Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
31 August 2017
U.S. District Court Enters Judgment Against Fugitive and Surety in Fentanyl Distribution CaseRead the Press Release
SAN FRANCISCO – The U.S. District Court for the Northern District of California entered judgment against fugitive defendant Candelaria Dagandan Vazquez and her surety Candelaria Antoinette Sapp in the amount of $50,000, announced United States Attorney Brian J. Stretch. The Honorable Susan Illston, U.S. District Judge entered the judgment after the defendant failed to appear for court proceedings.
On June 21, 2016, a federal grand jury indicted Vazquez, 39, of Richmond, Calif., for conspiracy to distribute fentanyl and for distribution and possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 846. The complaint authorizing Vazquez’s arrest by federal authorities alleges that Vazquez and her co-defendant Kia Zolfaghari manufactured and sold counterfeit oxycodone pills online that were laced with fentanyl, a powerful opiate. Following her arrest, Vazquez was released on a pretrial bond of $50,000 co-signed by her daughter, Sapp, guaranteeing Vazquez’s appearance.
Vazquez absconded from her residence in Richmond, where she was required to reside, in April 2017, and failed to appear at her scheduled status conference on May 19, 2017. A warrant has been issued for her arrest. She remains a fugitive.
The federal court therefore entered judgment on the bond against both Vazquez and her surety, Sapp, in the amount of $50,000. The entry of judgment essentially means the entire amount is due and payable immediately to the United States government. Further, pursuant to the terms of the bond, if the amount remains unpaid, the government retains the right to place liens on property owned by Sapp and to garnish Sapp’s wages to satisfy the judgment.
At the hearing on the government’s motion to enter judgment on the bond, which was held on August 25, 2017, the federal court observed that it retains the power to set aside some or all of the judgment against Sapp if Vazquez turns herself in or is arrested.
Vazquez’s co-defendant Kia Zolfaghari fled in April 2017 as well, and failed to appear at a hearing scheduled for a change of his plea. A warrant has issued for his arrest, and he remains a fugitive. The government’s motion to enter judgment on Zolfaghari’s bond against both Zolfaghari and his surety Behrooz Zolfaghari is scheduled to be heard on October 27, 2017.
Tyler County man admits to illegal possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Jamie Villono, of Sistersville, West Virginia, admitted to illegally possessing firearms, Acting United States Attorney Betsy Steinfeld Jividen announced.
Villono, age 36, pled guilty to one count of “Felon in Possession of a Firearm.” Villono, having previously been convicted of breaking and entering in Tyler County Circuit Court, admitting to having in his possession a 30-30 caliber rifle, a.22 caliber rifle, a.22-250 caliber rifle, and a .223 caliber rifle. The crime occurred in October 2016 in Tyler County.
Villono faces up to ten years and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office investigated.
U.S. Magistrate Judge James E. Seibert presided.Two Men Sentenced for Conspiracy to Distribute Crack Cocaine in Paris, KentuckyRead the Press Release
LEXINGTON, Ky. — Aaron T. Shakir, 36, and Tracey M. Thomas, 51, both of Paris, Ky., were sentenced today by United States District Judge Danny C. Reeves, for conspiring to distribute 28 grams of more of crack cocaine in Paris, during June and July 2016. Shakir was sentenced to 35 years in prison and Thomas was sentenced to 12 years in prison.
In May 2017, a federal jury found Shakir guilty of the drug conspiracy charge and substantive drug distribution charges. Shakir was also found guilty of illegally possessing a firearm during his drug trafficking. The jury convicted Shakir after a two-day trial. Thomas pleaded guilty, in May 2017, and admitted to conspiring with Shakir to distribute the crack cocaine.
Under federal law, Shakir and Thomas must serve 85 percent of their prison sentences. Upon release, both Shakir and Thomas will be under the supervision of the United States Probation Office for eight years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Richard Sanders, Commissioner, Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by the ATF and the KSP. The United States was represented by Assistant United States Attorneys Robert M. Duncan, Jr., and Cynthia T. Rieker.
Tuscaloosa Man Indicted for Possessing Firearm after Multiple Felony ConvictionsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Tuscaloosa man for illegally possessing a firearm because of several previous felony convictions, announced U.S. Attorney Jay E. Town and federal Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
An indictment filed in U.S. District Court charges HOWARD ALLEN JEMISON JR., 32, as a convicted felon in possession of a Sarsilmaz (Sar Arms) 9mm pistol on June 27 in Tuscaloosa County. According to the indictment, Jemison has the following prior felony convictions: unlawful possession of a controlled substance and first-degree unlawful possession of marijuana, 2005, Tuscaloosa County Circuit Court; third-degree robbery, 2007, Tuscaloosa County Circuit Court; felon in possession of a firearm, 2011, U.S. District Court Northern District of Alabama; first-degree unlawful possession of marijuana, 2012, Tuscaloosa County Circuit Court; and first-degree unlawful possession of marijuana, 2017, Tuscaloosa County Circuit Court.
The maximum penalty for felon in possession of a firearm is 10 years in prison and a $250,000 fine.
ATF investigated the case, which Assistant U.S. Attorney Michael A. Royster is prosecuting.
###
Three Individuals Indicted in Nevada for Allegedly Stealing More Than $1 Million in Tax RefundsRead the Press Release
A federal grand jury in Las Vegas, Nevada returned an indictment charging three individuals with stealing more than $1 million in refunds from the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The indictment charges Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh with conspiring to file fraudulent claims for tax refunds and theft of government funds. Chanh V. Trinh is also charged with filing false claims for tax refunds, mail fraud and aggravated identity theft.
According to the indictment, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh were residents of Las Vegas, who allegedly conspired to file federal corporate and individual income tax returns reporting fake income and income tax withholdings and as a result, obtained more than $1 million in refunds to which they were not entitled. The indictment alleges that the fraudulent returns were filed in the names of the defendants and others, including a long-deceased family member and fictitious businesses. Months after filing a fraudulent return, the defendants would allegedly file a fraudulent amended return requesting an additional refund. The indictment alleges that Chanh V. Trinh prepared and filed the returns, and that all three defendants deposited or cashed the fraudulently obtained refund checks using multiple bank accounts, brokerage accounts, and check-cashing businesses in Las Vegas. The indictment alleges that the defendants frequently concealed the funds by purchasing cashier’s checks to obtain gambling chips at casinos.
If convicted, the defendants face a statutory maximum sentence of 10 years in prison for the conspiracy count and each of the theft of government funds counts. Chanh V. Trinh also faces a statutory maximum sentence of 20 years in prison for each of the mail fraud counts, five years in prison for each of the false claims counts and a mandatory minimum sentence of two years in prison for each of the aggravated identity theft counts. The defendants also face a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Three Individuals Indicted in Nevada for Allegedly Stealing More Than $1 Million in Tax RefundsRead the Press Release
LAS VEGAS, Nev. – A federal grand jury in Las Vegas, Nevada returned an indictment on Wednesday charging three individuals with stealing more than $1 million in refunds from the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The indictment charges Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh with conspiring to file fraudulent claims for tax refunds and theft of government funds. Chanh V. Trinh is also charged with filing false claims for tax refunds, mail fraud, and aggravated identity theft.
According to the indictment, Chanh V. Trinh, Cannedy Trinh, and Elizabeth Trinh were residents of Las Vegas, who allegedly conspired to file federal corporate and individual income tax returns reporting fake income and income tax withholdings and as a result, obtained more than $1 million in refunds to which they were not entitled. The indictment alleges that the fraudulent returns were filed in the names of the defendants and others, including a long-deceased family member and fictitious businesses. Months after filing a fraudulent return, the defendants would allegedly file a fraudulent amended return requesting an additional refund. The indictment alleges that Chanh V. Trinh prepared and filed the returns, and that all three defendants deposited or cashed the fraudulently obtained refund checks using multiple bank accounts, brokerage accounts, and check-cashing businesses in Las Vegas. The indictment alleges that the defendants frequently concealed the funds by purchasing cashier’s checks to obtain gambling chips at casinos.
If convicted, the defendants face a statutory maximum sentence of 10 years in prison for the conspiracy count and each of the theft of government funds counts. Chanh V. Trinh also faces a statutory maximum sentence of 20 years in prison for each of the mail fraud counts, five years in prison for each of the false claims counts and a mandatory minimum sentence of two years in prison for each of the aggravated identity theft counts. The defendants also face a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
###
Three Individuals Charged in Stolen Identity Tax Refund Fraud ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jonathan Jacome, age 27, of Mountain Top, Pennsylvania, Cindy Jacome, age 28, of West Hazelton, Pennsylvania, and Melissa Castiglione, age 30, of Mountain Top, were indicted on August 8, 2017, by a federal grand jury on fraud, aggravated identity theft, money laundering, and obstruction charges. The case was unsealed on August 30, 2017.
According to United States Attorney Bruce D. Brandler, the superseding indictment alleges that Jonathan Jacome used stolen identities to file fraudulent tax returns in 2011 and 2012, and obtained over $6 million in fraudulent federal tax refunds. Jacome owned three check cashing businesses through which he processed the fraudulently obtained Treasury checks. The superseding indictment charges Jonathan Jacome with 31 counts including conspiracy to defraud the United States with respect to claims, false fictitious, and fraudulent claims, theft of public money, aggravated identity theft, and conspiracy to commit wire fraud.
Cindy Jacome and Melissa Castiglione are alleged to have conspired with Jonathan Jacome to launder the proceeds of his fraudulent activities. The superseding indictment further alleges that Castiglione and Cindy Jacome obstructed the investigation and that Cindy Jacome committed perjury, all stemming from false, evasive, and misleading testimony before the grand jury.
The case was investigated by the U.S. Internal Revenue Service and the Hazelton City Police Department and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
Indictments and Criminal Informations 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 total penalties under federal law for this offense is 183 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.
# # #
Three FCI Aliceville Inmates Indicted for Assaulting Other InmatesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted three inmates at the women’s Federal Correctional Institution in Aliceville for assaulting other inmates, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
The grand jury returned separate indictments involving two assaults at the prison in May. One three-count indictment filed in U.S. District Court charges MIREYA GARCIA-ROMO, 34, and MARIBEL GOMEZ-MEZA, 31, in connection with a May 13 assault on another inmate using a weapon made of razor blades. Garcia-Romo and Gomez-Meza are charged with acting in concert to commit an assault that resulted in serious bodily injury, committing an assault with a dangerous weapon that resulted in serious bodily injury, and possessing contraband for having a handmade object consisting of four razor blades wrapped together and secured with tape.
A second three-count indictment charges MICHELLE VASQUEZ-YADO, 35, for assaulting a fellow inmate on May 17 with a broken piece of mirror designed for use as a weapon. The indictment charges Vasquez-Yado with assault resulting in serious bodily injury, assault with a dangerous weapon that resulted in serious bodily injury and possessing contraband by having the mirror fragment intended for use as a weapon.
The maximum penalty for assault resulting in bodily injury is 10 years in prison and a $250,000 fine. The maximum penalty for possessing contraband in prison is five years, which must be served consecutively to the sentence being served when the crime was committed, and a $250,000 fine.
