at Robins Air Force Base. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Former Mon Valley Attorney Pleads Guilty to Defrauding Elderly ClientRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has pleaded guilty in federal court to charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
Keith A. Bassi, age 61, of Fayette City, PA, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Government represented in Court that since 2013, Keith A. Bassi, a licensed attorney, misappropriated for personal use approximately $505,000.00 in funds belonging to the estate of an elderly person diagnosed with dementia. Bassi held a power of attorney for the victim, and then engaged in a series of financial transactions in which he diverted the victim’s assets into bank accounts he created and controlled at Charleroi Federal Savings and PNC Banks. In one instance, Bassi made insurance premium payments using the victim’s funds on a whole life policy at Pacific Life purchased in the name of someone other than the victim, and then later cancelled the policy and kept the surrendered cash proceeds for himself. He also used the victim’s estate funds to operate Mid Mon Valley Publishing Co. in Charleroi, Pennsylvania.
Judge Schwab scheduled sentencing for March 14, 2018. The law provides for a total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Keith A. Bassi.
Former AFLAC Employee Who Stole over $4 Million from Insurance Company with Fake Disability Claims Sentenced to 10 Years in PrisonRead the Press Release
SANTA ANA, California – A one-time sales representative for AFLAC was sentenced today to 10 years in federal prison after being convicted of federal fraud charges related to a scheme that used bogus disability claims to bilk the insurance company out of more than $4 million.
Patricia Diane Smith Sledge, 61, of Redlands, was sentenced today by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered Sledge to pay $4,166,063 in restitution.
Following a two-week jury trial late last year, Sledge was found guilty of six counts of mail fraud, as well as two counts of witness tampering.
The fraud scheme involved fictitious employers and bogus employees who falsely claimed to have suffered injuries that prevented them from working.
The evidence presented at trial showed that Sledge – who was residing in Irvine while working for the company formally known as American Family Life Assurance Company – sold disability insurance policies to bogus companies and people who supposedly worked for those companies. Sledge then orchestrated the filing of fraudulent disability claims and directed the purported employees to doctors that would sign off on the fake injury claims.
Sledge made money both from the commissions related to the sale of the fraudulent insurance policies and from kickbacks she received from the supposedly injured “employees.”
Sledge exploited her knowledge of AFLAC’s internal policies and underwriting procedures to further the scheme. For example, Sledge and others involved in the scheme listed artificially inflated incomes on the applications for insurance because the amount AFLAC paid on disability claims was based on the policyholder’s income.
Sledge was also found guilty of witness tampering for encouraging potential witnesses to lie to federal investigators and discouraging them from cooperating in the investigation. One of these crimes was committed while she was on bond in this case.
Three others have been prosecuted for acting as fake employers and fake employees in this scheme.
The case against Sledge and the others involved in the scheme is the result of an investigation by United States Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, and California’s Department of Insurance.
This case is being prosecuted by Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office and Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section.
Five Valdosta Residents Plead Guilty to Mail Theft ConspiracyRead the Press Release
United States Attorney G.F. Peterman, III announces that on October 3, 2017 Kedrick Antwan Williams, age 31, and on October 12, 2017, Zerrick Devon Tompkins, age 31, Jerry Lewis Rawls, Jr., age 44, Willie James Smith, age 64, and Gregory Willie Harris, age 46, all of Valdosta, Georgia, entered pleas of guilty in front of the Senior United States District Judge Hugh Lawson for conspiring to steal and to possess stolen mail.
According to plea agreements, the defendants admitted to conspiring to steal and possess stolen mail and items, including checks, that were in the mail between July 24 and December 8, 2016. Members of the conspiracy admitted to stealing mail in the Valdosta area, removing checks, and then altering payees and/or amounts on checks that were in the mail. The defendants then presented the checks for cashing or deposit and retained the funds. The defendants admitted to the theft of between $40,000 and $95,000 worth of checks written on the accounts of various businesses and individuals. Members of the conspiracy agreed to payment of restitution of more than $14,000 to five banks and one business, based on checks that were actually negotiated.
Sentencing is scheduled for all defendants on January 10, 2018 in Valdosta, Georgia.
