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Tuesday 16 May 2017
Scranton Tax Preparer Charged with Defrauding Taxpayers of More Than $250,000Read the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Donald Royce, age 40, of Scranton, Pennsylvania, was indicted by a federal grand jury for tax preparation fraud charges.
According to United States Attorney Bruce D. Brandler, Royce was a tax preparer in Scranton who defrauded a number of local residents in 2014. The indictment alleges that Royce prepared fraudulent tax returns for multiple taxpayers causing more than $250,000 in losses. Royce gave the taxpayers a client copy of their tax return, then made material fraudulent changes to the client copy, and submitted the false return to the Internal Revenue Service (IRS) for his financial benefit. The indictment further alleges that Royce took clients’ IRS payment checks and deposited them directly in to his own account without ever remitting the amount to the IRS, all without the taxpayers’ knowledge.
The case was investigated by the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
The maximum penalty under federal law for this offense is 23 years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $2,250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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San Antonio Man Sentenced to 30 Years in Federal Prison for Production of Child PornRead the Press Release
In San Antonio this morning, 33-year-old Kevin Clay Montgomery was sentenced to the statutory maximum of 30 years in federal prison followed by ten years of supervised release for production of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
On October 15, 2016, Montgomery pleaded guilty to the charge. By pleading guilty, Montgomery admitted that in September 2014, he used his cell phone to produce child pornography that depicted the abuse and exploitation of an approximate 2-year-old female toddler. After receiving information concerning the transmission and storage of potential child pornography, agents from the FBI’s San Antonio Division obtained a search warrant for the defendant’s residence. On January 27, 2015, agents executed the warrant and seized two cellular telephones belonging to the defendant. A subsequent forensics evaluation of the seized phones revealed the presence of approximately 369 images of child pornography produced using those phones from October 2014 to December 2014.
Montgomery has remained in federal custody since his arrest on January 27, 2015.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Ring Leader of Gas-Pump Skimming and Identity-Theft Scheme Sentenced to 12 Years in Federal PrisonRead the Press Release
Scheme Stretched from Texas into Colorado, Indiana, Wisconsin, Ohio and Michigan
GRAND RAPIDS, MICHIGAN — Antonio DeJesus Perez-Martinez, 44, formerly of Austin, Texas, was sentenced today to serve 144 months, or exactly 12 years, in the Federal Bureau of Prisons for his leadership of a scheme that involved the installation of hidden data-skimming devices inside gas pumps, encoding credit-account data that was harvested by those devices onto "cloned" credit cards, and use of the cards to bulk-buy gift cards and prepaid debit cards at self-checkout lanes of major retailers. Perez-Martinez was convicted of conspiracy to commit wire-fraud, credit-account fraud, and aggravated identity-theft after a trial in U.S. District Court during January 2017, and he is the last of eight defendants charged in a long-running investigation that was conducted by the Lansing office of the FBI, with assistance from the U.S. Postal Inspection Service, the Grand Rapids Metro Fraud and Identity-Theft Team, and the Grand Ledge Police Department.
The evidence at trial established that Perez-Martinez, a Cuban citizen and lawful permanent resident of the United States ("green-card" holder), recruited numerous recently-arrived Cuban citizens – all of whom had entered the United States in 2014 under a special "parole" program that admitted Cuban citizens who presented themselves to immigration authorities at the border – into a fraud scheme that initially involved obtaining compromised credit-account data from illicit websites. During the Summer of 2015, Perez-Martinez switched from acquiring account data online to using "skimming" devices that his accomplices secretly installed inside gas-pumps, and also extended his group’s operation into West Michigan. Skimming devices capture the account data of any card used to purchase gas without interfering with the purchase, leaving the account holder unaware that the data has been compromised until it has been re-encoded onto cloned cards and used to make unauthorized purchases.
Perez-Martinez’ sentence is the seventh prison term imposed in the case: Raul Gonzalez Falcon (29), Yunier Carballo-Pupo (34), Manuel Perez-Cabrera (38), and Michel Velazquez-Gregori (30), none of whom had prior criminal records and all of whom agreed to plead guilty and to cooperate with the investigation, all received sentences of 21 months in prison. Pedro Sanchez-Pupo (32) received a sentence of 37 months. A seventh defendant, Juan Estrada-Galvez, was allowed to plead guilty to a state misdemeanor in Kent County when the investigation determined that his involvement in the scheme had been minimal.
"Perez-Martinez has learned the hard way that West Michigan is the wrong place to visit if you’re engaged in a gas-pump skimming scheme," stated Acting U.S. Attorney Andrew Birge. "The odds of getting caught here are good, and if you are caught, then your case will be prosecuted in Federal court and the investigative resources of the FBI will be brought to bear against you. That applies both to those who are caught in the act and to people like Perez- Martinez who might never set foot in West Michigan, but who send their subordinates here. The long arms of federal law caught Perez-Martinez. And those arms aren’t letting go until he serves his time."
