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Thursday 22 June 2017
Lancaster Man Charged with Illegal Reentry After DeportationRead the Press Release
Gabriel Bazan-Hernandez, of Lancaster, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 21, 2017, Bazan-Hernandez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about October 23, 2007 and March 14, 2012.
If convicted the defendant faces a maximum possible sentence of ten years.
and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kennewick Drug Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Anthony Joseph Cortinas, age 49, of Kennewick, Washington, was sentenced after previously having pled guilty on February 21, 2017, to Possession with Intent to Distribute Methamphetamine. Senior United States District Judge Edward F. Shea, sentenced Cortinas to a 15-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in the early morning hours of May 29, 2015, officers with the Kennewick Police Department conducted a stop of a vehicle pursuant to a traffic violation. During the course of the stop, law enforcement officers obtained consent from the driver to search the vehicle. Both Cortinas and the driver of the vehicle disclaimed possession and ownership of multiple bags located in the rear passenger seat. One of the bags contained a safe disguised as a dictionary. Inside the safe, officers located a distribution quantity of methamphetamine. Cortinas was later identified as the owner of the safe and its contents. Cortinas was subsequently charged in Benton County Superior Court, and after posting bail, was released from the Benton County jail.
On September 9, 2015, officers with the Kennewick Police Department again encountered Cortinas during a vehicle stop for a traffic violation. Cortinas, the passenger, was arrested on an unrelated matter. The driver, a different individual than the driver of the vehicle during the prior contact, disavowed knowledge of a bag in the vehicle located behind the seat where Cortinas had been sitting. After further investigation, officers obtained a search warrant for the vehicle and located another safe, later determined to belong to Cortinas, containing a distribution quantity of methamphetamine.
At sentencing, Senior Judge Shea noted Cortinas’ lengthy history of drug distribution offenses, and the impact such crimes have on the local community.
Acting United States Attorney Harrington said, “I commend the Kennewick Police Department officers and the FBI Special Agents for their efforts in investigating this drug trafficking case. Their strong working partnership is reflected by the successful resolution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities.”
The Federal Bureau of Investigation (Richland, Washington) and the Kennewick Police Department conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Jury Finds Indiana Man Guilty of Fraud and Filing False Tax ReturnsRead the Press Release
PITTSBURGH - Acting United States Attorney Soo C. Song announced today that after deliberating six hours, a jury of 6 men and 6 women found Bernard M. Parker guilty of one count securities fraud, one count of mail fraud and four counts of filing false tax returns.
Parker, age 56, of Indiana, Pennsylvania was tried before United States District Judge Reggie Walton in Pittsburgh.
According to Assistant United States Attorneys Robert S. Cessar and Rachael L. Mamula, who prosecuted the case, the evidence presented at trial established that Parker, the principal of Parker Financial Services, solicited his clients, by signing of “Investors Contracts,” to invest in tax lien certificates, municipal bonds, computer software, real estate, and other undefined investments. Parker then used the vast majority of the monies taken from these investors for his personal expenses instead of the various investments agreed upon with his clients. Further, Parker filed false federal tax returns for tax years 2010, 2011, 2012, and 2013, each of which failed to report his income.
Judge Walton scheduled sentencing for October 16, 2017 at 2:00 p.m. The law provides for a maximum total sentence of 42 years in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Parker was remanded pending sentencing.
The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service conducted the investigation that led to the conviction of Bernard M. Parker.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was sentenced today in federal court in Boston with a federal immigration crime.
Selvin Jarquin-Felipe, 31, pleaded guilty to illegally reentering the United States after being deported before U.S. District Court Judge Indira Talwani, who subsequently sentenced Jarquin-Felipe to time served and one year of supervised release.
Jarquin-Felipe was previously deported in September 2014. In May 2017, federal agents in Framingham discovered Jarquin-Felipe and determined him to be unlawfully present in the United States.
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 David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Nestor Mendez Nolasco, 26, was charged today with one count of illegal reentry after deportation. Mendez Nolasco was previously deported on Jan. 31, 2013, April 9, 2013, and July 7, 2013. On April 25, 2017, Mendez was arrested in Hopkinton on an unrelated state charge.
Mendez faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with an immigration crime.
Eric Contreras, 29, was charged today with one count of illegal reentry after deportation. Contreras was previously deported on May 11, 2016. On June 7, 2017, Contreras was arrested in Waltham on unrelated state charges.
Contreras faces no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Greenville Felon Pleads Guilty to String of Armed Robberies and CarjackingsRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated that Trevis L. Bland, a/k/a “HellRell,” a/k/a “Rell,” age 24, of Greenville, South Carolina entered a guilty plea in federal court to Conspiracy to Carry a Firearm During a Crime of Violence, a violation of 18 U.S.C. § 924(o), Conspiracy to Commit Hobbs Act Robbery, in violation of 18 U.S.C. § 1951(a), Felon in Possession of Firearm, in violation of 18 U.S.C. § 922(g), three counts of Carjacking, in violation of 18 U.S.C. § 2119(1), two counts of Brandishing a Firearm During a Crime of Violence, in violation of 18 U.S.C. § 924(c), and two counts of Hobbs Act Robbery, in violation of 18 U.S.C. § 1951(a). United States District Judge Timothy M. Cain, of Anderson, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on April 13, 2016, Trevis Bland conspired to rob the Crown Plaza in Greenville, SC. On April 23, 2016, Bland and others planned the robbery of a woman at the Phoenix Inn, in Greenville, SC. Bland and others robbed the woman at gunpoint, forcibly removed her from her car, and stole her car. On April 24, 2016, Bland and others planned the robbery of a man outside his home in Greenville, SC. Bland and others robbed the man and another woman at gunpoint, and stole the man's car. On April 24, 2016, Trevis Bland robbed the Spinx Gas Station on East Washington Street, Greenville, SC, at gunpoint.
On April 27, 2016, Trevis Bland robbed three victims outside of the Phoenix Inn at gunpoint. On April 30, 2016, Trevis Bland robbed and carjacked two victims at Endel and Doe Street in Greenville, SC. Bland had asked the individuals for a ride, but once they were driving, he pointed the gun at the female driver and male passenger. After Bland took control of the car, the woman fought with Bland and secured the firearm, firing multiple shots at Bland as he drove away. On May 2, 2016, Trevis Bland robbed the Plez U Convenience Store in Easley, SC, at gunpoint. Bland has prior felony convictions and is prohibited from possessing firearms or ammunition.
U.S. Attorney Drake stated the minimum penalty for these convictions is 25 years imprisonment with a maximum penalty of life imprisonment, and a fine of $250,000. The case was investigated by agents of ATF, the Greenville Police Department, the Greenville County Sheriff's Office, and the Easley Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville USAO is prosecuting the case.
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Grand Traverse Band Member Sentenced to 30 Years for Sexually Abusing A Five-Year-Old ChildRead the Press Release
GRAND RAPIDS, MICHIGAN — Jon Nathaniel-Nunghons Brenner, age 34, formerly from Hopkins and Grand Rapids, was sentenced to 30 years in federal prison for aggravated sexual abuse. The sexual assault occurred on lands held in trust for the Grand Traverse Band of Ottawa and Chippewa Indians in Leelanau County. The child victim and Brenner are both enrolled members of the tribe. Acting U.S. Attorney Andrew Birge stated, "It is crucial that we protect society’s most vulnerable members from sexual exploitation and ensure significant and certain punishment for those predators who would exploit children, especially in our tribal communities where sadly we see too many Native women and children subjected to such violence."
In announcing the sentence, U.S. District Judge Janet T. Neff remarked on the terrible nature of the sexual assault on a very young and vulnerable girl, and the likely lifelong consequences this would have on the victim’s life. Judge Neff further commented on the extreme longterm risk that Brenner posed and that he may forever be a danger to the community. Following his term of incarceration, Brenner will spend the rest of his life on supervised release. He will also be required to register as a sexual offender.
In October 2015, the 5-year-old victim reported to her mother that Brenner had sexually assaulted her. The resulting investigation disclosed that Brenner sexually assaulted the girl he was babysitting over a period of seven months. Federal charges were filed in May 2016 alleging six counts of aggravated sexual abuse of a minor. Brenner was arrested on June 7, 2016, and he has been held in custody since his arrest. He pleaded guilty to aggravated sexual assault in November of 2016.
"The sexual exploitation of children is sadly often perpetrated by adults who parents know and mistakenly trust," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
"As evidenced by the 30 year sentence in this case, sexual predators need to understand the FBI, our law enforcement partners, and our court system will utilize every tool in our toolbox to protect children from the Jon Brenners of the world and all those like him."
The U.S. Attorney’s Office works closely with the 11 Tribes in the District to ensure that crimes committed in their communities are addressed in a timely and appropriate manner. Cases such as these are a shared responsibility with the FBI, tribal law enforcement, and the U.S. Attorney’s Office. This case is a result of a collaborative investigation by the FBI and the Police Department of the Grand Traverse Band of Ottawa and Chippewa Indians. Assistant U.S. Attorneys Alexis M. Sanford and Jeff J. Davis prosecuted the case.
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Founder of Purported Investment Company Charged with Commodities Fraud and Wire FraudRead 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 filing of a criminal complaint charging MICHAEL WRIGHT with commodities fraud and wire fraud in connection with WRIGHT’s operation of an investment company, Wright Time Capital Group (“WTCG”). WRIGHT is alleged to have misrepresented to investors the trading performance of WTCG, and, after acquiring investor funds, misappropriating a large portion of those funds for his personal benefit. Additionally, after losing most of the funds he actually invested in foreign currency (“forex”) transactions, WRIGHT allegedly began operating WTCG as a Ponzi scheme, using funds obtained from investors to make payments to other investors. WRIGHT was arrested this morning and will be presented before the U.S. Magistrate Judge James L. Cott later today.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Michael Wright used his investment company as a personal piggy bank and issued fraudulent account statements to cover up foreign exchange trading losses, ultimately operating a classic Ponzi scheme. Thanks to the dedicated work of the FBI, Wright's alleged scheme has been brought to an end and he will now be held to account.”
FBI Assistant Director William F. Sweeney Jr. said: “Wright allegedly lured investors to Wright Time Capital Group by falsely representing his trading performance. Most of the currency received was used for his personal benefit; some of it was actually invested in foreign currency transactions. But when this money was eventually lost, he created another layer in his litany of crimes—a Ponzi scheme. For anyone who thinks they can manipulate people’s investments in this way, we remind you today that’s simply not the case.”
According to the Complaint[1]:
WRIGHT started WTCG in January 2011, and ultimately obtained more than $400,000 from various investors (the “Victims”). While WRIGHT did initially conduct some forex trades on behalf of the Victims, he then began to steal their money, using it to cover his personal expenses, including hotel and travel expenses. From the outset of WTCG, WRIGHT misrepresented to WTCG’s investors the gains he had achieved. WRIGHT claimed in statements to Victims that he had achieved double-digit gains for them through forex trading in WTCG’s first six months of existence. In reality, however, WRIGHT earned little to no money through his forex trading. WRIGHT also operated WTCG as a Ponzi scheme by using the Victims’ funds to make payments to other Victims who were demanding the return of their investments.
