Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 July 2017
Group Responsible for ATM Thefts Pleads GuiltyRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Bryan Schroder announced today that the group responsible for ATM thefts at several local banks pleaded guilty yesterday in U.S. District Court in Anchorage.
Adrian Cheyne Turnbow, 26, of Anchorage, pleaded guilty to an Indictment charging him with possession of stolen bank property. As part of his plea, Turnbow admitted his involvement in four separate Automated Teller Machine (ATM) thefts from banks in Anchorage where he used front end loaders stolen from local construction sites to remove the ATMs from the banks. Turnbow was involved in thefts or attempted thefts that occurred on December 25, 2016, February 6, March 1, and March 6, 2017.
Cristi Cozzetti, 28, Jerd Thacker, 28, and Jordan Cook, 29, all from Anchorage, pleaded guilty to an Indictment charging them with possession of stolen bank property. As part of their plea, the group admitted they possessed an ATM on March 1, 2017, and attempted to open it after it had been stolen from an Anchorage bank by Turnbow.
Chief U.S. District Judge Timothy M. Burgess scheduled all of the co-defendants’ sentencing hearings for Oct. 6, 2017. Turnbow, Cozzetti, Thacker, and Cook have been in federal custody since their arrest in March 2017.
Each defendant faces a maximum term of imprisonment of 10 years, and a potential fine of up to $250,000.
Acting U.S. Attorney Schroder commended the diligent and hard work of the Federal Bureau of Investigation, and the Anchorage Police Department for the investigation leading to the successful prosecution of Turnbow, Cozzetti, Thacker, and Cook.
Grant County Man Sentenced for Unlawful Possession of .50 Caliber Machine GunRead the Press Release
EUGENE, Ore. – On Wednesday, July 26, 2017, U.S. District Court Judge Ann Aiken sentenced Michael Ray Emry, 55, of John Day, Oregon, to 30 months in federal prison and three years of supervised release. Emry had previously pleaded guilty on January 23, 2017 to unlawfully possessing a fully automatic .50 caliber machine gun that was not registered to him.
According to court documents and statements made in court, on May 6, 2016, federal agents executed a search warrant on Emry’s trailer in John Day and recovered a Browning M2 .50 caliber machine gun with an obliterated serial number. Emry told agents that the firearm was fully automatic and could fire between 550 and 650 rounds per minute, that he had stolen it from a man in Idaho and that he had removed the serial number prior to bringing it to Oregon.
"I applaud federal and state law enforcement officers for their swift and decisive action in removing a very dangerous stolen weapon from the community," said Billy J. Williams, United States Attorney for the District of Oregon. "Transporting stolen weapons is a serious crime and will be met with equally serious consequences."
"I appreciate the partnership with ATF and OSP in this investigation," said Loren Cannon, Special Agent in Charge of the FBI in Oregon. "The people's representatives pass laws to keep our communities safe. Mr. Emry broke those laws and as a consequence, he will spend time in federal prison."
The case was investigated by the FBI in collaboration with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Oregon State Police (OSP), and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.
Grand Jury Returns Indictment Charging Two with Money LaunderingRead the Press Release
PITTSBURGH – One Beaver County resident and one Allegheny County resident have each been indicted by a federal grand jury in Pittsburgh on a charge of money laundering, Acting United States Attorney Soo C. Song announced today.
The one-count indictments, returned on July 25, named Nathanael Nyamekye, 34, of Beaver Falls, Pennsylvania, and Ismail Shitu, 35, of Pittsburgh, Pennsylvania, as defendants.
According to the indictments, on or about June 29, 2016, Shitu caused Citizens Bank to reissue a $48,000 official bank check which Nyamekye deposited into his Huntington Bank account, both knowing that the funds were derived from a criminal offense, when in fact the funds were derived from a wire fraud scheme.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation’s Pittsburgh Field Office and Baltimore Cyber Task Force, with the assistance U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI), the Pittsburgh Bureau of Police, Chippewa Police and Aliquippa Police, conducted the investigation leading to the indictments in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gloucester County, New Jersey, Man Sentenced to 114 Months in Prison for Weapons ChargeRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 114 months in prison for being a previously convicted felon in possession of a weapon, Acting U.S. Attorney William E. Fitzpatrick announced.
Darius A. Robinson, 35, of Westville, previously pleaded guilty before Judge Noel L. Hillman to Count 2 of an indictment charging him with being a felon in possession of a weapon. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 11, 2016, Robinson was arrested while in possession of a Titan .25-cal. handgun in Gloucester County. Robinson had previously been convicted on drug charges and sentenced to three years in prison.
In addition to the prison term, Judge Hillman sentenced Robinson to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the ATF, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Georgia Man Sentenced for Role in 'Craigslist Car' SchemeRead the Press Release
CINCINNATI – Luis Caseres-Duarte, 26, of Norcross, Ga., was sentenced in U.S. District Court to 21 months in prison for participating in what is known as the “Craigslist car” scheme, a fraud scheme that caused numerous people to send money for cars that were never delivered.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, and West Chester Police Chief Joel Herzog, announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, the scheme involved members of a conspiracy (many of whom were overseas) placing ads on Craiglist and other sites to sell vehicles for attractive prices. The cars were listed for sale using a fake name or fake business name from whom buyers were instructed to wire money to a purported “broker.” Caseres-Duarte and others would then use fraudulent identification documents to pose as the broker and withdraw the wired funds. Once funds were withdrawn, the money would be split between members of the conspiracy. No actual vehicles were ever provided for the purchases.
Caseres-Duarte was identified as part of this scheme during a traffic stop near West Chester, Ohio, shortly after he obtained one of the wire payments at a Walmart. Officers discovered more than $2,000 in cash on his person and when given consent to search Casertes-Duarte’s cell phone, observed text messages identifying transactions of more than $20,000.
Investigators then discovered more than $33,000 in cash in hotel rooms used by the defendant in Cincinnati, as well as documentation noting wires for more than $160,000 to individuals in Hungary.
Caseres-Duarte pleaded guilty in March 2017 to one count of conspiracy to commit wire fraud.As part of his sentence, he was also ordered to serve 50 hours of community service, serve three years of supervised release, and pay more than $200,000 in restitution to the buyer victims of the scheme.
A second co-defendant in the case, Javier Martinez-Melo, faced charges for this scheme in both Ohio and Tennessee. Martinez-Melo was sentenced in May 2017 by a federal court in Tennessee and received a total sentence of 57 months.
U.S. Attorney Glassman commended the cooperative investigation by the West Chester Police Department and the FBI, as well as Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
###
Georgia Man Charged with Trafficking MarijuanaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging SHAMAR MADDEN, also known as “Sheist,” 37, of Atlanta, Georgia, with one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana.
The indictment was returned under seal on July 6 and MADDEN was arrested yesterday in Atlanta. He appeared before a U.S. magistrate judge in Atlanta and is detained pending a detention hearing that is scheduled for tomorrow.
The indictment alleges that between August 2016 and February 2017, MADDEN, Malek Long and others conspired to distribute marijuana.
If convicted of the offense, MADDEN faces a maximum term of imprisonment of 40 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
On May 12, 2017, Long, of New Haven, waived his right to be indicted and pleaded guilty to the same charge. In pleading guilty, Long admitted that he and others had used the U.S. Mail to ship substantial quantities of marijuana from California to New Haven, and then distributed the marijuana throughout the area. As part of the investigation, on February 22, 2017, law enforcement searched two storage lockers that Long maintained at a self-storage facility in West Haven and seized approximately $404,000 in cash.
Long awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation, U.S. Postal Inspection Service, New Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gang Members Convicted of Racketeering ChargesRead the Press Release
A federal jury convicted William Steele, a member of the Detroit branch of the Rollin’ 60s Crips street gang, of RICO conspiracy and possession of a firearm in furtherance of a drug trafficking crime. This verdict, which was announced yesterday, wrapped up a trial that began July 12, 2017. During the trial, two co-defendants of Steele, Jermell Coleman and Martel Strong, pleaded guilty to RICO conspiracy. These three individuals were the final remaining defendants of a fourteen-defendant indictment against the Rollin 60s Crips street gang and are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was Thomas Chittum, Acting Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief James Craig of the Detroit Police Department.
According to the indictment, the Rollin’ 60s Crips is a national street gang founded in Los Angeles, California, in the mid-1970s. In 2008, Jerome Hamilton, who previously pleaded guilty, started a Detroit line of the Rollin’ 60s, which now boasts approximately 150 members and who operate primarily on the west side of Detroit in the vicinity of Seven Mile and Tracey.
Testimony and documentary evidence in the trial demonstrated how the Rollin’ 60s Detroit chapter is a violent organization responsible for numerous murders, assaults, robberies, carjackings, and the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area over the last nine years. The gang uses violence as a means of retribution for acts done by rival gang members, to intimidate witnesses, to control their territory, and as a means for individuals to maintain or advance their position within the gang. Specifically, the evidence revealed that Steele, 26, of Detroit, distributed marijuana, crack cocaine, and ecstasy, possessed weapons, and aided and abetted retaliatory shootings on behalf of the gang.