The FBI investigated the cases, which Assistant U.S. Attorney Pat Meadows is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Tips on Avoiding Fraudulent Chartiable Contribution SchemesRead the Press Release
BATON ROUGE, LA - The National Center for Disaster Fraud reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Unfortunately, criminals can exploit disasters, such as Hurricane Harvey, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions.
Tips should be reported to the National Center for Disaster Fraud at (866) 720-5721. The line is staffed 24 hours a day, seven days a week. Additionally, e-mails can be sent to [email protected], and information can be faxed to (225) 334-4707.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
The public should remember to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by the tornadoes. Solicitations can originate from social media, e-mails, websites, door-to-door collections, flyers, mailings, telephone calls, and other similar methods.
Before making a donation of any kind, consumers should adhere to certain guidelines, including:
-
Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages, because they may contain computer viruses.
-
Be skeptical of individuals representing themselves as members of charitable organizations or officials asking for donations via e-mail or social networking sites.
-
Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
-
Rather than follow a purported link to a website, verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status.
-
Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
-
To ensure contributions are received and used for intended purposes, make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
-
Do not be pressured into making contributions; reputable charities do not use such tactics.
-
Be aware of whom you are dealing with when providing your personal and financial information. Providing such information may compromise your identity and make you vulnerable to identity theft.
-
Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
-
Legitimate charities do not normally solicit donations via money transfer services. Most legitimate charities’ websites end in .org rather than .com.
-
Sure Shot Gun Store Owner Bradley Ries Sentenced to Prison for Federal Firearms ViolationsRead the Press Release
DAVENPORT, IA – On August 30, 2017, Bradley James Ries, 51, the owner of the Sure Shot Gun Shop in Clinton, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to two concurrent six-month prison terms for the transfer of a firearm without a National Instant Criminal Background Check, and knowingly making a false statement required by firearms law, announced United States Attorney Kevin E. VanderSchel. Ries will serve one year of supervised release following his imprisonment, to include an additional six months of home confinement, a $5,500 fine, and a $50 special assessment to the Crime Victims’ Fund. At sentencing, Judge Goodgame Ebinger emphasized these violations were more than just bookkeeping errors, and were knowing violations of federal firearms laws.
On December 20, 2014, Ries submitted a firearm transfer request using the National Instant Background Check System (NICS). Licensed dealers are required to have purchasers fill out Form 4473 prior to submitting a NICS request under federal firearms regulations. Knowing the purported purchaser was a felon, Ries failed to have the purchaser fill out a Form 4473 for the firearm purchase. Although NICS denied the transaction, Ries called and informed the felon he could purchase firearms. On February 4, 2015, a federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent contacted Ries and requested the required Form 4473 transaction. Ries falsely claimed gun bluing chemical was spilled on the form.
In April of 2015, ATF conducted a federal firearms compliance inspection at Sure Shot and noted several violations. In September of 2015, ATF held a warning conference in Des Moines and again discussed these violations with Ries.
On November 4, 2015, Ries sold a Taurus Circuit Judge .45/.410 caliber rifle to a prohibited person. Ries transferred the firearm prior to obtaining sale authorization from NICS. NICS denied the purchase based on the buyer having a no contact order, which prohibited this buyer from purchasing firearms under federal law. When contacted by an ATF agent on or about December 14, 2015, Ries falsely claimed the firearm transfer to this buyer involved a Remington 870 20-gauge shotgun. Ries also faxed certain pages of a purported Form 4473 for an apparent Remington 870 20-gauge shotgun purchase by this buyer, but the form’s information was false.
In January of 2016, Ries directed the prohibited buyer of the Taurus Circuit Judge .45/.410 caliber rifle to provide false information to the ATF. In February of 2016, after being warned by an ATF agent it was a federal crime to make a false statement to the agent, Ries again falsely stated this buyer wanted to purchase a Remington 870 shotgun and was upset when the transaction was denied. In April of 2016, after a search warrant at Sure Shot, Ries admitted he had lied to federal agents.
As part of his plea agreement, and as ordered by the District Court as a supervised release condition, Ries agreed to: surrender his Federal Firearm’s License (FFL), and to not reapply for a FFL, or serve as a responsible person or officer of any federal firearm’s licensee; not apply through any individuals or corporations presently holding any listed licenses, through the officers or directors of such corporations, or through any surrogates acting on behalf of any entities or individuals holding the license; and, not to deal in firearms or obtain employment with a business whose primary business is the sale, distribution, use, or firing of firearms following the surrender of his FFL or aid, abet or otherwise conspire with others to actually or constructively possess firearms or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Jason Griess at 515-473-9300, or by emailing him at Jason.Griess@usdoj.gov.
Steubenville Man Sentenced to 74 Months for Running Heroin RingRead the Press Release
COLUMBUS, Ohio – David McShan, 39, of Steubenville, Ohio, was sentenced in U.S. District Court to 74 months in prison and eight years of supervised release for his role in running a Steubenville-area heroin-trafficking ring.
McShan and his brother, Frederick A. McShan, 37, were each convicted following a weeklong jury trial in March.
Specifically, Frederick McShan was convicted of one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 12 counts of possession with intent to distribute heroin and one count of conspiracy to commit money laundering. David McShan was also convicted of one count of conspiracy to possess with intent to distribute more than one kilogram of heroin and one count of possession with intent to distribute heroin.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Jefferson County Prosecutor Jane M. Hanlin and members of the Jefferson County Drug Task Force and the Hancock-Brooke-Weirton Drug Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents and testimony, the McShan brothers helped lead a drug organization that was responsible for street-level heroin sales in Steubenville, Ohio, including in the Market Street apartment public housing area, Weirton, W.Va., Wheeling, W.Va. and Bellaire, Ohio.
A yearlong investigation in this case by local, state and federal law enforcement culminated in the seizure of eight firearms, three vehicles and approximately $110,000 of narcotics proceeds.
Seven co-defendants in this case have pleaded guilty and been sentenced. They include:
Donae F. Grier, 38, of Irving, Texas, who was sentenced to 60 months in prison;
Christopher J. Bishop, 32, of Weirton, W.Va., who was sentenced to 120 months in prison;
Kerris D. Moncrease, 32, of Weirton, W.Va., who was sentenced to 42 months in prison;
Perrier D. Coleman, 21, of Steubenville, Ohio, who was sentenced to 15 months in prison;
Terrence L. Smith, 27, of Steubenville, Ohio, who was sentenced to 87 months in prison;
Michael K. Greathouse, 25, of Steubenville, Ohio, who was sentenced to 100 months in prison and
Erica L. Jury, 37, of Steubenville, Ohio, who was sentenced to time served.
Frederick McShan is scheduled for sentencing on October 12 at 1:30pm.
U.S. Attorney Glassman commended the cooperative efforts of law enforcement, as well as Deputy Criminal Chief Michael Hunter, and Special Assistant United States Attorney Jane M. Hanlin who are prosecuting the case.
# # #
South Carolina Man Sentenced to 171/2 Years for Transporting Minors Across State Lines to Engage in Criminal Sexual ActivityRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced yesterday a South Carolina man to 17 ½ years in prison and a lifetime of supervised release, on the charge of interstate transportation of a minor with the intent to engage in criminal sexual activity, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. As part of his sentence, Joseph Harold Patterson, 58, of Anderson, S.C. was also ordered to register on the sex offender registry, to pay a $20,000 court fine and $4,538.42 as restitution.
Chief Ranger Steven Kloster of the Great Smoky Mountains National Park Service joins
U.S. Attorney Rose in making today’s announcement.“Mr. Patterson has received a well-deserved lengthy prison sentence for abusing these young men. Some say there is a special place in hell for child abusers and we cannot promise Mr. Patterson will receive that just punishment, but we can guarantee that he will receive a place in the federal penitentiary and for now, that’s the best we can do,” said U.S. Attorney Rose.
“We are thankful to see justice prevail and hope that the individuals impacted by these despicable crimes are able to find some measure of solace in Mr. Patterson’s punishment,” said Great Smoky Mountains National Park Chief Ranger Steven Kloster.
According to court documents and information introduced at the sentencing hearing, in April 2015, a concerned parent contacted law enforcement to report that his child had been the victim of inappropriate sexual activity by Patterson, and that the conduct had occurred during camping trips arranged by the defendant. Court records show that between 2009 and 2011, Patterson had made at least three camping trips transporting at least three minor victims from Anderson, S.C. to the Smokemont Campground, located within the Great Smoky Mountains National Park. Court records also show that Patterson knew the minors through his affiliation with a church in Anderson. According to court records, during the camping trips Patterson encouraged the minors to engage in sexual activities in his presence. At times, Patterson also exposed himself to the minors and/or engaged in sexual activities in front of the minors.In addition to the out-of-state camping trips, court records show that Patterson had regular contact with the three victims and other children in his own home. During those encounters, Patterson gave the minors alcohol, shared pornography, discussed sexual topics and encouraged them to engage in sexual activities. Patterson also bought gifts for some of the children and took them out to restaurants, among other things. Court records show that on one occasion, Patterson attended an evening church event, during which he showed pornography to three minor children and encouraged them to engage in a sexual activity in the church bathroom.
Patterson pleaded guilty in February 2017 to one count of interstate transportation of a minor to engage in sexual activity. Patterson is currently in the custody of the United States Marshal pending his designation to a Federal Bureau of Prisons facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Rose commended the National Park Service Investigative Services Branch for leading the investigation. U.S. Attorney Rose also thanked the Anderson Police Department in South Carolina and the South Carolina Attorney General’s Office for their assistance in this case. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
# # #
South Carolina Man Sentenced to 17 1/2 Years for Transporting Minors Across State Lines to Engage Criminal Sexual ActivityRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced yesterday a South Carolina man to 17 ½ years in prison and a lifetime of supervised release, on the charge of interstate transportation of a minor with the intent to engage in criminal sexual activity, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. As part of his sentence, Joseph Harold Patterson, 58, of Anderson, S.C. was also ordered to register on the sex offender registry, to pay a $20,000 court fine and $4,538.42 as restitution.
Chief Ranger Steven Kloster of the Great Smoky Mountains National Park Service joins U.S. Attorney Rose in making today’s announcement.
“Mr. Patterson has received a well-deserved lengthy prison sentence for abusing these young men. Some say there is a special place in hell for child abusers and we cannot promise Mr. Patterson will receive that just punishment, but we can guarantee that he will receive a place in the federal penitentiary and for now, that’s the best we can do,” said U.S. Attorney Rose.
“We are thankful to see justice prevail and hope that the individuals impacted by these despicable crimes are able to find some measure of solace in Mr. Patterson’s punishment,” said Great Smoky Mountains National Park Chief Ranger Steven Kloster.
According to court documents and information introduced at the sentencing hearing, in April 2015, a concerned parent contacted law enforcement to report that his child had been the victim of inappropriate sexual activity by Patterson, and that the conduct had occurred during camping trips arranged by the defendant. Court records show that between 2009 and 2011, Patterson had made at least three camping trips transporting at least three minor victims from Anderson, S.C. to the Smokemont Campground, located within the Great Smoky Mountains National Park. Court records also show that Patterson knew the minors through his affiliation with a church in Anderson. According to court records, during the camping trips Patterson encouraged the minors to engage in sexual activities in his presence. At times, Patterson also exposed himself to the minors and/or engaged in sexual activities in front of the minors.