* * *
WRIGHT, 30, of Rockville Centre, New York, was arrested this morning in New Jersey. WRIGHT was charged with commodities fraud, which carries a maximum sentence of 10 years in prison, and wire fraud, which carries a maximumsentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the efforts of the FBI in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Founder and Former CEO of Technology Firm Pleads Guilty to Multimillion-Dollar Fraud on InvestorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, today announced that MARYSE LIBURDI pled guilty to defrauding investors in a technology company founded and operated by LIBURDI. As a result of LIBURDI’s fraud, the victim-investors lost more than $6 million. LIBURDI pled guilty earlier today in Manhattan federal court before United States District Judge Denise L. Cote, who is scheduled to sentence LIBURDI on September 29, 2017, at 10:00 a.m.
Acting U.S. Attorney Joon H. Kim said: “For at least five years, while her company earned little or no revenue, Maryse Liburdi, the founder and former CEO of a technology company, lied to investors about her company’s success and converted the funds they invested to her own use. In this way, Liburdi stole more than $1 million, and used it to pay rent on her Manhattan apartment, purchase luxury clothing, and pay spa bills. We are committed to fully enforcing the laws that ensure that executives are truthful with investors.”
According to the allegations in the Indictment to which LIBURDI pled guilty, a criminal complaint filed against LIBURDI, and statements made during the plea and other court proceeding proceedings:
Since at least in or about 2010, LIBURDI perpetrated a multi-year scheme to defraud individuals into investing in a technology company (the “Company”) founded and run by LIBURDI. LIBURDI repeatedly made misrepresentations to investors about the Company’s revenue and assets, manipulated Company bank accounts to hide the Company’s true financial condition and, contrary to LIBURDI’s express promises to the investors, converted investor funds to her own use.
While LIBURDI repeatedly told investors that the Company had millions of dollars in revenue, the Company’s bank records show that, from at least 2008 until the Company ceased operating in January 2015, the Company earned little or no revenue. Moreover, as reflected in the Company’s bank records, LIBURDI misappropriated investor funds, transferring over $1 million to her and her former husband’s bank accounts and to pay LIBURDI’s personal expenses, including luxury clothing. For example, LIBURDI used funds from one victim investor for, among other things, transfers to a personal bank account in the name of LIBURDI and her former husband; rental payments for LIBURDI’s three-bedroom Manhattan apartment; payments for personal credit cards; and substantial personal expenditures on corporate credit cards, including, among other things, expenditures at various retail clothing, accessories, and cosmetics stores, salons and spas, and wine and liquor stores.
In order to hide her scheme, LIBURDI manipulated the Company’s bank accounts by, on at least three occasions, writing checks for hundreds of thousands of dollars drawn on accounts with insufficient funds in order to fraudulently inflate the balance of a Company bank account and thereby hide the Company’s true cash balance from the investors. For example, in October 2013, LIBURDI wrote and deposited into the Company’s bank account a $700,000 check drawn on a different account that had a balance of only about $2,000. LIBURDI then falsely represented to the victims that the Company’s bank account held approximately $700,000 and showed investors a bank statement for the Company account listing the inflated balance. As result of LIBURDI’s fraud, victim-investors in the Company lost more than $6 million.
* * *
LIBURDI, 45, formerly of Victoria, Minnesota, and New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. 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.
Mr. Kim praised the investigative work of the FBI. He also thanked Italian law enforcement authorities, including Interpol Rome, for their assistance in LIBURDI’s arrest, as well as the Department of Justice’s Attaché at the U.S. Embassy in Rome and the DOJ Office of International Affairs.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
Former Utility Executive of Pleads Guilty to Federal Gun ChargeRead the Press Release
BOISE – Kenneth Frank Morehouse, 59, formerly CEO of Intermountain Gas, pleaded guilty on June 21, 2017, in United States District Court to unlawful possession of a firearm, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, Morehouse was prohibited from possessing a firearm due to a 2015 conviction in Ada County District Court for a misdemeanor crime of domestic violence. On February 22, 2016, Ada County Sheriff’s deputies were called to Morehouse’s residence by his wife, who feared that Morehouse was suicidal. A deputy encountered Morehouse in his home holding a firearm.
Sentencing is set for September 13, 2017, before Senior U.S. District Edward J. Lodge. Unlawful possession of a firearm is punishable by up to 10 years imprisonment, a $250,000 fine, a term of supervised release up to three years, and a $100 special assessment. As part of his plea, Morehouse also agreed to forfeit the firearm in question.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms (ATF) and the Ada County Sheriff’s Office. It was brought as part of Project Safe Neighborhoods, a nationwide initiative launched in May 2001 by the Department of Justice to combat gun violence in the United States. Project Safe Neighborhoods marshals federal, state, and local resources to target and prosecute those who commit gun crimes. For more information about Project Safe Neighborhoods, visit https://www.bja.gov.
Former United States Tax Court Judge and Husband Sentenced for Multi-Year Tax Fraud ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of a former United States Tax Court judge and her husband for conspiring to defraud the United States. DIANE L. KROUPA, 61, was sentenced to 34 months in prison and ROBERT E. FACKLER, 63, was sentenced to 24 months in prison. Both defendants entered guilty pleas and were sentenced earlier today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn. In addressing KROUPA’S extensive tax fraud committed while a sitting US Tax Court Judge, Judge Wright stated, “When a person in a position of trust violates that trust, the public is a victim,” and further noted that KROUPA’S fraud undermined the trust in the justice system.
“Over a nearly ten-year period, the defendants engaged in a deliberate and brazen tax fraud scheme,” said Acting United States Attorney Gregory Brooker. “Considering Ms. Kroupa’s position of public trust as a US Tax Court Judge, her crime is particularly egregious. Ms. Kroupa used her knowledge of the tax laws to further their fraud scheme, conceal their criminal conduct and maintain their acquisitive lifestyle. The sentences handed down today show that no one is above the law.”
“Diane Kroupa held a position of public trust as a federal tax court judge and made rulings based on the very tax laws she broke. She broke that trust when she thought she was above the law and committed the same crimes as those who appeared before her in court over the past decade,” said Hubbard Burgess, Acting Special Agent in Charge, IRS-Criminal Investigation. “Everyone in society must play by the same rules and IRS-CI will protect the integrity of the tax system by ensuring everyone pays their fair share, including federal officials.”
“The Postal Inspection Service will aggressively investigate all individuals, regardless of your job title, who chose to commit fraud. Today’s sentencing of Ms. Kroupa, a former U.S. Tax Court Judge, should send a clear message to those individuals contemplating committing fraud by using the US Mails. Don’t do it,” said Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers the Twin Cities.
According to the plea agreement and documents filed in court, KROUPA was a former judge who was appointed to the United States Tax Court on June 13, 2003 for a term of 15 years. During the same period, KROUPA was married to FACKLER, a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, KROUPA and FACKLER owned a home in Plymouth, Minnesota. From 2007 to 2013, they also leased a second residence in Easton, Maryland, where KROUPA lived while fulfilling her duties as a Tax Court Judge in Washington DC.
According to the plea agreement and documents filed in court, between 2002 and 2012, KROUPA and FACKLER conspired to obstruct the Internal Revenue Service (IRS) from accurately determining their joint income taxes. As part of the conspiracy, KROUPA and FACKLER worked together each year to compile numerous personal expenses for inclusion as supposed “business expenses” for Grassroots Consulting in their joint tax return. Those expenses included: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand. In total, from 2004 through 2010, the defendants fraudulently deducted at least $500,000 of personal expenses as purported Schedule C business expenses. At times, KROUPA prepared and provided to FACKLER summaries of personal expenses falsely described according to business expense categories. On other occasions, KROUPA herself compiled and provided to their tax preparer the fraudulent personal expenses.
According to the plea agreement and documents filed in court, as part of the conspiracy, FACKLER also caused Grassroots Consulting business receipts to be understated by approximately $450,000 by fraudulently deducting purported business expenses which had previously been reimbursed. As a result, the defendants caused the amount of adjusted gross income, taxable income, and total tax shown on their income tax returns to be falsely understated.
According to the plea agreement and documents filed in court, KROUPA and FACKLER made a series of other false claims on their tax returns, including failing to report approximately $44,520 that she received from a 2010 land sale in South Dakota. The defendants also falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income.
According to the plea agreement and documents filed in court, KROUPA and FACKLER purposely concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit for their 2004 and 2005 tax returns. During a second audit in 2012, KROUPA and FACKLER caused false and misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting. After the IRS requested documents pertaining to their tax returns, KROUPA and FACKLER removed certain items from their personal tax files before giving them to their tax preparer because the documents could reveal they had illegally deducted numerous personal expenses. During the audit, KROUPA also falsely denied receiving money from the 2010 land sale. Later, when they learned the 2012 audit might progress into a criminal investigation, KROUPA instructed FACKLER to lie to the IRS about her involvement in preparing the portion of their tax returns related to Grassroots Consulting.
According to the plea agreement and documents filed in court, between 2004 and 2010, KROUPA and FACKLER purposely understated their taxable income by approximately $1,000,000 and purposely understated the amount of tax they owed by at least $450,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank prosecuted the case.
Defendant Information:
DIANE L. KROUPA, 61
Minnetonka, Minn.
Convicted:
- Conspiracy to Defraud the United States, 1 count
Sentenced:
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34 months in prison
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Three years of supervised release
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$457,104 joint restitution
ROBERT E. FACKLER, 63
Minnetonka, Minn.
Convicted:
-
Obstruction of an IRS audit, 1 count
Sentenced:
-
24 months in prison
-
One year of supervised release
-
$457,104 joint restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former South Carolina DJJ Lieutenant Indicted on Federal Civil Rights and Obstruction of Justice ChargesRead the Press Release
Columbia, South Carolina--------United States Attorney Beth Drake stated today that a federal grand jury in Columbia, South Carolina, returned a three-count indictment charging Nicole Jenice Samples, of Columbia, with depravation of rights under color of law, in violation of Title 18, United States Code, Section 242, and obstruction of justice under Title 18, United States Code, Section 1513(b)(3). Samples faces up to ten years on each Section 242 offense and twenty years on the Section 1513(b)(3) offense, along with a fine of $250,000.00 and three years of supervised release.
According the grand jury’s indictment, on January 1, 2017, Nicole Jenice Samples directed the use of excessive force as punishment for two juveniles housed at the Department of Juvenile Justice (DJJ). It is alleged that in response to juveniles making noise, Samples, a Lieutenant at DJJ, ordered two of her subordinate correctional officers to apply mechanical restraints to two juveniles, directing that the leg restraints be connected to the hand restraints, a practice known as “hog-tying.” In contravention of DJJ policy that limited use of restraints and specifically forbade any hog-tying of juveniles, Samples oversaw the application of the hog-tie restraints as punishment, leaving the juveniles face down on their stomachs for over two hours.
U.S. Attorney Beth Drake thanked DJJ Acting Director Freddie Pough, SLED and the FBI: “These three law enforcement agencies have great, cooperative working relationships, and on matters of joint interest, their investigative work ensures that nobody is above or outside the law.”
Alphonso Norris, Special Agent in Charge for the FBI, added, “This matter was aggressively pursued by the FBI and our law enforcement partners. We continue to be committed to ensuring these violations are investigated and that the violators are brought to justice.”