“This case involved a classic organized check cashing ring, with some members stealing checks, others altering the payees and the amounts, and others negotiating the altered instruments. The many victims in the South Georgia area included numerous businesses and individuals. It is a shame that with all the ingenuity and effort these criminals invested in this illegal scheme, they did not choose to earn an honest dollar instead, which they were clearly smart and resourceful enough to have done,” said United States Attorney Peterman.
The case was investigated by the Lowndes County Sheriff’s Office, the Valdosta Police Department, and the United States Postal Inspection service. Service. Assistant United States Attorney Robert D. McCullers is prosecuting the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Federal Jury Convicts Minneapolis Chiropractor on Fraud ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of PRESTON ELLARD FORTHUN, 39, on charges of conspiracy, mail fraud, and wire fraud. Co-defendants ABDISALAN ABDULAHAB HUSSEIN, 48, and CARLOS PATRICIO LUNA, 49, were also convicted for their roles in the scheme. FORTHUN, HUSSEIN and LUNA were initially indicted on December 20, 2016, and following a ten-day trial before U.S. District Judge Michael J. Davis, the jury returned guilty verdicts on all counts.
“Preston Forthun orchestrated a scheme to exploit Minnesota’s no-fault auto insurance laws by employing a corrupt approach to running his chiropractic practice. The result was millions of dollars in fraudulent claims to automobile insurance companies, which, unfortunately, is a burden ultimately shouldered by automobile insurance policyholders in Minnesota,” said Acting United States Attorney Greg Brooker. “I commend the Minnesota Commerce Fraud Bureau and the FBI for their collaborative investigative efforts, skills and resources that contributed to this successful outcome.”
“This verdict sends a very clear message to insurance scam artists in Minnesota that they will be caught and brought to justice,” said Minnesota Commerce Commissioner Mike Rothman. “By committing insurance fraud, these chiropractors chose to put personal greed above their professional oath, and all of us end up paying for it. The Commerce Fraud Bureau will continue to vigorously investigate allegations of insurance fraud and will do everything in its power to shut down these schemes and hold criminals accountable.”
“Not only did Mr. Forthun violate his professional oath, he violated the public’s trust”, added Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “His betrayal of the medical profession cost the public millions and robbed funds that may have helped cover the expenses of people with legitimate health care needs. The FBI and its law enforcement partners will continue to aggressively pursue insurance fraud schemes like this this one to protect the public from unscrupulous criminals and corrupt practices. I would like to thank our partners in the U.S. Attorney’s Office and the Commerce Fraud Bureau for their invaluable collaboration in this investigation.”
As proven at trial, beginning in at least 2010, FORTHUN, a licensed Doctor of Chiropractic, devised a scheme to defraud automobile insurance companies by hiring patient recruiters, known as “runners,” to solicit automobile accident victims to attend treatments at FORTHUN’S clinic, Comprehensive Rehabilitation Centers of MN (“Comprehensive Rehab”). FORTHUN, and his co-defendant DARRYL HUMENNY, who was also a Doctor of Chiropractic with Comprehensive Rehab and previously pled guilty, paid the runners, including HUSSEIN and LUNA, between $1,000 and $1,500 for each patient they brought to Comprehensive Rehab so that FORTHUN and HUMENNY could bill services to the insurance companies. To disguise the payments, FORTHUN typically paid the runners in cash or wrote checks made out to “cash,” along with a bogus description in the memo line indicating that the payment was for “marketing,” “petty cash,” “transportation,” “interpreting,” or “supplies.” From 2011 through 2015, FORTHUN and HUMENNY wrote more than 400 checks, totaling at least $500,000.
As proven at trial, FORTHUN structured the scheme in a way that would maximize Comprehensive Rehab’s billings to the insurance companies. FORTHUN and HUMENNY withheld kickback payments to the runners until after the patients had attended a certain number of treatment sessions, typically between six and twelve treatment sessions. Frequently, the runners gave a large portion of the kickback payments they had received to the patients they had referred in order to make sure that patients attended the minimum number of treatment sessions. Thus, the kickback payments were intended to ensure that patients came for treatments at Comprehensive Rehab because of the payments, as opposed to the necessity and reasonableness of the treatments. Through the execution of their fraud scheme, FORTHUN and HUMENNY billed millions of dollars to the automobile insurance companies.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI. Additional assistance was provided by the Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol, and Homeland Security Investigations.
Assistant U.S. Attorneys Amber M. Brennan and John E. Kokkinen are prosecuting this case.