In addition to the out-of-state camping trips, court records show that Patterson had regular contact with the three victims and other children in his own home. During those encounters, Patterson gave the minors alcohol, shared pornography, discussed sexual topics and encouraged them to engage in sexual activities. Patterson also bought gifts for some of the children and took them out to restaurants, among other things. Court records show that on one occasion, Patterson attended an evening church event, during which he showed pornography to three minor children and encouraged them to engage in a sexual activity in the church bathroom.
Patterson pleaded guilty in February 2017 to one count of interstate transportation of a minor to engage in sexual activity. Patterson is currently in the custody of the United States Marshal pending his designation to a Federal Bureau of Prisons facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Rose commended the National Park Service Investigative Services Branch for leading the investigation. U.S. Attorney Rose also thanked the Anderson Police Department in South Carolina and the South Carolina Attorney General’s Office for their assistance in this case. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Sentencings for August 24 & 31, 2017Read the Press Release
Frisnel Guerrier, 38, of Randolph, Massachusetts, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 31, 2017, for possession with intent to distribute 50 kilograms or more of marijuana. Guerrier was arrested in Cheyenne, Wyoming. He received time served, to be followed by three years of supervised release, was ordered to pay a $10.00 special assessment and restitution in the amount of $1,000.00. This case was investigated by the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation.
Victor Manuel Pol-Ventura, 28, of Joyabaj, Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 31, 2017, for illegal re-entry of a previously deported alien into the United States. Pol-Ventura was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Bruce Michael Latorre, 54, of Ferndale, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 24, 2017, for interstate travel in aid of racketeering enterprise and for conspiracy to distribute marijuana. Latorre received 24 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $1,800.00. This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations.
Sally López Martínez Sentenced to 9 Years in Prison for Wire Fraud, Bribery and ExtortionRead the Press Release
SAN JUAN, Puerto Rico–Today, U.S. District Court Judge Pedro A. Delgado-Hernández sentenced former Administrator of the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) Sally López-Martínez to 9 years of imprisonment and 2 years of supervised release for committing offenses against the US government, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez- Vélez. The investigation was led by the Federal Bureau of Investigation’s (FBI) Public Corruption Squad.
López-Martínez was found guilty on October 7, 2016, after a 25-day jury trial. She was originally indicted in December 2015 along with nine other defendants, on charges of conspiracy to commit federal programs bribery and honest services wire fraud, wire fraud, federal program bribery, extortion through fear of economic harm, money laundering, false declarations before a grand jury, and obstruction of justice. A jury found López-Martínez guilty of Count One, Conspiracy to Commit Federal Programs Fraud and Wire Fraud; Count Two, Conspiracy to Commit Honest Services Wire Fraud; Counts Three to Five, Honest Services Wire Fraud; and Count Eleven, Receipt of a Bribe by Agent of an Organization Receiving Federal Funds.
In the same trial, Ivonne M. Falcón Nieves, her sister Marielis Falcón Nieves, and Glenn O. Rivera Pizarro were found guilty of all charges and are awaiting sentencing. Prior to the trial, six other defendants had pleaded guilty.
At trial co-defendant Anaudi Hernández-Pérez testified that he and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, obtained many contracts with different entities from the Government of Puerto Rico, and enriched themselves.
“Today, a former public servant was sentenced to prison for using her position of power in government for unjust enrichment,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “This defendant was entrusted with performing her duties honestly and ethically. While hundreds of government employees live up to that important duty every day, we will hold accountable those few who run afoul of the law.”
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Chief of the Criminal Division and Assistant US Attorney Susan Z. Jorgensen.
Ringleader of crew that broke into gun stores and stole 340 guns sentenced to ten years in prisonRead the Press Release
ATLANTA - Devonnaire Coffey has been sentenced to ten years in federal prison. Coffey, often assisted by others he recruited, broke into 14 gun stores in Georgia, North Carolina, and South Carolina, and stole 340 guns. Coffey then sold the stolen firearms out of motel rooms to willing buyers.
“Coffey endangered the public by stealing firearms and selling them to whoever had the money to buy them,” said U.S. Attorney John Horn. “His return to gun stores he had already broken into shows a complete lack of fear and, importantly, that his desire for personal gain outweighed any concerns he may have had for the safety of citizens both in this community and elsewhere.”
“ATF’s central objective is ensuring the safety of our communities. In order to accomplish this mission, ATF will aggressively and acutely target individuals who seek to diminish the general welfare of our citizens through violence, narcotics sales and firearms trafficking. Criminals must understand there are serious repercussions for illegally obtaining, possessing and trafficking firearms,” said Assistant Special Agent in Charge John Schmidt, Atlanta Field Division.
According to U.S. Attorney Horn, the charges and other information presented in court: Coffey broke into 14 stores that sold firearms in Georgia, North Carolina, and South Carolina, and stole 340 guns. He also attempted to break into six other stores. Coffey and others then sold those stolen guns in various communities. The defendant planned these burglaries, recruited others to help him, and then sold the stolen guns from a motel room after the thefts. He used various methods of entry to include throwing rocks through windows and welding torches to burn through locks on doors.
Coffey burglarized some dealerships multiple times including one location in Elberton twice, one in Canton twice, and one in McDonough twice and attempted a third burglary at the same two dealerships in Canton and McDonough, but ultimately was unsuccessful.
Firearms stolen by Coffey have been discovered by law enforcement as far away as Chicago and Washington, D.C. Not all of them have been recovered. Firearms stolen by the defendant ended up in the hands of convicted felons, have been used in shootings, and carried by drug dealers.
Devonnaire Coffey, 26, of Augusta, Georgia, was convicted of conspiracy to steal firearms from licensed gun dealers, theft of firearms from licensed gun dealers, and possession and sale of stolen firearms after he pleaded guilty on May 18, 2017. He was sentenced to ten years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $51,128.89.
This case was being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Henry County, Georgia Police Department, Rocky Mount, North Carolina Police Department, Charlotte-Mecklenburg, North Carolina Police Department, Holly Springs, Georgia Police Department, Rock Hill, South Carolina Police Department, and the ATF Regional Anti-Gang Enforcement (RAGE) Unit. RAGE is a joint gang/violent crime task force with members from ATF, North Augusta Department of Public Safety, Aiken County Sheriff’s Office, Aiken Department of Public Safety, Richmond County Sheriff’s Office and the South Carolina Law Enforcement Division.
Assistant U.S. Attorneys Jennifer Keen and Stephanie E. Gabay-Smith prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Red Scaffold Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Red Scaffold, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Tyrell Chasing Hawk, age 31, was indicted on August 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 9, 2017, Chasing Hawk unlawfully assaulted his intimate partner by strangling and suffocating her, or attempting to do so, with the said injury resulting in substantial bodily injury to the victim.
The charges are merely accusations and Chasing Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Chasing Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Charged with Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man was charged in federal district court with Attempted Enticement of a Minor Using the Internet.
Timothy George Bender, age 54, was charged on July 27, 2017. Bender appeared before U.S. Magistrate Judge Daneta Wollmann on July 28, 2017, and pleaded not guilty to the charge. The penalty upon conviction is 10 years up to life in prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bender attempting to entice a minor girl to meet with him, who he believed to be 15 years old. The charge is merely an accusation and Bender is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Bender was released pending trial, which is scheduled for November 28, 2017.
Postal Clerk Indicted for Using Money Order Sales to Steal Postal FundsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former postal clerk for corrupting the sale of U.S. Postal Money Orders for her personal benefit, announced U.S. Attorney Jay E. Town and U.S. Postal Inspector Frank Dyer.
An indictment filed in U.S. District Court charges MITESHIA SHONTA PRITCHETT, 33, of Bessemer, with two counts of misappropriating postal funds while she worked as a clerk at the Shannon Post Office in 2016. The indictment also charges Pritchett with six counts of issuing money orders without receiving full payment for their face value so that she and others could fraudulently receive money from the Postal Service.
On both July 27, 2016, and Aug. 1, 2016, Pritchett converted to her own use $2,600 given to her as a Postal Service employee for money order purchases, according to the indictment. On other dates in July 2016, Pritchett issued three money orders to herself, one to Alabama Child Support and one to JEM, LLC, without receiving full payment for them, according to the indictment. Those six money orders totaled $2,797.
The maximum penalty for misappropriating U.S. Postal funds is 10 years in prison and a $250,000 fine. The maximum penalty for improperly issuing money orders is five years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Pleasants County man admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA - Glenn Edgor Pryor, of St. Marys, West Virginia, pled guilty today to a methamphetamine distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Pryor, age 60, was pled guilty to one count of “Distribution of Methamphetamine.” He admitted to selling methamphetamine in Pleasants County in July 2016.
Pryor faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Pain Management Doctor Pleads Guilty in Health Care Fraud CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced today that Dr. Rassan M. Tarabein, 58, a neurologist residing in Fairhope, Alabama, pled guilty before Chief United States District Judge Kristi K. DuBose to one count of health care fraud and one count of unlawful distribution of a schedule II controlled substance. As part of his plea agreement, Dr. Tarabein will no longer be able to practice medicine and prescribe controlled substances in the United States. Chief Judge DuBose has scheduled sentencing for March 2, 2018. Dr. Tarabein faces up to ten years in prison for health care fraud and up to twenty years in prison for unlawfully distributing a controlled substance.
On June 28, 2017, a federal grand jury for the Southern District of Alabama returned a 22–count superseding indictment against Dr. Tarabein, charging him with health care fraud, making false statements relating to health care matters, lying to a federal agent, unlawfully distributing schedule II controlled substances, and money laundering. He was arrested two days later.
Dr. Tarabein previously operated the Eastern Shore Neurology and Pain Center, a private clinic in Daphne, Alabama where he offered services relating to neurology and pain management, such as spinal injections. In his plea agreement, Dr. Tarabein admitted that from around 2004 to May 2017, he ran an insurance scam in which he induced patients to visit his clinic so that he could bill health care benefit programs for medically unnecessary tests and procedures. The purpose of Dr. Tarabein’s admitted scheme was to maximize personal financial gain by fraudulently seeking payments from health care benefit programs such as Medicare, Medicaid, Blue Cross Blue Shield of Alabama, Humana, UnitedHealthcare, and other private insurers. As part of his guilty plea, Dr. Tarabein admitted to violating the traditional standards of care in his medical practice by, for example, failing to provide informed consent to patients about procedures, discriminating against Alabama Medicaid patients in services rendered, fraudulently documenting patient records, submitting false claims to insurance companies, and issuing prescriptions for schedule II controlled substances without a legitimate medical purpose.
Dr. Tarabein has pending state criminal charges in Montgomery County, Alabama. On June 16, 2017, a state grand jury returned a 2–count indictment against Dr. Tarabein, charging him with Medicaid fraud and theft of property in the first degree, each a felony offense. On September 20, 2017, Dr. Tarabein is expected to plead guilty in state court to Medicaid fraud.