Acting Director Freddie Pough stated, “We at DJJ make full review of allegations of abuse and/or mistreatment of all juveniles in our care, and we will not tolerate mistreatment by any staff or other residents. When this allegation was raised, after an initial review, we notified SLED, the FBI and the U.S. Attorney’s Office in order that there was a full investigation. No officer is above the law. I would like to thank our State and Federal counterparts for their support and assistance with this investigation.”
This case was investigated by the Federal Bureau of Investigation and SLED at the request of, and with the assistance of, the Department of Juvenile Justice and Acting Director Freddie Pough. It is being prosecuted by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Former Physician Sentenced for Health Care FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., physician who lost his medical license due to an earlier fraud scheme, has been sentenced in federal court for his role in a fraud scheme that involved disability examinations of veterans.
Wayne W. Williamson, 74, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs on Wednesday, June 21, 2017, to one year and three months in federal prison without parole. The court also ordered Williamson to pay $39,155 in restitution.
Williamson was a medical consultant at Industrial Medical Center (IMC) during various periods beginning at least as early as 2013 through at least March 2015. IMC was a medical clinic in Independence, Mo.; among other things, it was a drug and DNA testing center, had contracts with various entities to provide medical services to patients, and provided drug testing and physical examinations for drivers of commercial motor vehicles.
Williamson was formerly a medical doctor but voluntarily surrendered his medical license in 2010 after he pled guilty to health care fraud; conspiracy to distribute Oxycotin, Percocet, and Xanax; and harassing or attempting to harass an investigator with the Missouri State Board of Healing Arts. Williamson was sentenced to three years in federal prison and permanently excluded from participation in Medicare or Medicaid programs.
Williamson performed disability examinations for the Department of Veterans Affairs under IMC’s contract with Logistics Health, Inc., to determine the extent of veterans’ impairments and eligibility for benefits. This was done in violation of Logistic Health’s contract with the Department of Veterans Affairs, which required that disability examinations be conducted by credentialed providers and that the examiners must have a clear and unrestricted license and not be excluded from participation in the Medicare or Medicaid programs. However, after the only trained and licensed provider at IMC left on July 16, 2013, Williamson and another defendant conducted the examinations.
IMC falsely represented that a physician had completed and electronically signed the Disability Benefits Questionnaires. IMC submitted invoices to Logistics Health to be paid for 209 disability examinations on 53 veterans. In turn, Logistics Health submitted invoices to the Department of Veterans Affairs for the disability examinations performed by its subcontractor, IMC. The Department of Veteran’s Affairs paid Logistics Health $39,155 for the disability examinations performed by its subcontractor, IMC.
In April 2014, Logistics Health contacted the Department of Veterans Affairs—Office of Inspector General hotline and reported the fraudulent activity. Because a credentialed provider did not conduct the disability examinations, the Department of Veterans Affairs had to re-adjudicate all those claims. Some veterans had to be physically re-examined, and others had their claim file reviewed.
This case is being prosecuted by Assistant U.S. Attorney Cindi S. Woolery and Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the Department of Veterans Affairs—Office of Inspector General, the Department of Transportation—Office of Inspector General, the Department of Labor—EBSA and the Department of Health and Human Services—Office of Inspector General.
Former P&G Employee Pleads Guilty to Defrauding CompanyRead the Press Release
CINCINNATI – Susan M. Ruhe, 53, of Cincinnati, pleaded guilty in U.S. District Court to one count of bank fraud. Ruhe defrauded her former employer, Procter & Gamble, of more than $454,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason A. Hayden, Acting Special Agent in Charge, U.S. Secret Service announced the plea entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Ruhe was employed by Procter & Gamble, the multinational consumer goods company headquartered in Cincinnati, from July 1989 through June 2013. Her last job title was Executive Assistant in the Global Beauty Care Business Development Group. In that capacity, her primary job duties were executive travel planning, expense reporting, calendar management and the scheduling of team meetings and events.
From November 2007 through the end of her employment, Ruhe defrauded the company by requesting that the payment department issue corporate checks to be used to pay for expenses that Procter & Gamble had incurred in the ordinary course of business. In reality, she used the corporate checks to make payments on her personal credit card accounts. Both credit accounts were through Citibank. Ruhe also defrauded Procter & Gamble by using her corporate credit card to pay for more than $13,000 of her personal expenses.
To conceal her scheme, Ruhe used the email of an executive without consent to approve her requests for corporate checks. She would then designate an unwitting third party from whom she would retrieve the checks in accordance with company policy. In total, she obtained 40 fraudulent corporate checks through this scheme.
As part of the plea agreement, Ruhe has agreed to pay more than $454,000 in restitution to Procter & Gamble.
Bank fraud is punishable by up to 30 years in prison and/or a fine of up to $1 million.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.
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Former Oak Harbor Police Officer Sentenced to 42 Months in Prison for Possession of Child PornographyRead the Press Release
A former Oak Harbor Police Officer was sentenced today in U.S. District Court in Seattle to 42 months in prison and 10 years of supervised release for possession of child pornography, announced U.S. Attorney Annette L. Hayes. JOHN LITTLE, 55, pleaded guilty in March 2017. LITTLE came to the attention of law enforcement in the summer of 2016, when he was identified as someone who had exchanged sexually explicit messages with a 13-year-old girl in New Mexico. When confronted by FBI agents, LITTLE admitted using the Kik internet messaging app to engage in sexually explicit chats and image/video exchanges with several minors. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez ordered LITTLE to register as a sex offender and said, “the possession of child pornography creates and maintains the market for the sexual exploitation of children.”
“Not only did this defendant betray the trust the community placed in him as a police officer, but the fact that he once served as a school resource officer makes his crimes all the more troubling,” said U.S. Attorney Annette L. Hayes. “Our children deserve better. The lengthy sentence imposed today will ensure this defendant can no longer victimize the most vulnerable in our communities.”
According to records filed in the case, after law enforcement identified LITTLE as the person engaged in the sexually explicit chats with the New Mexico teen, agents served a search warrant on LITTLE’s home. A forensic examination of LITTLE’s phone revealed a number of sexually explicit chats and picture/video exchanges between LITTLE and minors. Law enforcement also identified several dozen videos of child pornography stored on his phone.
LITTLE served for more than 27 years as an Oak Harbor Police Officer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Former Larue County Sheriff Guilty of Embezzling Funds and Using His Public Office for Personal GainRead the Press Release
Agreed to pay $36,239 in restitution
BOWLING GREEN, – a former Larue County Sheriff pleaded guilty in United States District Court today before United States District Judge David J. Hale, to a felony information charging him with a single count of embezzling money, that was under his care and custody, and belonged to Larue County, announced United States Attorney John E. Kuhn, Jr.
“When any elected official uses public office for self-enrichment, we are all harmed,” said U.S. Attorney John Kuhn. “But when that elected official is a law enforcement officer, the theft is doubly shameful. Shoffner’s actions erode our faith in those honorable men and women of law enforcement who take their oath to uphold and enforce the law as a solemn and inviolate obligation. Thankfully, his greed and selfishness make him a rare outlier in the ranks of the valiant and dedicated law enforcement personnel who serve all throughout Kentucky.”
Bobby Carlton Shoffner, 58, of Hodgenville, Kentucky was the Larue Count Sheriff in 2011 and 2012 and during that time was responsible for collecting and remitting franchise tax payments and property tax payments. Shoffner admitted in court today, that between November 2011 and April 2012, he embezzled $21,901 in property tax receipts.
Shoffner was also responsible for collecting penalties on payments. Between 2011 and 2012 Shoffner accepted $1,138 in penalty payments from citizens of Larue County, but waived those payments in the County computer system, and kept the payments for his own personal use.
As Sheriff, Shoffner was provided a credit card for official business use. Through 2012, Shoffner used the credit card to pay for $3,200 in personal expenses, including expenses for DirectTV, golf shoes, and Abercrombie & Fitch.
In 2011, Shoffner hired a relative to work in the Sheriff’s Office. Although a previous employee was paid $12/hour part-time, Shoffner’s relative was paid over $30,000 per year to do the same job full-time. That relative did not work full time, and often was not in the office, resulting in a loss of $10,000. After Shoffner’s relative left employment with the Sheriff’s Office, a new part-time employee was hired at $12/hour.
If convicted at trial, Shoffner could be sentenced to no more than five years in prison, pay a $250,000 fine, and be sentenced to serve a three-year period of supervised release. In court today, Shoffner agreed to pay $36,239 in restitution to LaRue County, Kentucky and pay a $1,000 fine at the time of sentencing. Sentencing is scheduled before Judge Hale on September 21, 2017 at 10am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and the Public Integrity Unit of the Office of the Kentucky Attorney General.
shoffner_plea_agreement_6-22-17.pdfFormer Labor Organizer Pleads Guilty to Taking Money from Businesses He Was Attempting to OrganizeRead the Press Release
OAKLAND – Daniel J. Rush pleaded guilty in federal court today to three felony counts: receiving an illegal payment as a union employee; honest services fraud; and conspiracy to commit structuring and money laundering, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Haywood S. Gilliam Jr., U.S. District Judge.
In pleading guilty, Rush, 56, of Crescent City, Calif. (formerly of Oakland, Calif.), admitted that between 2011 and 2015 he was employed by the United Food and Commercial Workers International (UFCW International) as the Organizing Coordinator for the unofficial medical cannabis and hemp division. Rush had fiduciary duties to the UFCW International, and the UFCW International constitution prohibited him from accepting dual compensation or expenses related to the performance of his duties. Notwithstanding these fiduciary duties, in today’s plea agreement, Rush admitted he violated the Taft-Hartley Act when he accepted compensation from employees in, or potentially in, a labor organization. Rush also admitted he committed honest services wire fraud with the intent to deprive the UFCW of its right to his honest services and he conspired with attorney Marc TerBeek, 50, of Berkeley, Calif., to launder money and to evade reporting requirements in an effort to conceal the source of the money. TerBeek pleaded guilty in February 2017 to making illegal payments to Rush in violation of the Taft-Hartley Act and to violating anti-structuring regulations.
According to Rush’s plea agreement, in January 2010, a marijuana entrepreneur loaned Rush $500,000 in cash, ostensibly to be used to develop pieces of real property under Rush’s control. Rush promised to pay the entrepreneur $3,000 in interest per month for 5 years and then pay the balance in a lump sum in January 2015. Rush knew that the money he borrowed had been earned in connection with illegal marijuana cultivation activities and that therefore the money was the proceeds of unlawful activity. Rush acknowledged that he and TerBeek conspired to structure the loan proceeds into the banking system and they further agreed to falsely characterize the $3,000 per month payments as consulting fees.
In January and February 2010, TerBeek made a series of deposits of less than $10,000 at Wells Fargo and Bank of America branches. Once TerBeek had deposited sufficient funds, he paid off a $420,000 note on a property owned by Rush.
TerBeek also began making the $3,000 monthly payments to the marijuana entrepreneur on Rush’s behalf. In exchange for these payments and other compensation from TerBeek, Rush referred medical marijuana employers to TerBeek. Terbeek provided assist to the employers regarding compliance and licensing. The clients included owners of businesses in the marijuana industry that Rush was purporting to attempt to organize for the UFCW. Rush did not disclose to the clients or the UFCW that he was receiving significant sums of money from TerBeek. This kickback scheme violated Rush’s duty to provide his honest services to the UFCW.