Defendant Information:
PRESTON ELLARD FORTHUN, 39
Bloomington, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Mail fraud, 6 counts
- Wire fraud, 7 counts
ABDISALAN ABDULAHAB HUSSEIN, 48
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Mail fraud, 2 counts
- Wire fraud, 2 counts
CARLOS PATRICIO LUNA, 49
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Mail fraud, 1 count
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Child Sex TouristRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found David Paul Lynch (56, Venice) guilty of eight counts of producing and attempting to produce child pornography, two counts of traveling with the intent to engage in illicit sexual conduct, one count of receiving child pornography, and one count of possessing child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for each production count, up to 30 years’ imprisonment for each travel count, a mandatory minimum penalty of 5 years, up to 20 years, for receiving child pornography, and up to 10 years in prison for possessing child pornography. His sentencing hearing is scheduled for January 11, 2018. Lynch was indicted on January 26, 2017.
According to testimony and evidence presented at trial, Lynch traveled to the Philippines regularly between 2005 and 2016 to have sex with children and make recordings of the abuse. Prior to his trips, he communicated online with individuals in the Philippines in order to locate children to sexually exploit. Lynch produced child pornography of at least three Filipino children on these visits and also solicited child pornography via email of a fourth. He was arrested in San Francisco attempting to board a flight to the Philippines on December 30, 2016. During a simultaneous search of his home in Venice, Florida, FBI agents located dozens of self-produced images and videos of child pornography from his trips.
This case was investigated by the FBI, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Sarasota Police Department, the Cape Coral Police Department, the Bradenton Police Department, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Eric K. Gerard.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Court Shuts Down Houston Area Tax Return PreparersRead the Press Release
A federal court in Houston, Texas, permanently enjoined Levett Navarro Camarena and her son Chase Edward Camarena from preparing federal tax returns for others, including under the name of the business Hispanic Services, the Justice Department announced today. Levett Camarena and Chase Camarena agreed to civil injunction orders that require them to cease preparing federal tax returns.
According to the government’s complaint, Levett Camarena and Chase Camarena, through a business called Hispanic Services located on Nyland Street in Houston, Texas, routinely prepared federal tax returns for customers that contained false, improper, or inflated individual deductions on Schedule A (Itemized Deductions) and business expenses on Schedule C (Profit and Loss from Business Sole Proprietorship). Furthermore, the returns reported Schedule C businesses that did not exist, according to the complaint.
The complaint alleged that in some cases the returns overstated business income. The allegations in the complaint explained that while overstating business income increased self-employment taxes, the increase was substantially less than increased earned income credits also claimed on the returns. The increased earned income credits would cause an understatement of the client’s tax liability, according to the complaint.
According to the complaint, the Internal Revenue Service (IRS) examined 409 returns for years 2012 through 2014 filed by Hispanic Services and prepared by Levett Camarena or Chase Camarena. The IRS adjusted 278 of the returns (68%) examined with average deficiencies between $1,848 to $2,352, according to the complaint. The IRS selected 20 tax returns prepared and filed by Hispanic Services for 2015 and was able to talk to 17 taxpayers, according to the complaint. Each taxpayer interviewed stated the charitable contributions or business expenses on the returns did not exist or were grossly exaggerated, according to the complaint. Each taxpayer allegedly denied giving the amount used on the return to the preparer. According to the complaint, the IRS selected and interviewed 17 taxpayers whose 2016 returns were prepared by Hispanic Services. According to the complaint, at least 9 of the 16 clients whose returns were prepared by Levett Camarena said the returns understated their respective tax liabilities by reporting false business information. In addition, one client whose return was prepared by Chase Camarena stated his charitable contributions were grossly overstated on his Schedule A, according to the complaint.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. 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’s 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.
Dunbar felon pleads guilty to federal gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Dunbar woman pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Amanda Renee Taylor, 40, entered her guilty plea to being a felon in possession of a firearm.
Taylor admitted that on February 7, 2017, she possessed two firearms, a Lorcin .380 caliber pistol and a High Standard .22 caliber revolver. Taylor further admitted that she stole mail and possessed methamphetamine and counterfeit money found when she was arrested. Taylor was prohibited from possessing any firearms under federal law because of a 2009 felony drug conviction in Kanawha County Circuit Court.
Taylor faces up to 10 years in federal prison when she is sentenced on January 16, 2018.