"The guilty verdict and subsequent lengthy sentence in this case demonstrate that criminals who engage in identity theft will be held accountable for their crimes. The FBI, along with our local, state and federal law enforcement partners, is committed to safeguarding the public against such crimes and working to ensure the American public is secure in its financial transactions," said David P. Gelios, Special Agent in Charge of the Detroit Division of the FBI.
The case was prosecuted by Assistant U.S. Attorney Hagen W. Frank.
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Randolph County woman sentenced for illegal possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Alexis McDonald, 19, of Elkins, West Virginia, was sentenced to 37 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
McDonald, who had previously been convicted of a felony offense in Pennsylvania, is prohibited from possessing a firearm. She admitted to possessing a .9mm caliber pistol in Barbour County, West Virginia in July 2016.
McDonald pled guilty to one count of “Felon in Possession of a Firearm” in January 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Previously Convicted Felon from Union County, New Jersey, Admits Illegally Possessing FirearmsRead the Press Release
TRENTON, N.J. – An Elizabeth, New Jersey, man today admitted possessing a shotgun, a rifle, and two handguns despite being a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel Bigelow, 28, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with three counts of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
Bigelow admitted that despite having prior felony convictions in Union County Superior Court and New York State Supreme Court, he knowingly possessed firearms on three separate occasions. Bigelow admitted that he possessed a Savage Arms Stevens Model 320 12-gauge shotgun on Dec. 29, 2015 and a Hi-Point Model C9 9mm pistol on March 31, 2016. Bigelow also admitted to having a Hi-Point Model 995 9mm rifle and a Smith and Wesson Model 686 .357 revolver in his possession on April 12, 2016.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21, 2017.
Acting U.S. Attorney Fitzpatrick credited ATF special agents, under the direction Acting Special Agent in Charge Marcus S. Watson in Newark, with the investigation. He also thanked the Elizabeth Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Philadelphia Man Pleads Guilty to Defrauding Pittsburgh-area BanksRead the Press Release
PITTSBURGH, PA – A resident of Philadelphia, PA, has pleaded guilty in federal court on a charge of fraud conspiracy, Acting United States Attorney Soo C. Song announced today.
Darein Clark, 23, pleaded guilty to one count before United States District Judge David S. Cercone.
According to the indictment, Clark and others agreed to defraud Pittsburgh area banks by depositing counterfeit checks by remote mobile deposit, and then making a series of withdrawals against funds credited from the deposited checks.
Judge Cercone scheduled the sentence for sentencing for October 6, 2017. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Owner of Sunland Park Smoke Shop Pleads Guilty to Selling Drug ParaphernaliaRead the Press Release
ALBUQUERQUE – Brenda Riveroll, 36, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to selling drug paraphernalia. The plea agreement recommends that Riveroll be sentenced to a five-year term of probation.
Riveroll was arrested on April 3, 2017, on an indictment charging her with selling drug paraphernalia. The indictment charged Riveroll with selling drug paraphernalia on May 3, 2016, and offering to sell drug paraphernalia on May 12, 2016. According to the indictment, Riveroll committed the crimes in Dona Ana County, N.M.
During today’s change of plea hearing, Riveroll pled guilty to the indictment. In her plea agreement, Riveroll acknowledged that she was the owner and sole employee of “The Smoke Shop,” located on Palomas Court in Sunland Park, N.M. Riveroll admitted that on May 3, 2016, she sold two pipes, designed for and intended for use in smoking marijuana, to undercover law enforcement officers. Riveroll also admitted that on May 3, 2016, and May 12, 2016, she had a large inventory of drug paraphernalia for sale at her place of business. The plea agreement states that on May 12, 2016, law enforcement officers searched “The Smoke Shop” and seized 1,409 assorted smoking instruments, including bongs, glass pipes and metal pipes, 80 grinders for grinding marijuana, and five scales for weighing controlled substances. Riveroll admitted knowing that the merchandise she sold and offered for sale at “The Smoke Shop” was likely to be used with illegal drugs.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.
Omnicare Inc. Agrees to $8 Million Settlement in False Claims Act CaseRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office of the District of New Jersey, the U.S. Department of Justice and 28 states have reached an $8 million settlement with Omnicare Inc. resolving allegations arising from a whistle-blower suit filed under the False Claims Act. The agreement was announced today by Acting U.S. Attorney William E. Fitzpatrick.
