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Wednesday 26 July 2017
Florida Man and Woman Charged with Wire Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Robert F. Stout, age 51, and Kasey N. Riley (a/k/a Kasey Stout), age 33, of Windermere, Florida, were charged today with conspiracy to commit wire fraud relating to the sale of illegal activation keys for Microsoft products.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
According to a criminal information, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. Stout and Riley purchased unauthorized activation keys from various websites – including wholesaledwindows8key.com, buy2010key.net, cheapkeyoffer.com, godkey.net, and Alibaba – and provided those unauthorized activation keys, in exchange for PayPal payments, to customers throughout the United States. Stout and Riley received at least $1,480,227 from customers in exchange for providing them with the unauthorized, and often invalid, activation keys.
Stout and Riley each face up to 20 years in prison, up to 3 years of post-imprisonment supervised release, and a fine of up to $250,000 or twice the gain or loss caused by the offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Albany Field Office of the FBI and the Orlando Field Office of Homeland Security Investigations (HSI), part of Immigration and Customs Enforcement (ICE). It was prosecuted by Assistant U.S. Attorney Wayne A. Myers and Middle District of Florida Special Assistant U.S. Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Florence Woman Enters Guilty Plea in Federal Court on Fraud ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Crystal Lynn Norris, age 27, of Florence, SC, pled guilty in federal court in Florence, to Conspiracy to Manufacture and Pass Forged and Counterfeited Securities, a violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that during the period from November through December of 2016, Norris was involved in a conspiracy to manufacture and pass forged and counterfeited securities (checks) of organizations.
Norris and another person stole mail from mailboxes at various residences in Florence and Darlington Counties looking for checks within the mail. Norris then either altered/forged the stolen checks by substituting herself as the payee, or she used genuine bank account and routing numbers from the stolen checks to make counterfeit checks. Norris then went to banks in Florence and Easley, SC and presented the forged and counterfeited checks for payment.
Ms. Drake stated the maximum penalty Norris can receive is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of the U.S. Postal Inspection Service with the assistance of the Florence County Sheriff’s Office, the Florence Police Department and the Easley Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Floral Park, NY Man Sentenced on Tax Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that David Menzies, 51, of Floral Park, NY, who was convicted of tax fraud, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay $280,930 in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Marie P. Grisanti and Tax Division Attorney Jason M. Scheff, who handled the case, stated that between January 2010 and April 2015, Menzies filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents in order to claim refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of minors from their parents, and claimed them as dependents on other clients’ returns. Menzies charged clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money he charged for creating false dependents.
In addition, Menzies concealed his identity as the preparer by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and filing the fraudulent returns using the preparer identification numbers the IRS assigned to these individuals. Menzies admitted that he caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed timely to file his 2009 through 2015 personal tax returns.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office
Felon Arrested in Deschutes County Sentenced to 70 Months in Prison for Illegal Possession of a FirearmRead the Press Release
EUGENE, Ore. – On July 25, 2017, United States District Court Judge Ann Aiken sentenced Keith August Wayne Jones, 30, of Madras, Oregon, to 70 months in federal prison for being a felon in possession of a firearm. Upon his release from prison, Jones will be on supervised release for three years.
According to court documents, on April 26, 2016, police officers found Jones in possession of a gun in a Bend motel room. Jones has numerous previous felony convictions, including second-degree robbery, delivery of methamphetamine and fleeing or attempting to elude police.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bend Police Department. It was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of Kandy Gies, Deschutes County Deputy District Attorney.
Federal Fugitive Arrested in Cumberland County, Tennessee After 5 Years on the RunRead the Press Release
Ronald Eli Lewis, 72, of Sparta, Tenn., was arrested by U.S. Marshals and TBI agents this morning in Cumberland County, Tenn., announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Lewis and his cousin, Clifford Lewis, were convicted in March 2012 of conspiring to distribute more than 100 kilograms of marijuana throughout Middle Tennessee. The verdicts stem from the attempted delivery of nearly 900 pounds of marijuana to the Lewis’ family farm in Sparta, Tennessee on March 28, 2007. Agents with the Tennessee Bureau of Investigation had tracked the marijuana to the farm, where the defendants were arrested as they began to unload it. The jury heard evidence that the delivery was part of a larger scheme to ship thousands of pounds of marijuana via tractor trailer from Texas to Tennessee.
A few days after the trial began in March 2012, Ronald Lewis, who was free on bond, failed to show for the remainder of the trial. Lewis was subsequently convicted in absentia. His cousin, Clifford, was also convicted and later sentenced to prison. Two other co-defendants, Jimmy Clinton Smith, of Texas and Eliseo Gavin, of Oklahoma, had previously pleaded guilty and were later sentenced to prison.
“I join with the leadership of our law enforcement partners in commending the outstanding work of the U.S. Marshals’ Service and the TBI for the capture of Ronald Lewis,” said Acting U.S. Attorney Jack Smith. “This district is fortunate to have the dedicated professionals of these agencies. Because of their efforts and their careful planning and execution of this operation, a dangerous fugitive is back in custody and his freedom to scoff at the justice system has come to an abrupt end.”
The investigation into the drug distribution conspiracy was conducted by the DEA and the TBI. The fugitive investigation was conducted by the U.S. Marshals’ Joint Fugitive Task Force.
Fort Smith Man Sentenced to 60 Years in Federal Prison for the Sexual Exploitation of Two InfantsRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that James Spiotto, age 29, of Fort Smith, was sentenced today to 60 years in federal prison without the possibility of parole followed by life of supervised release for Conspiring to Produce and Production of Child Pornography. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to the court records, in February 2016, agents with the Internet Crimes Against Children Taskforce, in conjunction with Department of Homeland Security, were conducting an investigation into the online trafficking of child pornography in the Fort Smith Area. As a part of the investigation, law enforcement obtained a federal search warrant for the residence of James Spiotto. During the execution of the search warrant, law enforcement located a computer hard drive that had been thrown from a second story window. A subsequent forensic examination of the hard drive revealed a video of James Spiotto orally and digitally raping an 11-month-old female. Law enforcement also located videos of an adult female, later identified as Amelia Spiotto, molesting the same 11-month old female, and separately molesting a 3-month-old male. During a post-Miranda interview, James Spiotto admitted that he and Amelia Spiotto arranged to babysit a friend’s daughter, and thereafter made videos of themselves sexually abusing her. James Spiotto further admitted that Amelia Spiotto separately recorded herself preforming oral sex on a 3-month-old male. Law enforcement also located text messages between James Spiotto and Amelia Spiotto, in which James Spiotto was directing and encouraging Amelia to perform certain acts while she molested the minor male. James Spiotto was indicted by a federal grand jury in March of 2016, and pleaded guilty in May of 2016. His co-defendant, Amelia Marie Spiotto, pleaded guilty in February of this year and will be sentenced at a later date.
“HSI will continue to aggressively pursue individuals that prey on innocent children,” said Nicholas C. Nelson, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans. “This case should serve as an example to others that we are committed to bringing the perpetrators of these heinous crimes to justice.”
This case was investigated by Homeland Security Investigations and the River Valley Internet Crimes Against Children Taskforce. Assistant United States Attorneys Dustin Roberts and Ashleigh Buckley prosecuted the case for the United States.
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 U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (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.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Eunice man sentenced to 9 months in prison for stealing cash from bankRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Eunice man was sentenced last week to nine months in prison for entering a Eunice bank and taking more than $5,000 from two teller stations.
Randall Scott Courville, 42, of Eunice, La., was sentenced Friday by U.S. District Judge Dee D. Drell on one count of bank theft. He was also sentenced to three years of supervised release and was ordered to pay $5,290 restitution. According to the April 19, 2017 guilty plea, Courville entered a bank on North Second Street in Eunice on January 20, 2017 wearing a surgical mask, hooded sweatshirt and gloves. He walked up to a teller’s station, reached across the counter into the teller’s drawer and removed money. He then moved to another teller’s station and removed money from that teller’s drawer as well. He left the bank with $5,290.
The FBI and Eunice Police Department conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Ellsworth Man Convicted of Child Pornography ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that Colby Haggerty, 25, of Ellsworth AFB, South Dakota, was found guilty of two counts of Receipt of Child Pornography and one count of Possession of Child Pornography at the conclusion of a four-day federal jury trial in Rapid City.