Other Rollin’ 60s Crips members have previously pleaded guilty to racketeering conspiracy for acts involving murders, carjackings, armed robberies, firebombing, unarmed robberies, and distributing narcotics on behalf of the gang. Those members are:
- Jerome Hamilton, 24, of Southfield, pleaded guilty to racketeering conspiracy and use of a firearm during and in relation to a crime of violence causing death;
- Darriyon Mills, 25, of Detroit, pleaded guilty to RICO conspiracy and using a firearm during and in relation to a crime of violence;
- Roderek Perry, 22, of Detroit, pleaded guilty to racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence;
- Jonathan Barber, 26, of Detroit, pleaded guilty to RICO conspiracy;
- Deaires Foster, 23, of Irondale, Alabama, pleaded guilty to RICO conspiracy;
- Timothy Price, 27, of Detroit, pleaded guilty to RICO conspiracy;
- Sadeisha Johns, 32, of West Bloomfield, pleaded guilty to RICO conspiracy;
- Soumo Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Brandon Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Charles Anthony Smith, 32, of Windsor, Ontario, Canada, pleaded guilty to RICO conspiracy; and
- Tre Tigner, 23, of Detroit, pleaded guilty to RICO conspiracy.
The case is being investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI Violent Crime Task Force, and Detroit Police Department. The case is being prosecuted by Assistant U.S. Attorneys Shane Cralle and Michael Heesters.
Fort Peck Kidnapper Sentenced to over 40 Years in Federal PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that John William Lieba II was sentenced to 500 months (41.6 years) in prison, 5 years of supervised release, and a $300 special assessment. U.S. District Judge Brian Morris presided over the hearing.
The case arose because Lieba was at the park in Wolf Point, Montana. Lieba first tried to kidnap an eleven-year-old girl, but she was too fast. He then settled for a four-year-old girl because she was not as fast. Lieba then vaginally raped the child, strangled her, and left her for dead in an abandoned vehicle in a remote area near Wolf Point. Because it was the heart of winter, temperatures dipped below freezing while the victim was missing. When interviewed, Lieba initially denied knowing of the kidnapping and never showed contrition or remorse for his actions. Instead, he told investigators that he was upset by his lost sexual opportunities with other females.
In a sentencing memo filed in federal court, Assistant U.S. Attorney Ryan G. Weldon stated, “Lieba, through his actions, forced every parent in Montana to confront their worst nightmare. That nightmare became a reality in Wolf Point when Lieba kidnapped, raped, and left a four-year-old child for dead.”
Judge Morris sentenced Lieba to over 40 years in federal prison, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Lieba will likely serve all of the time imposed by the court. In the federal system, Lieba does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The Lieba case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, and multiple other federal, state, and local agencies.
Former Reading, PA Mayor Charged with Violations of Federal Public Corruption LawsRead the Press Release
PHILADELPHIA – A federal indictment1 was unsealed today charging former Mayor Vaughn Spencer, 70, of Reading, for alleged violations of federal public corruption laws, announced Acting United States Attorney Louis D. Lappen. The indictment charges Spencer with 9 counts of bribery, 1 count of honest services wire fraud and conspiracy. Rebecca Acosta, 40, of Reading, and James Hickey, 54, of Allentown, were also included on the indictment. Acosta was charged with 2 counts of bribery, 1 count of mail fraud, 1 count of wire fraud, and conspiracy. Hickey was charged with 1 count of bribery, 1 count of mail fraud, 1 count of wire fraud and conspiracy.
According to allegations contained in the indictment, Spencer was involved in illegal activities associated with his position as an elected official: today’s announcement is the culmination of a several year investigation involving the pleas of 5 other individuals. Former Reading City officials and businesspersons pursuing contracts with the city of Reading are among those who have already plead guilty. The indictment sets forth numerous overt acts committed by Vaughn Spencer in the course of the conspiracy in which his objective was to maximize his campaign contributions through unlawful means.
In one egregious example, Mayor Spencer offered a bribe through City Council President Francisco Acosta to Francisco Acosta’s wife, School Board President Rebecca Acosta, who was running for district justice. Mayor Spencer gave the bribe in order to persuade Francisco Acosta to seek repeal of a city Code of Ethics ordinance that capped at $2,600 individual campaign contributions to persons running for city office, like Spencer, who was running as an incumbent in the democratic primary.
“The mayor of Allentown and the former mayor of Reading charged in the two indictments unsealed today sold their offices to the highest bidder -- violating the trust and confidence of the citizens of their cities,” said Acting United States Attorney Louis Lappen. “Both mayors, working with other corrupt officials and businesspeople, directed lucrative contracts to companies who agreed to provide campaign contributions in exchange for work. In an astounding act of irony, former Mayor Spencer bribed the President of City Council to introduce legislation repealing a Reading anti-corruption statute. The United States Attorney’s Office will continue to aggressively investigate and prosecute public officials who operate these “pay to play” schemes.
"As alleged in these indictments, 'pay to play' was the order of the day in Allentown, and in Reading," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division, "with those cities' mayors manipulating the levers of power for their own ways and means. As charged, Edwin Pawlowski and Vaughn Spencer brazenly and repeatedly sold off city contracts to bankroll their political futures. This years-long investigation illuminated troubling conduct for which all of those indicted must now answer. The FBI is committed to fighting public corruption, which erodes the trust of 'we the people' and cheapens our cherished democracy."
“Internal Revenue Service Criminal Investigation (IRS-CI) is diligent in unraveling the fraudulent actions of those, such as Edwin Pawlowski and Vaughn Spencer, who scheme to defraud citizens of Allentown and Reading who placed their trust in him,” said Acting Special Agent in Charge Gregory Floyd of IRS-CI’s Philadelphia Field Office. IRS-Criminal Investigation is proud to be a member of the formidable team that is rooting out public corruption. “Today’s indictment is a reminder that there are detrimental consequences for this type of criminal behavior.”
The charge of bribery concerning programs receiving federal funds carries a maximum sentence of 10 years in prison and a $250,000 fine; the charge of honest services wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine; and the charge of conspiracy carries a maximum sentence of 5 years in prison and a $250,000 fine.
The case is being prosecuted by Assistant United States Attorneys Michelle Morgan and Anthony Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former New York City Police Officer Merlin Alston Sentenced to 20 Years in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
Joon Kim, the Acting United States Attorney for the Southern District of New York, announced that Former New York City Police Officer MERLIN ALSTON, was sentenced this afternoon in Manhattan federal court to a prison term of 20 years for participating in a long-running conspiracy to distribute large quantities of cocaine in the Bronx while he was an active-duty police officer, as well as for using firearms to protect members of that conspiracy. ALSTON was sentenced by U.S. District Judge Colleen McMahon, who presided over a two-week jury trial last year at which ALSTON was convicted on all counts.
Acting U.S. Attorney Joon H. Kim stated: “Merlin Alston betrayed his city and his shield. Instead of serving and protecting the citizens of New York City, as he swore an oath to do, Alston served and protected drug dealers, participating in a long-running conspiracy to distribute cocaine in the Bronx. For his criminal betrayal that included sharing confidential police information with drug dealers, Alston was convicted by a jury and now sentenced to 20 years in federal prison.”
According to court papers and evidence admitted at trial:
From 2010 to 2014, ALSTON, who at the time was an active NYPD police officer, conspired with others to distribute large quantities of narcotics. ALSTON personally delivered approximately 40 kilograms of cocaine during that time, and in total members of his conspiracy delivered approximately 200 kilograms of cocaine. In addition, ALSTON provided armed security to a cocaine trafficker, using a shotgun and his NYPD service weapon to do so. ALSTON also provided confidential information about law enforcement operations, including arrests and surveillance, to several Bronx drug dealers.
* * *
In addition to his prison sentence, ALSTON, 34, of the Bronx, was sentenced to five years of supervised release.
Mr. Kim praised the DEA, the FBI, the NYPD, and the New York State Police for their outstanding work in this investigation. He also thanked the Office of the Special Narcotics Prosecutor for the City of New York for its invaluable assistance.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jared Lenow and Thomas McKay are in charge of the prosecution.
Former Honduran Congressman and Businessman Pleads Guilty in Manhattan Federal Court to Money Laundering ChargeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York announced today that Yani Benjamin Rosenthal Hidalgo pled guilty in Manhattan federal court to engaging in monetary transactions in property derived from drug-trafficking offenses between 2004 and September 2015. ROSENTHAL, who surrendered in the United States on October 23, 2015, pled guilty before U.S. District Judge John G. Koeltl. During the course of the money laundering scheme, ROSENTHAL was Minister of the Presidency to a former President of Honduras between 2006 and 2007, a Honduran congressman between 2010 and 2014, and a candidate for President of Honduras in the 2009 and 2013 elections.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted today in Manhattan federal court, Yani Rosenthal, a formerly prominent Honduran politician and businessman, also moonlighted as a money launderer for a ruthlessly violent drug-trafficking organization known as the Cachiros. Now this former government official and two-time candidate for President of Honduras awaits sentencing before a U.S. federal judge for his contribution to the global drug crisis.”
According to the Indictment, other court filings, and statements made during court proceedings[1]:
ROSENTHAL and his co-defendants—including Jaime Rolando Rosenthal Oliva, ROSENTHAL’s father and a former Vice President and congressman in Honduras—used entities associated with a holding company controlled by the Rosenthal family, Inversiones Continental (Panama), S.A. de C.V. (“Inversiones Continental”), to launder drug proceeds for the Cachiros, a prolific and violent Honduran criminal syndicate that distributed huge quantities of cocaine before being dismantled by the Drug Enforcement Administration (“DEA”).
ROSENTHAL helped the Cachiros launder drug money and gain access to the international financial system through a variety of purported business ventures. ROSENTHAL enriched himself through this conduct based on fees paid by the drug traffickers he assisted, and by accepting additional bribes from drug traffickers that were styled as purported campaign contributions. Several aspects of the Cachiros money laundering scheme that ROSENTHAL participated in also received support from Fabio Porfirio Lobo, the son of a former President of Honduras. Lobo is scheduled to be sentenced on July 31, 2017 by U.S. District Judge Lorna G. Schofield in United States v. Lobo, No. 15 Cr. 174 (LGS), based on his conviction for participating in a conspiracy with members of the Cachiros and others to import cocaine into the United States.