Acting United States Attorney Butler stated, “Today’s guilty plea reinforces our office’s dedication to protecting the public from corrupt physicians. Doctors who exploit patients through medically unnecessary services to line their own pockets have no place in our health care system. I commend the investigators who unraveled Dr. Tarabein’s scam for their commitment to uproot health care fraud.”
Attorney General Steve Marshall stated, “I am pleased that my Medicaid Fraud Control Unit had the opportunity to team with our federal law enforcement colleagues to investigate and bring to justice this defendant who not only violated his oath to his patients, but stole taxpayer money set aside to provide care for our most vulnerable citizens. I am grateful to the U.S. Attorney’s Office for the Southern District of Alabama for its speedy resolution of the federal charges, as this defendant is held to account for his actions.”
Federal Bureau of Investigation (FBI) Special Agent in Charge Robert E. Lasky stated, “The FBI stands ready to work alongside our state, local, and federal partners to eliminate prescription drug abuse. When doctors place money before the well-being of their patients, this task becomes nearly impossible. This guilty plea is a testament to all the hard work and cooperation between the agencies that conducted this investigation.”
“The abuse of prescription drugs is a serious problem in our communities. All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally distribute these potentially dangerous drugs. We hope that the conviction of Dr. Tarabein serves as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause,” said Stephen G. Azzam, Special Agent in Charge of DEA’s New Orleans Field Division.
“Today’s plea should serve as a wake-up call to those who intend to bill the government for medically unnecessary services and thereby enriching their own bottom line,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (OIG). “The nation is facing a very serious prescription drug crisis and the OIG, along with our state and federal law enforcement partners, take allegations such as these very seriously.”
The FBI, DEA, OIG, and Alabama Medicaid Fraud Control Unit are investigating the federal case. Assistant United States Attorneys Sinan Kalayoglu and Gregory A. Bordenkircher are prosecuting the federal case in coordination with the Office of the Alabama Attorney General, Medicaid Fraud Control Unit. Assistant Attorney General Bruce M. Lieberman is prosecuting the state case.
Owner of Engineering Firms and CPA Charged with Tax CrimesRead the Press Release
HONOLULU – A federal grand jury has returned an indictment charging two individuals with tax crimes including concealing income and assets, obstructing the Internal Revenue Service (IRS) from assessing and collecting taxes, and filing false tax returns, announced Acting United States Attorney Elliot Enoki and Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
The indictment charges Wagdy A. Guirguis, the owner of various engineering firms, and Michael H. Higa, his accountant, with conspiring to defraud the IRS. The indictment further charges Guirguis with filing false corporate tax returns, failing to file a corporate tax return, evading his individual income tax liabilities, corruptly endeavoring to obstruct the IRS, and tampering with a grand jury witness. Higa is also charged with aiding and assisting in the filing of false corporate and individual tax returns.
According to the indictment, Guirguis owned and operated GMP Associates Inc. and several other businesses (GMP) that provided engineering services. Higa, a certified public accountant, allegedly served as the controller of the GMP entities and prepared individual tax returns for Guirguis as well as corporate tax returns for some of the GMP entities.
The indictment charges that, beginning in 2005, Guirguis and Higa conspired to defraud the IRS by impeding its ability to assess Guirguis’s and GMP’s income tax liabilities and obstructing its ability to collect GMP’s unpaid employment taxes. According to the indictment, the IRS assessed approximately $812,000 in GMP’s unpaid employment taxes against Guirguis personally. The indictment alleges that the IRS attempted to collect the unpaid employment taxes – filing notices of federal tax liens, levying bank accounts and serving notices of levy to third parties who owed money to Guirguis. To thwart the IRS’s collection activity, Guirguis and Higa allegedly transferred funds from GMP to a nominee entity that Guirguis secretly controlled through Higa. The indictment further alleges that Guirguis fraudulently transferred ownership of a luxury condominium to his wife and used the nominee entity to divert approximately $1.5 million for his and his wife’s personal benefit. After an IRS revenue officer questioned the condominium transfer, Guirguis and Higa allegedly instructed a bookkeeper to alter the books and records of the nominee entity to conceal that he had diverted funds for his personal benefit.
The indictment further charges that Guirguis did not report more than $3 million of GMP’s gross receipts and filed false individual tax returns that did not report approximately $465,000 of the income he diverted through the nominee entity. He is also charged with attempting to tamper with a witness during the course of the grand jury’s investigation and corruptly endeavoring to obstruct and impede the IRS, by among other things, making false statements to an IRS revenue officer and special agents.
If convicted, Guirguis and Higa each face a statutory maximum sentence of five years in prison for engaging in the conspiracy. Guirguis also faces a statutory maximum prison sentence of five years for each of the tax evasion counts, three years for each of the false returns counts, three years for the corrupt endeavor count, one year for the failure-to-file count, and 20 years for the witness tampering count. Higa also faces a statutory maximum prison sentence of three years for each of the aiding and assisting counts. In addition, Guirguis and Higa each face a period of supervised release, restitution, and monetary penalties.
An indictment is a mere accusation, and not evidence of guilt.. Individuals charged in indictments are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Acting U.S. Attorney Enoki and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel John E. Sullivan and Trial Attorney Anahi Cortada of the Tax Division, and Assistant U.S. Attorney Rebecca A. Perlmutter, who are prosecuting the case.
Owner of Engineering Firms and CPA Charged in Hawaii with Tax CrimesRead the Press Release
A federal grand jury in the District of Hawaii returned an indictment charging a businessman and his accountant with tax crimes including allegedly concealing income and assets to obstruct Internal Revenue Service (IRS) collection, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Elliot Enoki for the District of Hawaii.
The indictment charges Wagdy A. Guirguis and Michael H. Higa with conspiring to defraud the IRS. The indictment further charges Guirguis with filing false corporate tax returns, failing to file a corporate tax return, evading his individual income tax liabilities, corruptly endeavoring to obstruct the IRS and tampering with a grand jury witness. Higa is also charged with aiding and assisting in the filing of false corporate and individual tax returns.
According to the indictment, Guirguis owned and operated GMP Associates Inc. and several other businesses (GMP) that provided engineering services. Higa, a certified public accountant, allegedly served as the controller of the GMP entities and prepared individual tax returns for Guirguis as well as corporate tax returns for some of the GMP entities.
The indictment charges that, beginning in 2005, Guirguis and Higa conspired to defraud the IRS by impeding its ability to assess Guirguis’s and GMP’s income tax liabilities and obstructing its ability to collect GMP’s unpaid employment taxes. According to the indictment, the IRS assessed approximately $812,000 in GMP’s unpaid employment taxes against Guirguis personally. The indictment alleges that the IRS attempted to collect the unpaid employment taxes – filing notices of federal tax liens, levying bank accounts and serving notices of levy to third parties who owed money to Guirguis. To thwart the IRS’s collection activity, Guirguis and Higa allegedly transferred funds from GMP to a nominee entity that Guirguis secretly controlled through Higa. The indictment further alleges that Guirguis fraudulently transferred ownership of a luxury condominium to his wife and used the nominee entity to divert approximately $1.5 million for his and his wife’s personal benefit. After an IRS revenue officer questioned the condominium transfer, Guirguis and Higa allegedly instructed a bookkeeper to alter the books and records of the nominee entity to conceal that he had diverted funds for his personal benefit.
The indictment further charges that Guirguis did not report more than $3 million of GMP’s gross receipts and filed false individual tax returns that did not report approximately $465,000 of the income he diverted through the nominee entity. He is also charged with attempting to tamper with a witness during the course of the grand jury’s investigation and corruptly endeavoring to obstruct and impede the IRS, by among other things, making false statements to an IRS revenue officer and special agents.
If convicted, Guirguis and Higa each face a statutory maximum sentence of five years in prison for engaging in the conspiracy. Guirguis also faces a statutory maximum prison sentence of five years for each of the tax evasion counts, three years for each of the false returns counts, three years for the corrupt endeavor count, one year for the failure‑to‑file count, and 20 years for the witness tampering count. Higa also faces a statutory maximum prison sentence of three years for each of the aiding and assisting counts. In addition, Guirguis and Higa each face a period of supervised release, restitution, and monetary penalties.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Enoki thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel John E. Sullivan and Trial Attorney Anahi Cortada of the Tax Division, and Assistant U.S. Attorney Rebecca A. Perlmutter, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Orono Woman Pleads Guilty to Social Security FraudRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Amanda Harding a/k/a “Amanda Grass,” 32, of Orono, Maine, pleaded guilty today in U.S. District Court to social security fraud.
According to court records, the defendant began receiving Supplemental Security Income (“SSI”) payments in 2006. SSI benefits are paid by the Social Security Administration (“SSA”) to disabled adults and children who have limited income and resources. The defendant was living in Maine when she first obtained SSI benefits. Between 2006 and 2016, the defendant was repeatedly informed that she needed to report any change of address to the SSA. On October 8, 2011, the defendant married a Canadian citizen, moved to Brunswick, Canada, and applied for Canadian citizenship. She resided in Canada from October 2011 through February 2016. The defendant did not inform SSA of her change of address and illegally obtained over $26,000 in SSI benefits. During an interview with law enforcement agents, the defendant admitted that she understood if she told SSA that she moved to Canada her SSI benefits would be significantly reduced.
The defendant faces up to five years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by SSA’s Office of Inspector General, U.S. Customs and Immigration Enforcement’s Homeland Security Investigations, and the Canadian Border Patrol
One Man Arrested, Three Others Convicted for Securities Fraud Conspiracy Involving Mercer County Pharmaceutical CompanyRead the Press Release
NEWARK, N.J. - One man was arrested and three others pleaded guilty today for their roles in an insider trading scheme that profited from yet-to-be public information concerning a pharmaceutical company that developed a drug to treat cancer, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel Perez, 28, of Yardley, Pennsylvania, was arrested this morning and charged by complaint with one count of conspiracy to commit securities fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
Evan Kita, 27, of Yardley, pleaded guilty today before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud. Richard Yu, 27, and his father, Chiang Yu, 55, both of Pennington, New Jersey, also pleaded guilty today before Judge Shipp to separate informations charging them each with one count of securities fraud. All three were released on $150,000 unsecured bond.
According to documents filed in the case and statements made in court:
Celator Pharmaceuticals Inc. (Celator) was a biopharmaceutical company headquartered in Ewing Township, New Jersey, that developed the drug Vyxeos to treat acute myeloid leukemia. In December 2012, Celator began Phase 3 clinical trials for Vyxeos, the results of which were highly confidential within the company. On March 14, 2016, Celator issued a press release announcing that the clinical trial results were positive.
Prior to the March 2016 announcement, Kita, who was a Celator employee from June 2013 through April 2016, learned that the Vyxeos clinical trials had produced positive results. Kita then shared that information with Perez and Richard Yu, who both traded on the information.
On May 31, 2016, Celator and Jazz Pharmaceuticals PLC (Jazz) – a publicly-traded company headquartered in Dublin, Ireland – announced that they had entered an agreement for Jazz to purchase Celator in a transaction valued at approximately $1.5 billion. Jazz completed the acquisition of Celator in 2016, and now operates Celator as a wholly-owned subsidiary.