By 2014, the individual who loaned money to Rush in 2010 was an employer in the medical marijuana industry that Rush was trying to unionize. Rush used his position in the UFCW to make official recommendations to government entities for the individual’s marijuana business and accepted at least $250,000 of debt forgiveness from the individual.
The FBI’s investigation began with a tip from a medical marijuana dispensary owner regarding Rush’s activities.
A federal grand jury indicted Rush on September 17, 2015. He was charged with 15 felony counts, including one Taft-Hartley violation under 29 U.S.C. § 186(b)(1); ten counts of honest services fraud, in violation of 18 U.S.C. §§ 1341, 1343, and 1346; attempted extortion under color of law, in violation of 18 U.S.C. § 1951; conspiracy, in violation of 18 U.S.C. § 371; and money laundering by concealment, in violation of 18 U.S.C. § 1956(a)(1)(B)(ii). Under the plea agreement, Rush pleaded guilty to the Taft-Hartley violation, one count of honest services fraud, and one count of conspiracy to commit structuring and money laundering.
For his part in the scheme, on February 15, 2017, TerBeek was charged by information with one count of making a payment to a union employee, in violation of 29 U.S.C. § 186(a), and one count of willful violation of anti-structuring regulations, in violation of 12 U.S.C. § 1956. He pleaded guilty to both counts on February 16, 2017. TerBeek is scheduled to be sentenced by Judge Gilliam on August 21, 2017.
Rush is currently on release on a $100,000 bond. Judge Gilliam scheduled his sentencing hearing for October 2, 2017. The maximum statutory penalty for the Taft-Hartley violation is 5 years’ imprisonment and a $15,000 fine; the maximum statutory penalty for the honest services fraud count is 20 years’ imprisonment and a $250,000 fine; and the maximum statutory penalty for the conspiracy is 5 years’ imprisonment and a $250,000 fine. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the FBI and the Internal Revenue Service-Criminal Investigation Division.
Former Hoboken, New Jersey, City Council President Found Guilty After Trial for His Participation in A $7 Million Dollar Car Loan SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found former Hoboken, New Jersey, City Council President and attorney CHRISTOPHER CAMPOS guilty of bank and wire fraud and conspiracy to commit bank and wire fraud. CAMPOS and his co-conspirators fraudulently obtained millions of dollars in car loans by using at least 20 straw buyers to acquire more than 200 new automobiles based on false representations that, among other things, the straw buyers would use the cars for their personal use when, in truth and in fact, CAMPOS and his co-conspirators obtained the vehicles in order to lease as livery cabs. The week-long trial took place before U.S. District Judge Valerie E. Caproni, who is scheduled to sentence CAMPOS on September 20, 2017.
CAMPOS’s co-defendant, Julio Alvarez, pled guilty to bank and wire fraud and conspiracy to commit bank and wire fraud on June 9, 2017. Alvarez is scheduled to be sentenced on September 8, 2017, before Judge Caproni.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As a unanimous jury found, Christopher Campos, an attorney and former Hoboken City Council President, defrauded lenders out of millions of dollars. He recruited straw buyers to obtain loans for cars supposedly for ‘personal use,’ when in fact they made up a fleet of over 200 vehicles Campos and his co-conspirators leased to livery drivers. Campos now awaits sentencing for this massive fraud.”
According to the allegations contained in the Complaint, Indictment, and the evidence presented in Court during the trial:
Between approximately October 2012 and September 2013, CAMPOS and Alvarez, among others, orchestrated a scheme to fraudulently obtain new automobiles that they intended to lease to livery cab drivers. In order to secure financing in connection with the purchase of these new cars, CAMPOS and other co-conspirators enlisted and aided individuals with good credit histories (“straw buyers”) to submit fraudulent car loan applications to numerous lenders. In order to obtain the new vehicles, CAMPOS and other co-conspirators sent straw buyers to several car dealerships located throughout the New York City area, where dealership employees helped straw buyers submit fraudulent loan applications.
The auto loan applications submitted by the straw buyers falsely represented that the vehicles would be used for the buyers’ personal use, rather than as part of the defendants’ leasing business. In addition, in many cases, the car loan applications misrepresented personal information about the straw buyers, including their incomes and assets. CAMPOS also caused financing applications to be sent to multiple financial institutions at the same time so that the lenders would not know that the straw buyers were incurring obligations to other lenders in connection with the purchase of multiple new automobiles.
In total, the scheme carried out by CAMPOS, Alvarez, and others involved at least approximately 20 straw buyers, the purchase of more than approximately 200 new vehicles, and more than $7 million in fraudulently obtained loans from a variety of financial institutions. Most of the loans ultimately went into default.
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CAMPOS, 40, of Palisades Park, New Jersey, was convicted of conspiracy to commit bank and wire fraud, bank fraud, and wire fraud. The conspiracy and bank fraud charges each carry a maximum sentence of 30 years in prison and the wire fraud charge carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI. Mr. Kim also thanked the National Insurance Crime Bureau, the New York Automobile Insurance Plan, and the New York State Department of Motor Vehicles for their substantial assistance in the investigation and trial.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Dina McLeod, Sagar K. Ravi, and Niketh Velamoor are in charge of the prosecution.
Former Energy Company Executive Sentenced in Embezzlement SchemeRead the Press Release
HOUSTON – The former CEO of Chase Power Development has been ordered to federal prison following his guilty plea to conspiracy to commit mail and wire fraud, announced Acting U.S. Attorney Abe Martinez. John David Upchurch, 54, of Spring, pleaded guilty Jan. 6, 2017.
Today, U.S. District Judge Sim Lake handed Upchurch a 24-month sentence to be immediately followed by two years of supervised release. He previously paid restitution in the amount of $1.5 million.
Houston-based Quintana Capital Group created Chase Power in order to head start an energy project in Corpus Christi. In July 2008, Upchurch was hired as CEO.
From about June 2008 to about June 2012, Upchurch embezzled a significant amount of money from Chase Power. Throughout his employment with Chase Power, he submitted false invoices for fake projects in order to receive company funds for personal expenses, such as personal travel, hotels, country club memberships, personal car restoration, fishing equipment and a hunting trip. He either mailed the company checks upon issuance or personally took the checks to the merchants.
In addition, Upchurch used his company American Express credit card for his own personal purchases. He would segregate illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
Upchurch was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Fishers tax preparer sentenced in fraud schemeRead the Press Release
Preyed on the financially disadvantaged and filed over 2300 fraudulent returns
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that a tax preparation business owner was sentenced in federal court for his role in directing the filing over 2300 false tax returns. David R. Franklin, 44, previously pleaded guilty to three counts of making and filing false tax reports and was sentenced to 48 months (four years) imprisonment by U.S. District Judge Tanya Walton Pratt.
“Mr. Franklin did not steal from an agency in Washington, he stole from his fellow citizen,” said Minkler. “Judge Pratt’s sentence demonstrates the seriousness of his offense.”
Franklin owned and operated 27 Instant Tax Service (ITS) tax preparation stores in the Indianapolis area employing and training over 50 preparers. On August 8, 2013, United States District Judge Sarah Evans Barker granted a permanent civil injunction against Franklin and ITS. This action ordered Franklin and ITS from directly or indirectly preparing, filing or assisting in the preparation or filing of any federal tax return.
The Internal Revenue Service-Criminal Investigation initiated an investigation of Franklin that revealed Franklin trained and directed his employee return preparers regarding the preparation of federal income tax returns. Specifically, Franklin counseled and advised his employees to prepare false and fraudulent federal income tax returns for multiple clients from 2010 through 2012.
As a specific means of generating false returns, Franklin directed his employees to prepare Form 1040 Schedule C forms reporting inflated business income or losses, which then resulted in unauthorized earned income credits and refunds for taxpayer clients of ITS.
As a result of these efforts by Franklin, more than 2,300 false federal income tax returns were filed by ITS between 2010 and 2012, which resulted in a loss to the Internal Revenue Service and the American public of $1,501,000.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation, said, “Dishonest tax return preparers should take notice that your activities do not go unnoticed. IRS Criminal Investigation is focused on protecting taxpayers by exposing unscrupulous tax return preparers through criminal prosecution and today’s sentencing is another example of these efforts.”
Assistant United States Attorney James M. Warden, who prosecuted this case for the government said, Franklin must make restitution of $1,501,000 and serve three years of supervised release after his sentence.
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Final Defendant Sentenced to 39 Months in Prison for Participating in Large Stolen Property Fraud RingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that this morning, in federal court in Benton, Illinois, Angel Speed, 26, of Columbus, MS, was sentenced to 39 months in federal prison for crimes arising from his participation in a large stolen property fraud ring. The stolen property ring operated in the Metro East and numerous other locations.
Co-defendant Jason J. Parmeley, 43, formerly of O’Fallon, MO, was the leader and organizer of the stolen property ring that victimized numerous retailers and equipment rental stores throughout the United States. At his plea hearing, Parmeley admitted that he used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. Parmeley further admitted that, after he placed the orders, he dispatched drivers to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were wire transferred to Parmeley in Mexico. The losses caused by this stolen property ring exceeded $4,000,000.
Parmeley lived in Mexico and controlled the fraud ring from that country. In late August of 2015, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley has been held in federal custody since that time.
At the sentencing hearing this morning, United States District Judge Staci M. Yandle found that Speed functioned as Parmeley’s "second lieutenant" while he operated the scheme in Mexico. Specifically, Judge Yandle found that Speed hacked into business’s accounts and obtained their financial information, laundered proceeds of the scheme, and helped to coordinate the activities of the conspiracy’s drivers. In addition to imposing the 39 month prison sentence, the judge also ordered Speed to pay restitution of $456,882.37 to the victims of the stolen property ring for the specific losses that could be identified.
Eight of the fifteen defendants in the case were sentenced to prison. On May 4, 2017, Parmeley received a total sentence of 14 years in prison. Parmeley was sentenced to 140 months for his role in organizing and leading the stolen property conspiracy. Parmeley received an additional 28 months for a bank fraud he committed in Alabama. On June 7, 2016, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, IL, was sentenced to 3 years in prison, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, was sentenced to 1 year in prison. Both of the brothers admitted to receiving large quantities of the stolen property. On October 4, 2016, Shannan M. Flora, 42, of O’Fallon, MO, and Rigoberto Gutierrez, 28, of Compton, CA, were both sentenced to 15 months in prison. Flora performed a wide variety of tasks for the conspiracy, including arranging sales of stolen goods. Gutierrez coordinated shipments of stolen goods in California. On October 12, 2016, Russell J. Witt, 34, of Mount Clemens, MI, was sentenced to 12 months in prison. Witt worked as a driver for the conspiracy for over a year. On December 13, 2016, Sean A. Shields, 48, of Ozark, MO, was also sentenced to 12 months in prison. Shields owned a store in Ozark, MO, and purchased large quantities of the stolen merchandise.
Seven other defendants in the stolen property case were sentenced to terms of probation. They are: Steven J. Belcher, 45, of St. Charles, MO; Nicholas A. Brockman, 20, of Wentzville, MO; Benedict G. Pellerito, 56, of Troy, MO; Bryce E. Atkinson, 22, of Lake Saint Louis, MO; Alice J. Hembree, 44, of Moscow Mills, MO; Tony G. Robertson, 45, of O’Fallon, MO; and Jessie S. Urias, 38, of Compton, CA. Belcher, Brockman, Pellerito, Atkinson, Robertson, and Urias all worked as drivers for the conspiracy. Hembree performed administrative and bookkeeping functions for the fraud ring.