One component of ROSENTHAL’s money laundering conduct involved a trade-based scheme in which the Cachiros established a company, Ganaderos Agricultores Del Norte S De RL De CV (“Ganaderos”), and used drug proceeds to purchase cattle at auctions in Honduras. ROSENTHAL and others used Empacadora Continental, S.A. de C.V. (“Empacadora”), a cattle- and meat-processing firm affiliated with Inversiones Continental, to purchase the narcotics-derived cattle from Ganaderos. ROSENTHAL acted as the Vice President of Empacadora between 2008 and 2015, and these transactions were part of a process that allowed the Cachiros to conceal the criminally derived nature of the Ganaderos assets, and to obtain fresh funds from Empacadora that could be used to promote Cachiros drug-trafficking activities and purchase other assets. Empacadora, in turn, further obfuscated the tainted nature of Ganaderos cattle by processing and exporting the meat to the United States, among other places.
ROSENTHAL and others also used Banco Continental, S.A. (“Banco Continental”), a Honduran bank controlled by his family and affiliated with Inversiones Continental, to process payments related to these transactions and provide financing for other Cachiros activities. For example, Banco Continental issued purported loans to the leaders of the Cachiros, which were sometimes repaid using either drug proceeds or additional drug-derived cattle from Ganaderos. The leaders of the Cachiros used money from Banco Continental, commingled with drug money, to fund additional businesses that were also used as money laundering front companies. Banco Continental helped the leaders of the Cachiros establish the Joya Grande Zoo in Honduras, and purchase equipment for a construction company, Inmobiliaria Rivera Maradiaga SA de CV; a mining concern, Minera Mi Esperanza SA; and an African palm oil plantation, Palma Del Bajo Aguan SA.
In connection with his guilty plea, ROSENTHAL agreed to forfeit $500,000, and to pay a $2.5 million fine. ROSENTHAL also remains designated as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act, along with Rosenthal Oliva, Yankel Antonio Rosenthal Coello (ROSENTHAL’s cousin and co-defendant), Inversiones Continental, Empacadora, and Banco Continental, among other entities, as announced in October 2015 by the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”).
* * *
ROSENTHAL, 52, pled guilty to one count of engaging in monetary transactions in property derived from specified unlawful activity. The charge carries a maximum term of 10 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. Sentencing is scheduled for October 13, 2017 before Judge Koeltl.
Mr. Kim praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as OFAC and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Jane Kim, and Matthew J. Laroche are in charge of the prosecution.
The charges contained in the Indictment against Jaime Rolando Rosenthal Oliva and Yankel Antonio Rosenthal Coello are merely accusations, and Rosenthal Oliva and Rosenthal Coello are presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendants Jaime Rolando Rosenthal Oliva and Yankel Antonio Rosenthal Coello constitute only allegations, and every fact described should be treated as an allegation with respect to Rosenthal Oliva and Rosenthal Coello.
Former Home Healthcare Nurse Sentenced for Medicaid Fraud in Case that Resulted in Minor's DeathRead the Press Release
DAYTON, Ohio – Mollie Parsons, 47, of Middletown, Ohio, was sentenced in U.S. District Court to 36 months in prison for healthcare fraud related to the death of a severely physically disabled minor.
She was previously sentenced by the state to serve 10 years in prison for her role in the death of her minor patient, and her federal sentence will be served consecutive to her state one. She is also banned from working for any governmental entity in the healthcare field for life.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG), announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Parsons was employed as a home healthcare nurse for a minor with severe physical impairments from at least 2009 until March 2011. Parsons was paid through Medicaid to provide daily nursing services, including but not limited to, wound care, personal hygiene maintenance and feeding assistance. The child under her care was unable to communicate, completely paralyzed and dependent upon feeding tubes.
Rather than working her eight-hour shift and providing the nursing services, Parsons was frequently absent from the home for extended periods of time. To conceal her neglect, the defendant submitted false claims to Medicaid to receive fraudulent payments for private duty nurse services.
Parsons pleaded guilty in the federal case in January 2016 to two counts of healthcare fraud.
“Parsons’ actions directly undermined the purpose for which Medicaid compensated her – providing medical care to a severely disabled child – as she deprived a child with cerebral palsy of the most basic medical care and comfort,” U.S. Attorney Glassman said. “The state prosecution served as the primary mechanism to address and punish the child victim’s death, but could not address the fraud against Medicaid. This federal prosecution therefore provides accountability for her fraudulent conduct as it relates to Medicaid.”
U.S. Attorney Glassman commended the cooperative investigation by HHS-OIG, as well as Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura I. Clemmens, who are representing the United States in this case.
###
Former Forest City Investment Adviser Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
A former Forest City investment adviser, who stole money from clients to fund the operation of an ethanol plant in Hopkinton, pled guilty yesterday in federal court in Cedar Rapids.
Darrell Smith, age 61, from Forest City, Iowa, was convicted of Wire Fraud and Aggravated Identity Theft. Smith’s guilty pleas follow his conviction in federal court and 13-month prison sentence last year for tax fraud.
Smith’s admissions at the plea hearing and evidence presented in prior court proceedings established that he was a broker and adviser for several investment firms. From 2010 to 2013, Smith caused funds to be withdrawn from his investment clients’ accounts without his clients’ knowledge or authorization. The funds were transferred to Energae, LP, a partnership Smith previously had formed with another individual to invest in different bio-energy companies. Smith then used those funds to pay expenses related to the operation of Permeate Refining, LLC, which operated a now-defunct ethanol plant in Hopkinton. In order to transfer funds from client accounts, Smith used authorizations purportedly signed by the client authorizing the withdrawal of funds from the investment account. He either forged his clients’ signatures on the authorizations or used pre-signed, blank authorization forms. In 2013, Smith consented to having his securities agent license and insurance producer license in the State of Iowa revoked.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal after a detention hearing on May 3, 2017. At the detention hearing, Judge Reade found Smith was “a serious risk” to “obstruct justice or attempt to obstruct justice.” The Court noted that, while on pretrial release in 2016, Smith had violated a no-contact order, made misrepresentations to the Court, and distributed a report to prospective investors that contained several misrepresentations. The Court also found Smith was a continuing “financial danger” to the community.
Smith faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 22 years’ imprisonment, a fine, $200 in special assessments, and 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation, the United States Postal Service Inspection Service, Internal Revenue Service-Criminal Investigation, and the United States Department of Agriculture, Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-2030-LRR and 17-MJ-111-LRR.
Follow us on Twitter @USAO_NDIA.
Former FCA Executive and Wife of Former UAW Vice President Charged in Scheme to Pay Off UAW OfficialsRead the Press Release
A federal grand jury returned a superseding indictment today charging the former Vice President for Employee Relations for Fiat Chrysler Automobiles US LLC (FCA) with criminal violations of the Labor Management Relations Act, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General and Ian Burg, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Alphons Iacobelli, 57, of Rochester Hills, Michigan was charged with taking part in a multiyear conspiracy to pay and deliver prohibited money and things of value to officers and employees of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (UAW).
Monica Morgan, 54, of Harrison Township, Michigan was charged with conspiring with Iacobelli and others to violate the Labor Management Relations Act. Morgan is the wife of former UAW Vice President General Holiefield, who died in March of 2015.
The superseding indictment charges Iacobelli and others acting in the interest of FCA with making over $1.2 million in prohibited payments to Morgan and then-UAW Vice President General Holiefield and others. The prohibited payments and things of value included designer clothing, jewelry, furniture, and paying off the $262,219 mortgage on Holiefield and Morgan’s residence in Harrison Township, Michigan. The payments were made using the bank account and credit card accounts of the UAW-Chrysler National Training Center located in Detroit, Michigan. The UAW-Chrysler National Training Center was established to provide for the education, training, and retraining of workers.
The prohibited payments were charged to have occurred between 2009 and 2014 during which time FCA Vice President Alphons Iacobelli and UAW Vice President General Holiefield had primary responsibility for negotiating and administering the collective bargaining agreements between FCA and the UAW.
Alphons Iacobelli was also charged with tax violations related to diverting for his own personal benefit over $1 million in funds from the UAW-Chrysler National Training Center. Iacobelli was charged with diverting those funds to pay for: a Ferrari 458 Spider automobile costing more than $350,000; leasing a private jet; two limited edition Mont Blanc pens costing $37,500 each; a pool and hundreds of thousands of dollars in improvements to his residence; and hundreds of thousands of dollars in personal credit card expenses, among other purchases.
Monica Morgan was also charged with using the companies Monica Morgan Photography, Wilson’s Diversified Products, and a third company to conceal payments made by Iacobelli and others acting in the interest of FCA to UAW Vice President General Holiefield and with failing to report the income she received through those companies on her individual tax returns.
Acting U.S. Attorney Lemisch also announced that a separate information was unsealed charging Jerome Durden, 61, of Rochester, Michigan with conspiracy to defraud the United States by impairing, impeding, and obstructing the Internal Revenue Service. Durden was a Financial Analyst in the FCA Corporate Accounting Department who served as the Controller of the UAW-Chrysler National Training Center from 2008 through 2015. The information charges Durden with preparing and filing tax returns for the UAW-Chrysler National Training Center which falsely concealed millions of dollars in payments directed to General Holiefield, Alphons Iacobelli and others.
"Today's indictment exposes a disturbing criminal collaboration that was ongoing for years between high ranking officials of FCA and the UAW", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "The funds misapplied deprived working men and women of critical workforce and professional development opportunities and calls into question the integrity of contracts negotiated during the course of this criminal conspiracy. The FBI and our federal partners will remain vigilant in our efforts to expose those who participate in corrupt fraud schemes which jeopardize our region's economic vitality and our faith in honest business practices."