The penalty is a mandatory minimum of 5 years up to 20 years of imprisonment and/or a $250,000 fine, lifetime supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution.
The conviction stems from Haggerty downloading at least 1,000 pornographic images of children, including infants, between 2009 and 2015 while living on Ellsworth Air Force Base and in Rapid City.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered and sentencing will be scheduled. The defendant was remanded to the custody of the U.S. Marshals Service.
El Dorado Springs Woman Sentenced for Embezzling $380,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an El Dorado Springs, Mo., woman was sentenced in federal court today for a mail fraud scheme by which she stole more than $380,000 from her employer and to filing a false tax return.
Regina Allison, 47, of El Dorado Springs, was sentenced by U.S. District Judge Beth Phillips to 30 months in federal prison without parole. The court also ordered Allison to pay $460,404 in restitution, including $380,134 to Allison Tire Company, Inc., and the remainder to the IRS and the Missouri Department of Revenue.
On Jan. 20, 2017, Allison pleaded guilty to one count of mail fraud and one count of filing a false tax return.
Allison was hired by Allison Tire Company and Allison Oil and Auto Supply in 2003. As a part of her duties at the company, which is owned in part by her ex-husband, Allison prepared company checks for payment of invoices. Allison was fired from her position in November 2015 after her supervisors discovered that she had forged numerous checks from the accounts of Allison Tire and Allison Oil to pay fictitious businesses she had created for her personal benefit.
Allison opened two bank accounts, one at a bank in Bolivar, Mo., and another at a bank in Nevada, Mo., under the names of two separate businesses. Neither of the business entities actually created any products or provided any services. Allison admitted that she used her position at Allison Tire and Allison Oil to write numerous company checks to these fictitious businesses, and forged the signatures of authorized signors.
Over the span of nearly four years, from November 2011 to November 2015, Allison embezzled a total of at least $380,134.
Allison also admitted that she failed to report this embezzled income on her federal income tax returns. The total tax loss to the United States was $58,813, without penalty or interest. The total tax loss to the state of Missouri was $16,315, without penalty or interest.
This case was prosecuted by Assistant U.S. Attorneys Casey Clark and Amy Blackburn. It was investigated by IRS-Criminal Investigation and the Missouri State Highway Patrol.
El Departamento de Justicia Presenta una Demanda Judicial Contra Technical Marine Maintenance Texas y Gulf Coast Workforce Alegando Discriminación por Motivos de Estatus de CiudadaníaRead the Press Release
WASHINGTON – El Departamento de Justicia interpuso hoy una demanda contra dos empresas en Louisiana, Technical Marine Maintenance Texas LLC, que suministra mano de obra por contrato para astilleros, y Gulf Coast Workforce LLC, una empresa relacionada, alegando que vulneraron la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a postulantes y empleados durante el proceso de verificación de la elegibilidad para trabajar por motivos de su estatus de ciudadanía.
Según la demanda, desde al menos enero del 2014 hasta al menos julio del 2017, Technical Marine Maintenance Texas limitó los documentos que los trabajadores podían presentar para establecer su autorización para trabajar con base en el estatus de ciudadanía de dichos trabajadores. En concreto, la empresa pidió que los ciudadanos estadounidenses mostraran sus y tarjetas de seguro social, mientras que pidió a aquellos que no eran ciudadanos estadounidenses documentos migratorios. Según la INA, se debe permitir a todos los trabajadores, independientemente de su estatus de ciudadanía, la posibilidad de elegir de entre los documentos válidos que demuestren su elegibilidad para trabajar. La INA específicamente prohíbe que los empleadores discriminen al limitar, con base en su estatus de ciudadanía, las opciones que los trabajadores tienen a su disposición. La demanda también alega que Gulf Coast Workforce es responsable de las acciones de Technical Marine Maintenance Texas porque Gulf Coast emplea o emplea conjuntamente a los trabajadores afectados.
La Ley protege tanto a personas que son ciudadanos de los Estados Unidos como los que no de barreras discriminatorias durante los procesos del Formulario I-9 o E-Verify declaró el Fiscal General Auxiliar en funciones, Tom Wheeler de la División de Derechos Civiles. Los empleadores no pueden restringir los tipos de documentos que un trabajador puede presentar para mostrar su autorización para trabajar, y si tal restricción se hace por motivos del estatus de ciudadanía o la nacionalidad de origen del individuo, la División de Derechos Civiles ejecutará la ley enérgicamente.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Download Technical Marine Maintenance Gulf Coast Complaint (en inglés)
Eastern Idaho Partnership Announces Special AUSA Program Statistics, New SAUSARead the Press Release
POCATELLO – Acting United States Attorney Rafael Gonzalez and Bingham County Prosecuting Attorney Cleve B. Colson have announced that from January 2016 through July 26, 2017, the U.S. Attorney’s Office prosecuted an additional 55 offenders for firearm, illegal alien, child porn, violent crime, and drug-related crimes committed in eastern Idaho through the new Special Assistant United States Attorney program (SAUSA program) in eastern Idaho.
Thus far, 28 of the 55 charged have been convicted and received federal sentences for a total of 2,008 months, averaging 6.4 years per criminal sentence. The 55 cases indicted were referred from 13 cities and 9 counties. It is estimated that the charges represent over $800,000 in drugs seized and 30 illegally possessed firearms.
Presently, the average cost of incarceration per inmate per year is approximately $20,973, or $1,747 per month. Thus, the 2008 months of federal sentences in the cases represents approximately $3,500,000 in cost savings to the Idaho Department of Corrections if the Idaho Department of Corrections was to bear the costs.
Bryan Wheat, the current eastern Idaho SAUSA, was hired in February 2017. He is a Bingham County deputy prosecutor who works full-time in the U.S. Attorney’s Office in Pocatello. His caseload focuses on gun and gang violence, drug trafficking, and immigration offenses affecting eastern Idaho.
Mr. Wheat has been practicing law for nearly five years. A native of Inkom, Idaho, Mr. Wheat graduated from Idaho State University before earning his law degree from the University of Idaho in 2012. He worked as a county prosecutor in Washington County, Utah, prior to returning to Pocatello. While there, he worked with a regional drug and gang task force handling felony cases consisting primarily of drug, violent crime, and gang cases. He also served as a Special Assistant United States Attorney for the District of Utah.
“Prosecution of these 55 offenders was made possible through the transcendent vision of the Eastern Idaho Partnership, the State of Idaho, the Bingham County Prosecuting Attorney’s Office, as well as their prosecution partners in this office,” said Gonzalez. “We have always worked cooperatively to make our eastern Idaho communities safer and stronger. This program is the result of our history of working together. Moreover, the success of this program demonstrates that we can do more when we do it together. We are maximizing public safety and efficiently using taxpayer resources and look forward to continued success.”
“I’m grateful to Rafael Gonzalez, Cleve Colson, and the members of the Eastern Idaho Partnership for the opportunity to return home and be a part of this innovative project,” Wheat said. “This program is a thrifty, effective way to help keep our communities safe. By working together, the agencies and prosecutors involved in the Partnership are multiplying their effectiveness in combatting serious local criminal activity. This program represents the commitment and forward-thinking of those who work hard to keep eastern Idaho a safe place for our families.”
The Eastern Idaho SAUSA program is sponsored by the Eastern Idaho Partnership (EIP), a coalition of local city and county officials in eastern Idaho. The EIP provides approximately 30 percent of the SAUSA’s salary and benefits; the State of Idaho through the Idaho Department of Correction contributes the remaining 70 percent. The project allows law enforcement to utilize federal sentences to see that persistent and violent criminals receive stiffer penalties than they might in state courts. Federal sentences are served out of-of-state, helping to disrupt criminal networks. Special AUSA Wheat says “the net result we strive to achieve is to help eastern Idaho continue to be a wonderful, safe place to live.”
Chubbuck City Mayor Ken England stated, “The program is a strong and effective partnership. The dollars this program is saving is impressive but more important is the quality of life that is being promoted by getting these bad players out of our community.”
East Stroudsburg Man Charged with Stealing Deceased Mother’s Social Security BenefitsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven M. Caravella, age 28, who formerly resided in East Stroudsburg, Pennsylvania, was indicted by a federal grand jury for stealing social security benefits paid to his mother by the Social Security Administration. Caravella was indicted on April 12, 2016, but the case remained sealed until Caravella, a fugitive, was found and arrested in Youngstown, Ohio on July 18, 2017.