The settlement follows an investigation by the U.S. Attorney’s Office of the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division. The United States alleged that Omnicare, in an effort to increase business efficiency and profit, designed and implemented an automated label verification system at certain locations that utilized a less specific drug code – known as “MEDID” – during its automated Stage II pharmacist verification process, instead of the more specific National Drug Code (NDC).
This system resulted in the submission by Omnicare of claims for generic drugs different from those actually dispensed to Medicare and Medicaid beneficiaries. It also resulted in the dispensing of drugs with patient-specific labels displaying the incorrect manufacturer or NDC. The government alleged that the false manufacturer and NDC information on the labels, and within Omnicare’s electronic dispensing information, affected Omnicare’s ability to properly track and, if necessary, conduct patient-level recalls of such drugs.
“Ensuring accuracy in the dispensing of and billing for medication in the Medicare Part D and Medicaid Programs, especially to long-term care patients, is vital to public safety,” Acting U.S. Attorney Fitzpatrick said.
The relators, or whistler-blowers, in the underlying qui tam will receive more than $2 million as their statutory share of the recovery and to resolve their employment based claims in accordance with the False Claims Act. The civil lawsuit was filed in the District of New Jersey and is captioned U.S. et al. ex rel. Elizabeth Corsi and Christopher Ezzie v. Omnicare Inc.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, for the investigation leading to the settlement.
The government is represented by the U.S. Attorney’s Office District of New Jersey, Deputy Chief, Civil Division, David Dauenheimer and Assistant U.S. Attorney Bernard Cooney of the Office’s Health Care and Government Fraud Unit, and the Department of Justice’s Civil Division, Senior Litigation Counsel Laurie A. Oberembt. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the Department of Health and Human Services also participated in the investigation and settlement.
The U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at http://www.justice.gov/usao-nj.
Counsel for relators: Charles C. Goetsch Esq., New Haven, Connecticut.
Counsel for defendant: Michael Martinez Esq., New YorkOhio man sentenced for heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Rayshawn L. Ball, 31, of Columbus, Ohio, was sentenced today in federal court to 41 months incarceration for heroin and cocaine trafficking, Acting United States Attorney Betsy Steinfeld Jividen announced today.
Ball engaged in heroin and cocaine trafficking in Ohio County, West Virginia throughout late 2014 and early 2015. Ball pled guilty to one count of “Possession with Intent to Distribute Schedule I and Schedule II Controlled Substances” in December 2016.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
New York Man Sentenced for Credit Card FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shavouy Paisley, age 25, of Queens, New York, was sentenced today by United States District Judge William W. Caldwell to 17 months’ imprisonment for credit card fraud. Paisley was convicted after a jury trial in September 2016, for conspiracy to possess 15 or more counterfeit or unauthorized access devices.
According to United States Attorney Bruce D. Brandler, Paisley and his co-defendants were arrested on September 28, 2014, in Cumberland County by Hampden Township Police Department after making several suspicious purchases at CVS and Rite Aid establishments located on the Carlisle Pike in Mechanicsburg, Pennsylvania. The Hampden Township Police Department seized more than 100 counterfeit Visa cards from the vehicle the three men had been traveling in, along with 25 cartons of cigarettes and multiple gift cards. During the investigation, the United States Secret Service determined the account numbers associated with the magnetic strips on the cards belonged to account holders from dozens of banks and institutions across the country. After reviewing bank records, the United States Secret Service identified more than a half a dozen retail establishments on the Carlisle Pike where the defendants attempted to or actually did make purchases using these unauthorized account numbers. The intended loss was $50,500 and the actual loss was $6,414.
Codefendant Rushane Kennedy pled guilty on September 12, 2016, and is awaiting sentencing. Vernal Moffat remains a fugitive.
The case was investigated by the United States Secret Service and the Hampden Township Police Department. Assistant United States Attorneys Meredith A. Taylor and Joseph J. Terz prosecuted the case.
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Nevada Woman Sentenced for Taking 'Food Stamps' for Meth, CashRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., woman was sentenced in federal court today for her role in a conspiracy to exchange “food stamps” for methamphetamine or cash.
Julie M. Drake, 48, of Nevada, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole.
On Jan. 30, 2017, Drake pleaded guilty to one count of conspiracy to commit wire fraud and one count of possessing methamphetamine with the intent to distribute. Drake admitted that she participated in a conspiracy from Aug. 30 to Oct. 14, 2015, in Bates and Vernon Counties. Drake accepted Supplemental Nutrition Assistance Program (SNAP) benefits, better known as “food stamps,” in exchange for methamphetamine or a percentage of the benefits in cash. Drake then used the EBT cards and PINs belonging to others to buy her own food.