"Today's indictment alleges an outrageous abuse of power and misuse of this Chrysler executive's position of trust. The diverted funds from the NTC could have and should have been used to benefit Chrysler employees," said Special Agent in Charge Manny Muriel. "IRS Criminal Investigation and our law enforcement partners are particularly committed to stopping those individuals who use double fraud schemes to defraud corporate funds, bribe others for their own gains and cushion their personal wallets."
“An important mission of the Office of Inspector General is to investigate allegations relating to Labor Racketeering and prohibited payments between union and company officials. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“OLMS places a high priority on combatting financial malfeasance and safeguarding financial integrity in labor unions,” said Ian Burg, Detroit-Milwaukee District Director of the Office of Labor-Management Standards. “This indictment leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
Acting U.S. Attorney Lemisch commended the outstanding work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, the US Department of Labor – Office of Inspector General and the U.S. Department of Labor – Office of Labor-Management Standards in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Pleads Guilty to Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
WASHINGTON – A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty today to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield Field Office; Special Inspector General John F. Sopko for Afghanistan Reconstruction; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); and the Defense Criminal Investigative Service’s (DCIS) made the announcement.
Mark E. Miller, 48, of Springfield, Ill., was charged in an Information filed on July 18, in the Central District of Illinois with one count of seeking and receiving bribes. He pleaded guilty before U.S. Magistrate Judge Tom Schanzle-Haskins in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.
During the hearing, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. During that time, Miller maintained a residence in Springfield. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a contracting officer representative for a number of construction projects.
Miller further admitted that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller admitted that he oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.
Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Former Contractor of Newark Watershed Conservation and Development Corp. Sentenced to 18 Months in Prison for Role in Fraud ConspiracyRead the Press Release
NEWARK, N.J. –The sole proprietor of two companies that purportedly provided printing and digital marketing services to the Newark Watershed Conservation and Development Corporation (NWCDC) was sentenced today to 18 months in prison for defrauding the agency, Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Gleaton, 53, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose Linares to an information charging him with one count of conspiring to commit wire fraud with Donald Bernard Sr., Linda Watkins Brashear, and others, to defraud the NWCDC of money and property and one count of misuse of Social Security numbers in connection with personal bankruptcy proceedings. Judge Linares imposed both sentences today in Newark federal court.
According to documents filed in these cases and statements made in court:
From May 2011 to September 2012, Gleaton conspired with Bernard, who was then employed as manager of Special Projects for the NWCDC, Brashear who was then the NWCDC executive director, and others, to defraud the NWCDC of more than $110,000 for work that was never performed by Gleaton or his companies. Gleaton was the owner of the Synergy Group, a company that received more than $58,000 in 2011 from the NWCDC, purportedly for printing services, as well as Mindshare Media, which received more than $52,000 from the NWCDC in 2012, purportedly for digital marketing services.
Gleaton deposited the payments issued to his companies by the NWCDC on the basis of fraudulent invoices, and then provided a substantial portion of the money received – more than $97,000 – to Bernard, who, in turn, shared a portion with Brashear, among others. Gleaton provided the money to Bernard either directly, or indirectly through the “consultant intermediary,” an individual who operated a firm that provided consulting services to the NWCDC. The conspiracy was facilitated by interstate wire transmissions, including emails sent by Bernard to Brashear and the consultant intermediary. Brashear pleaded guilty in December 2015 to scheming to defraud the NWCDC of her honest services in the affairs of the NWCDC by taking kickbacks (from various vendors including Gleaton), and of the NWCDC’s money and property, as well as to subscribing to a false federal personal income tax return. In January 2016, Bernard pleaded guilty to Counts 9 and 10 of a 20-count indictment returned in December 2014, charging him with the use of interstate facilities to promote and facilitate bribery in violation of the Travel Act, and Count 1 of an information that charged him with making and subscribing a false personal tax return.
Gleaton also admitted to using multiple Social Security numbers, other than the number lawfully issued to him by the Commission of Social Security, in connection with his bankruptcy filings in 2011 and 2012.
In addition to the prison term, Judge Linares sentenced Gleaton to three years of supervised release and ordered him to pay restitution of $111,600.
Bernard was sentenced by Judge Linares on July 13, 2017, to eight years in prison. Watkins Brashear is scheduled to be sentenced Sept. 11, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John Grasso; U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi; IRS–Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Former Chief Financial Officer Pleads Guilty to Stealing $2.8 million from CompanyRead the Press Release
St. Louis, MO – Ramon “Trey” Luina III, 42, Chesterfield, MO, pled guilty today to one charge of mail fraud in connection with his embezzlement of approximately $2.8 million from CMS Communications Inc. Luina appeared today before United States District Judge John A. Ross. Sentencing is set for November 2, 2017.
According to court documents, Luina wrote checks from CMS to himself and other entities for personal benefits such as the construction of his lake house, vehicles for private use, professional services, rent for other business ventures not related to CMS, vacations, and credit card payments. Luina used CMS funds, via wire transfers and ACH payments, to make payments to his personal credit cards and invoices related to construction on his lake house. Luina also created fictitious vendors and listed these companies as consultants to CMS. Luina then directed payments, for fictitious work, to the vendors as another route to direct funds from CMS to Luina. Additionally, Luina fraudulently increased his payroll salary which was received via direct deposit. This, in turn, falsely inflated his 401k match and bonuses. Additionally, Luina falsely took partnership disbursements for CMS Partnership although he never completed the process of partnership.
In total, Luina embezzled over $2.8 million from CMS for his personal benefit, and the benefit of others, during the relevant timeframe.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigations. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
Former Bank Executive Admits to Embezzling More Than $200,000 and Pleads Guilty to ChargesRead the Press Release
CHARLOTTE, N.C. – A former Wholesale Banking Relationship Support Manager of a Charlotte area bank appeared in court today and admitted to stealing more than $216,889 from his employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Mark Isaac Coffino, 38, of Huntersville, N.C. pleaded guilty to one count of embezzlement by a bank employee before U.S. Magistrate Judge David C. Keesler.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
According to filed court documents and today’s court proceedings, from 2010 to 2016, Coffino was employed by a large international bank. Coffino used his position as a wholesale banking relationship support manager to create and issue approximately 20 cashier checks payable to his personal accounts. Coffino used the bank operating expenses ledger account numbers to conceal the origin of the funds. Court records indicate that Coffino lied to his direct reports to obtain approval of the cashier checks.
According to plea related documents, Coffino embezzled funds on twelve occasions between May 2015 and December 2016 in amounts ranging from $6,995 to $48,659.
Coffino was released on bond following his guilty plea. The charge carries a maximum prison term of 30 years and a $1,000,000 fine. As part of his plea agreement, has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was led by the FBI. Assistant United States Attorney Jenny Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Florida Man and Woman Charged with Wire Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Robert F. Stout, age 51, and Kasey N. Riley (a/k/a Kasey Stout), age 33, of Windermere, Florida, were charged today with conspiracy to commit wire fraud relating to the sale of illegal activation keys for Microsoft products.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
According to a criminal information, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. Stout and Riley purchased unauthorized activation keys from various websites – including wholesaledwindows8key.com, buy2010key.net, cheapkeyoffer.com, godkey.net, and Alibaba – and provided those unauthorized activation keys, in exchange for PayPal payments, to customers throughout the United States. Stout and Riley received at least $1,480,227 from customers in exchange for providing them with the unauthorized, and often invalid, activation keys.
Stout and Riley each face up to 20 years in prison, up to 3 years of post-imprisonment supervised release, and a fine of up to $250,000 or twice the gain or loss caused by the offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Albany Field Office of the FBI and the Orlando Field Office of Homeland Security Investigations (HSI), part of Immigration and Customs Enforcement (ICE). It was prosecuted by Assistant U.S. Attorney Wayne A. Myers and Middle District of Florida Special Assistant U.S. Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Florence Woman Enters Guilty Plea in Federal Court on Fraud ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Crystal Lynn Norris, age 27, of Florence, SC, pled guilty in federal court in Florence, to Conspiracy to Manufacture and Pass Forged and Counterfeited Securities, a violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that during the period from November through December of 2016, Norris was involved in a conspiracy to manufacture and pass forged and counterfeited securities (checks) of organizations.
Norris and another person stole mail from mailboxes at various residences in Florence and Darlington Counties looking for checks within the mail. Norris then either altered/forged the stolen checks by substituting herself as the payee, or she used genuine bank account and routing numbers from the stolen checks to make counterfeit checks. Norris then went to banks in Florence and Easley, SC and presented the forged and counterfeited checks for payment.
Ms. Drake stated the maximum penalty Norris can receive is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of the U.S. Postal Inspection Service with the assistance of the Florence County Sheriff’s Office, the Florence Police Department and the Easley Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
Floral Park, NY Man Sentenced on Tax Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that David Menzies, 51, of Floral Park, NY, who was convicted of tax fraud, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay $280,930 in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Marie P. Grisanti and Tax Division Attorney Jason M. Scheff, who handled the case, stated that between January 2010 and April 2015, Menzies filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents in order to claim refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of minors from their parents, and claimed them as dependents on other clients’ returns. Menzies charged clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money he charged for creating false dependents.
In addition, Menzies concealed his identity as the preparer by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and filing the fraudulent returns using the preparer identification numbers the IRS assigned to these individuals. Menzies admitted that he caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed timely to file his 2009 through 2015 personal tax returns.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office
Felon Arrested in Deschutes County Sentenced to 70 Months in Prison for Illegal Possession of a FirearmRead the Press Release
EUGENE, Ore. – On July 25, 2017, United States District Court Judge Ann Aiken sentenced Keith August Wayne Jones, 30, of Madras, Oregon, to 70 months in federal prison for being a felon in possession of a firearm. Upon his release from prison, Jones will be on supervised release for three years.