According to United States Attorney Bruce D. Brandler, the indictment charges Caravella, with using a government-issued debit card to obtain his mother’s social security benefits for approximately one year after her death. Caravella allegedly obtained approximately $7,762 in benefits between August 2012 and July 2013, as a result of the theft. The government is also seeking forfeiture of the funds wrongfully obtained by Caravella.
The investigation was conducted by the Social Security Administration’s Office of the Inspector General. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, 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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Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 24, 2017, by U.S. District Judge Roberto A. Lange.
Joseph Marshall, age 38, was sentenced to 24 months in custody, followed by 5 years of supervised release, restitution in the amount of $99.65, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Marshall was indicted by a federal grand jury on July 19, 2016. He pled guilty on May 2, 2017.
The conviction stems from Marshall failing to register as a sex offender as required by federal law between February 1, 2016, and March 10, 2016, and March 20, 2016, and April 10, 2016. Marshall has previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
Durant Man Pleads Guilty to Destruction of MailRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SHAWN JUSTIN FISCHER, age 36, of Durant, Oklahoma, pled guilty to DELAY OR DESTRUCTION OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1703, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about April 20, 2017, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully open a package entrusted to him and which came into his possession to be conveyed by mail while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Services’ Office of Inspector General.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for passport fraud.
Jose Matos Dasis, 51, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight months in prison, three years of supervised release, and will be subject to deportation upon completion of his sentence. In April 2017, Dasis pleaded guilty to one count of making false statements on a passport application.
On Feb. 9, 2016, Dasis, using a false name, date of birth and social security number, applied for a United States passport at a U.S. Post Office in Massachusetts. The investigation revealed that the defendant knowingly assumed the identity of another individual when he applied for the passport.
Acting United States Attorney William D. Weinreb and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Denver Woman Sentenced to 46 Months’ Imprisonment for Health Care FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tammie Sensenig, age 46, of Denver, Pennsylvania was sentenced July 25, 2017, by United States District Court Judge William C. Caldwell to serve 46 months’ imprisonment for health care fraud.
According to United States Attorney Bruce D. Brandler, as a result of prior convictions relating to Medicaid fraud, Sensenig was excluded from providing healthcare to Medicaid beneficiaries. In order to obtain a position as a behavioral health consultant, Sensenig made false representations, including a forged background check, in order to hide her ineligible status. As a result, Medicaid paid approximately $84,500 for her services.
“We are pleased that Sensenig will be spending over three and a half years in prison”, said Nick DiGiulio, Special Agent in Charge of the Inspector General’s Office for the U.S. Department of Health and Human Services. “And we will continue to do whatever it takes to keep criminals out of our health care system and to return stolen funds to our benefit programs.”
The charges were the result of an investigation conducted by the Pennsylvania Office of Attorney General Medical Fraud Control Section and United States Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
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Del City Man Sentenced to 96 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BOBBY LEE RUPPEL JR, age 34, of Del City, Oklahoma, was sentenced to 96 months imprisonment, and 3 years of supervised release, for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about November 1, 2016, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Henryetta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
D.C. Tax Return Preparer Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
A Washington, D.C. tax return preparer was sentenced to 15 months in prison today for preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Joanne Little, 60, of Suitland, Maryland, worked as a return preparer in Washington, D.C. at Speedy Tax Service, a tax preparation business that previously operated under the name Instant Tax Service. Little prepared federal income tax returns for tax years 2009 through 2014 that sought refunds to which her clients were not entitled by including inflated charitable deductions, fictitious unreimbursed employee expenses and false business losses. Little admitted to causing a tax loss of $262,714.
In addition to the term of prison imposed, U.S. District Court Judge Reggie B. Walton ordered Little to serve one year of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount $262,714. Little pleaded guilty in February 2016.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Jason Scheff and Assistant Chief Karen Kelly of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Claimed Naturopathic Doctor Pleads Guilty to Defrauding Patients at Hoover ClinicRead the Press Release
BIRMINGHAM –A woman who falsely claimed to be a naturopathic doctor pleaded guilty Tuesday in federal court to defrauding patients at a Hoover clinic in 2015, announced Acting U.S. Attorney Robert Posey and U.S. Postal Inspector Frank Dyer.
ISABEL KESARI GERVAIS, 60, using the alias, Dr. Rose Starr, defrauded patients at the Euro Med Klinic by lying about more than her name. She lied about her credentials, her experience and her license to practice medicine, according to her guilty plea. Gervais pled guilty before U.S. District Court Judge Madeline Hughes Haikala to one count of wire fraud affecting a financial institution, one count of aggravated identity theft and one count of making false statements. She also agreed to forfeit $108,146 as proceeds of illegal activity. Gervais is scheduled for sentencing in November.
As part of Gervais’ plea agreement, she acknowledged that over the last 15 years she operated multiple clinics in Alabama, Georgia, Arkansas and Kansas using her current name and various aliases that often employed different spellings of the name Debra Lynn Goodman. The clinics included Sagewood Medical Clinic in Montgomery, the Chiron Clinic in Marietta, Ga., and DRI Enterprises in Atlanta. At all the clinics, Gervais falsely represented herself as a licensed doctor with extensive experience and various degrees who used naturopathic medicine to cure people of various illnesses, including cancer.
“For years this defendant lied about her credentials and took advantage of desperately ill people,” Posey said. “The U.S. Postal Inspection Service did great work in uncovering this fraud and finding the evidence to make this case.”
Gervais had no legitimate medical degrees or training, but she had operated the clinics in Alabama and Georgia, as well as in Fayetteville and Springdale, Ark., and Leawood, Kan. Because of her fraudulent activity, she was investigated by the Alabama and Arkansas medical boards, was prosecuted by Arkansas state authorities and faced civil monetary claims and actions, according to her guilty plea. To avoid legal action and detection, she had abandoned rental properties, changed locations, changed business names and adopted aliases.
Gervais opened the Euro Med Klinic in Hoover in 2015 as Dr. Starr, claiming she had years of experience and was licensed to practice medicine in Alabama and throughout the world. She promised patients, including cancer sufferers, at the Hoover clinic that she could provide various medical services, including DNA tests that she did not have the technology to conduct, according to her plea. Gervais ran some tests on patients, prescribed various substances and, through her misrepresentations about licensure and qualifications, fraudulently induced patients to pay her thousands of dollars, according to her plea.
Gervais misappropriated the identity of one patient at the Hoover clinic in order to charge the patient’s credit card without consent, according to her plea. She also misappropriated the identity of another individual and used it fraudulently to set up a post office box.
The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine. Aggravated identity fraud carries a two-year mandatory minimum prison sentence to run consecutively to any other sentence imposed. The maximum penalty for making a false statement is five years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
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Cincinnati Trafficker Pleads Guilty to Interstate ProstitutionRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Gary Paul Moorman (34, Cincinnati, Ohio) has pleaded guilty to interstate prostitution. Under the terms of the
plea agreement , Moorman will be sentenced to 20 years in federal prison, the statutory maximum penalty for this offense.According to court documents, Moorman systematically and violently abused multiple victims to induce them, against their will, into prostitution for his own financial gain. He also induced the victims to travel between Florida, Ohio, and elsewhere to engage in sexual acts. In furtherance of his criminal activity, Moorman took provocative photos of the victims to post prostitution ads on the Internet. After the victims provided these services, Moorman demanded and took all of the proceeds.
This case was investigated by the FBI - Tampa Division (Pinellas Resident Agency), with support from the St. Petersburg Police Department and the Clearwater Police Department. Substantial assistance was provided by the FBI’s Cincinnati Field Office and the Cincinnati Police Department. The case is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Kristen A. Fiore.
Child Sex Trafficker Sentenced to Life in Federal Prison. His Mother was Sentenced to 120 monthsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Samuel Pratt, a/k/a “Promise,” age 35, of Gastonia, North Carolina was sentenced to life in federal prison and his mother, Daphne Pratt, age 53, of Gastonia, North Carolina was sentenced to 120 months in federal prison. Samuel Pratt had previously been found guilty on eight counts related to sex trafficking, child pornography, and firearm charges in federal court in Columbia. Chief United States District Judge Terry L. Wooten, of Columbia, sentenced the defendant to life sentences on four counts related to sex trafficking, 360 months on production of child pornography, 120 months on possessing child pornography, 120 months on being a felon in possession of a firearm and 60 months for obstruction of justice. There was also over $40,000 of restitution ordered to be paid to the child victims. Daphne Pratt pled guilty to conspiracy to sex traffic minors and testified against her son in his trial, receiving a reduced sentence for her testimony.