The investigation of the stolen property ring was conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Federal and State Authorities in El Paso Arrest 14 Defendants on Federal Drug Trafficking/Money Laundering ChargesRead the Press Release
This week, federal and state authorities arrested 14 members of the Orrantia Drug Trafficking Organization, including ringleader Mario Armando Orrantia, on federal drug trafficking charges announced United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration.
Those arrested include:
Name Age Residence Mario Armando Orrantia (aka “Quezada”) 51 El Paso Carmen Alfredo Marquez-Castillo (aka “Viejo”, “Viejito”) 63 El Paso Angela Leon (aka “Menona”) 34 El Paso Humberto Aleman-Limas (aka “Paquetes”) 34 El Paso Eduardo Rubalcaba 42 El Paso Hugo Arturo Faudoa 51 El Paso Jerry Minsu Flowers 45 El Paso Pedro Jimenez 43 El Paso Erik Mendoza 34 El Paso Rosalina Gallegos 40 El Paso Bryan Ramirez-Guerrero 22 El Paso Joshua Angel Talamantes (aka “Pirata”) 27 El Paso Jerry Lewis 64 El Paso Jose Reyes Valdez (aka “Paco”, “Gordo”, “Gordito”) 39 Cincinnati, OHA federal grand jury indictment charges all of the defendants with the exception of Ramirez-Guerrero, and Gallegos with conspiracy to possess with intent to distribute cocaine. The indictment also charges Orrantia, Carmen Marquez-Castillo, Jimenez, Lewis and Talamantes with conspiracy to possess with intent to distribute marijuana. The indictment also charges Orrantia, Carmen Marquez-Castillo, Rubalcaba, Faudoa, Flowers, Valdez, and Mendoza with one substantive drug possession with intent to distribute charge. The indictment also charges Orrantia, Carmen Marquez-Castillo, and Leon with two counts; Valdez, Aleman-Limas, Rubalcaba, Faudoa, Flowers, Jimenez and Talamantes with one count of conspiracy to commit money laundering. The indictment also charges Ramirez-Guerrero with one count of bulk cash smuggling.
A separate, but related, indictment charges Talamantes and Gallegos with one count of conspiracy to possess with intent to distribute marijuana and one count of possession with intent to distribute marijuana.
Authorities allege that this organization, under the leadership of Orrantia, Carmen Marquez-Castillo and Valdez, was responsible for the smuggling into the El Paso area hundreds of kilograms of cocaine and marijuana. The narcotics would subsequently be transported to areas across the United States, including Ohio, South Carolina, and Colorado, for further distribution. Defendants would also collect, transport and launder cash proceeds derived from the sale of narcotics.
During this investigation, authorities seized approximately five kilograms of cocaine, 600 kilograms of marijuana, seven vehicles, and over $138,000 in U.S. currency attributed to the Orrantia DTO.
All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in El Paso next week. Upon conviction, all but Gallegos and Ramirez-Guerrero face between ten years and life in federal prison. Gallegos faces up to five years imprisonment upon conviction of the conspiracy charge and up to 20 years imprisonment upon conviction of the marijuana possession charge. Ramirez-Guerrero faces up to five years imprisonment on the bulk cash smuggling charge.
“This week, DEA and our federal, state and local law enforcement partners severely disrupted the Orrantia Drug Trafficking Organization operating here in El Paso,” stated Will R. Glaspy, Special Agent in Charge, El Paso Division. “This organization was disguising criminal activity in the form of legitimate business and threatening the safety of the communities in which we work and live. DEA, along with our law enforcement partners, remains committed to bringing to justice those who import and then distribute illegal drugs in our communities.”
These federal charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration with assistance from the United States Marshals Service and Homeland Security Investigations (HSI). The U.S Border Patrol, U.S. Customs and Border Protection Office of Field Operations (CBP-OFO), Federal Bureau of Investigation (FBI), El Paso Police Department, El Paso County Sheriff’s Office, Texas Department of Public Safety (DPS) , Texas Alcoholic Beverage Commission (TABC), and the Anthony Police Department assisted with local arrests.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Jury Convicts Columbia Man of 11 Federal ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that a federal jury in Columbia convicted Emanuel Cheeseboro, a/k/a “Mandoo”, age 35, of Columbia, South Carolina, of six (6) counts of possession with the intent to distribute crack cocaine and marijuana, a violation of 21 U.S.C. § 841(a)(1), two (2) counts of felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1), two (2) counts of possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c), and one (1) count of possession of marijuana, a violation 21 U.S.C. § 844(a). United States District Judge Joseph F. Anderson, Jr., of Columbia, presided over the three-day trial and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented during the trial established that after numerous citizen complaints, ATF and the Columbia Police Department began targeting drug dealers in the Martin Luther King Park area of Columbia. Law enforcement made multiple undercover purchases of crack cocaine from Cheeseboro in the spring of 2014. These purchases took place at different houses in the MLK Park area. In each case, Cheeseboro was captured on video selling crack cocaine. During one purchase, Cheeseboro bragged about and displayed a 9mm Taurus firearm with a laser sight that he kept during nighttime drug purchases.
Pursuant to a search warrant executed during the investigation on a house where Cheeseboro was present, police found crack cocaine, marijuana, and scales. Law enforcement was also able to locate a firearm sometime after the search warrant that they were able to link to Cheeseboro, a convicted felon.
On June 8, 2016, CPD officers detained Cheeseboro and a female who were both located in a vehicle at a residence in Columbia, known as “the Hole”. During their investigation and search of the car, officers found a Smith and Wesson .38 caliber pistol under the driver’s seat, a quantity of crack cocaine on the female driver and a quantity of marijuana in the trunk of the car. According to the female occupant, Cheeseboro asked her to hide the crack cocaine on her person and shoved the gun under her seat when the police arrived.
Ms. Drake stated that Cheeseboro faces a maximum penalty of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia Police Department. Assistant United States Attorneys William K. Witherspoon and Alyssa Leigh Richardson of the Columbia office prosecuted the case.
This case was prosecuted as part of Project CeaseFire, a joint federal, state and local law enforcement partnership, which aggressively prosecutes gun cases.
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Elkins home previously used as a drug house forfeited to the United StatesRead the Press Release
ELKINS, WEST VIRGINIA – The government has forfeited a house in Elkins, West Virginia, that was used to facilitate a clandestine methamphetamine operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
The forfeiture complaint filed by the government alleged that an investigation by the Mountain Region Drug and Violent Crimes Task Force revealed that the house, located at 451 Central Street, was determined to have been purchased with proceeds obtained from a large-scale methamphetamine operation, and was used by occupants of the house to sell narcotics.
A criminal investigation of the occupants of the house and others resulted in an indictment, unsealed in October 2016, that charged 20 individuals from Virginia and West Virginia with conspiring with one another to operate a methamphetamine distribution ring in the region. To date, 14 individuals have been sentenced to a combined 1,107 months incarceration for their participation in the methamphetamine distribution operation.The forfeiture demonstrates the United States’ intent to better the community by pursing actions to obtain property purchased and used by those trafficking in narcotics. The property will receive maintenance and repairs before being offered for public sale.
Assistant U.S. Attorney Danae DeMasi-Lemon filed the complaint and secured the forfeiture on behalf of the government.
U.S. District Judge John Preston Bailey presided.The related criminal prosecution was handled by Assistant U.S. Attorney Stephen D. Warner on behalf of the government and investigated by the Mountain Region Drug and Violent Crimes Task Force.
Dubuque Duo Charged with Maquoketa Bank RobberyRead the Press Release
Dante Rhodes, age 41, and Gregory Stapleton, age 31, both from Dubuque, Iowa, have been charged with two counts related to a March 2017 bank robbery. The charges are contained in an Indictment filed on June 21, 2017, in United States District Court in Cedar Rapids. Rhodes and Stapleton were initially charged in a Criminal Complaint filed in federal court on May 22, 2017.
The Indictment alleges that, on or about March 8, 2017, Rhodes and Stapleton robbed the Fidelity Bank and Trust in Maquoketa, Iowa, taking over $6,500.00 during the robbery. The Indictment also alleges that Rhodes and Stapleton conspired to rob the bank and that Stapleton went to the bank the day prior to the robbery to “case” the bank.
If convicted of both charges, Rhodes and Stapleton each face a possible maximum sentence of 25 years’ imprisonment, a $500,000 fine, $200 in special assessments, and 6 years of supervised release following any imprisonment. They may also be ordered to pay restitution.
Both Rhodes and Stapleton will appear for an arraignment on June 28, 2017 at 3:00 p.m. They are currently being held in custody without bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Federal Bureau of Investigation, the Maquoketa Police Department, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1022-LTS.
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Downingtown Man Charged with Illegal Reentry After DeportationRead the Press Release
Armando Martinez Nunez, of Downingtown, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 5, 2017, Martinez-Nunez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about June 9, 2016.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Homeland Security Investigations (“HSI”) and Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Katayoun M. Copeland.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Pleads Guilty to Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to participating in a stolen identity refund fraud scheme that filed fraudulent federal income tax returns claiming hundreds of thousands of dollars in refunds.
Junior Alberto Lopez, 32, a Dominican national residing in Dorchester, pleaded guilty to one count of false claims conspiracy, three counts of access device fraud, and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 18, 2017. Lopez was originally arrested in April 2015 and fled to the Dominican Republic shortly after his release on bail. Lopez was re-arrested there in December 2016 and extradited to the United States in March 2017.
Between May 2011 and February 2013, Lopez and his co-conspirators unlawfully obtained the names, addresses and dates of birth of more than 700 residents of Puerto Rico and elsewhere. They created and filed with the Internal Revenue Service (IRS) false income tax returns for the tax years 2010, 2011, and 2012, claiming refunds on behalf of those identity fraud victims. Lopez and his conspirators directed the IRS to issue tax refund checks and to deposit tax refunds onto prepaid debit cards, which were delivered to addresses in Boston and elsewhere that the conspiracy controlled. Lopez and his co-conspirators cashed and redistributed the checks and debit cards.
This case is part of Operation Point Break, a multi-agency federal law enforcement initiative aimed at combatting stolen identity refund fraud across the country.
The charges of fraud and conspiracy provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison, to be served consecutively to the other charges. Lopez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Department of Justice’s Office of International Affairs provided assistance in securing Lopez’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Weinreb’s Criminal Division is prosecuting the case.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with a federal immigration crime.
Manolo Sosa-Nieves, 45, was charged today with one count of illegal reentry after deportation. Sosa-Nieves was previously deported on Aug. 21, 2002. On April 14, 2017, Sosa-Nieves was arrested in Lawrence on unrelated state charges.
Sosa-Nieves faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Doctor and Two Others Charged in Manhattan Federal Court for Illegal Distribution of Oxycodone PillsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Scott J. Lampert, Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing of an indictment charging of DAVID TAYLOR, a state-licensed doctor, with writing medically unnecessary prescriptions for oxycodone over a five-year period. In addition to TAYLOR, VITO GALLICCHIO, and DANIEL GARCIA were arrested on charges that, from January 2012 through at least June 2017, they conspired with TAYLOR to distribute oxycodone. All three defendants are expected to be presented before U.S. Magistrate Judge James L. Cott later today. The case has been assigned to United States District Court Judge Andrew L. Carter, Jr.