According to court documents, on April 26, 2016, police officers found Jones in possession of a gun in a Bend motel room. Jones has numerous previous felony convictions, including second-degree robbery, delivery of methamphetamine and fleeing or attempting to elude police.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bend Police Department. It was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of Kandy Gies, Deschutes County Deputy District Attorney.
Federal Fugitive Arrested in Cumberland County, Tennessee After 5 Years on the RunRead the Press Release
Ronald Eli Lewis, 72, of Sparta, Tenn., was arrested by U.S. Marshals and TBI agents this morning in Cumberland County, Tenn., announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Lewis and his cousin, Clifford Lewis, were convicted in March 2012 of conspiring to distribute more than 100 kilograms of marijuana throughout Middle Tennessee. The verdicts stem from the attempted delivery of nearly 900 pounds of marijuana to the Lewis’ family farm in Sparta, Tennessee on March 28, 2007. Agents with the Tennessee Bureau of Investigation had tracked the marijuana to the farm, where the defendants were arrested as they began to unload it. The jury heard evidence that the delivery was part of a larger scheme to ship thousands of pounds of marijuana via tractor trailer from Texas to Tennessee.
A few days after the trial began in March 2012, Ronald Lewis, who was free on bond, failed to show for the remainder of the trial. Lewis was subsequently convicted in absentia. His cousin, Clifford, was also convicted and later sentenced to prison. Two other co-defendants, Jimmy Clinton Smith, of Texas and Eliseo Gavin, of Oklahoma, had previously pleaded guilty and were later sentenced to prison.
“I join with the leadership of our law enforcement partners in commending the outstanding work of the U.S. Marshals’ Service and the TBI for the capture of Ronald Lewis,” said Acting U.S. Attorney Jack Smith. “This district is fortunate to have the dedicated professionals of these agencies. Because of their efforts and their careful planning and execution of this operation, a dangerous fugitive is back in custody and his freedom to scoff at the justice system has come to an abrupt end.”
The investigation into the drug distribution conspiracy was conducted by the DEA and the TBI. The fugitive investigation was conducted by the U.S. Marshals’ Joint Fugitive Task Force.
Fort Smith Man Sentenced to 60 Years in Federal Prison for the Sexual Exploitation of Two InfantsRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that James Spiotto, age 29, of Fort Smith, was sentenced today to 60 years in federal prison without the possibility of parole followed by life of supervised release for Conspiring to Produce and Production of Child Pornography. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to the court records, in February 2016, agents with the Internet Crimes Against Children Taskforce, in conjunction with Department of Homeland Security, were conducting an investigation into the online trafficking of child pornography in the Fort Smith Area. As a part of the investigation, law enforcement obtained a federal search warrant for the residence of James Spiotto. During the execution of the search warrant, law enforcement located a computer hard drive that had been thrown from a second story window. A subsequent forensic examination of the hard drive revealed a video of James Spiotto orally and digitally raping an 11-month-old female. Law enforcement also located videos of an adult female, later identified as Amelia Spiotto, molesting the same 11-month old female, and separately molesting a 3-month-old male. During a post-Miranda interview, James Spiotto admitted that he and Amelia Spiotto arranged to babysit a friend’s daughter, and thereafter made videos of themselves sexually abusing her. James Spiotto further admitted that Amelia Spiotto separately recorded herself preforming oral sex on a 3-month-old male. Law enforcement also located text messages between James Spiotto and Amelia Spiotto, in which James Spiotto was directing and encouraging Amelia to perform certain acts while she molested the minor male. James Spiotto was indicted by a federal grand jury in March of 2016, and pleaded guilty in May of 2016. His co-defendant, Amelia Marie Spiotto, pleaded guilty in February of this year and will be sentenced at a later date.
“HSI will continue to aggressively pursue individuals that prey on innocent children,” said Nicholas C. Nelson, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans. “This case should serve as an example to others that we are committed to bringing the perpetrators of these heinous crimes to justice.”
This case was investigated by Homeland Security Investigations and the River Valley Internet Crimes Against Children Taskforce. Assistant United States Attorneys Dustin Roberts and Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Eunice man sentenced to 9 months in prison for stealing cash from bankRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Eunice man was sentenced last week to nine months in prison for entering a Eunice bank and taking more than $5,000 from two teller stations.
Randall Scott Courville, 42, of Eunice, La., was sentenced Friday by U.S. District Judge Dee D. Drell on one count of bank theft. He was also sentenced to three years of supervised release and was ordered to pay $5,290 restitution. According to the April 19, 2017 guilty plea, Courville entered a bank on North Second Street in Eunice on January 20, 2017 wearing a surgical mask, hooded sweatshirt and gloves. He walked up to a teller’s station, reached across the counter into the teller’s drawer and removed money. He then moved to another teller’s station and removed money from that teller’s drawer as well. He left the bank with $5,290.
The FBI and Eunice Police Department conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Ellsworth Man Convicted of Child Pornography ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that Colby Haggerty, 25, of Ellsworth AFB, South Dakota, was found guilty of two counts of Receipt of Child Pornography and one count of Possession of Child Pornography at the conclusion of a four-day federal jury trial in Rapid City.
The penalty is a mandatory minimum of 5 years up to 20 years of imprisonment and/or a $250,000 fine, lifetime supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution.
The conviction stems from Haggerty downloading at least 1,000 pornographic images of children, including infants, between 2009 and 2015 while living on Ellsworth Air Force Base and in Rapid City.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered and sentencing will be scheduled. The defendant was remanded to the custody of the U.S. Marshals Service.
El Dorado Springs Woman Sentenced for Embezzling $380,000 from EmployerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an El Dorado Springs, Mo., woman was sentenced in federal court today for a mail fraud scheme by which she stole more than $380,000 from her employer and to filing a false tax return.
Regina Allison, 47, of El Dorado Springs, was sentenced by U.S. District Judge Beth Phillips to 30 months in federal prison without parole. The court also ordered Allison to pay $460,404 in restitution, including $380,134 to Allison Tire Company, Inc., and the remainder to the IRS and the Missouri Department of Revenue.
On Jan. 20, 2017, Allison pleaded guilty to one count of mail fraud and one count of filing a false tax return.
Allison was hired by Allison Tire Company and Allison Oil and Auto Supply in 2003. As a part of her duties at the company, which is owned in part by her ex-husband, Allison prepared company checks for payment of invoices. Allison was fired from her position in November 2015 after her supervisors discovered that she had forged numerous checks from the accounts of Allison Tire and Allison Oil to pay fictitious businesses she had created for her personal benefit.
Allison opened two bank accounts, one at a bank in Bolivar, Mo., and another at a bank in Nevada, Mo., under the names of two separate businesses. Neither of the business entities actually created any products or provided any services. Allison admitted that she used her position at Allison Tire and Allison Oil to write numerous company checks to these fictitious businesses, and forged the signatures of authorized signors.
Over the span of nearly four years, from November 2011 to November 2015, Allison embezzled a total of at least $380,134.
Allison also admitted that she failed to report this embezzled income on her federal income tax returns. The total tax loss to the United States was $58,813, without penalty or interest. The total tax loss to the state of Missouri was $16,315, without penalty or interest.
This case was prosecuted by Assistant U.S. Attorneys Casey Clark and Amy Blackburn. It was investigated by IRS-Criminal Investigation and the Missouri State Highway Patrol.
El Departamento de Justicia Presenta una Demanda Judicial Contra Technical Marine Maintenance Texas y Gulf Coast Workforce Alegando Discriminación por Motivos de Estatus de CiudadaníaRead the Press Release
WASHINGTON – El Departamento de Justicia interpuso hoy una demanda contra dos empresas en Louisiana, Technical Marine Maintenance Texas LLC, que suministra mano de obra por contrato para astilleros, y Gulf Coast Workforce LLC, una empresa relacionada, alegando que vulneraron la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a postulantes y empleados durante el proceso de verificación de la elegibilidad para trabajar por motivos de su estatus de ciudadanía.
Según la demanda, desde al menos enero del 2014 hasta al menos julio del 2017, Technical Marine Maintenance Texas limitó los documentos que los trabajadores podían presentar para establecer su autorización para trabajar con base en el estatus de ciudadanía de dichos trabajadores. En concreto, la empresa pidió que los ciudadanos estadounidenses mostraran sus y tarjetas de seguro social, mientras que pidió a aquellos que no eran ciudadanos estadounidenses documentos migratorios. Según la INA, se debe permitir a todos los trabajadores, independientemente de su estatus de ciudadanía, la posibilidad de elegir de entre los documentos válidos que demuestren su elegibilidad para trabajar. La INA específicamente prohíbe que los empleadores discriminen al limitar, con base en su estatus de ciudadanía, las opciones que los trabajadores tienen a su disposición. La demanda también alega que Gulf Coast Workforce es responsable de las acciones de Technical Marine Maintenance Texas porque Gulf Coast emplea o emplea conjuntamente a los trabajadores afectados.
La Ley protege tanto a personas que son ciudadanos de los Estados Unidos como los que no de barreras discriminatorias durante los procesos del Formulario I-9 o E-Verify declaró el Fiscal General Auxiliar en funciones, Tom Wheeler de la División de Derechos Civiles. Los empleadores no pueden restringir los tipos de documentos que un trabajador puede presentar para mostrar su autorización para trabajar, y si tal restricción se hace por motivos del estatus de ciudadanía o la nacionalidad de origen del individuo, la División de Derechos Civiles ejecutará la ley enérgicamente.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Download Technical Marine Maintenance Gulf Coast Complaint (en inglés)
Eastern Idaho Partnership Announces Special AUSA Program Statistics, New SAUSARead the Press Release
POCATELLO – Acting United States Attorney Rafael Gonzalez and Bingham County Prosecuting Attorney Cleve B. Colson have announced that from January 2016 through July 26, 2017, the U.S. Attorney’s Office prosecuted an additional 55 offenders for firearm, illegal alien, child porn, violent crime, and drug-related crimes committed in eastern Idaho through the new Special Assistant United States Attorney program (SAUSA program) in eastern Idaho.