Evidence presented trial established that Samuel Pratt ran a prostitution business of both adults and juveniles, in South Carolina, North Carolina, and New York. The trial opened a window into the seedy world of human trafficking in the Carolinas. Witnesses provided extensive testimony of the manipulation and abuse, as well as the inner-workings of the human trafficking operation. During the trial, Daphne Pratt testified about her son’s control of the minors, as well as her role in running the business at his direction after her son was incarcerated on federal charges. Telephone calls recorded from the jail corroborated Daphne Pratt’s testimony and, along with text messages, provided the jury a view of the depraved world of sex traffickers. Two of the victims of the trafficking were 14 and 17 years old. This was the first human trafficker convicted at trial in South Carolina.
Ms. Drake stated, “the first step on addressing the cancer of human trafficking is to hold the traffickers accountable and that is what this case and this sentence does. Those who traffic in sex need to take notice that our office, along with our federal and state law enforcement partners, will continue to aggressively investigate and prosecute all those who operate in this destructive field.”
The case was investigated by agents of the FBI of both South Carolina and North Carolina, the ATF, the US Marshals and Richland County Sheriff’s Department. Assistant United States Attorneys Jim May and Will Lewis of the Columbia Office prosecuted the case.
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Chicago Trader Sentenced to Five and a Half Years in Federal Prison for Misappropriating More Than $1.7 Million in Client FundsRead the Press Release
CHICAGO — A Chicago trader was sentenced today to more than five and a half years in federal prison for defrauding clients out of more than $1.7 million by pocketing their money instead of investing it.
RANDALL RYE, the owner of Faster Than Light Trading LLC, promised substantial profits from his proprietary trading program. Rye claimed that he would invest his clients’ money in options and futures contracts using a computer algorithm. In reality, Rye misappropriated the investors’ funds for his own personal use. He made large cash withdrawals and spent heavily on travel expenses to St. Lucia and Bali. Rye also used investor funds to purchase expensive tickets to several events, including $47,000 for five tickets to the 2016 Lollapalooza music festival in Chicago, $110,000 for 14 tickets to the 2016 World Series, and $75,000 for one premium package ticket to the 2016 Masters golf tournament in Augusta, Georgia.
As a result of the scheme, Rye fraudulently misappropriated a total of $1.72 million from approximately 20 investors.
Rye, 26, of Chicago, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Ronald A. Guzman imposed the 70-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
“Randall Rye is a con man,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “His brazen scheme, executed with little regard for his victims, is truly appalling. His victims, many of whom gave him part of their retirement savings, are suffering the consequences of his fraud.”
According to the charges, Rye attempted to conceal the fraud by sending his investors false account statements purporting to show that their funds were invested and profitable. In reality, there was no proprietary algorithmic trading program, and the client funds were not actually maintained at any financial services companies. Rye often spent his clients’ funds soon after they were invested with him.
Carbon County Methamphetamine Trafficker Sentenced to Three Years’ ImprisonmentRead the Press Release
WILKES-BARRE—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric Mann, age 27, of Jim Thorpe, Pennsylvania, was sentenced today to three years’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for trafficking in methamphetamine in the Lehighton area in September 2016.
According to United States Attorney Bruce D. Brandler, Mann previously pleaded guilty to possession with intent to distribute methamphetamine. Mann admitted to possessing approximately 250 grams of the drug at a residence in Lehighton on September 8, 2016. Agents seized the methamphetamine, digital scales, and plastic baggies from Mann’s bedroom in the residence.
Judge Caputo also ordered Mann to serve three years on supervised release following his prison sentence.
Mann was indicted by a federal grand jury in October 2016, as a result of an investigation by agents of the Drug Enforcement Administration and local police in Carbon County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Broken Arrow Man Pleads Guilty to Firearm, Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JASON NATHANIEL DAUGHERTY, age 31, of Broken Arrow, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about, December 4, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm and ammunition which have been shipped and transported in interstate commerce.
The charge arose from an investigation by the Broken Arrow Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kristin Harrington represented the United States.
Biglerville Man Pleads Guilty to Child Sexual Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mason David Powell, age 28, of Biglerville, Pennsylvania pleaded guilty on July 25, 2017, before Chief United States District Court Judge Christopher C. Conner to sexual exploitation of children, production of child pornography, possession of child pornography, and online coercion and enticement of minors.
According to U.S. Attorney Bruce D. Brandler, in 2015, Powell admitted to enticing minor boys to engage in graphic sexual text message exchanges with him, eventually escalating to coercing these victims to produce pornographic images of themselves and send them to him online. Powell was arrested by the Adams County District Attorney’s Office Criminal Investigation Division on October 17, 2015, and law enforcement seized Powell’s cell phone at the time of his arrest. The FBI forensically examined Powell’s cell phone and discovered that Powell had downloaded and saved child pornography images on this device. Through further investigation, the FBI identified and interviewed multiple additional minor victims in the Biglerville community that Powell either coerced online, produced images of child pornography of or sexually assaulted.
This case was investigated by the Federal Bureau of Investigation and the Adams County District Attorney’s Office Criminal Investigation Division. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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 production of child pornography charge carries a mandatory minimum sentence of 15 years imprisonment, and the charge of online coercion and enticement of minors requires a 10 year mandatory minimum sentence. The maximum penalty under federal law is life imprisonment, 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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Armed Robber Pleads Guilty in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jaquan Latrel Samuel, a/k/a “Trey,” a/k/a “Trap,” age 30, of Hartsville, pled guilty in federal court in Florence to Robbery of United States Government Property and Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on March 29, 2017, Samuel robbed a person having lawful charge, custody, and control of $400.00 belonging to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) by use of a firearm. During the hearing, agents presented evidence that Samuel pointed a firearm at the victim in order to force the victim to give up the cash.
Ms. Drake stated that the defendant faces a maximum penalty of life in prison.
The case was investigated by the Darlington County Sheriff’s Office, the Hartsville Police Department, and the ATF. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell of the Columbia office are prosecuting the case.
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Armed Con Artist Convicted of Bank Fraud and Federal Firearms OffensesRead the Press Release
SAVANNAH, GA: Yesterday, following a two-day trial before U. S. District Court Judge Lisa Godbey Wood, a federal jury convicted Savannah resident Maynard Sanders, 33, of 15 counts of bank fraud, aggravated identity theft, and aiding and abetting theft by a bank employee. Sanders’ convictions came on the heels of a one-day trial before Senior U. S. District Court Judge William T. Moore, Jr. during which a different federal jury found Sanders guilty of possession of a firearm by a felon.
According to the evidence presented at the trials, Sanders befriended two former Wells Fargo bank tellers in late 2015, and convinced both of them to help him obtain and use other people’s identities in order to steal cash from Wells Fargo bank accounts. Text messages recovered from Sanders’ cell phone revealed that Sanders intentionally targeted elderly customers, including an 86-year-old widow who testified against Sanders at the July trial. Between December 2015 and February 2016, Sanders caused his accomplices to withdraw thousands of dollars from compromised accounts and to provide him with most or all of the embezzled funds. Both accomplices have pled guilty to federal charges and are awaiting sentence.
When Sanders was arrested on federal fraud charges, he was in possession of a loaded semi-automatic pistol. Due to his previous convictions for theft, fraud, and unlawful possession of a firearm dating back to 2002, Sanders was prohibited under federal law from possessing guns or ammunition.
On the firearms charge, Sanders faces a term of imprisonment of up to 10 years, a fine of up to $250,000, and up to three years of supervised release. Additionally, Sanders may be sentenced to up to 30 years in prison for bank fraud and aiding and abetting theft by a bank employee. Sanders’ commission of aggravated identity theft will add between 2 and 10 years of imprisonment onto his total sentence. There is no parole in the federal system.
Acting United States Attorney James D. Durham stated, “For over a decade, Maynard Sanders preyed upon the hardworking citizens of this community and embraced deception and manipulation as his stock-in-trade. Despite several stints in prison, he continued to hatch fraudulent schemes, and he persisted in carrying weapons that he had no right to possess. This United States Attorney’s Office will ensure that Sanders and other career criminals like him will be held accountable for their misdeeds.”