Acting Manhattan U.S. Attorney Joon Kim said: “As the opioid epidemic wreaks havoc on too many of our communities, for years, Dr. David Taylor and his co-conspirators allegedly wrote prescriptions for and distributed medically unnecessary oxycodone. Doctors should be advancing the health of our citizens, not allegedly fueling the biggest health crisis facing the country, the opioid abuse epidemic. We are committed to holding accountable everyone involving in the illegal distribution of opioids, including allegedly corrupt doctors.”
DEA Special Agent-in-Charge James J. Hunt said: “It is alleged that millions of dollars’ worth of pain medication was diverted onto the streets of Staten Island, enabling addiction and overdoses on the borough. These arrests will impact Staten Island’s opioid market by shutting down an illicit pill distribution operation located at the heart of the borough, along Hylan Boulevard.”
NYPD Commissioner James P. O’Neill said: “As alleged, the defendants distributed Oxycodone for at least five years, at the expense of those addicted to these pain killers. The NYPD will aggressively pursue those who distribute illegal prescription drugs.”
According to the allegations in the Indictment unsealed today in federal court:[1]
From January 2012 through at least June 2017, in the Southern District of New York and elsewhere, DAVID TAYLOR, VITO GALLICCHIO, and DANIEL GARCIA, and others conspired to distribute and possess with the intent to distribute oxycodone.
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TAYLOR, 74, GALLICCHIO, 48, and GARCIA, 57, are charged with one count of conspiring to distribute and possess with intent to distribute oxycodone. This offense carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the DEA’s Tactical Diversion Squad (Group TDS-NY), which comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, and New York City Department of Investigation. He also acknowledged the assistance of HHS-OIG and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kiersten A. Fletcher and Dina Y. McLeod are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Dillon Man Sentenced on Firearm ChargesRead the Press Release
Florence, South Carolina---- United States Attorney Beth Drake stated today that Florwer Carlin Lizano, Jr., age 41, of Dillon, South Carolina, was sentenced today in federal court in Florence, South Carolina, for felon in possession of a firearm. United States District Judge R. Bryan Harwell of Florence sentenced Lizano to 48 months imprisonment and three-years’ supervised release.
Evidence presented at the guilty plea hearing established that On August 5, 2016, Florwer Carlin Lizano, Jr., was arrested by the Dillon Police Department after he was found asleep in a parked car with a loaded firearm in his belt. As a convicted felon, Lizano is prohibited from possessing firearms or ammunition. The firearm had been reported stolen out of Lumberton, N.C.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and by the Dillon Police Department. Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office prosecuted the case.
#####Detroit man sentenced to federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man who was part of a heroin trafficking ring was sentenced today to two and a half years in federal prison, announced United States Attorney Carol Casto. Darrell Eugene Woodside, 46, previously pleaded guilty to communicating by phone to facilitate the distribution of heroin.
Woodside admitted that from October 2015 through March 2016, while in Detroit, he communicated by telephone with his nephew, Daymeon Damar Johnson, who was residing in Seth in Boone County. Woodside additionally admitted that the purpose of these communications was to help arrange the delivery of heroin from Michigan to West Virginia for distribution. He also admitted making travel arrangements for runners carrying heroin and cash between Michigan and West Virginia.
This case is part of a long-term investigation of heroin trafficking in Boone County conducted by the West Virginia State Police and the U.S. Route 119 Drug and Violent Crime Task Force. The investigation has led to the convictions of several defendants. Daymeon Johnson, of Detroit, was sentenced to 14 years in federal prison for conspiracy to distribute heroin. Joyce Zornes, of Seth, was sentenced four years in federal prison for aiding and abetting the distribution of heroin. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Gregory Scott Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm.
The U.S. Route 119 Drug and Violent Crime Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence and is presiding over these cases.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Destin Man Pleads Guilty to Shipping Jewelry Stolen from Walton County BurglariesRead the Press Release
PENSACOLA, FLORIDA – Mark Joshua Mitchell, 39, of Destin, pled guilty today to seven counts of interstate transportation of stolen property. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On various dates in 2015 and 2016, victims contacted the Walton County Sheriff’s Office to report that their residence had been burglarized and that jewelry and other items had been stolen during the burglaries. The victims reported six different burglaries in Santa Rosa Beach, Panama City Beach, and Destin. The stolen items included multi-carat diamond engagement rings, a three-piece platinum wedding ring set, other jewelry, cash, and Mexican gold coins. Mitchell then shipped diamonds taken from the rings or the entire stolen item to Missouri and Louisiana.
On each of the seven counts, Mitchell faces a maximum of 10 years in prison. The sentencing hearing is scheduled for September 18, 2017, at 3:00 p.m. at the United States Courthouse in Pensacola.
The investigation in this case was led by the Walton County Sheriff’s Office. The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) provided assistance. This case is being prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Dennis Crawford Imprisoned for Financial Exploitation of WardRead the Press Release
The United States Attorney for the District of Vermont announced that Dennis Crawford, 48, who now lives in St. Johnsbury, was sentenced today in United States District Court in Rutland to 18 months of imprisonment following his guilty plea to a charge of wire fraud. U.S. District Judge Geoffrey Crawford also ordered that Crawford serve three years of supervised release following completion of his prison term and pay restitution of more than $77,000. The court ordered Crawford to surrender to the Bureau of Prisons on August 1 to begin serving his sentence.
Last December, a federal grand jury returned a three-count superseding indictment charging Crawford with wire fraud, mail fraud and credit card fraud. According to the indictment and other court records, in April 2015, Crawford was appointed power-of-attorney for his elderly step-father, who was suffering from Alzheimer’s Disease and other illnesses. Under the terms of the power-of-attorney, Crawford was permitted to make financial decisions on his step-father's behalf. After acquiring the power-of-attorney, Crawford placed his name on bank accounts his step-father held. According to court records, between June and August 2015, Crawford transferred approximately $150,000 from his step-father's bank accounts to accounts controlled only by Crawford. Crawford used much of this money to buy several vehicles for himself and family members, as well as furniture and other household items. Crawford also used other funds in his step-father’s accounts to pay Crawford’s bills, and used his step-father’s credit card to make personal purchases. In August 2015, the Vermont State Police learned Crawford may have been abusing his step-father and started an investigation. Crawford's power-of-attorney was revoked, and in November 2015, Crawford was charged in state court with financial exploitation of a vulnerable adult. The state charge was dismissed when the federal grand jury returned its indictment.
Although Crawford eventually repatriated $130,000 to his step-father’s accounts, the victim still suffered out-of-pocket losses totaling more than $77,000.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Crawford is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Crips Gang Member Sentenced to Eight Years for Racketeering Conspiracy in NebraskaRead the Press Release
Today, a violent member of the Omaha-area Crips Gang was sentenced to eight years in prison, and five years of supervised release, for participating in a racketeering conspiracy involving acts of violence including attempted murder and assaults and drug distribution, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Gregory Bahati, aka “Pooh Bear,” aka “Murk 2x,” 22, of Omaha, Nebraska, was sentenced by U.S. District Judge Joseph F. Bataillon after he pleaded guilty to one count of conspiracy to participate in racketeering activity, one count of threatening violence in aid of racketeering, and one count of brandishing a firearm during a crime of violence.
According to the plea agreement, Bahati admitted to conspiring to conduct and participate in the affairs of the Omaha-area chapter of the Crips, known as the “40th Avenue Crips” and “44th Avenue Crips,” through a pattern of racketeering activity. As part of the plea agreement, Bahati admitted to personally committing acts of violence and distributing cocaine for the gang in furtherance of the racketeering conspiracy. According to the plea, these acts of violence included the assault of an individual for making statements disrespecting the gang and threatening violence with a gun toward another victim.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Crips Gang Member Sentenced to Eight Years for Racketeering Conspiracy in NebraskaRead the Press Release
WASHINGTON – Today, a violent member of the Omaha-area Crips Gang was sentenced to eight years in prison and five years of supervised release for participating in a racketeering conspiracy involving acts of violence including attempted murder and assaults and drug distribution, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Gregory Bahati, aka “Pooh Bear,” aka “Murk 2x,” 22, of Omaha, Nebraska, was sentenced by U.S. District Judge Joseph F. Bataillon after he pleaded guilty to one count of conspiracy to participate in racketeering activity, one count of threatening violence in aid of racketeering, and one count of brandishing a firearm during a crime of violence.
According to the plea agreement, Bahati admitted to conspiring to conduct and participate in the affairs of the Omaha-area chapter of the Crips, known as the “40th Avenue Crips” and “44th Avenue Crips,” through a pattern of racketeering activity. As part of the plea agreement, Bahati admitted to personally committing acts of violence and distributing cocaine for the gang in furtherance of the racketeering conspiracy. According to the plea, these acts of violence included the assault of an individual for making statements disrespecting the gang and threatening violence with a gun toward another victim.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Concord Man Sentenced to Five Years in Prison for Bank RobberyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Leeland Eisenberg, of Concord, New Hampshire, was sentenced to five years in federal prison for bank robbery and separately sentenced to five years of probation for possessing cocaine.
Court filings and statements made in court established that Eisenberg robbed the Citizen’s Bank located at 875 Elm Street in Manchester, New Hampshire on August 2, 2016 at approximately noon. Eisenberg walked into the bank, approached the teller station and handed a teller a robbery note that stated “No alarms. No dye packs. I have a gun and I will shoot you and others if you put a dye pack in. Fill the bag with cash now.”
A witness in the vicinity of the bank identified the robber as Eisenberg. The witness had known Eisenberg in the past and recognized Eisenberg as he left the bank. An image of the robber taken by the bank’s security system was distributed to law enforcement. Law enforcement officers familiar with Eisenberg also identified the robber as Eisenberg after reviewing the images.
Eisenberg was arrested by two Manchester officers in the area of the Pine Street Cemetery at 6:42 p.m. on August 2, 2016. At the time of his arrest, Eisenberg had a small quantity cocaine in his possession.
Eisenberg pleaded guilty to bank robbery and drug possession charges. After serving his prison sentence for bank robbery, he will be on supervised release for a period of three years. He also will be on probation for five years as a result of the drug possession conviction.
Eisenberg was sentenced on the bank robbery charge on June 16, 2017. He was sentenced on the drug possession charge on June 21, 2017.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Donald Feith.
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Columbia Man Charged with Attempting to Solicit a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in federal court today with attempting to entice a minor, who was actually an undercover law enforcement officer, for illicit sexual activity.
Darren Wade Lasley, 27, of Columbia, was charged in a federal criminal complaint filed in the U.S. District Court in Jefferson City, Mo.
Today’s complaint alleges that Lasley attempted to entice a minor to engage in illicit sexual activity.
According to an affidavit filed in support of the complaint, Lasley responded to an online advertisement that was part of an undercover law enforcement investigation to seek out potential sexual predators. Lasley allegedly began sending e-mails to the decoy, who advised him that she was 14 years old.
Over the course of the next several days, the affidavit says, Lasley described his plans for a sexual encounter with the decoy through a series of e-mails. Lasley allegedly proposed visiting the decoy’s residence while her mother was at work or out of town.