Thus far, 28 of the 55 charged have been convicted and received federal sentences for a total of 2,008 months, averaging 6.4 years per criminal sentence. The 55 cases indicted were referred from 13 cities and 9 counties. It is estimated that the charges represent over $800,000 in drugs seized and 30 illegally possessed firearms.
Presently, the average cost of incarceration per inmate per year is approximately $20,973, or $1,747 per month. Thus, the 2008 months of federal sentences in the cases represents approximately $3,500,000 in cost savings to the Idaho Department of Corrections if the Idaho Department of Corrections was to bear the costs.
Bryan Wheat, the current eastern Idaho SAUSA, was hired in February 2017. He is a Bingham County deputy prosecutor who works full-time in the U.S. Attorney’s Office in Pocatello. His caseload focuses on gun and gang violence, drug trafficking, and immigration offenses affecting eastern Idaho.
Mr. Wheat has been practicing law for nearly five years. A native of Inkom, Idaho, Mr. Wheat graduated from Idaho State University before earning his law degree from the University of Idaho in 2012. He worked as a county prosecutor in Washington County, Utah, prior to returning to Pocatello. While there, he worked with a regional drug and gang task force handling felony cases consisting primarily of drug, violent crime, and gang cases. He also served as a Special Assistant United States Attorney for the District of Utah.
“Prosecution of these 55 offenders was made possible through the transcendent vision of the Eastern Idaho Partnership, the State of Idaho, the Bingham County Prosecuting Attorney’s Office, as well as their prosecution partners in this office,” said Gonzalez. “We have always worked cooperatively to make our eastern Idaho communities safer and stronger. This program is the result of our history of working together. Moreover, the success of this program demonstrates that we can do more when we do it together. We are maximizing public safety and efficiently using taxpayer resources and look forward to continued success.”
“I’m grateful to Rafael Gonzalez, Cleve Colson, and the members of the Eastern Idaho Partnership for the opportunity to return home and be a part of this innovative project,” Wheat said. “This program is a thrifty, effective way to help keep our communities safe. By working together, the agencies and prosecutors involved in the Partnership are multiplying their effectiveness in combatting serious local criminal activity. This program represents the commitment and forward-thinking of those who work hard to keep eastern Idaho a safe place for our families.”
The Eastern Idaho SAUSA program is sponsored by the Eastern Idaho Partnership (EIP), a coalition of local city and county officials in eastern Idaho. The EIP provides approximately 30 percent of the SAUSA’s salary and benefits; the State of Idaho through the Idaho Department of Correction contributes the remaining 70 percent. The project allows law enforcement to utilize federal sentences to see that persistent and violent criminals receive stiffer penalties than they might in state courts. Federal sentences are served out of-of-state, helping to disrupt criminal networks. Special AUSA Wheat says “the net result we strive to achieve is to help eastern Idaho continue to be a wonderful, safe place to live.”
Chubbuck City Mayor Ken England stated, “The program is a strong and effective partnership. The dollars this program is saving is impressive but more important is the quality of life that is being promoted by getting these bad players out of our community.”
East Stroudsburg Man Charged with Stealing Deceased Mother’s Social Security BenefitsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven M. Caravella, age 28, who formerly resided in East Stroudsburg, Pennsylvania, was indicted by a federal grand jury for stealing social security benefits paid to his mother by the Social Security Administration. Caravella was indicted on April 12, 2016, but the case remained sealed until Caravella, a fugitive, was found and arrested in Youngstown, Ohio on July 18, 2017.
According to United States Attorney Bruce D. Brandler, the indictment charges Caravella, with using a government-issued debit card to obtain his mother’s social security benefits for approximately one year after her death. Caravella allegedly obtained approximately $7,762 in benefits between August 2012 and July 2013, as a result of the theft. The government is also seeking forfeiture of the funds wrongfully obtained by Caravella.
The investigation was conducted by the Social Security Administration’s Office of the Inspector General. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 24, 2017, by U.S. District Judge Roberto A. Lange.
Joseph Marshall, age 38, was sentenced to 24 months in custody, followed by 5 years of supervised release, restitution in the amount of $99.65, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Marshall was indicted by a federal grand jury on July 19, 2016. He pled guilty on May 2, 2017.
The conviction stems from Marshall failing to register as a sex offender as required by federal law between February 1, 2016, and March 10, 2016, and March 20, 2016, and April 10, 2016. Marshall has previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
Durant Man Pleads Guilty to Destruction of MailRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SHAWN JUSTIN FISCHER, age 36, of Durant, Oklahoma, pled guilty to DELAY OR DESTRUCTION OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1703, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about April 20, 2017, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully open a package entrusted to him and which came into his possession to be conveyed by mail while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Services’ Office of Inspector General.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for passport fraud.
Jose Matos Dasis, 51, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight months in prison, three years of supervised release, and will be subject to deportation upon completion of his sentence. In April 2017, Dasis pleaded guilty to one count of making false statements on a passport application.
On Feb. 9, 2016, Dasis, using a false name, date of birth and social security number, applied for a United States passport at a U.S. Post Office in Massachusetts. The investigation revealed that the defendant knowingly assumed the identity of another individual when he applied for the passport.
Acting United States Attorney William D. Weinreb and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Denver Woman Sentenced to 46 Months’ Imprisonment for Health Care FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tammie Sensenig, age 46, of Denver, Pennsylvania was sentenced July 25, 2017, by United States District Court Judge William C. Caldwell to serve 46 months’ imprisonment for health care fraud.
According to United States Attorney Bruce D. Brandler, as a result of prior convictions relating to Medicaid fraud, Sensenig was excluded from providing healthcare to Medicaid beneficiaries. In order to obtain a position as a behavioral health consultant, Sensenig made false representations, including a forged background check, in order to hide her ineligible status. As a result, Medicaid paid approximately $84,500 for her services.
“We are pleased that Sensenig will be spending over three and a half years in prison”, said Nick DiGiulio, Special Agent in Charge of the Inspector General’s Office for the U.S. Department of Health and Human Services. “And we will continue to do whatever it takes to keep criminals out of our health care system and to return stolen funds to our benefit programs.”
The charges were the result of an investigation conducted by the Pennsylvania Office of Attorney General Medical Fraud Control Section and United States Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
# # #
Del City Man Sentenced to 96 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BOBBY LEE RUPPEL JR, age 34, of Del City, Oklahoma, was sentenced to 96 months imprisonment, and 3 years of supervised release, for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about November 1, 2016, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Henryetta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
D.C. Tax Return Preparer Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
A Washington, D.C. tax return preparer was sentenced to 15 months in prison today for preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Joanne Little, 60, of Suitland, Maryland, worked as a return preparer in Washington, D.C. at Speedy Tax Service, a tax preparation business that previously operated under the name Instant Tax Service. Little prepared federal income tax returns for tax years 2009 through 2014 that sought refunds to which her clients were not entitled by including inflated charitable deductions, fictitious unreimbursed employee expenses and false business losses. Little admitted to causing a tax loss of $262,714.
In addition to the term of prison imposed, U.S. District Court Judge Reggie B. Walton ordered Little to serve one year of supervised release and to pay restitution to the Internal Revenue Service (IRS) in the amount $262,714. Little pleaded guilty in February 2016.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Jason Scheff and Assistant Chief Karen Kelly of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Claimed Naturopathic Doctor Pleads Guilty to Defrauding Patients at Hoover ClinicRead the Press Release
BIRMINGHAM –A woman who falsely claimed to be a naturopathic doctor pleaded guilty Tuesday in federal court to defrauding patients at a Hoover clinic in 2015, announced Acting U.S. Attorney Robert Posey and U.S. Postal Inspector Frank Dyer.
ISABEL KESARI GERVAIS, 60, using the alias, Dr. Rose Starr, defrauded patients at the Euro Med Klinic by lying about more than her name. She lied about her credentials, her experience and her license to practice medicine, according to her guilty plea. Gervais pled guilty before U.S. District Court Judge Madeline Hughes Haikala to one count of wire fraud affecting a financial institution, one count of aggravated identity theft and one count of making false statements. She also agreed to forfeit $108,146 as proceeds of illegal activity. Gervais is scheduled for sentencing in November.
As part of Gervais’ plea agreement, she acknowledged that over the last 15 years she operated multiple clinics in Alabama, Georgia, Arkansas and Kansas using her current name and various aliases that often employed different spellings of the name Debra Lynn Goodman. The clinics included Sagewood Medical Clinic in Montgomery, the Chiron Clinic in Marietta, Ga., and DRI Enterprises in Atlanta. At all the clinics, Gervais falsely represented herself as a licensed doctor with extensive experience and various degrees who used naturopathic medicine to cure people of various illnesses, including cancer.
“For years this defendant lied about her credentials and took advantage of desperately ill people,” Posey said. “The U.S. Postal Inspection Service did great work in uncovering this fraud and finding the evidence to make this case.”
Gervais had no legitimate medical degrees or training, but she had operated the clinics in Alabama and Georgia, as well as in Fayetteville and Springdale, Ark., and Leawood, Kan. Because of her fraudulent activity, she was investigated by the Alabama and Arkansas medical boards, was prosecuted by Arkansas state authorities and faced civil monetary claims and actions, according to her guilty plea. To avoid legal action and detection, she had abandoned rental properties, changed locations, changed business names and adopted aliases.