“Technology has forever changed the way we do business, making every day financial transactions a prime target for fraud,” said U. S. Secret Service Resident Agent in Charge Glen Kessler. “Customers are always urged to monitor their bank accounts and credit cards closely for fraudulent transactions and to use automated banking alerts available at most financial institutions. The Secret Service, in conjunction with its many law enforcement partners, continues to successfully combat these crimes by adapting our investigative methodologies and educating the public.”
The charges against Sanders and his accomplices resulted from a Secret Service investigation. That investigation is ongoing, and additional arrests are expected. Various law enforcement agencies, including ATF, U. S. Marshals Service, Savannah State University Police Department, Chatham County Sheriff’s Office, Armstrong State University Police Department Cyber Forensics Division, and the Secret Service Electronic Crimes Task Force, provided assistance.
Assistant United States Attorney Theodore S. Hertzberg is prosecuting the cases on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 201-2522.
Arizona Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elijah Chaffino, 37, of Scottsdale, Arizona, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 kilograms or more of marijuana, was sentenced to time served by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between early 2009 and February 1, 2012, the defendant conspired with co-defendants Jordan Ali, Shane Graffman and others, to distribute marijuana.
In early 2009, after developing a friendship with Jordan Ali, Chaffino began shipping packages, which contained marijuana, from Arizona to addresses located in Buffalo, at Ali’s direction. Some of these packages were shipped to co-defendant Jason Nati’s address on Villa Avenue in Buffalo, while others were sent to individuals residing in the Niagara Falls area. Chaffino sent the last package in January 2012, which contained approximately 30 pounds of marijuana. The package was intercepted by law enforcement officers in Buffalo.
A total of six defendants were arrested and convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Allentown Mayor Charged in Pay to Play SchemeRead the Press Release
PHILADELPHIA – A federal indictment1 was unsealed today charging Mayor Edwin Pawlowski, 52, of Allentown, for alleged violations of federal public corruption laws, announced Acting United States Attorney Louis D. Lappen. The indictment charges Pawlowski with 14 counts of bribery, 9 counts of mail fraud, 9 counts of wire fraud, 6 counts of honest services wire fraud, 2 counts of honest services mail fraud, 3 counts of attempted Hobbs Act extortion under color of official right, 3 counts of travel act bribery, 7 counts of making material false statements, and conspiracy. Scott Allinson, 55, of Allentown, and James Hickey, 54, of Allentown, were also included on the indictment. Allinson was charged with 1 count of bribery and conspiracy. Hickey was charged with 4 counts of wire fraud, 2 counts of mail fraud, 4 counts of honest services wire fraud, 2 counts of honest services mail fraud, and conspiracy.
According to allegations contained in the indictment, Pawlowski was potentially involved in illegal activities associated with his position as a Mayor of Allentown. Today’s announcement is the culmination of a several year investigation involving the pleas of 10 others. Among those who have plead are former Allentown City Officials and businesspersons seeking contracts with the city of Allentown.
The indictment alleges that Pawlowski accepted the bribes on numerous separate occasions. According to the indictment, Pawlowski allegedly accepted over $150,000 in campaign contributions in exchange for the use of his official position. Among the most notable of the explicit quid pro quo examples is a three million dollar contract awarded to an engineering firm.
“The mayor of Allentown and the former mayor of Reading charged in the two indictments unsealed today sold their offices to the highest bidder -- violating the trust and confidence of the citizens of their cities,” said Acting United States Attorney Louis Lappen. “Both mayors, working with other corrupt officials and businesspeople, directed lucrative contracts to companies who agreed to provide campaign contributions in exchange for work. In an astounding act of irony, former Mayor Spencer bribed the President of City Council to introduce legislation repealing a Reading anti-corruption statute. The United States Attorney’s Office will continue to aggressively investigate and prosecute public officials who operate these “pay to play” schemes.
"As alleged in these indictments, 'pay to play' was the order of the day in Allentown, and in Reading," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division, "with those cities' mayors manipulating the levers of power for their own ways and means. As charged, Edwin Pawlowski and Vaughn Spencer brazenly and repeatedly sold off city contracts to bankroll their political futures. This years-long investigation illuminated troubling conduct for which all of those indicted must now answer. The FBI is committed to fighting public corruption, which erodes the trust of 'we the people' and cheapens our cherished democracy."
“Internal Revenue Service Criminal Investigation (IRS-CI) is diligent in unraveling the fraudulent actions of those, such as Edwin Pawlowski and Vaughn Spencer, who scheme to defraud citizens of Allentown and Reading who placed their trust in him,” said Acting Special Agent in Charge Gregory Floyd of IRS-CI’s Philadelphia Field Office. IRS-Criminal Investigation is proud to be a member of the formidable team that is rooting out public corruption. “Today’s indictment is a reminder that there are detrimental consequences for this type of criminal behavior.”
The charge of bribery concerning programs receiving federal funds carries a maximum sentence of 10 years in prison and a $250,000 fine; the charges of mail fraud, wire fraud, honest services mail fraud, honest services wire fraud, and attempted Hobbs Act all carry an individual maximum sentence of 20 years in prison and a $250,000 fine; and the charges of conspiracy, travel act bribery and making material false statements all carry an individual maximum sentence of 5 years in prison and a $250,000 fine.
The case is being prosecuted by Assistant United States Attorney Anthony J. Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alleged Boston Gang Member Indicted on Drug Distribution ChargeRead the Press Release
BOSTON – An alleged member of the Orchard Park Trailblazers was indicted today in federal court in Boston for distributing cocaine in a school zone.
Tyree Draughn, 25, was indicted on one count of distribution of a controlled substance within 1,000 feet of a school. In June 2017, Draughn and 11 others were charged in a criminal complaint and arrested in connection with selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development. It is alleged that Draughn sold cocaine base in a school zone on May 10, 2017.
The charges are the result of a nearly two-year investigation into the high concentration of crime in and around the Orchard Park Development, the largest publically funded development in Roxbury, which is also adjacent to Orchard Gardens K-8 Pilot School. The crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers who allegedly have active feuds with rival gangs throughout the city, contributing to the area’s violence. It is alleged in court documents that the residents of the Development often expressed concerns to law enforcement about the violence in the area and the gang members who contributed to an atmosphere of fear and intimidation.
The charging statute provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and no more than a lifetime of supervised release, and a fine of $2 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
The details contained in the charging documents are allegations. defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Albuquerque Felon Sentenced to Federal Prison for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Luis Mejia, 32, of Albuquerque, N.M., was sentenced today in federal court to 70 months in prison for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Mejia will be on supervised release for three years after completing his prison sentence.
Mejia was arrested on Dec. 12, 2016, on a criminal complaint charging him with being a felon in possession of a firearm on Nov. 29, 2016. According to the complaint, law enforcement officers located a firearm and ammunition on Mejia incident to his arrest after executing a traffic stop on Mejia’s vehicle.
Mejia was subsequently indicted on Dec. 20, 2016, and was charged with being a felon in possession of a firearm and ammunition on Nov. 29, 2016, in Bernalillo County, N.M. At the time, Mejia was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated assault with a deadly weapon, aggravated fleeing a law enforcement officer, aggravated battery with a deadly weapon causing great bodily harm and possession of a controlled substance. Mejia pled guilty to the indictment without the benefit of a plea agreement on April 20, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney David M. Walsh prosecuted the case.
Alaskan Commercial Fishing Couple Charged with Willful Failure to Pay over $400,000 in Income Taxes on Income Earned for 13 YearsRead the Press Release
An Alaskan couple was charged in federal court in Juneau, Alaska today with four counts of willful failure to pay their individual income taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Bryan Schroder for the District of Alaska.
According to the Information, Archie W. Demmert III and Roseann L. Demmert earned income from commercial fishing. The Information alleges that Archie Demmert owned Vetta Bay LLC, which owned the Demmerts’ fishing vessel, the Emerald Beauty. The Information further charges that the Demmerts have a long history of not paying their taxes to the Internal Revenue Service (IRS). It alleges that the Demmerts did not pay their taxes for 13 separate tax years, for which they owed over $400,000, excluding penalties and interest.
The Demmerts arraignment has not been scheduled yet. They face a statutory maximum sentence of one year in prison on each separate count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schroder recognized special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting this case.