Kita learned of the potential acquisition prior to the public announcement from two close friends who still worked at Celator. Again, Kita shared the information with Perez and Richard Yu, who both traded on the information. Richard Yu, in turn, shared the information with Chiang Yu, who also traded on the information and agreed to share the profits with Kita.
Kita admitted that the gain resulting from his insider trading scheme was more than $250,000, but not more than $550,000. Chiang Yu admitted that the gains associated with his offense were more than $95,000, but not more than $150,000. Richard Yu admitted that the gains associated with his offense were $200,070.29.
The conspiracy to commit securities fraud counts carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud counts carry a potential penalty of 20 years in prison and a $5 million fine. Sentencing for Kita, Richard Yu, and Chiang Yu is set for Dec. 5, 2017.
The charge and allegations against Perez are merely accusations, and he is presumed innocent unless and until proven guilty.
The U.S. Securities and Exchange Commission (SEC) filed a civil complaint against all four defendants today.
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. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone and Robert Cohen, and its Philadelphia Regional Office, under the direction of G. Jeffrey Boujoukos.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel:
Perez: Louis R. Busico Esq., Newton, Pennsylvania
Kita: Robert Heim Esq., New York
Richard Yu: Rubin Sinins Esq., Springfield, New Jersey
Chiang Yu: Kristen Santillo Esq., Newark, New Jersey
Non-Indian Man from Taos County Sentenced for Assaulting an Indian Woman in Taos PuebloRead the Press Release
ALBUQUERQUE – Yvon Juteau, 32, a non-Indian man who resides in Rancho de Taos, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 30 months in prison for his conviction on an assault charge. Juteau will be on supervised release for three years after completing his prison sentence.
Juteau was arrested on Sept. 23, 2016, on an indictment charging him with assaulting an Indian man and an Indian woman resulting in serious bodily injury on July 10, 2013, on Taos Pueblo in Taos County, N.M.
On May 10, 2017, Juteau pled guilty to the indictment and admitted that on July 10, 2013, he drove a motor vehicle recklessly, causing a crash that seriously injured an Indian woman.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
New Orleans Man Sentenced for Misprision of a FelonyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL TATE, age 30, of New Orleans, was sentenced today after previously pleading guilty to misprision of a felony.
According to court documents, MICHAEL TATE knew that his brothers, TERRELL and GEREME TATE, had committed the crimes of being felons in possession of a firearm, and MICHAEL TATE did not disclose that fact to law enforcement.
TERRELL AND GEREME TATE, who previously pled guilty to being felons in possession of a firearm, were sentenced to 60 months and 24 months respectively.
Today, U.S. District Judge Nannette Jolivette Brown sentenced MICHAEL TATE to 20 months incarceration to be followed by 1 year of supervised release.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
Navajo Woman from Arizona Sentenced for Federal Firearms and Burglary Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Lisa Benally, 37, an enrolled member of the Navajo Nation from Fort Defiance, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 46 months in prison followed by three years of supervised release for her conviction on federal firearms and burglary charges.
Benally and co-defendant Loren Lloyd Wauneka, 37, an enrolled member of the Navajo Nation from Window Rock, Ariz., were arrested on Jan. 29, 2016, on a criminal complaint charging them with being felons in possession of firearms and burglary on the Navajo Indian Reservation in McKinley County, N.M. According to the criminal complaint, a law enforcement officer encountered Wauneka, Benally and others as they were attempting to burglarize the officer’s residence on the Navajo Indian Reservation. A television, jewelry, bags, computer laptops and two firearms belonging to the officer were seized from inside Wauneka and Benally’s vehicle pursuant to a search warrant.
Benally and Wauneka subsequently were indicted on Feb. 24, 2016, and charged with being felons in possession of firearms and ammunition, possession of stolen firearms and aggravated burglary on Dec. 1, 2015, in McKinley County. According to the indictment, Wauneka was prohibited from possessing firearms or ammunition because he previously was convicted of unlawful discharge of a firearm and aggravated driving while intoxicated. Benally was prohibited from possessing firearms or ammunition because she previously had been convicted of escape, possession of drug paraphernalia and possession of dangerous drugs.
On March 27, 2017, Benally pled guilty to being a felon in possession of a firearm and ammunition and aggravated burglary. In entering the guilty plea, Benally admitted that on Dec. 1, 2015, she and others drove to and unlawfully entered a residence with the intent to commit theft and stole two firearms and ammunition, which Benally placed into her vehicle, thus making Benally armed during the burglary. Benally further admitted that she was prohibited from possessing firearms or ammunition because of her status as a convicted felon.
On March 23, 2017, Wauneka pled guilty to being a felon in possession of a firearm and ammunition and aggravated burglary. In entering the guilty plea, Wauneka admitted that on Dec. 1, 2015, he entered a residence with the intent to commit theft and stole two firearms and ammunition which he placed into his vehicle, thus making Wauneka armed during the burglary. Wauneka further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Wauneka was sentenced on Aug. 10, 2017, to 37 months in prison followed by three years of supervised release.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, the McKinley County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
Navajo Man from Churchrock Sentenced to Prison for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Adrian Tom, 38, an enrolled member of the Navajo Nation who resides in Church Rock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison followed by five years of supervised release for his conviction on an abusive sexual contact charge. Tom will also be required to register as a sex offender when he completes his prison sentence.
On March 29, 2017, Tom pled guilty to a felony information charging him with abusive sexual contact with a child under the age of 12 years on the Navajo Indian Reservation in McKinley County, N.M. In entering his guilty plea, Tom admitted that in March 2010, he engaged in sexual contact with an eight-year-old Indian child while on the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI and was prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Monett Sex Offender Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a convicted sex offender in Monett, Mo., pleaded guilty in federal court today to receiving child pornography over the Internet.
Carl Donald Greiner, 37, of Monett, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a July 20, 2016, federal indictment.
Greiner was convicted of possessing child pornography, sexual misconduct and furnishing pornographic material to a minor in 2004. He was also convicted of statutory rape and two counts of statutory sodomy in 2006.
According to today’s plea agreement, a person using Greiner’s computer reported to police officers on April 30, 2016, that she saw a large amount of child pornography on the computer located in his bedroom, including videos of children ranging in age from 4 to 17. Officers executed a search warrant at Greiner’s residence the same day and seized his desktop computer along with an address book with Internet addresses.
Investigators discovered multiple images and videos of child pornography on Greiner’s computer that had been downloaded from the Internet.
Under federal statutes, Greiner is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Monett, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mexican Truck Driver Admits to Smuggling Meth in Aloe Vera BottlesRead the Press Release
LAREDO, Texas – A 31-year-old Mexican National has entered a guilty plea to conspiracy to import methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Sergio Aguilar-Hernandez conspired with others and imported methamphetamine from Mexico into Laredo on June 15, 2017. On that date, Aguilar-Hernandez arrived at the Columbia Solidary Bridge driving a 2007 Freightliner tractor. During a search of the vehicle authorities discovered 10.26 kilograms of liquid methamphetamine that was concealed in aloe vera bottles.
Sentencing will be set at a later date. At that time, Aguilar-Hernandez faces a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Mexican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Mexican national was sentenced today in federal court in Boston for a federal immigration crime.
Felipe Bautista-Guerrero, 46, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge F. Dennis Saylor IV, who sentenced Bautista-Guerrero to 21 months in prison. Bautista-Guerrero will be subject to deportation proceedings upon completion of his sentence.
On Dec. 28, 2015, law enforcement officers encountered Bautista-Guerrero - who was already on supervised release out of Texas for an illegal reentry conviction - in Boston and determined that he was again unlawfully present in the United States. Bautista-Guerrero had been deported on two previous occasions, on March 22, 2011, and Nov. 24, 2012.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Manhattan Acting U.S. Attorney Announces Charges Against Man Responsible for A String of Bank Robberies in ManhattanRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”),, announced today the arrest of JAMIE FRIERSON in connection a robbery spree involving at least seven banks in Manhattan, during which thousands of dollars were stolen. FRIERSON was arrested on August 30, 2017, and was presented today in Manhattan federal court before the Honorable Kevin Nathaniel Fox, where he was held without bail.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Jaime Frierson went on a one-man crime spree, brazenly attempting to rob seven Manhattan banks in broad daylight in less than two weeks. Frierson allegedly threatened the lives of bank tellers to get away with thousands of dollars in cash. This alleged conduct endangered the safety of New Yorkers and traumatized bank employees, and I commend our partners at the FBI for their terrific work in apprehending this defendant.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “We have to assume as law enforcement that anyone who allegedly threatens violence during a bank robbery is capable of carrying out that threat. No one can predict an alleged criminal’s behavior, and the uncertainty increases the urgency to solve the robberies. The FBI/NYPD Violent Crimes Task Force worked tirelessly tracking down the suspect in this alleged crime spree to prevent someone getting hurt in the next one.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
On August 29, 2017, at approximately 3 o’clock in the afternoon, FRIERSON entered a bank on the Upper West Side of Manhattan, and handed a bank teller a note claiming that he was armed, demanding money, and threatening to kill the teller. In response, the teller gave FRIERSON over $8,000 in United States currency. FRIERSON then fled. In addition, between August 16 and August 29, 2017, FRIERSON robbed or attempted to rob six other banks in Manhattan, during which he used a similar modus operandi.
* * *
FRIERSON, 47, of New York, New York, is charged with one count of bank robbery, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Acting U.S. Attorney Kim praised the outstanding investigative work of the Federal Bureau of Investigation and New York Police Department’s Violent Crimes Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Aline R. Flodr and Sheb Swett are in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Pleads Guilty to Possession with Intent to Distribute MarijuanaRead the Press Release
St. Croix, USVI – Dasha Graham, 22, of St. Croix, pleaded guilty Wednesday before U.S. Magistrate Judge George W. Cannon, Jr., to possession with intent to distribute marijuana, Acting United States Attorney Joycelyn Hewlett announced. Sentencing is scheduled for December 29, 2017.
According to the plea agreement filed with the court, on March 10, 2017, Graham and a co-defendant attempted to enter the secure parking lot at the District Court on St. Croix to drop off paperwork. Graham was driving the vehicle. The security officer denied entrance and instructed Graham to park in the visitor lot. Graham refused, creating a disturbance and causing a special agent to approach his car. The agent smelled a strong odor of marijuana, and Graham admitted that there was marijuana in the car. A search of the car yielded Ziploc bags containing 10 phials of marijuana. When interviewed, Graham stated that the marijuana was his and that he had it for sale. The amount of marijuana was less than 100 grams.
Graham faces a sentence of not more than five years in prison and a fine of not more than $250,000.
This case was investigated by the Department of Homeland Security Federal Protective Service and the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Las Autoridades Anuncian la Formación de un Grupo de Trabajo para Combatir la Actividad Ilegal Relacionada con el Huracán HarveyRead the Press Release
HOUSTON - Representantes de diversas dependencias federales y estatales de las fuerzas del orden público han formado un grupo de trabajo para investigar y enjuiciar actividad ilegal relacionada con el Huracán Harvey.