Gervais opened the Euro Med Klinic in Hoover in 2015 as Dr. Starr, claiming she had years of experience and was licensed to practice medicine in Alabama and throughout the world. She promised patients, including cancer sufferers, at the Hoover clinic that she could provide various medical services, including DNA tests that she did not have the technology to conduct, according to her plea. Gervais ran some tests on patients, prescribed various substances and, through her misrepresentations about licensure and qualifications, fraudulently induced patients to pay her thousands of dollars, according to her plea.
Gervais misappropriated the identity of one patient at the Hoover clinic in order to charge the patient’s credit card without consent, according to her plea. She also misappropriated the identity of another individual and used it fraudulently to set up a post office box.
The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine. Aggravated identity fraud carries a two-year mandatory minimum prison sentence to run consecutively to any other sentence imposed. The maximum penalty for making a false statement is five years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
###
Cincinnati Trafficker Pleads Guilty to Interstate ProstitutionRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Gary Paul Moorman (34, Cincinnati, Ohio) has pleaded guilty to interstate prostitution. Under the terms of the
plea agreement , Moorman will be sentenced to 20 years in federal prison, the statutory maximum penalty for this offense.According to court documents, Moorman systematically and violently abused multiple victims to induce them, against their will, into prostitution for his own financial gain. He also induced the victims to travel between Florida, Ohio, and elsewhere to engage in sexual acts. In furtherance of his criminal activity, Moorman took provocative photos of the victims to post prostitution ads on the Internet. After the victims provided these services, Moorman demanded and took all of the proceeds.
This case was investigated by the FBI - Tampa Division (Pinellas Resident Agency), with support from the St. Petersburg Police Department and the Clearwater Police Department. Substantial assistance was provided by the FBI’s Cincinnati Field Office and the Cincinnati Police Department. The case is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Kristen A. Fiore.
Child Sex Trafficker Sentenced to Life in Federal Prison. His Mother was Sentenced to 120 monthsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Samuel Pratt, a/k/a “Promise,” age 35, of Gastonia, North Carolina was sentenced to life in federal prison and his mother, Daphne Pratt, age 53, of Gastonia, North Carolina was sentenced to 120 months in federal prison. Samuel Pratt had previously been found guilty on eight counts related to sex trafficking, child pornography, and firearm charges in federal court in Columbia. Chief United States District Judge Terry L. Wooten, of Columbia, sentenced the defendant to life sentences on four counts related to sex trafficking, 360 months on production of child pornography, 120 months on possessing child pornography, 120 months on being a felon in possession of a firearm and 60 months for obstruction of justice. There was also over $40,000 of restitution ordered to be paid to the child victims. Daphne Pratt pled guilty to conspiracy to sex traffic minors and testified against her son in his trial, receiving a reduced sentence for her testimony.
Evidence presented trial established that Samuel Pratt ran a prostitution business of both adults and juveniles, in South Carolina, North Carolina, and New York. The trial opened a window into the seedy world of human trafficking in the Carolinas. Witnesses provided extensive testimony of the manipulation and abuse, as well as the inner-workings of the human trafficking operation. During the trial, Daphne Pratt testified about her son’s control of the minors, as well as her role in running the business at his direction after her son was incarcerated on federal charges. Telephone calls recorded from the jail corroborated Daphne Pratt’s testimony and, along with text messages, provided the jury a view of the depraved world of sex traffickers. Two of the victims of the trafficking were 14 and 17 years old. This was the first human trafficker convicted at trial in South Carolina.
Ms. Drake stated, “the first step on addressing the cancer of human trafficking is to hold the traffickers accountable and that is what this case and this sentence does. Those who traffic in sex need to take notice that our office, along with our federal and state law enforcement partners, will continue to aggressively investigate and prosecute all those who operate in this destructive field.”
The case was investigated by agents of the FBI of both South Carolina and North Carolina, the ATF, the US Marshals and Richland County Sheriff’s Department. Assistant United States Attorneys Jim May and Will Lewis of the Columbia Office prosecuted the case.
#####
Chicago Trader Sentenced to Five and a Half Years in Federal Prison for Misappropriating More Than $1.7 Million in Client FundsRead the Press Release
CHICAGO — A Chicago trader was sentenced today to more than five and a half years in federal prison for defrauding clients out of more than $1.7 million by pocketing their money instead of investing it.
RANDALL RYE, the owner of Faster Than Light Trading LLC, promised substantial profits from his proprietary trading program. Rye claimed that he would invest his clients’ money in options and futures contracts using a computer algorithm. In reality, Rye misappropriated the investors’ funds for his own personal use. He made large cash withdrawals and spent heavily on travel expenses to St. Lucia and Bali. Rye also used investor funds to purchase expensive tickets to several events, including $47,000 for five tickets to the 2016 Lollapalooza music festival in Chicago, $110,000 for 14 tickets to the 2016 World Series, and $75,000 for one premium package ticket to the 2016 Masters golf tournament in Augusta, Georgia.
As a result of the scheme, Rye fraudulently misappropriated a total of $1.72 million from approximately 20 investors.
Rye, 26, of Chicago, pleaded guilty earlier this year to one count of wire fraud. U.S. District Judge Ronald A. Guzman imposed the 70-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
“Randall Rye is a con man,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “His brazen scheme, executed with little regard for his victims, is truly appalling. His victims, many of whom gave him part of their retirement savings, are suffering the consequences of his fraud.”
According to the charges, Rye attempted to conceal the fraud by sending his investors false account statements purporting to show that their funds were invested and profitable. In reality, there was no proprietary algorithmic trading program, and the client funds were not actually maintained at any financial services companies. Rye often spent his clients’ funds soon after they were invested with him.
Carbon County Methamphetamine Trafficker Sentenced to Three Years’ ImprisonmentRead the Press Release
WILKES-BARRE—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric Mann, age 27, of Jim Thorpe, Pennsylvania, was sentenced today to three years’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for trafficking in methamphetamine in the Lehighton area in September 2016.
According to United States Attorney Bruce D. Brandler, Mann previously pleaded guilty to possession with intent to distribute methamphetamine. Mann admitted to possessing approximately 250 grams of the drug at a residence in Lehighton on September 8, 2016. Agents seized the methamphetamine, digital scales, and plastic baggies from Mann’s bedroom in the residence.
Judge Caputo also ordered Mann to serve three years on supervised release following his prison sentence.
Mann was indicted by a federal grand jury in October 2016, as a result of an investigation by agents of the Drug Enforcement Administration and local police in Carbon County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
# # #
Broken Arrow Man Pleads Guilty to Firearm, Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JASON NATHANIEL DAUGHERTY, age 31, of Broken Arrow, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about, December 4, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm and ammunition which have been shipped and transported in interstate commerce.
The charge arose from an investigation by the Broken Arrow Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kristin Harrington represented the United States.
Biglerville Man Pleads Guilty to Child Sexual Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mason David Powell, age 28, of Biglerville, Pennsylvania pleaded guilty on July 25, 2017, before Chief United States District Court Judge Christopher C. Conner to sexual exploitation of children, production of child pornography, possession of child pornography, and online coercion and enticement of minors.
According to U.S. Attorney Bruce D. Brandler, in 2015, Powell admitted to enticing minor boys to engage in graphic sexual text message exchanges with him, eventually escalating to coercing these victims to produce pornographic images of themselves and send them to him online. Powell was arrested by the Adams County District Attorney’s Office Criminal Investigation Division on October 17, 2015, and law enforcement seized Powell’s cell phone at the time of his arrest. The FBI forensically examined Powell’s cell phone and discovered that Powell had downloaded and saved child pornography images on this device. Through further investigation, the FBI identified and interviewed multiple additional minor victims in the Biglerville community that Powell either coerced online, produced images of child pornography of or sexually assaulted.
This case was investigated by the Federal Bureau of Investigation and the Adams County District Attorney’s Office Criminal Investigation Division. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The production of child pornography charge carries a mandatory minimum sentence of 15 years imprisonment, and the charge of online coercion and enticement of minors requires a 10 year mandatory minimum sentence. The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Armed Robber Pleads Guilty in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jaquan Latrel Samuel, a/k/a “Trey,” a/k/a “Trap,” age 30, of Hartsville, pled guilty in federal court in Florence to Robbery of United States Government Property and Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on March 29, 2017, Samuel robbed a person having lawful charge, custody, and control of $400.00 belonging to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) by use of a firearm. During the hearing, agents presented evidence that Samuel pointed a firearm at the victim in order to force the victim to give up the cash.
Ms. Drake stated that the defendant faces a maximum penalty of life in prison.
The case was investigated by the Darlington County Sheriff’s Office, the Hartsville Police Department, and the ATF. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell of the Columbia office are prosecuting the case.
#####
Armed Con Artist Convicted of Bank Fraud and Federal Firearms OffensesRead the Press Release
SAVANNAH, GA: Yesterday, following a two-day trial before U. S. District Court Judge Lisa Godbey Wood, a federal jury convicted Savannah resident Maynard Sanders, 33, of 15 counts of bank fraud, aggravated identity theft, and aiding and abetting theft by a bank employee. Sanders’ convictions came on the heels of a one-day trial before Senior U. S. District Court Judge William T. Moore, Jr. during which a different federal jury found Sanders guilty of possession of a firearm by a felon.