An Information is merely an accusation, and a defendant is presumed innocent unless proven guilty.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Alaskan Commercial Fishing Couple Charged with Willful Failure to Pay over $400,000 in Income Taxes on Income Earned for 13 YearsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Alaskan couple was charged in federal court in Juneau, Alaska, today with four counts of willful failure to pay their individual income taxes.
According to the Information, Archie W. Demmert III and Roseann L. Demmert, of Klawock, Alaska, earned income from commercial fishing. The Information alleges that Archie Demmert owned Vetta Bay LLC, which owned the Demmerts’ fishing vessel, the Emerald Beauty. The Information further charges that the Demmerts have a long history of not paying their taxes to the Internal Revenue Service (IRS). It alleges that the Demmerts did not pay their taxes for 13 separate tax years, for which they owed over $400,000, excluding penalties and interest.
The Demmerts face a statutory maximum sentence of one year in prison on each separate count, as well as a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Schroder recognized special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting this case.
An Information is merely an accusation, and a defendant is presumed innocent unless proven guilty.
Accounting Manager Pleads Guilty to Stealing over $725,000 from Two Employers and Committing over $193,000 in Tax Fraud and Tax EvasionRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman pleaded guilty today to stealing more than $725,000 from two different employers, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Nicole Marie Graziano, 42, pleaded guilty to three counts of wire fraud, two counts of filing a false tax return, and one count of attempt to evade or defeat tax. She was charged by a criminal information on June 13, 2017. United States District Judge Kent J. Dawson scheduled sentencing for Nov. 21, 2017.
According to the plea agreement, between May 2009 through November 2015, Graziano worked as an Accounting Manager and Controller for two companies in Clark County. She used several schemes, including manipulation of her employers’ payroll tax records, to conceal the thefts. She would transfer the stolen funds by wire to her own personal bank accounts. Graziano used the money she stole to pay for luxury items for herself and family members, including cars and real estate.
Furthermore, Graziano admitted to filing false individual Federal income tax returns for tax years 2013 and 2014, and grossly underreporting her income and tax liability. She also failed to file an individual Federal income tax return for tax year 2015.
The maximum statutory penalty is three years in prison and a $100,000 fine for filing a false tax return; the maximum penalty is five years in prison and a $250,000 fine for attempt to evade or defeat income tax; and the maximum penalty is 20 years in prison and a $250,000 fine for wire fraud.
The case is being investigated by the IRS-Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Dan Cowhig.
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Tuesday 25 July 2017
Two Springfield Men Indicted on Federal Firearms and Drug ChargesRead the Press Release
BOSTON - Two Springfield men were charged today in federal court in Springfield with federal drug and firearms offenses.
Alexis Ayala, 40, and Wilfredo Perez, 38, were each charged with one count of distribution and possession with intent to distribute heroin. Ayala was also charged with two counts of being a felon in possession of a firearm.
According to court documents, in April 2015, Perez and Ayala distributed heroin in Hampden County, and in December 2015 and August 2016, Ayala, a previously convicted felon, was found in possession of a firearm.
The charge of distributing heroin provides for a sentence of no greater than 30 years in prison, a minimum of three years of supervised release and a fine of $1 million. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of $250,000. 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James Neiswanger made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Weinreb’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Mexican Nationals Facing Federal Drug Trafficking Charges Arising Out of Seizures of Significant Quantities of Cocaine at U.S. Border Patrol Checkpoints in New MexicoRead the Press Release
ALBUQUERQUE – Yesterday morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support criminal complaints that separately charged Francisco Alberto Guerrero-Rodriguez, 20, and Noe Lucero-Ceniceros, 28, both Mexican nationals, illegally in the United States, with cocaine trafficking offenses. The charges against the two defendant arise out of seizures of large quantities of cocaine at two U.S. Border Patrol checkpoints in southern New Mexico. Guerrero-Rodriguez and Lucero-Ceniceros both were remanded into custody pending their trials, which have yet to be scheduled.
Border Patrol agents arrested Guerrero-Rodriguez on July 20, 2017, after they allegedly seized 8.8 kilograms (19.4 pounds) of cocaine from his vehicle. The cocaine was found during an inspection at the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo, N.M., in Otero County, N.M. According to the criminal complaint, the cocaine was contained in seven bundles that were concealed in an “after-market compartment above the gas tank” that was accessed through a trap door under the vehicle’s back seat.
Border Patrol agents arrested Lucero-Ceniceros on July 21, 2017, after they allegedly seized approximately 8.68 kilograms (19.14 pounds) of cocaine from his vehicle. The cocaine was found during an inspection at the U.S. Border Patrol checkpoint on Interstate 25 near Hatch, N.M., in Dona Ana County, N.M. According to the complaint, the cocaine was found in a concealed compartment that was accessible through a trapdoor that was only accessible after removing the vehicle’s rear passenger compartment.
If convicted of the charges in the criminal complaints, Guerrero-Rodriguez and Lucero-Ceniceros each face a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Mark A. Saltman is prosecuting the case against Guerrero-Rodriguez, and Assistant U.S. Attorney Dustin C. Segovia is prosecuting the case against Lucero-Ceniceros.
Two Men Sentenced to Federal Prison for Assault Resulting in DeathRead the Press Release
PHOENIX – Yesterday, Jerrison Begay, 33, was sentenced by Senior U.S. District Judge Susan R. Bolton to 96 months in federal prison, followed by three years of supervised release. Begay had previously pleaded guilty to assault with a dangerous weapon. In January, Begay’s co-defendant, Shelton Six, 28, of Sanders, Ariz., was sentenced by Judge Bolton to concurrent terms of 132 months and 78 months in federal prison, followed by three years of supervised release. Six had previously pleaded guilty to one count of voluntary manslaughter and one count of assault by strangling or suffocating, arising out of two separate cases.
On or between Dec. 2, 2015, and Dec. 3, 2015, Six became angry with the victim and began physically assaulting him. Begay participated in the assault. The victim, a member of the Navajo Nation, later died of blunt force injuries and suffocation and strangulation. Both Six and Begay are also members of the Navajo Nation.
On Feb. 14, 2016, Six assaulted a different victim, by threatening and strangling the victim with his hands, making it difficult to breathe. That victim is also a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. The prosecution was handled by Dimitra Sampson and Christina Covault, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBERS: CR-16-8050-PCT-SRB
RELEASE NUMBER: 2017-063_Six_etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two Men Sentenced to 12 Months in Prison for Bringing in and Harboring Illegal AliensRead the Press Release
St. Thomas, USVI- King Leonard, 24, of Tortola and Michael Leonard, 21, of Pennsylvania, were sentenced today to 12 months in prison for bringing into and harboring illegal aliens in the United States, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced the two brothers to serve three years of supervised release, pay a $100 special assessment, and perform 350 hours of community service.
The two brothers recently pleaded guilty to bringing into and harboring illegal aliens in the United States. According to the plea agreements, between November 10-11, 2016, the two brothers attempted to smuggle six illegal aliens, nationals of the Dominican Republic, into the United States aboard the M/V Sole Mio, which they operated.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations with the assistance of U.S. Customs and Border Protection. It was prosecuted by Assistant U.S. Attorney David White.
Two Members of the 39ers Gang Sentenced to Life in PrisonRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the sentencing of two defendants convicted of gang-related offenses in February of 2017 following the six-week long 39ers racketeering and murder trial.
Today, U.S. Judge Jay C. Zainey sentenced TERRIOUES OWNEY, age 30, and MCCOY WALKER, age 26, as follows:
COUNT CHARGE DEFENDANT SENTENCE 1 Conspiracy to violate the Racketeer Influence and Corrupt Organization Act (RICO) OWNEY Each defendant received life imprisonment WALKER 2 Conspiracy to distribute controlled substances WALKER Life imprisonment 3 Conspiracy to use and carry and to possess firearms OWNEY Each defendant received 240 months WALKER imprisonment 14 Murder in aid of racketeering OWNEY Each defendant received a mandatory life sentence (Lester Green) WALKER 15 Causing death through the use of a firearm OWNEY Life imprisonment 16 Assault with a dangerous weapon in aid of racketeering (Jamal Smith) OWNEY Each defendant received 240 months imprisonment WALKER 17 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime OWNEY Received a consecutive sentence of 120 months (Jamal Smith) 18 Murder in aid of racketeering OWNEY Mandatory life sentence (Donald Daniels) 19 Causing death through the use of a firearm (Donald Daniels) OWNEY Life imprisonment 22 Murder in aid of racketeering OWNEY Mandatory life sentence (Elton Fields) 23 Causing death through the use of a firearm (Elton Fields) OWNEY Life imprisonment 24 Murder in aid of racketeering OWNEY Mandatory life sentence (Jerome Hampton) WALKER 25 Causing death through the use of a firearm OWNEY Both defendants received life imprisonment (Jerome Hampton and Renetta Lowe a/k/a Magnolia Shorty) WALKER 26 Murder in aid of racketeering OWNEY Both defendants received a mandatory life sentence(Renetta Lowe a/k/a Magnolia Shorty)
WALKERActing U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys Myles Ranier, David Haller, Brittany Reed, and Jeff Sandman were in charge of the prosecution.