On Wednesday, June 21, 2017, Lasley asked the decoy if she could sneak out of her house to meet him for a sexual rendezvous. When Lasley arrived at the meeting location in Columbia he was arrested.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI and the Boone County Sheriff’s Department Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Chicago Businessman Arraigned on Fraud Charges in Connection with $7 Million Reverse Mortgage Scheme That Targeted Elderly HomeownersRead the Press Release
CHICAGO — A Chicago businessman has been arraigned on federal fraud charges for his alleged role in a scheme to bilk elderly homeowners out of millions of dollars.
MARK STEVEN DIAMOND, a mortgage loan originator with offices in Chicago and Calumet City, engaged in a home repair and loan fraud scheme that targeted elderly homeowners and lenders, according to the indictment. Diamond fraudulently caused lenders to make reverse-mortgage loans to homeowners who either did not sign up for the loans or did so unwittingly after Diamond intentionally misrepresented the terms, the indictment states. Diamond fraudulently pocketed the loan checks by causing title company representatives, including an unindicted co-schemer, to provide the checks to Diamond rather than the homeowners. The indictment seeks forfeiture of $7 million from Diamond.
Diamond, 60, of Chicago, pleaded not guilty at his arraignment Wednesday to seven counts of wire fraud. U.S. District Judge Robert M. Dow Jr. scheduled a status hearing for Aug. 28, 2017, at 9:00 a.m.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
According to the indictment, Diamond targeted his victims, who ranged in age from 62 to 97, based on the equity in their homes and their relative lack of financial sophistication. If a victim’s relative questioned Diamond on the need for a reverse mortgage, Diamond would schedule a time to visit the victim’s home when he knew the relative would not be there, the indictment states.
Also charged in the indictment is CYNTHIA WALLACE, 47, of Chicago. Wallace solicited homeowners to have home repairs performed by Diamond, knowing that Diamond would not actually perform the work, the indictment states. Wallace, who used the aliases “Shree Box,” “Regina Johnson,” and “Sherry Rice,” also posed as a representative of the U.S. Department of Housing and Urban Development to fraudulently obtain money from victims, the indictment states.
Wallace has pleaded not guilty to nine counts of wire fraud and two counts of falsely pretending to be an employee of the United States.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Brian Netols and Matthew Ebert.
Charleston man sentenced to over 20 years in federal prison for gun and drug crimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man who violated his federal supervised release by committing gun and drug crimes was sentenced to prison today, announced United States Attorney Carol Casto. Marcus W. Taylor, 39, previously pleaded guilty to possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime. In today’s hearing, he was sentenced to 20 years and eight months in federal prison and fined $20,000 for those offenses. As part of the sentence, the United States sought the forfeiture of assets or proceeds resulting from the distribution of controlled substances and the Court entered a $300,000 judgment against Taylor. Taylor was also sentenced to an additional two years in prison for violating his federal supervised release. The sentences will be served consecutively.
On September 2, 2016, law enforcement executed search warrants on two residences maintained by Taylor and a car he possessed. During the execution of the search warrants, officers found over 20 pounds of controlled substances, which included over 14 pounds of crystal methamphetamine that a drug laboratory determined to be more than 95% pure, over a kilogram of cocaine, approximately 828 grams of crack, 800 grams of heroin, over $65,000 in cash, multiple firearms, digital scales, and other items often used in the distribution or trafficking of illegal narcotics. The controlled substances seized during the execution of the search warrants had an approximate street value in excess of two million dollars.
The case against Taylor was investigated by the Metropolitan Drug Enforcement Network Team and Homeland Security Investigations. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case was also brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Charleston gun and drug dealer sentenced to federal prison for illegally possessing firearmsRead the Press Release
CHARLESTON, W.Va. – A Charleston felon who illegally possessed guns while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Damian Means, 29, previously pleaded guilty to being a felon in possession of a firearm. In today’s hearing, he was sentenced to four years and three months in federal prison for that offense. Means was also sentenced to an additional one year in prison for violating his federal supervised release. The sentences will be served consecutively.
Means admitted that on August 23, 2016, he sold heroin to a confidential informant working with law enforcement. Means also admitted that on September 13, 2016, he sold two loaded Hi-Point .40 caliber semiautomatic pistols and one Hi-Point 9mm Carbine semiautomatic rifle to an undercover police officer. Means further admitted that during the gun deal, he accidentally discharged one of the firearms. The undercover officer making the controlled firearms purchase also observed Means selling methamphetamine to another individual.
On September 15, 2016, law enforcement executed a search warrant on Means’ residence. During the search, officers discovered an H&R .32 caliber semiautomatic pistol. In a statement to law enforcement, Means admitted to selling guns and drugs. Means was prohibited under federal law from possessing any firearm because of a 2012 conviction in the United States District Court for the Southern District of West Virginia for distribution of crack.
The case against Means was investigated by the Sheriff’s Tactical Operations Patrol (STOP Team) of the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Central Falls Woman Pleads Guilty to Trafficking CocaineRead the Press Release
PROVIDENCE – Jeanlee Figueroa, 21, of Central Falls, pleaded guilty in federal court in Providence today to charges relating to her participation in a conspiracy to traffic between 3.5 and 5 kilograms of cocaine.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Figueroa pleaded guilty to one count each of conspiracy to possess more than 1 kilogram of cocaine with the intent to distribute and possession of in excess of 1 kilogram of cocaine with the intent to distribute.
Figueroa’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to court documents and information presented to the court, in July 2016, Figueroa learned of a drug operation in the greater Providence area that was receiving packages of cocaine shipped from Puerto Rico. She was aware that individuals who allowed their addresses to be used to receive the packages were paid cash for receiving the packages and turning them over to the drug operation.
At the time of her guilty plea, Figueroa admitted to the court that she contacted an individual and provided her address. Thereafter, Figueroa began to receive packages delivered through the U.S. mail addressed to fictitious persons at her home address. Wanting to increase her earnings, Figueroa opened a post office box at the Pawtucket post office with the express intention of receiving additional packages of cocaine.
According to court documents, Figueroa received 17 packages, each containing approximately 300 grams of cocaine. Eight were received at her residence and 9 were received at her Pawtucket post office box. Figueroa received and delivered between 3.5 and 5 kilograms of cocaine.
Jeanlee Figueroa, who is currently released on unsecured bond, is scheduled to be sentenced on September 19, 2017. Conspiracy to possess more than 1 kilogram of cocaine with the intent to distribute and possession of in excess of 1 kilogram of cocaine with the intent to distribute is punishable by statutory penalties of 40 years imprisonment, with a mandatory minimum 5 years imprisonment, and a term of supervised release of 4 years to life.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Rhode Island State Police High Intensity Drug Trafficking Area Task Force and U .S. Postal Inspection Service.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Newport and Cranston Police Departments, and the DEA for their assistance in the investigation of this matter.
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Cedar Rapids Man Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
A man who received child pornography was sentenced June 20, 2017 to 15 years in federal prison.
Donald Etheredge, age 51, from Cedar Rapids, Iowa, received the sentence after a March 8, 2017 guilty plea to one count of receipt of child pornography. At the plea hearing, Etheredge admitted that, between 2013 and 2015, he knowingly received child pornography. He also admitted that he was convicted of shipment and transportation of child pornography in the Northern District of Iowa in 2004.
Etheredge was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Etheredge was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed, and Etheredge must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-2.
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Buffalo Man Sentenced in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Coleman, 47, of Buffalo, who was convicted of conspiracy to possess with intent to distribute more than 100 grams of heroin, was sentenced to 78 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that Coleman was the courier of a heroin distribution conspiracy, which brought heroin to Buffalo from New York City. The defendant was stopped on February 26, 2014, and found in possession of more than $65,000 in cash, which was payment for the delivery of heroin.
Also, on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue in Buffalo. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash.
Coleman was arrested along with four other defendants. All five defendants have been convicted and sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Bronx Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that SADDAM MOHAMED RAISHANI, a/k/a “Adam Raishani,” was arrested last night at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. RAISHANI was charged by a criminal Complaint earlier today with attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS” or the “Islamic State”), a designated foreign terrorist organization. RAISHANI is expected to be presented later today before Magistrate Judge James L. Cott in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Saddam Mohamed Raishani, a Bronx man, plotted to travel to Syria to join and train with the terrorist organization ISIS. Having already helped another man make that trip to ISIS’s heartland, Raishani allegedly acted on his own desire to wage violent jihad, planning to leave his family and life in New York City for the battlefields of the Middle East. Thanks to the excellent work of the FBI and NYPD, Raishani’s alleged plan to support this deadly terrorist organization was cut short at the airport and now he will face federal terrorism charges.”
Acting Assistant Attorney General Dana Boente said: “According to the complaint, Raishani attempted to travel overseas to join ISIS and to provide material support to the designated terrorist organization. The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “This case is another alleged instance of the nature of the terrorism threat and its reach into communities here at home. It is also a great example of the coordination which exists among local and federal law enforcement partners who work together to stop these alleged threats and interdict individuals allegedly determined on joining a terrorist organization intent on conducting violence around the globe. The FBI’s JTTF will continue to work with our partners, both here and abroad, to prevent acts of terrorism.”
NYPD Commissioner James P. O’Neill said: “As we have seen many times before, allegedly attempting to join a designated terrorist organization usually has one outcome: arrest. Thank you to the NYPD detectives and FBI agents who, through the original Joint Terrorism Task Force, remain relentless in their focus to keep New York City safe.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In January 2017, RAISHANI contacted an individual who was, unbeknownst to RAISHANI, a confidential source working at the direction of law enforcement (the “CS”) During a meeting with the CS, RAISHANI told the CS that RAISHANI had a friend (“Person-1”), who had left New York to join the Islamic State some time ago.[2] RAISHANI told the CS that prior to Person-1’s departure, RAISHANI took Person-1 shopping to buy supplies to bring to the Islamic State, and that on the day of Person-1’s departure, RAISHANI gave money to Person-1 and drove Person-1 to JFK Airport. In later meetings with the CS, RAISHANI expressed his regret at not having traveled with Person-1 to join ISIS. RAISHANI also indicated his desire to wage jihad and his belief that the Quran can be read to justify the violence, including beheadings, engaged in by ISIS.
As part of the investigation, the CS introduced RAISHANI to an undercover law enforcement officer (“UC-1”), who was posing as an individual who wanted to travel abroad to fight for ISIS. During meetings with the CS and UC-1, RAISHANI expressed his desire to travel abroad to join ISIS. For example, RAISHANI indicated that he had been in contact with other ISIS supporters and no longer felt comfortable in the United States. He also showed UC-1 a video that appeared to depict ISIS supporters discussing their desire to travel overseas to join ISIS and its ongoing fight. RAISHANI further showed the CS and UC-1 an ISIS video that appeared to depict ISIS members in Yemen killing civilians who did not support ISIS.
In addition, RAISHANI advised the CS and UC-1 as to how they could avoid detection by law enforcement. For example, RAISHANI advised the CS to cover the camera on the CS’s computer and turn off the computer’s microphone when watching pro-ISIS videos online. RAISHANI also advised the CS to use a particular Internet browser (the “Browser”) to hide their online activity, and explained that he used the Browser to watch ISIS and jihadi videos online. Furthermore, RAISHANI himself put on gloves when using a laptop and viewing pro-ISIS and pro-jihadi videos online. Moreover, RAISHANI conveyed to UC-1 that if they traveled together to join ISIS, RAISHANI, a home health aide, could pose as a nurse and UC-1 could pose as a refugee aid worker, in order to cross international borders without being stopped and questioned by authorities. Finally, RAISHANI told the CS and UC-1 that he (RAISHANI) had to be careful because he believed that federal authorities were monitoring his activities.