According to the evidence presented at the trials, Sanders befriended two former Wells Fargo bank tellers in late 2015, and convinced both of them to help him obtain and use other people’s identities in order to steal cash from Wells Fargo bank accounts. Text messages recovered from Sanders’ cell phone revealed that Sanders intentionally targeted elderly customers, including an 86-year-old widow who testified against Sanders at the July trial. Between December 2015 and February 2016, Sanders caused his accomplices to withdraw thousands of dollars from compromised accounts and to provide him with most or all of the embezzled funds. Both accomplices have pled guilty to federal charges and are awaiting sentence.
When Sanders was arrested on federal fraud charges, he was in possession of a loaded semi-automatic pistol. Due to his previous convictions for theft, fraud, and unlawful possession of a firearm dating back to 2002, Sanders was prohibited under federal law from possessing guns or ammunition.
On the firearms charge, Sanders faces a term of imprisonment of up to 10 years, a fine of up to $250,000, and up to three years of supervised release. Additionally, Sanders may be sentenced to up to 30 years in prison for bank fraud and aiding and abetting theft by a bank employee. Sanders’ commission of aggravated identity theft will add between 2 and 10 years of imprisonment onto his total sentence. There is no parole in the federal system.
Acting United States Attorney James D. Durham stated, “For over a decade, Maynard Sanders preyed upon the hardworking citizens of this community and embraced deception and manipulation as his stock-in-trade. Despite several stints in prison, he continued to hatch fraudulent schemes, and he persisted in carrying weapons that he had no right to possess. This United States Attorney’s Office will ensure that Sanders and other career criminals like him will be held accountable for their misdeeds.”
“Technology has forever changed the way we do business, making every day financial transactions a prime target for fraud,” said U. S. Secret Service Resident Agent in Charge Glen Kessler. “Customers are always urged to monitor their bank accounts and credit cards closely for fraudulent transactions and to use automated banking alerts available at most financial institutions. The Secret Service, in conjunction with its many law enforcement partners, continues to successfully combat these crimes by adapting our investigative methodologies and educating the public.”
The charges against Sanders and his accomplices resulted from a Secret Service investigation. That investigation is ongoing, and additional arrests are expected. Various law enforcement agencies, including ATF, U. S. Marshals Service, Savannah State University Police Department, Chatham County Sheriff’s Office, Armstrong State University Police Department Cyber Forensics Division, and the Secret Service Electronic Crimes Task Force, provided assistance.
Assistant United States Attorney Theodore S. Hertzberg is prosecuting the cases on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 201-2522.
Arizona Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elijah Chaffino, 37, of Scottsdale, Arizona, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 kilograms or more of marijuana, was sentenced to time served by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between early 2009 and February 1, 2012, the defendant conspired with co-defendants Jordan Ali, Shane Graffman and others, to distribute marijuana.
In early 2009, after developing a friendship with Jordan Ali, Chaffino began shipping packages, which contained marijuana, from Arizona to addresses located in Buffalo, at Ali’s direction. Some of these packages were shipped to co-defendant Jason Nati’s address on Villa Avenue in Buffalo, while others were sent to individuals residing in the Niagara Falls area. Chaffino sent the last package in January 2012, which contained approximately 30 pounds of marijuana. The package was intercepted by law enforcement officers in Buffalo.
A total of six defendants were arrested and convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Allentown Mayor Charged in Pay to Play SchemeRead the Press Release
PHILADELPHIA – A federal indictment1 was unsealed today charging Mayor Edwin Pawlowski, 52, of Allentown, for alleged violations of federal public corruption laws, announced Acting United States Attorney Louis D. Lappen. The indictment charges Pawlowski with 14 counts of bribery, 9 counts of mail fraud, 9 counts of wire fraud, 6 counts of honest services wire fraud, 2 counts of honest services mail fraud, 3 counts of attempted Hobbs Act extortion under color of official right, 3 counts of travel act bribery, 7 counts of making material false statements, and conspiracy. Scott Allinson, 55, of Allentown, and James Hickey, 54, of Allentown, were also included on the indictment. Allinson was charged with 1 count of bribery and conspiracy. Hickey was charged with 4 counts of wire fraud, 2 counts of mail fraud, 4 counts of honest services wire fraud, 2 counts of honest services mail fraud, and conspiracy.
According to allegations contained in the indictment, Pawlowski was potentially involved in illegal activities associated with his position as a Mayor of Allentown. Today’s announcement is the culmination of a several year investigation involving the pleas of 10 others. Among those who have plead are former Allentown City Officials and businesspersons seeking contracts with the city of Allentown.
The indictment alleges that Pawlowski accepted the bribes on numerous separate occasions. According to the indictment, Pawlowski allegedly accepted over $150,000 in campaign contributions in exchange for the use of his official position. Among the most notable of the explicit quid pro quo examples is a three million dollar contract awarded to an engineering firm.
“The mayor of Allentown and the former mayor of Reading charged in the two indictments unsealed today sold their offices to the highest bidder -- violating the trust and confidence of the citizens of their cities,” said Acting United States Attorney Louis Lappen. “Both mayors, working with other corrupt officials and businesspeople, directed lucrative contracts to companies who agreed to provide campaign contributions in exchange for work. In an astounding act of irony, former Mayor Spencer bribed the President of City Council to introduce legislation repealing a Reading anti-corruption statute. The United States Attorney’s Office will continue to aggressively investigate and prosecute public officials who operate these “pay to play” schemes.
"As alleged in these indictments, 'pay to play' was the order of the day in Allentown, and in Reading," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division, "with those cities' mayors manipulating the levers of power for their own ways and means. As charged, Edwin Pawlowski and Vaughn Spencer brazenly and repeatedly sold off city contracts to bankroll their political futures. This years-long investigation illuminated troubling conduct for which all of those indicted must now answer. The FBI is committed to fighting public corruption, which erodes the trust of 'we the people' and cheapens our cherished democracy."
“Internal Revenue Service Criminal Investigation (IRS-CI) is diligent in unraveling the fraudulent actions of those, such as Edwin Pawlowski and Vaughn Spencer, who scheme to defraud citizens of Allentown and Reading who placed their trust in him,” said Acting Special Agent in Charge Gregory Floyd of IRS-CI’s Philadelphia Field Office. IRS-Criminal Investigation is proud to be a member of the formidable team that is rooting out public corruption. “Today’s indictment is a reminder that there are detrimental consequences for this type of criminal behavior.”
The charge of bribery concerning programs receiving federal funds carries a maximum sentence of 10 years in prison and a $250,000 fine; the charges of mail fraud, wire fraud, honest services mail fraud, honest services wire fraud, and attempted Hobbs Act all carry an individual maximum sentence of 20 years in prison and a $250,000 fine; and the charges of conspiracy, travel act bribery and making material false statements all carry an individual maximum sentence of 5 years in prison and a $250,000 fine.
The case is being prosecuted by Assistant United States Attorney Anthony J. Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alleged Boston Gang Member Indicted on Drug Distribution ChargeRead the Press Release
BOSTON – An alleged member of the Orchard Park Trailblazers was indicted today in federal court in Boston for distributing cocaine in a school zone.
Tyree Draughn, 25, was indicted on one count of distribution of a controlled substance within 1,000 feet of a school. In June 2017, Draughn and 11 others were charged in a criminal complaint and arrested in connection with selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development. It is alleged that Draughn sold cocaine base in a school zone on May 10, 2017.
The charges are the result of a nearly two-year investigation into the high concentration of crime in and around the Orchard Park Development, the largest publically funded development in Roxbury, which is also adjacent to Orchard Gardens K-8 Pilot School. The crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers who allegedly have active feuds with rival gangs throughout the city, contributing to the area’s violence. It is alleged in court documents that the residents of the Development often expressed concerns to law enforcement about the violence in the area and the gang members who contributed to an atmosphere of fear and intimidation.
The charging statute provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and no more than a lifetime of supervised release, and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
The details contained in the charging documents are allegations. defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Albuquerque Felon Sentenced to Federal Prison for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Luis Mejia, 32, of Albuquerque, N.M., was sentenced today in federal court to 70 months in prison for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Mejia will be on supervised release for three years after completing his prison sentence.
Mejia was arrested on Dec. 12, 2016, on a criminal complaint charging him with being a felon in possession of a firearm on Nov. 29, 2016. According to the complaint, law enforcement officers located a firearm and ammunition on Mejia incident to his arrest after executing a traffic stop on Mejia’s vehicle.
Mejia was subsequently indicted on Dec. 20, 2016, and was charged with being a felon in possession of a firearm and ammunition on Nov. 29, 2016, in Bernalillo County, N.M. At the time, Mejia was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated assault with a deadly weapon, aggravated fleeing a law enforcement officer, aggravated battery with a deadly weapon causing great bodily harm and possession of a controlled substance. Mejia pled guilty to the indictment without the benefit of a plea agreement on April 20, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney David M. Walsh prosecuted the case.
Alaskan Commercial Fishing Couple Charged with Willful Failure to Pay over $400,000 in Income Taxes on Income Earned for 13 YearsRead the Press Release
An Alaskan couple was charged in federal court in Juneau, Alaska today with four counts of willful failure to pay their individual income taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Bryan Schroder for the District of Alaska.
According to the Information, Archie W. Demmert III and Roseann L. Demmert earned income from commercial fishing. The Information alleges that Archie Demmert owned Vetta Bay LLC, which owned the Demmerts’ fishing vessel, the Emerald Beauty. The Information further charges that the Demmerts have a long history of not paying their taxes to the Internal Revenue Service (IRS). It alleges that the Demmerts did not pay their taxes for 13 separate tax years, for which they owed over $400,000, excluding penalties and interest.
The Demmerts arraignment has not been scheduled yet. They face a statutory maximum sentence of one year in prison on each separate count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schroder recognized special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting this case.
An Information is merely an accusation, and a defendant is presumed innocent unless proven guilty.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.