Three Jersey City Police Officers Admit Conspiracy to Commit FraudRead the Press Release
NEWARK, N.J. – Three Jersey City police officers today admitted participating in a conspiracy to defraud Jersey City by obtaining compensation for off-duty work that they did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
James Cardinali, 38, of Jersey City, Victor Sanchez, 37, of Hasbrouck Heights, and Christopher Ortega, 29, of Brick, all pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to separate informations charging them with one count each of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Cardinali’s duties included serving as the “pick coordinator” for Jersey City’s South District, responsible for assigning police officers to off-duty details. On multiple occasions, Cardinali asked representatives of certain vendors who were performing work in the South District to sign Jersey City off-duty vouchers indicating that a police officer had completed an off-duty assignment for that vendor, even though no officer had in fact completed any assignment. Cardinali then falsely represented on these vouchers that a particular police officer had completed an off-duty assignment. These officers were paid for work they did not perform. Cardinali personally obtained from the officers some of the money that they were paid as a result of the fraudulent conduct.
Sanchez and Ortega defrauded Jersey City by consenting to the submission of false and fraudulent off-duty vouchers to Jersey City indicating that they had completed certain off-duty assignments that they had not, in fact, completed. Both were paid by the city for off-duty assignments that they did not actually complete.
All three officers face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Cardinali is required to forfeit the $39,587; Sanchez is required to forfeit $21,583; and Ortega is required to forfeit $18,336. Sentencing for all three defendants is scheduled for Nov. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Cardinali: Matthew E. Beck Esq., West Orange, New Jersey
Sanchez: Joel Silberman Esq., Jersey City, New Jersey
Ortega: Henry Klingeman Esq., Newark, New JerseyTampa Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. has sentenced Moses Wilcox to three years and four months’ imprisonment for his role in a stolen identity refund fraud scheme. The Court also entered a money judgment for $129,854.17, the amount of fraudulent income tax refunds that Wilcox had received directly into a bank account in his name.
Wilcox pleaded guilty to conspiracy and theft of government funds charges on February 27, 2017.
According to court documents, the conspiracy involved the filing of false and fraudulent income tax returns in the names of deceased individuals and other unwitting taxpayers. In these returns, the conspirators represented that they were entitled to receive the refunds for those unknowing taxpayers and requested that the IRS direct refunds in varying amounts to accounts that Wilcox and others had established at local financial institutions in their own names. As a result of this activity, the conspirators caused the IRS to issue fraudulent and unauthorized refunds totaling $389,479.07. In addition, the conspirators sought to obtain an additional $562,791.29 in fraudulent refunds that the IRS was able to block before payment was made.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stratford Man Pleads Guilty to Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY LEE PAROWSKI, 30, of Stratford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of distribution of heroin.
According to court documents and statements made in court, in March 2017, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Milford Police Department received information that PAROWSKI was distributing heroin to numerous individuals. In April 2017, investigators conducted two controlled purchases of heroin from PAROWSKI, the second of which occurred in a Milford motel room that PAROWSKI had rented. On April 20, investigators approached PAROWSKI as he exited the motel carrying a cardboard box. PAROWSKI dropped the box and ran, and was observed discarding items as he ran. He was apprehended after a brief pursuit. A search of PAROWSKI’s person, the cardboard box and the area of the chase revealed approximately 190 dose bags of heroin, 66 grams of additional heroin, and items used to process and package heroin for street sale. A subsequent search of PAROWSKI’s Stratford residence revealed $32,210 in cash.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
PAROWSKI has been detained since his federal arrest on April 25.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Springfield Man Sentenced to Prison for Bankruptcy FraudRead the Press Release
Yesterday afternoon, in federal court in East St. Louis, IL, Mark A. McFarland, 58, of Springfield, IL, was sentenced to one year in prison for his convictions on two counts of bankruptcy fraud, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. McFarland was indicted on February 2, 2016, as part of the U.S. Attorney’s effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
Evidence presented at the sentencing hearing yesterday established that McFarland is a serial bankruptcy filer. Serial bankruptcy filers repeatedly file bankruptcy petitions with no intention of following through with their cases. Instead, they simply file the petitions in order to stop their creditors from collecting on the debts they owe.
On October 6, 2014, McFarland filed a chapter 11 bankruptcy case on behalf of his business, Second Chance of Springfield, Inc. ("Second Chance.") McFarland filed this case in the United States Bankruptcy Court for the Southern District of Illinois in East St. Louis, IL. Prior to filing that case, McFarland had filed ten separate bankruptcy cases in the United States Bankruptcy Court for the Central District of Illinois in Springfield. All but one of those cases had been dismissed due to McFarland’s failure to comply with the Bankruptcy Court’s orders. In the last case, the Bankruptcy Court barred McFarland from filing any more bankruptcy cases in the Central District of Illinois for 180 days. The Bankruptcy Court also barred McFarland from filing any additional bankruptcy petitions in the Central District of Illinois for three years unless he paid the full filing fee (approximately $300) upfront.
Shortly after that order was entered, McFarland filed his bankruptcy case on behalf of his business, Second Chance, in the Southern District of Illinois. When he filed this case, McFarland lied on his bankruptcy petition by claiming that his business was located in the Southern District of Illinois. An attorney from the U.S. Trustee’s Office subsequently pointed out that the case did not belong in the Southern District of Illinois, because the street address of Second Chance was located in Springfield. As a result, the case should have been filed in the Central District of Illinois in Springfield. McFarland then lied again on an amended bankruptcy petition, stating that Second Chance had a business address in Alton, IL. In support of this claim, McFarland provided a lease to the Bankruptcy Court that was fraudulently backdated to September 25, 2014. Then, as McFarland admitted during his plea hearing, he falsely testified under oath that he had signed that lease on September 25, 2014. He also falsely testified under oath that he had reached an oral agreement with the landlord for the rental of the Alton property in September 2014.
During the hearing yesterday afternoon, U.S. District Judge Nancy J. Rosenstengel stated that she hoped the prison sentence would send a message to other would-be serial filers. Specifically, Judge Rosenstengel pointed out that individuals who attempt to use the federal bankruptcy courts to defraud their creditors and make false statements under oath will face very serious consequences. In addition to sentencing McFarland to prison, Judge Rosenstengel also ordered McFarland to serve three years of supervised release after his prison sentence is concluded, with the first six months under home confinement. The judge also fined McFarland $3,000 and ordered him to pay a $200 Special Assessment.
"Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system," stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois. "I am grateful to U.S. Attorney Boyce and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by yesterday’s sentencing." The U.S. Trustee Program is the component of the U.S. Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, IN, and Peoria, IL.
The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"), in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
South Sioux City Man Sentenced to More Than 12 years in Prison after Pleading Guilty to Methamphetamine and Firearm ChargesRead the Press Release
Acting United States Attorney, Robert C. Stuart, announced that Jose Luis Sandoval, 47, was sentenced on July 24, 2017, to 147 months in prison by the Honorable Laurie Smith Camp, United States District Judge. Sandoval had previously pled guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Relation to a Drug Trafficking Crime. Sandoval’s sentence included a consecutive 5 year term of imprisonment because he possessed a firearm while trafficking methamphetamine.
During the course of this investigation, law enforcement utilized a cooperating witness who made several multiple ounce purchases of methamphetamine from Sandoval inside of his South Sioux City, NE residence. Thereafter on May 9, 2016, law enforcement executed a search warrant on Sandoval’s residence and recovered four firearms, a security monitor, a flak jacket, drug distribution paraphernalia, and quantities of methamphetamine.
This case was the result of an investigation by the South Sioux City Police Department and DEA Tri-State Drug Task Force.