By April 2017, RAISHANI was actively planning to travel abroad to join ISIS. The CS told RAISHANI that, through a family acquaintance, the CS might be able to obtain contact information for an ISIS affiliate capable of facilitating travel to join ISIS. In reality, the purported facilitator was an FBI employee acting in an undercover capacity (“UC-2”). In May 2017, RAISHANI contacted UC-2 and indicated that he had previously helped another individual travel to join ISIS. RAISHANI further told UC-2 that he was seeking guidance for his own “hijrah,” an Arabic term normally used to refer to migration, but which is also used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. In subsequent conversations with the CS, UC-1, and/or UC-2, RAISHANI stated that he aspired to travel to Syria to join ISIS and that he aimed to travel before the end of Ramadan, an Islamic holy month that runs from approximately May 26 through June 24 this year. He indicated that he would be in contact with UC-2 about his travel. RAISHANI also stated that if he was arrested he will not care, because Allah would know that he tried.
In June 2017, RAISHANI told the CS that he was making preparations to leave, including paying off his remaining debts. Subsequently, RAISHANI and UC-1 purchased clothing that they intended to wear for their training with ISIS. Earlier this week, RAISHANI revealed to UC-2 his (RAISHANI’s) intention to meet an ISIS member in Turkey in the next few days, who would facilitate RAISHANI’s joining the terrorist organization in Syria. RAISHANI also purchased an airline ticket for a flight scheduled to depart on June 21, 2017, from JFK Airport to Istanbul, Turkey, via Lisbon, Portugal. On June 21, 2017, RAISHANI traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight to Lisbon.
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RAISHANI, 30, of the Bronx, is charged with one count of attempting to provide material support to a designated foreign terrorist organization, 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 a judge.
Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys George D. Turner, Sidhardha Kamaraju, and Jane Kim are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
17-186
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
[2] Communications and conversations discussed herein are described in substance and in part.
Brazilian National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was charged today in federal court in Boston with a federal immigration crime.
Adilson Marcos Barbosa, 38, was charged today with one count of illegal reentry into the United States. Barbosa was previously deported on Jan. 12, 2009. On June 7, 2017, Barbosa was arrested in Framingham on unrelated state charges.
Barbosa faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Binghamton Man Sentenced to 20 Years in Eddie Block Gang CaseRead the Press Release
BINGHAMTON, NEW YORK – Anthony Randolph, age 30, of Binghamton, New York, was sentenced today to 20 years in prison and 10 years of post-imprisonment supervised release for engaging in a drug trafficking conspiracy and possessing a firearm and ammunition as a felon.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Randolph admitted that between January 2014 and November 17, 2015, as part of an organization called the “Eddie Block Gang,” he and others conspired to and did acquire cocaine and cocaine base (crack) from a number of supply connections located in Broome County, New York, and also in the New York City area. He admitted that he packaged and stored crack at several locations and residences in Broome County, including his residence in Binghamton. He also admitted to selling crack.
Randolph also admitted that in November 2015, he possessed a Kahr Arms Model P40, .40 caliber pistol along with .40 caliber ammunition in his residence in Binghamton. He was prohibited from possessing the pistol and ammunition because he had two prior felony convictions, both for criminal sale of a controlled substance in Broome County.
This case was investigated by the FBI, Binghamton Police Department, New York State Police and Broome County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Bergen County, New Jersey, Man Sentenced to 46 Months in Prison for $1.5 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A Lyndhurst, New Jersey, man was sentenced today to 46 months in prison for fraudulently obtaining over $1.5 million from approximately 100 victims prior to high-profile initial public offerings (IPOs), Acting U.S. Attorney William E. Fitzpatrick announced.
Omar Hafez, 25, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him one count of wire fraud. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2014 through December 2015, Hafez operated an investment fraud scheme in which he and others created a number of entities, including Lotus Global. Several of these entities had websites and social media pages listing Hafez as the CEO and advertising themselves as successful wealth management companies.
In order to deceive victim investors, Hafez represented that he had access to shares of various companies prior to their initial public offerings and could use that access to provide significant profits to investors. However, bank records for accounts controlled by Hafez and certain Lotus Global entities revealed that none of the money provided by victim investors was used to purchase shares or invest in any of the pre-IPO companies.
Instead, Hafez used the funds for his own benefit, including several large purchases at luxury car dealerships, including an approximately $87,000 purchase at Prestige Motors, an approximately $24,160 purchase at Signature Car Collections, and an approximately $8,690 purchase at Dream Cars National LLC. In addition, Hafez purchased numerous luxury goods, including an approximately $17,250 purchase at Tourneau Inc., an approximately $5,613 purchase at Louis Vuitton, and an approximately $3,000 purchase at Tiffany & Co., as well as airplane tickets and hotel stays for a single trip to Chicago totaling approximately $10,000.
Hafez employed numerous strategies to maintain the victims’ confidence and induce further investments. For example, bank records showed that Hafez occasionally used money from earlier victim investors in order to pay future victims “lulling” payments. In classic Ponzi scheme fashion, Hafez lied to investors and told them that these payments were returns on their investments.
As funds began to run out and investors demanded their money with increasing frequency, Hafez provided certain victim investors with checks for thousands of dollars, claiming that they represented investment returns or a refund of initial investments. When victim investors attempted to deposit or cash these checks, the checks were rejected due to insufficient funds because Hafez and others had already spent the victims’ money.
In addition to the prison term, Judge Walls sentenced Hafez to three years of supervised release. Hafez must also pay restitution of $1.5 million.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Joseph D. Rotella Esq., Newark
Athens County Home Health Care Agency Owner Pleads Guilty to $2M in FraudRead the Press Release
COLUMBUS, Ohio – Cheryl McGrath, 49, of Guysville, Ohio, pleaded guilty today in U.S. District Court to health care fraud and willful failure to pay over tax.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Ohio Attorney General Mike DeWine announced the plea entered into before Chief U.S. District Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, McGrath owned and operated Home Health Care of Southeast Ohio in Guysville, Ohio since 1993.
From 2009 until 2015, McGrath executed a scheme to defraud the Ohio Medicaid Program by billing on behalf of Home Health Care of Southeast Ohio for home health nursing services that were never rendered. The defendant routinely changed the claim information in the billing software to falsely reflect that additional hours of nursing services had been provided and falsely increased the number of nursing visits from one visit per week to between three and five visits per week.
McGrath also submitted claims for nursing services of Medicaid patients who were ineligible because they were either residing in private nursing homes or deceased.
In total, her scheme included fraudulent claims in the amount of approximately $2.2 million.
From 2009 until 2013, McGrath maintained the books and records regarding payroll for the home health care business. During that time, she submitted Forms 941 to the IRS but did not pay over the federal employment taxes that were due, causing a loss of $366,825 to the IRS.
Health care fraud carries a potential maximum sentence of 10 years in prison and willful failure to pay over tax is punishable by a potential maximum of five years’ imprisonment.
As part of her plea agreement, McGrath has agreed to pay more than $2.2 million in restitution to the Ohio Medicaid Program and nearly $367,000 to the IRS.
“The conduct detailed in this case is egregious. These programs were designed to help the sick and infirm, and this defendant defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Business owners have a significant responsibility to collect and turn over all IRS withholding taxes. Employment tax fraud can also impact employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of their employers not complying with the law.”
“Billing for services not rendered, manipulating electronic claims information to falsify services provided, and billing for ineligible or deceased beneficiaries all adds up to health care fraud at taxpayer expense”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our Federal, State and local law enforcement partners to ensure that those who commit such crimes are held accountable.”
“This defendant took millions in taxpayer dollars by blatantly lying about the services her agency provided,” said Ohio Attorney General DeWine. “Health care fraud will not be overlooked in Ohio. My office works every day with our state, local, and federal partners to identify this type of fraudulent activity and ensure that those who unlawfully take taxpayer money are held responsible.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Department of Health and Human Services OIG, FBI and the Ohio Attorney General’s Office Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Jessica W. Knight and Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa Flaherty with Ohio Attorney General Mike DeWine’s Office, who are representing the United States in this case.
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All Nine Defendants Sentenced in DEA "Operation Bear Trap"Read the Press Release
Wilmington, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that all nine defendants prosecuted in “Operation Bear Trap” have been sentenced to prison. The sentences are the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the Drug Enforcement Administration’s (“DEA”) Drug Trafficking Task Force. The investigation involved wiretaps of five phones, and led to substantial cash, drug, and gun seizures including: more than $1,000,000; approximately 2.5 kilograms of cocaine; approximately one kilogram of crystal methamphetamine; and nine firearms.
The investigation uncovered two drug conspiracies involving overlapping participants. The methamphetamine supplier, Ariel Vergara-Sanchez, was sentenced to 12 years in prison in May 2016 after admitting that he obtained drugs from Mexico so that he and his associates could sell the drugs in the City of Wilmington, the greater New Castle County area, and southern Chester County, Pennsylvania. The cocaine supplier, Jamal Maddox, was sentenced yesterday to 10 years in prison after admitting that he trafficked 16 kilograms of cocaine, possessed four handguns, and stored $968,000 in drug proceeds in his home and at a local bank.
According to court documents, the defendants in this case received the following sentences:
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Ariel Vergara-Sanchez – 144 months of imprisonment followed by 5 years of supervised release;
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Jamal Maddox – 120 months of imprisonment followed by 5 years of supervised release;
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Richard Cephas – 66 months of imprisonment followed by 5 years of supervised release;
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Juan Rosas-Guadarrama – 57 months of imprisonment followed by 3 years of supervised release;
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Luis Bustos – 42 months of imprisonment followed by 3 years of supervised release;
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Juan Carlos Segura-Lorzo – 37 months of imprisonment followed by 3 years of supervised release;
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Sergio Flores-Lopez – 36 months of imprisonment followed by 3 years of supervised release;
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Leticia Beltran – 36 months of imprisonment followed by 3 years of supervised release; and
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Miguel Martinez – 12 months and one day followed by 2 years of supervised release.
Acting U.S. Attorney Weiss stated, “Operation Bear Trap resulted in the conviction and incarceration of nine drug traffickers who were infecting this community with substantial quantities of cocaine and methamphetamine. I applaud the work of all the federal, state, and local agencies who worked on this investigation and reiterate that this kind of result is a product of the New Castle County HIDTA partnership.”
DEA’s Drug Trafficking Task Force is part of the New Castle County HIDTA, a cooperative effort established in January 2015 among federal, state, and local law enforcement agencies. This Task Force consists of law enforcement officers from the Department of Homeland Security, Newark Police Department, Delaware State Police, New Castle County Police Department, Wilmington Police Department, and Delaware Probation and Parole. Other agencies who partnered in this investigation were the Chester County (Pennsylvania) District Attorney’s Office Drug Unit, Kennett Square Police Department, Pennsylvania State Police, Wilmington SWAT, and Delaware State Police SORT.
This case was prosecuted by Assistant United States Attorney Jennifer K. Welsh and Special Assistant United States Attorney Christopher L. de Barrena-Sarobe.
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