The investigation was conducted by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Putnam County Sheriff’s Office. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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District Man Pleads Guilty to Shooting Man in Early Evening Attack in June 2017Read the Press Release
WASHINGTON – Deangelo Paris Belton, 23, of Washington, D.C., pled guilty today to a felony charge stemming from a shooting that occurred in June 2017 near a busy intersection in Northeast Washington, announced U.S. Attorney Jessie K. Liu.
Belton pled guilty in the Superior Court of the District of Columbia to one count of aggravated assault while armed. The plea, which is subject to the Court’s approval, calls for an agreed-upon sentencing range of five to six years in prison. The Honorable Judith Bartnoff scheduled sentencing for Dec. 15, 2017.
According to the government’s evidence, on June 12, 2017, at approximately 6:20 p.m., the victim was walking near the intersection of Nannie Helen Burroughs and Minnesota Avenues NE when he passed Belton and two other males. The victim and Belton knew one another, and the victim is the father of Belton’s cousin’s child. Belton and the victim briefly exchanged words about whether Belton was still mad at the victim for a fistfight they had several months earlier.
During this exchange, Belton pulled out a handgun and fired several shots at the victim, hitting him and causing him to fall in the street. Belton then fired several more shots at the victim before fleeing. The victim sustained multiple gunshot wounds to his abdomen and waist, that required surgery, hospitalization, and ongoing rehabilitation and treatment.
Following the shooting, Belton fled to Georgia. He was later apprehended by the U.S. Marshals Service and brought back to the District of Columbia in August 2017 to face charges.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the work of the U.S. Marshals Service. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle, Intelligence Analyst Zachary McMenamin, and Victim/Witness Advocate Jennifer Allen. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Detroit man pleads guilty to distributing pain pillsRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught selling oxycodone in March 2017 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Lurduea Appling, 37, entered his guilty plea to distribution of oxycodone.
On March 20, 2017, agents with the Drug Enforcement Administration and the West Virginia State Police Bureau of Criminal Investigation (BCI) in Ona used a confidential informant to make a controlled buy of oxycodone from Appling. The drug deal took place at 1342 15th Street in Huntington. Appling provided the informant with oxycodone in exchange for $3,750 in cash. As part of the plea agreement, Appling admitted to all the drug trafficking activity charged in the indictment.
Appling faces up to 20 years in federal prison when he is sentenced on January 16, 2018.
The Drug Enforcement Administration and the West Virginia State Police BCI in Ona conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Costa Rican Pleads Guilty to Selling Drugs Imported from India in the United StatesRead the Press Release
PITTSBURGH – A resident of Costa Rica, pleaded guilty in federal court to charges of mail fraud and money laundering, Acting United States Attorney Soo C. Song announced today.
Ramiro Navarro Quesada, 41, a resident of Costa Rica pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose. Quesada was arrested in Madrid, Spain, in early 2017. He was extradited to the United States in late August.
In connection with the guilty plea, the court was advised that Quesada used a Costa Rican website to advertise the Internet sale of Schedule II and IV controlled substances and erectile dysfunction drugs, which were exported from India and received in the United States.
Judge Ambrose scheduled sentencing for March 19, 2018 at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $750,000, or both. 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.
“This case is a prime example of how the U.S. will use all available tools at our disposal to identify and apprehend drug traffickers,” said Wayne Salzgaber, INTERPOL Washington Acting Director.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Quesada.
Colorado Man Arraigned on Federal Stalking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Peter Fitzpatrick, 42, of Wheat Ridge, Colo., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with three counts of stalking. During his arraignment hearing, Fitzpatrick entered a not guilty plea to the indictment, and was released pending trial under pretrial supervision and other conditions of release.
Fitzpatrick was arrested on Oct. 4, 2017, in Denver, Colo., and was transported to New Mexico by the U.S. Marshals Service to face the charges in the three-count indictment, which was filed by a federal grand jury on Sept. 21, 2017. According to the indictment, between Feb. 1, 2016 and Sept. 1, 2017, Fitzpatrick used interstate communication devises, including a telephone, to engage in a course of conduct against the three victims that placed the victims in reasonable fear of death and serious bodily injury.
If convicted of the crimes charged in the indictment, Fitzpatrick faces a maximum penalty of five years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service and the U.S. Postal Inspection Service. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.