El Fiscal Federal Interino Abe Martinez hizo el anuncio junto con el Fiscal Federal Interino Corey R. Amundson del Distrito Medio de Louisiana, quien se desempeña como Director Ejecutivo Interino del Centro Nacional contra Fraudes en Desastres [National Center for Disaster Fraud (NCDF)]; la Fiscal de Distrito (DA) del Condado de Harris Kim Ogg; el Procurador General de Texas Ken Paxton; el Director Shamoil T. Shipchandler de la Comisión de Bolsa y Valores [Securities and Exchange Commission (SEC)], Oficina Regional de Fort Worth; el Agente Especial a Cargo Perrye K. Turner del FBI; el Agente Especial a Cargo David Green de la Oficina del Inspector General del Departamento de Seguridad Nacional [Department of Homeland Security – Office of Inspector General (DHS-OIG)]; el Agente Especial a Cargo Mark Dawson de Investigaciones de Seguridad Nacional [Homeland Security Investigations (HSI)] del Servicio de Inmigración y Control de Aduanas; el Agente Especial a Cargo D. Richard Goss de Investigaciones Penales (CI) del IRS; el Agente Especial a Cargo Douglas W. Thigpen del Servicio Secreto de los EE.UU. [U.S. Secret Service (USSS)]; la Directora Regional Dama Brown de la Comisión Federal de Comercio [Federal Trade Commission (FTC)] y el Agente Especial a Cargo Fred Milanowski de la Oficina de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos [Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)].
“Este desastre ha generado y seguirá generando una pérdida humana y financiera sin precedentes para nuestras comunidades, y las víctimas de este suceso ya han sufrido una devastación impactante”, dijo Martinez. “Lo último que necesitan las víctimas de este daño es que las vuelvan a victimizar. Aplicando las lecciones aprendidas del Huracán Katrina, implementamos un enfoque integral de coacción para combatir cualquier actividad delictiva que surja de la tragedia del Huracán Harvey y las tareas de reconstrucción que se están realizando”.
Si bien cada una de estas dependencias tiene un historial de trabajo conjunto, juntarlas en un grupo de enfoque es una manera óptima de abordar las diversas amenazas surgidas del Huracán Harvey. El grupo de trabajo involucrará a todos los niveles de las fuerzas del orden público e incluye a representantes de la Oficina del Procurador General para el Distrito Sur de Texas, el NCDF, la Oficina de la DA del Condado de Harris, la Oficina del Procurador General de Texas, la SEC, el FBI, la DHS-OIG, HSI, IRS-CI, el USSS, la FTC y la ATF.
Las autoridades ya están recibiendo llamadas sobre ardides en nuestra zona y han remitido las quejas a las dependencias correspondientes.
“Planeamos usar todos los recursos que tenemos a nuestra disposición para ayudar a nuestros inscritos y para responsabilizar a quienes intenten usar este desastre para aprovecharse de otras personas”, dijo el Director de la SEC, Jay Clayton. “No hay lugar para el fraude o prácticas turbias en la reconstrucción y la recuperación de las comunidades de Texas y Louisiana que han sido afectadas por el Huracán Harvey”.
“Mientras trabajamos para reconstruir la región de Houston/la Costa del Golfo y buscamos maneras de ayudar, es importante realizar tareas de diligencia debida antes de realizar aportes a cualquiera que solicite donaciones o a personas que ofrezcan brindar ayuda a los afectados por Harvey, ya sea que esas solicitudes se realicen en persona, por correo electrónico o por teléfono”, dijo Turner. “El FBI se dedica a investigar y prevenir este tipo de fraude, en especial cuando implica aprovecharse de personas en tiempos de grandes necesidades”.
“Como hemos observado a lo largo de este desastre, lo mejor del espíritu estadounidense sale a relucir cuando vecinos y extraños se ayudan unos a otros. Lamentablemente, al mismo tiempo, estas situaciones también hacen aparecer a quienes intentan aprovecharse de quienes están dispuestos a dar algo para ayudar”, dijo Dawson. “Quédense tranquilos que HSI, en coordinación con nuestros asociados en las fuerzas del orden público, utilizará sus recursos investigativos para detener a quienes buscan aprovecharse de esta situación para su propio beneficio personal e ilegal”.
Los desastres naturales a menudo sacan a relucir lo mejor de la compasión y el espíritu humano, pero también pueden hacer que personas inescrupulosas se aprovechen de quienes necesitan y/o brindan servicios gubernamentales. Algunos ejemplos de actividad ilegal típica bajo la jurisdicción de cada una de las dependencias del grupo de trabajo son:
Hacerse pasar por agentes de las fuerzas del orden público federal
- Robo de identidad
- Presentación fraudulenta de reclamos a aseguradoras y el gobierno federal
- Actividad fraudulenta relacionada con la solicitud de donaciones y la beneficencia
- Actividad fraudulenta relacionada con personas y organizaciones que prometen altos retornos de inversión por ganancias en tareas de recuperación y limpieza
- Abuso en los precios
- Robos, saqueos y otros delitos violentos
Los consumidores también pueden denunciar ardides y otros problemas del consumidor a la FTC y obtener ayuda si piensan que pueden ser víctimas de robo de identidad.
Se alienta a miembros del público a contactar al NCDF para informar todo tipo de fraude relacionado con los desastres. El Departamento de Justicia de los EE.UU. estableció el NCDF después del Huracán Katrina cuando se destinaron miles de millones de dólares en asistencia federal para desastres a la región de la Costa del Golfo. Su misión se ha ampliado para incluir las sospechas de fraude de cualquier desastre natural o generado por el hombre e incluye a más de 30 dependencias federales, estatales y locales de las fuerzas del orden público. El equipo incluye a agentes de las fuerzas del orden público que revisan esas denuncias y las remiten a las dependencias investigativas correspondientes. El NCDF ofrece resolución de conflictos, coordinación y conocimientos en la gestión de asuntos relacionados con el fraude asociado a los desastres y está enfocado en proteger a las víctimas de desastres y todos los fondos dedicados a víctimas de desastres.
La Línea Directa de Fraude en Desastres es 1-866-720-5721 y tiene operadores disponibles las 24 horas del día, los siete días de la semana. Los miembros del público también pueden enviar información por correo electrónico o por fax al 225-334-4707.
Además, la Oficina del Procurador General de Texas les pide encarecidamente a los texanos que se comuniquen con su División de Protección al Consumidor y presenten una queja si sienten que encontraron un abuso de precios o han sido engañados o sido víctimas de un fraude relacionado con beneficencias. Pueden llamar a la línea directa gratuita al 800-621-0508, enviar un correo electrónico o presentar una queja a través de Internet.
La SEC brindó esta información y sigue controlando el impacto en el mercado del Huracán Harvey y alentando a entidades y profesionales de inversión afectados a comunicarse con el personal de la Comisión si tienen cualquier pregunta o inquietud.
Para obtener información adicional, también se puede visitar la página de recursos de la FEMA para el Huracán Harvey.
El Departamento de Justicia también anunció ayer Consejos para evitar ardides fraudulentos de donaciones a beneficencias.
Laredoan Pleads Guilty to Importing MethRead the Press Release
LAREDO, Texas – A Laredo man has entered a guilty plea to a conspiracy charge for his role in the importation of methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Ricardo Garcia, 41, admitted he knowingly possessed 20.9 kilograms of methamphetamine within 18 aloe vera juice bottles contained in his vehicle. At the time of his arrest, he admitted he was supposed to receive $6,000 for transporting the bottles of liquid methamphetamine from Mexico to San Antonio.
LAREDO, Texas – A Laredo man has entered a guilty plea to a conspiracy charge for his role in the importation of methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Ricardo Garcia, 41, admitted he knowingly possessed 20.9 kilograms of methamphetamine within 18 aloe vera juice bottles contained in his vehicle. At the time of his arrest, he admitted he was supposed to receive $6,000 for transporting the bottles of liquid methamphetamine from Mexico to San Antonio.
U.S. Magistrate Judge J. Scott Hacker accepted the plea and a sentencing date will be set in the near future. At that time, Garcia faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine. He will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Kingfisher Doctor Agrees to Pay $65,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma – James Brett Krablin, M.D., has agreed to pay $65,000 to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced Mark A. Yancey, United States Attorney of the Western District of Oklahoma.
Dr. Krablin practices medicine primarily in Kingfisher, Oklahoma, at the Krablin Medical Clinic. The United States alleges that between August 2014 and September 2016, he dated prescriptions for Schedule II controlled substances on dates other than when he signed them, which violates DEA regulations. More specifically, he allegedly signed and post-dated written prescriptions so his nurse practitioner or physician assistant could deliver them to patients at regular monthly appointments when Dr. Krablin was not in the office.
To resolve the allegations brought by the United States, Dr. Krablin agreed to pay $65,000.
In reaching this settlement, Dr. Krablin did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Agency, Office of Diversion Investigation. Assistant U.S. Attorney Ronald R. Gallegos prosecuted the case.
Indictment Returned for Possession with Intent to Distribute CocaineRead the Press Release
Acting U.S. Attorney Duane Evans announced today that JAYVONNE JOHNSON, age 48, was charged today in a one-count Indictment for violations of the Federal Controlled Substances Act.
JOHNSON is charged with possession with intent to distribute cocaine. If convicted, JOHNSON faces a minimum term of imprisonment of five years up to a maximum of forty years, a fine of $5,000,000 and at least four years of supervised release following any term of imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the U.S. Drug and Enforcement Administration, the Amtrak Police Department, and the Louisiana State Police in investigating this matter. Executive Assistant United States Attorney Sharon D. Smith is in charge of the prosecution.
Indictment Returned Against Five Brazilians for Operating Skimming RingRead the Press Release
Acting U.S. Attorney Duane A. Evans announces the return of an Indictment charging five Brazilian citizens with crimes related to a bank card skimming ring that was uncovered earlier this month.
The Indictment names Joao Freire Da Silva Neto, age 33, Andre Lion Goncalves Pereira, age 28, Herik Lucian Enedino Dos Santos, age 31, Fernando Finatto Minguzzi, age 21, and Rubens Eleuterio de Almeida Junior, age 28. All of the defendants are Brazilian nationals.
According to the Indictment, Joao Freire Da Silva Neto, Andre Lion Goncalves Pereira, Herik Lucian Enedino Dos Santos, and Fernando Finatto Minguzzi were arrested by members of the Louisiana Financial Crimes Task Force on August 3, 2017, at a hotel in the Algiers neighborhood of New Orleans. They were found in possession of re-encoded credit cards, embossers, encoders, ATM skimmers, false identification, and other contraband. In the course of this investigation, U.S. Secret Service agents learned that de Almeida was mailing skimmers, pinhole cameras, and other tools for credit card fraud from Oklahoma City to the four New Orleans-based members of this conspiracy. de Almeida was arrested in Midwest City, Oklahoma, in possession of counterfeit credit cards, blank credit cards, an ATM skimmer, pinhole cameras, memory cards, an embosser, and other items used to create counterfeit credit cards.
The Indictment charges all five defendants with conspiracy to use counterfeit access devices and to possess fifteen or more counterfeit access devices, which carries a penalty of up to five years of imprisonment. It also charges all five defendants with conspiracy to possess and traffic in device-making equipment, which carries a penalty of up to seven and a half years in prison.