Shreveport resident pleads guilty to driving while intoxicated for the fifth timeRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Shreveport man pleaded guilty to driving while intoxicated on Barksdale Air Force Base.
Jesus J. Maldonado, 30, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of driving while intoxicated, fifth offense. According to the guilty plea, a Barksdale security officer pulled over Maldonado’s vehicle on April 13, 2017 after it was seen driving erratically and bearing signs of being in a wreck. He was found to have been driving under the influence of alcohol. He was also found to have been convicted on four previous occasions of driving while under the influence on October 20, 2007 in Bossier City, La.; on June 21, 2009 in Los Angeles, Calif.; on March 8, 2013 in Shreveport; and on May 16, 2013 in Shreveport.
Maldonado faces up to 30 years in prison and a $5,000 fine. The court set a sentencing date of November 3, 2017.
The FBI and U.S. Air Force Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath and Special Assistant U.S. Attorney Col. John Odom, U.S. Air Force-retired, are prosecuting the case.
Sex Offender Sentenced to 15 Years for Possessing Child Pornography While on Supervised ReleaseRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Jonathan Pates (28, Rockledge) to 15 years in federal prison for possessing child pornography while on federal supervised release. The Court also ordered him to forfeit the smart watch he used to commit the offense, and to serve 20 years of supervision following his release from prison.
Pates pleaded guilty on April 25, 2017.
According to court documents, on January 6, 2010, Pates was convicted of receiving child pornography and sentenced to 6 years and 6 months in federal prison, followed by 10 years of supervised release. Eight months after his release from federal prison and while on supervised release, Pates obtained a smart watch with an SD card and transferred 3 videos and 76 graphics depicting the sexual abuse of young children to the watch. His probation officer saw him wearing the watch during a sex offender treatment meeting and arranged to inspect it later. Pates abandoned the watch, but two individuals found it discarded in a park and turned it into law enforcement.
“This repeat offender criminal did not learn his lesson after his first prison term for child pornography,” said acting Special Agent in Charge of HSI Tampa Ivan J. Arvelo. “This sentence stops this predator from continuing to cause harm to children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Karen L. Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
San Antonio Man Pleads Guilty for His Role in a “Foreclosure Rescue Scheme”Read the Press Release
DALLAS — Richard Bruce Stevens, 52, of San Antonio, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Stevens faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. Restitution could also be ordered. Stevens will remain on bond pending sentencing, which is set for October 30, 2017.
A federal grand jury in Dallas returned an indictment in December 2016 charging Stevens and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, is scheduled for trial August 28, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, and Christina Renee Caveny, 37, of Dallas, both pleaded guilty to their role in the scheme and are awaiting sentencing.
According to documents filed in the case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Stevens and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Stevens and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes prosecuted as a result of the Bankruptcy Fraud Initiative in the Northern District of Texas. These prosecutions are identified following a careful review of many criminal referrals sent by the Office of the United States Trustee in Dallas to the United States Attorneys Office. Since May 2013, a total of 26 defendants have been charged as part of that initiative. To date, 23 defendants have been convicted, one resulted in a mistrial, and two are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Retired Fulton County Jailer Sentenced to 87 Months in Prison for Receiving Kickbacks Tied to 3.3 Million Construction Project on Fulton County Detention CenterRead the Press Release
Ricky Parnell and co-defendants responsible for $154,000 restitution
PADUCAH, Ky. – Retired Fulton County Jailer Ricky Parnell was sentenced today in United States District Court by Senior Judge Thomas B. Russell, to serve 87 months in prison for his role in a conspiracy to the defraud Fulton County, Kentucky, citizens through kickbacks and inflated costs associated with the $3.3 million 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal prison system.
“Public corruption simply cannot be tolerated,” stated United States Attorney John Kuhn. “Corrupt public officials erode the fairness and integrity of our public institutions, and they undermine the public’s trust in our government. I hope this conviction and ordered for restitution will reassure the public that the Department of Justice will hold elected officials to the highest standards of honesty and integrity – and that we will seek repayment of every tax dollar spent corruptly by public officials,” stated U.S. Attorney Kuhn. “Further, today’s sentencing should assist in restoring the community’s trust in the fairness and integrity of our public institutions.”
Parnell, 59, of Hickman, Kentucky, is jointly and severally liable with the codefendants for the full amount of restitution due totaling $154,000. Co-defendant Michael Homra paid restitution of $32,500 and Danny Larcom paid restitution of $22,000 at the time of their respective sentencing. The remaining $100,000 balance is due by Parnell and co-defendant Ron Armstrong.
Parnell previously pleaded guilty to Honest Services Fraud and multiple counts of Wire Fraud for using his official position to enrich himself by soliciting and accepting gifts and payments from defendant contractors, in exchange for influencing the Fulton County Fiscal Court to award the defendants contracts on the project.
Parnell admitted to directing Ronald D. Armstrong, of Dresden, Tennessee; Jimmy Boyd, of South Fulton, Tennessee; Michael Homra, of Fulton, Kentucky; and Daniel C. Larcom, of Union City, Tennessee, to intentionally overcharge Fulton County for services and supplies provided as part of jail projects. Parnell presented the inflated invoices and contracts to the Fulton County treasurer for payment to the defendants and their respective companies. In turn, the defendant contractors would use the excess proceeds to pay kickbacks, in the form of both cash and checks, to Parnell. Parnell received at least $175,000 in money and other things of value.
In addition, defendants Armstrong, Homra, and Larcom took steps to cover up their activities and dealings with Parnell, including using cash to provide Parnell with kickbacks, structuring withdrawals from banks to use for these kickbacks, and creating false and inflated invoices for services and materials in order to satisfy the cash kickbacks demanded by Parnell.
Contract defendants Larcom, Armstrong and Homra pleaded guilty in United States District Court to charges including Honest Service Wire Fraud and Wire Fraud for their individual roles in this conspiracy. Armstrong was sentenced to 35 months in prison and Larcom and Homra were sentenced to serve 2 years of probation.
The charged activity took place between April 2015 and August 2016. Parnell served as the Fulton County Jailer from 1990 until late last year.
This case was prosecuted by Assistant United States Attorney Nute Bonner and was investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Quincy Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Quincy man pleaded guilty today in federal court in Boston to bank robbery.
Perry C. Learning, 36, pleaded guilty to one count of unarmed bank robbery before U.S. District Court Judge Indira Talwani, who scheduled sentencing for Oct. 27, 2017.
On Dec. 15, 2015, an individual entered a branch of Citizens Bank in Quincy and demanded money from a teller. The teller gave the individual $1,480 from her drawer, and the individual exited the bank. The bank’s surveillance cameras captured images of the individual, and surveillance cameras on neighboring businesses captured images of the robber walking away. Photographs of the individual were then disseminated to law enforcement who recognized the individual as Perry Learning. On Jan. 11, 2016, Learning was arrested.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Philadelphia Woman Pleads Guilty to Charges of Causing False Statements to the Federal Election CommissionRead the Press Release
A Philadelphia woman pleaded guilty to a criminal information unsealed today charging her with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.
According to the plea memorandum filed today, Carolyn Cavaness, 34, engaged in a falsification scheme involving payments to a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives. According to the plea memorandum, those payments came from the campaign committee of the candidate’s political opponent for the purpose of removing the candidate from the 2012 Democratic race for Pennsylvania’s First Congressional District. Cavaness was a member of the candidate’s campaign staff.
As set forth in the criminal information and the government’s plea memorandum, Cavaness admitted that in or about February 2012, her candidate withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay the candidate $90,000 from his campaign funds to be used to repay the candidate’s campaign debts. Cavaness admitted that she was aware that under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election, and that the FEC required campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period. However, in order to conceal the fact that his opponent’s campaign committee paid his campaign debts, according to the plea memorandum, the candidate instructed Cavaness to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay the candidate’s campaign debts. As described in the plea memorandum, Cavaness admitted that she did so, and that the payments were then routed through two political consultants, who created false invoices to generate a paper trail intended to justify the payments from the candidate’s opponent’s campaign committee.
According to the plea memorandum, Cavaness used the money from the opponent’s campaign committee to repay the candidate’s campaign debts and for personal expenses, but failed to disclose this information to the FEC. Instead, according to the plea memorandum, Cavaness knowingly and intentionally caused the candidate’s campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed and falsely listed the same debts owed by the candidate’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to the candidate by his opponent’s campaign committee.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.