The Indictment further charges Joao Freire Da Silva Neto, Andre Lion Goncalves Pereira, Herik Lucian Enedino Dos Santos, and Fernando Finatto Minguzzi with one count of possession of fifteen or more counterfeit access devices, a charge that carries a maximum penalty of ten years in prison. Those four defendants are also charged with possession and trafficking in device-making equipment, which carries a maximum penalty of fifteen years in prison.
In addition to the penalties listed above, each count also carries a maximum fine of $250,000 and a term of supervised release up to three years.
Acting U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the agencies that contributed to this Indictment, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Department, and the New Orleans Police Department. Acting U.S. Attorney Evans thanked the U.S. Secret Service Oklahoma City Field Office and the Midwest City, OK Police Department for their assistance. Assistant United States Attorney Matthew Payne is in charge of the prosecution.
Illinois Man Admits Transporting Multiple Kilograms of Heroin as Part of Cross-Country Drug Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A DeKalb, Illinois, man who was arrested transporting four kilograms of heroin to Indiana pleaded guilty today in Trenton federal court, Acting U.S. Attorney William E. Fitzpatrick announced.
Henry Zamora, 38, pleaded guilty before U.S. District Judge Peter G. Sheridan to Count One of an indictment charging him with conspiracy to distribute heroin.
According to documents filed in this case and statements made in court:
From June 2014 through November 2014, Zamora conspired with other members of a cross-country drug trafficking organization, which included cells operating in New Jersey, to transport and distribute bulk quantities of heroin. On Nov. 21, 2014, Zamora was arrested while transporting four kilograms of heroin contained in a hidden compartment in his vehicle. Following the arrest, officers recovered an additional two kilograms of heroin from his residence in DeKalb.
The charge to which Zamora pleaded guilty carries a maximum penalty of life in prison and a $10 million fine. Sentencing is scheduled for Dec. 13, 2017.
Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes, and officers from the DeKalb Police Department with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorneys Thomas S. Kearney and Jamari Buxton of the U.S. Attorney’s Office OC/Gangs Unit in Newark.
Defense counsel: Andrea Bergman Esq., Trenton, New Jersey
Hoover Man Indicted in Fraudulent Credit Card SchemeRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Hoover man on fraud charges connected to a scheme to create “synthetic identities” to obtain and use multiple fraudulent credit cards around the Birmingham metro area, announced U.S. Attorney Jay E. Town and U.S. Postal Inspector Frank Dyer.
An indictment filed in U.S. District Court charges JERICHO ANTONIO PARKER, 26, with 21 wire fraud counts and one count of using unauthorized access devices as part of the wire fraud between June 1, 2016, and Aug. 30, 2016.
According to the indictment, Parker worked with other people, whom the document does not identify, to carry out the scheme to create numerous synthetic identities by combining fictitious names, dates of birth and Social Security numbers and then using those identities to apply for Discover credit cards.
Discover approved many of the applications and sent credit cards to Birmingham through the U.S. Postal Service. Parker received and activated cards and then used them in Jefferson, Shelby and St. Clair counties to get cash at ATMs or to make or attempt to make purchases, according to the indictment.
The 21 wire fraud counts represent occasions when Parker used the fraudulent Discover cards to get $300 cash advances from ATMs inside drug stores in Moody, Homewood, Birmingham and Hoover, or when he used or attempted to use the cards to make purchases, according to the indictment.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for fraudulent use of unauthorized access devices is 10 years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that ROY RIVAS-PALMAS, age 34, a citizen of Honduras, pled guilty to a one-count indictment for illegal re-entry of removed alien.
According to the court documents, on June 15, 2017, RIVAS-PALMAS was found in the United States after having been deported previously on October 31, 2013. RIVAS-PALMAS has a prior felony conviction for possession of a weapon for an unlawful purpose, and has been deported on multiple occasions.
ROY RIVAS-PALMAS faces a maximum term of imprisonment of ten years and a fine of $250,000, or the greater of twice the gross gain to the defendant, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Mary Ann Vial Lemmon set sentencing for November 9, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, in investigating this matter.
Guatemalan national pleads guilty to immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Guatemalan national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Juan Us-Sajbin, 36, entered his guilty plea to illegally reentering the United States.
Us-Sajbin admitted that he was not lawfully present in the United States when he was encountered by Department of Homeland Security agents on May 19, 2017. He was identified when agents were looking for another individual residing near Kanawha State Forest. Agents conducted surveillance, confirmed the identity of Us-Sajbin, and then placed him under arrest. Us-Sajbin had not formally applied for permission to legally reenter the United States and was not otherwise in the United States by any legal process. He was previously removed in 2013 after being convicted of misdemeanor assault in Mahoning County, Ohio.
Us-Sajbin faces up to two years in federal prison when he is sentenced on October 17, 2017. He is also subject to deportation proceedings at the conclusion of the criminal case.
The Department of Homeland Security conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
- Follow us on Twitter: SDWVNews
Four Individuals Charged Federally for Drug Operation in Cutler ManorRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD) announced that Edward Lee Williams, 30, Kenyada Pierce, 34, Martavious Randall, 38, and William Lovett, 36, all of Miami, Florida, have been charged by criminal complaint with possessing with intent to distribute controlled substances.
These charges arose from an investigation to address widespread drug dealing within the Cutler Manor Apartments, located at 10875 SW 216 Street, Miami, Florida. The Cutler Manor Apartments are a Section 8 public housing project located in unincorporated Miami-Dade County just north of Homestead, Florida. During the course of their investigation, law enforcement were able to purchase various controlled substances from subjects who resided in, or operated out of, the Cutler Manor Apartments. These criminal complaints are part of a multi-agency operation, including the FBI, DEA and MDPD, that seeks the arrest of 40 individuals.
In August 2016, after a similar law enforcement operation targeting drug sales in Cutler Manor, fourteen individuals associated with the Cutler Manor Apartments were indicted federally in the Southern District of Florida for possession with intent to distribute various narcotics, in violation of Title 21, United States Code, Section 841. Each of the defendants pled guilty for their respective participation in the criminal conduct and received sentences ranging from time served to 151 months in prison.
Following the 2016 indictments, law enforcement continued to investigate the sale of narcotics both at the Cutler Manor Apartments and out of single-family houses located nearby, including throughout the Perrine area, in the Southern District of Florida.
According to the criminal complaints, law enforcement purchased various narcotics, including methylone, known as “Molly,” cocaine, and heroin from individuals both within the Cutler Manor Apartments and at nearby residences located in Perrine, including from defendants Williams, Pierce, Randall, and Lovett. During the course of today’s operations, law enforcement recovered both narcotics and firearms.
If convicted of possessing with intent to distribute controlled substances, the defendants face up to 20 years in prison.
Mr. Greenberg commended the investigative efforts of the FBI, DEA, and MDPD. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Cary Aronovitz.
A criminal complaint is only an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Charged in Drug Investigation Based in KodiakRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that four individuals associated with drug trafficking in Kodiak have been indicted by a federal grand jury for various drug trafficking and related crimes:
-
Christopher Arndt, 38, is currently charged with distribution of methamphetamine, drug conspiracy, and money laundering conspiracy, and was arrested in Kodiak on Aug. 18, 2017;
-
Santos Lopez, 41, is currently charged with distribution of methamphetamine, and was arrested in Kodiak on Aug. 23, 2017;
-
Leigh Ann Massengill, 42, is currently charged with distribution of methamphetamine, drug conspiracy, and money laundering conspiracy, and was arrested in Anchorage on Aug. 30, 2017;
-
James Gerrity, 30, is currently charged with drug conspiracy and remains at large.
In connection with this investigation, a federal grand jury has previously indicted four other individuals for drug trafficking and firearms crimes from Kodiak:
-
Ann L. Vega, 40, is currently charged with possession of methamphetamine and heroin with intent to distribute;
-
Nathan Gambrell, 44, is currently charged with felon in possession of firearms;
-
Jose Alberto "Bird" Rodriguez, 30, is currently charged with attempted possession of methamphetamine with intent to distribute, and possession of methamphetamine with intent to distribute;
-
Wahyu "Kodiak Mike" Sanjoyo, 36, is currently charged with possession with intent to distribute methamphetamine, heroin, and cocaine, distribution of methamphetamine, and possession of firearms in furtherance of a drug trafficking crime.
The Federal Bureau of Investigation, Coast Guard Investigative Service, Internal Revenue Service-Criminal Investigation, Alaska State Troopers, Kodiak Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives have been working together to investigate these matters and to combat drug trafficking and violent crime in Kodiak.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
-
Former State Representative Convicted on Fraud ChargesRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found former Florida House of Representatives member Dwayne L. Taylor (49, Daytona Beach) guilty of nine counts of wire fraud. Taylor faces a maximum penalty of 20 years in federal prison for each count. His sentencing is scheduled for November 16, 2017.
According to evidence presented at trial, during Taylor’s 2012 and 2014 reelection campaigns, he falsely reported thousands of dollars of expenditures to the State of Florida in order to conceal his misappropriation of over $60,000 in campaign funds through a series of unreported cash withdrawals, checks written to himself, and checks written to petty cash, in violation of Florida law. Taylor then used the misappropriated funds for personal expenditures unrelated to his re-election campaigns.
According to Florida law, all campaign contributions and expenditures must be reported to the State of Florida, and neither a candidate nor the spouse of a candidate may use funds deposited in a campaign account to defray normal living expenses for the candidate or the candidate’s family, other than expenses actually incurred for transportation, meals, and lodging during travel in the course of the campaign.
“These types of crimes erode the public trust in our elected officials,” said Acting U.S. Attorney Stephen Muldrow. “This conviction sends a clear message that such acts will not be tolerated and that we will hold anyone who breaks the law accountable for their actions.”
“It is disappointing that an elected official would exploit the generosity of his constituents to advance his personal lifestyle,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, which is why combating public corruption remains the FBI’s top criminal priority."
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg and Embry J. Kidd.
Former Campaign Guru Ravneet Singh Sentenced for his Role in Laundering $600,000 in Foreign Money into 2012 San Diego Mayoral ElectionRead the Press Release
Assistant U.S. Attorneys Phillip L.B. Halpern (619) 546-6964, Mark W. Pletcher (619) 546-9714, Helen Hong (619) 546-6990, Billy Joe McLain (619) 546-6762
NEWS RELEASE SUMMARY – August 31, 2017
SAN DIEGO – Political consultant Ravneet Singh, former CEO of ElectionMall Technologies, was sentenced today to 15 months in prison and ordered to pay a $10,000 fine for his role in funneling more than $600,000 in illegal foreign campaign contributions from Mexican citizen Jose Susumo Azano Matsura to candidates in the 2012 San Diego mayoral election.
U.S. District Court Judge Michael M. Anello ordered the defendant to report to prison on October 12, 2017, to begin serving his sentence.
In September 2016, after six weeks of trial and five days of deliberations, a federal jury in San Diego returned guilty verdicts against Singh, Azano and Azano’s son, Edward Susumo, who were convicted of felony counts associated with a series of illegal campaign contributions by Azano to the campaigns of Bonnie Dumanis and Bob Filner.
“American elections are not for sale,” said Executive U.S. Attorney Blair Perez. “We will not allow our sacred electoral process to be compromised. This prison sentence underscores an important message: Anyone who tries to manipulate the American electorate will pay a high price.”
“Public corruption undermines the strength and confidence in our system of government which is why these cases are a top criminal priority for the FBI,” said Special Agent in Charge Eric S. Birnbaum. “Today’s sentence stands as a stark condemnation of Azano’s and Singh’s willful efforts to undermine the fundamental principles of our representative democracy. The American people can count on the FBI to continue to bring these complex, sensitive, and important cases to justice.”
“Using a series of complex financial transactions, Mr. Singh conspired to funnel illegal money to influence the outcome of San Diego political races,” stated Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation. “IRS Criminal Investigation remains committed to the fight against campaign finance crimes. This case exemplifies the strong impact we are making in this arena working in cooperation with our law enforcement partners.”
According to evidence presented at trial, Azano, Singh, and others conspired to inject hundreds of thousands of dollars in cash and in-kind consulting services to the Bonnie Dumanis and Bob Filner campaigns, despite the fact that Azano’s foreign national status made such contributions illegal. To conceal his connection to these contributions, Azano arranged with his son Edward Hester and others to funnel this illegal foreign money through corporate and third person “straw donor” contributions. The conspirators, moreover, arranged for at least $267,000 worth of Singh’s in-kind consulting services to be secretly funneled to the campaigns.
In return for his political contributions, Azano sought to buy political influence. For example, he wanted support for his vision of Miami West – a San Diego waterfront development project with a yacht marina, a branded five-star hotel, and luxury bayside condominiums that promised Azano millions in profit. In other instances, Azano wanted access, like the ability to call on influential political figures or obtain letters of reference to secure his son’s admission to the University of San Diego.
Ultimately, with Azano’s help, Filner won the election, though he was forced to resign shortly thereafter.
For his part, Singh used his specialized skills and knowledge to facilitate the crimes. Evidence at trial demonstrated that Singh used code names for the Dumanis and Filner work that Azano paid for but never for any other domestic candidate for office; harshly reprimanded employees for using those code names in emails; and on one particularly candid occasion, referenced the “legal ramifications” of discussing these topics. Singh further concealed the payments from Azano by structuring the wires from a Mexican company, Broadlink, controlled by Azano, which had nothing to do with electoral politics, to company Singh controlled, not Election Mall, but eSolutions, which primarily developed software from India.
In addition to the jury’s guilty verdicts against Azano, Singh, and Hester, the jury was unable to reach a verdict on several charges brought against San Diego lobbyist Marco Polo Cortes, and acquitted Cortes on several charges of falsifying campaign donation records. The jury also acquitted Hester on several charges related to the falsification of campaign donation records, and could not reach a verdict on several other charges. Finally, the jury could not reach a verdict on a firearm charge against Azano.
Retrial on a firearm charge against Azano is set to begin September 5, 2017. Azano is, thereafter, scheduled to be sentenced on October 23, 2017, followed by Edward Hester on November 6, 2017. The retrial of Marco Polo Cortes is scheduled for December 5, 2017.
Assistant U.S. Attorneys Phillip L.B. Halpern, Mark W. Pletcher, Helen Hong, and Billy Joe McLain of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case.
DEFENDANTS Case Number: 14cr0388-MMA
Ravneet Singh Age: 45 Naperville, IL
Jose Susumo Azano Matsura Age: 52 Guadalajara, Mexico
Edward Susumo Azano Hester Age: 25 San Diego, CA
SUMMARY OF CONVICTIONS
Count 1: Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Sec. 371.
Maximum Penalties: Up to five years in prison and $250,000 fine
Defendants Azano, Singh and Hester
Count 3: Donation and Contribution by a Foreign National Aggregating $25,000 or more – Title 2, U.S.C., Secs. 437g (d) (1) (A) (i) and 441e (A) (1).
Maximum Penalties: Up to five years in prison and $250,000 fine
Defendants Azano, Singh and Hester
Count 4: Contribution in the Name of Another Aggregating $25,000 or more – Title 2, U.S.C., Secs. 437g(d) (1) (A) (i) and 441f.
Maximum Penalties: Up to five years in prison and $250,000 fine
Defendant Azano
Counts 5-37: Falsification of Records – Title 18, U.S.C., Sec. 1519.
Maximum Penalties: Up to 20 years in prison per count and $250,000 fine per count.
Defendant Azano on all counts; Singh guilty on counts 32 and 37
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former CEO, CIO, and CFO, of the Federal Home Loan Bank of Dallas Indicted for Making False StatementsRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas this week charges three former executives of the Federal Home Loan Bank of Dallas (“FHLB-Dallas”), Terence C. Smith, Nancy B. Parker, and Michael J. Sims, with various charges related to defrauding FHLB-Dallas by seeking reimbursement for personal travel and gifts, announced John Parker, U.S. Attorney for the Northern District of Texas.
The indictment charges Smith, 60, who was the President and Chief Executive Officer of the FHLB-Dallas from 2000 to September 2013; Parker, 64, who was the Chief Information Officer of the FHLB-Dallas from 1999 to November 2013; and Sims, 51, who was the Chief Financial Officer of the FHLB-Dallas from 2005 to May 2014, with one count of conspiring to make false statements to a Federal Home Loan Bank. Smith is also charged with eleven substantive counts of making false statements to the FHLB-Dallas related to travel, Parker is charged with six substantive counts of making false statements, and Sims is charged with three substantive counts of making false statements.
The indictment alleges that starting as early as January 2008 and continuing through November 2013, Smith, Parker, and Sims, submitted or caused to be submitted a series of fraudulent reimbursement requests for travel they identified as business-related but was in fact personal, which caused the bank to pay approximately $780,000. The defendants incurred these expenses in connection with first class airfare, limousine services, concerts, vineyard tours, luxury hotel rooms, lavish meals, and expensive liquor and wine during more than 30 trips they took to Las Vegas, Nevada, Amelia Island, Florida, Coronado, California, San Diego, California, and others locations. In each instance, the defendants falsely stated that purpose of their travel was attending various conferences, planning meetings, strategy meetings, and ops meetings, when in fact they did not attend any conference, or conduct any legitimate planning, strategy, or ops meetings. Despite taking numerous trips that served no legitimate business purpose, the indictment alleges that the defendants further defrauded FHLB-D by requesting payment of more than $450,000 for unused vacation time.
The indictment also charges Parker separately with conspiring to embezzle from FHLB-Dallas in connection with a scheme she executed to have the bank pay for Christmas gifts for Smith. Parker is also charged with three substantive counts of embezzlement related to the Christmas gifts.
The indictment alleges from at least December 2005 and continuing through December 2012, Parker conspired with a former contractor who later became an employee of FHLB-Dallas to submit an inflated contractor invoice, fictitious check requests, and a fictitious purchase order to the bank to acquire Christmas gifts for Smith using the bank’s funds. Parker’s actions caused FHLB-Dallas to pay more than $17,000 for the gifts, which included a wine sommelier computer and video/photography equipment.
FHLB-Dallas is a government sponsored enterprise and part of the Federal Home Loan Bank System. The Federal Home Loan Bank System was created to support mortgage lending and related community investment. The System is currently composed of 11 regional Federal Home Loan Banks and more than 7,300 member financial institutions. FHLB-Dallas is a cooperative association that consists of financial institutions from the five-state district of Arkansas, Louisiana, Mississippi, New Mexico, and Texas that have purchased stock in FHLB-Dallas. Member institutions have access to funding for housing finance, community lending, and asset-liability management. FHLB-Dallas helped its member institutions provide credit and financial services to families, farms, and businesses across its district.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. However, if convicted, each count of making a false statement carries a maximum statutory penalty of 30 years in federal prison and a $1 million fine. Each count of conspiracy to make a false statement carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Restitution may also be ordered. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit any property that constitutes or was derived from proceeds traceable to the offense.
The Federal Housing Finance Agency Office of Inspector General led the investigation. Assistant U.S. Attorneys Douglas Brasher and Errin Martin are in charge of the prosecution.
# # #
Former Army Soldier Sentenced to 74 Months in Prison and 20 Years of Supervised Release for Possession of Child PornographyRead the Press Release
Savannah, GA: Win Hang Vong, 26, a former Fort Stewart Army soldier, was sentenced earlier this week by United States District Judge Lisa Godbey Wood to 74 months in federal prison to be followed 20 years of monitored supervised release.
According to evidence presented during the guilty plea and sentencing hearings, in December 2016 members of the FBI and the GBI’s Internet Crimes Against Children Task Force conducted undercover investigations to identify child predators involved in the distribution of child pornography. Agents came into contact with Vong and downloaded from his shared files approximately 830 still images and video files containing of child pornography. Agents thereafter executed a search warrant at Vong’s residence, his enlisted quarters on the Fort Stewart Military Reservation. Agents seized electronic devices, including Vong’s computer, and external hard-drives. From these devices, agents located over 100,000 files involving child pornography. Some of the child-pornography contained images of babies being raped by adults. Vong admitted he had been downloading child pornography on the internet for more than five years. Vong was later discharged from the U. S. Army.
The case was investigated by the FBI, the GBI, and the Army’s Criminal Investigations Division (CID). Assistant United States Attorneys Marcela C. Mateo and E. Greg Gilluly, Jr. prosecuted the case on behalf of the United States. For questions, please contact the U. S. Attorney’s Office at (912) 201-2522.
Federal Jury Finds Hibbing Man Guilty of Child Pornography ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of KEVIN JAMES PETROSKE, 36, of Hibbing, Minnesota, for producing, attempting to produce and possessing images and videos containing child pornography. Following a three-day trial before Judge Patrick J. Schiltz, the jury found PETROSKE guilty on all counts. A sentencing hearing is scheduled for January 18, 2018.
“Mr. Petroske preyed on vulnerable and unsuspecting victims in their homes. Fortunately, the jury recognized Mr. Petroske for the predator he is and returned a just result,” said Assistant U.S. Attorney Manda Sertich. “I am grateful for the coordinated efforts of our law enforcement partners in working to achieve this successful conviction.”
As proven at trial, on October 23, 2015, law enforcement received a report of a man peering into residential windows of a home in Hibbing, Minn. Shortly after, law enforcement apprehended and identified the suspect as PETROSKE. Law enforcement investigators determined that PETROSKE had prior convictions in Stearns County for felony stalking and an open investigation in Benton County for possession of child pornography. Upon execution of a search warrant at PETROSKE’S residence, investigators seized a laptop computer containing hundreds of videos and images containing child pornography.
As proven at trial, many of the videos found on PETROSKE’S laptop, which were recorded between October 2011 and September 2015, contained surreptitious recordings of minor females filmed through the windows of their homes without their knowledge. PETROSKE captured the victims in their bedrooms and bathrooms in various private moments and, in many of the videos, PETROSKE is heard masturbating and making sexual comments.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension, and the Hibbing Police Department.
Assistant U.S. Attorneys Manda M. Sertich and Melinda A. Williams are prosecuting the case.
Defendant Information:
KEVIN JAMES PETROSKE, 36
Hibbing, Minn.
Convicted:
- Production and attempted production of child pornography, 8 counts
- Possession of child pornography, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600