Vernon County Sheriff’s Department officers executed a search warrant at Drake’s residence on Oct. 14, 2015. During a search of the master bedroom, officers found a purse that contained 22 baggies of methamphetamine, weighing approximately 100 grams, packaged for distribution. Officers also found two digital scales in the bedroom closet, as well as a safe that contained $4,720. Four EBT cards belonging to four other individuals were found on the dresser.
Investigators then reviewed video surveillance from the Wal-Mart stores in Nevada and Lamar, Mo., which showed Drake using the EBT cards found in her bedroom that she obtained through the sale of methamphetamine.
In interviews with federal agents, one of the recipients of the EBT cards admitted he used his EBT benefits to buy methamphetamine from Drake. He told investigators that a $55.94 transaction was payment for the methamphetamine, which would have cost approximately half the value of the transaction. Another one of the recipients admitted to selling his EBT benefits to Drake for 50 cents per each $1 in benefits. She would come to his residence to retrieve the EBT card, call the 1-800 number on the back of the EBT card to verify the balance, and then give him half of the value in cash.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Patrick Carney. It was investigated by the U.S. Drug Enforcement Administration, the U.S. Department of Agriculture, Office of Inspector General and the Vernon County, Mo., Sheriff’s Department.
Milford, Iowa Man Sentenced to Federal Prison for Drug ConvictionRead the Press Release
A man who conspired to distribute methamphetamine in the Milford area was sentenced on May 16, 2017, to 10 years in federal prison.
Jeremy Hoffman, age 29, from Milford, Iowa, received the prison term after a January 11, 2017, guilty plea to one count of conspiracy to distribute methamphetamine.
In a plea agreement, Hoffman admitted he and others conspired to distribute methamphetamine from about 2014 through October 18, 2016, in the Northern District of Iowa and elsewhere. Hoffman was personally involved in the distribution of at least 1.3 kilograms of methamphetamine, selling as much as a half-pound to a single customer per week. During the conspiracy, Hoffman sent text messages detailing an incident in which someone stole “ten grand” from him. In those text messages, Hoffman stated that he retaliated against that individual by violently assaulting him with the handle of a pickaxe.
Hoffman was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Hoffman was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hoffman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Dickinson County Sheriff’s Office, the Clay County Sheriff’s Office, and the O’Brien County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR16-4091.
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Miami-Dade Police Department Officer Charged with Unlawfully Exporting FirearmsRead the Press Release
Miami-Dade Police Department Officer Michael Freshko has been charged in a criminal information with conspiracy to unlawfully export firearms from the United States to the Dominican Republic, on flights from Miami International Airport.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Freshko, 48, had his initial appearance today before U.S. Magistrate Judge William C. Turnoff. The case is assigned to U.S. District Judge Darrin P. Gayles.
According to the allegations in the criminal information, after receiving firearms from a co-conspirator, Freshko used his official position as a MDPD officer to transport the firearms past the passenger screening area and into the portion of Miami International Airport that housed the departure gates. The criminal information further alleges that Freshko thereafter would deliver the firearms to a co-conspirator, who in turn would store the firearms within carry-on baggage. Next, a co-conspirator would travel to the Dominican Republic aboard a commercial flight, with the firearms within carry-on baggage. After arriving in the Dominican Republic, a co-conspirator would deliver the firearms to an associate.
The criminal information states that one or more firearms were smuggled in this manner on October 5, 2012, and multiple firearms were smuggled on December 7, 2012. The information alleges that Freshko and the members of the conspiracy smuggled six firearms from Miami International Airport to the Dominican Republic. The smuggled firearms consisted of four Glock .9 mm pistols, one Sig Sauer .9 mm pistol, and one Sig Sauer 5.56 rifle.
The case was investigated by law enforcement officers in South Florida and New Jersey. Mr. Greenberg thanked the FBI Miami Area Corruption Task Force; the MDPD Professional Compliance Bureau; the FBI Newark Division-Franklin Township Resident Agency; the Drug Enforcement Administration Newark Division-Patterson Post of Duty; and the Internal Revenue Service, Criminal Investigation, Newark Field Office. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
A criminal information is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced to 6 Years in Prison for his Role in Cashing Fraudulently Obtained Large-Dollar Tax Refund ChecksRead the Press Release
A Miami resident was sentenced to 72 months in prison, to be followed by three years of supervised release for his involvement in a stolen identity refund fraud scheme involving the cashing of fraudulently obtained large-dollar tax refund checks.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Silvio Galvez, Jr., 30, of Miami, previously pled guilty to one count of conspiracy to commit theft of government money, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, from 2013 to 2014, co-conspirators of Galvez submitted hundreds of fraudulent tax returns with stolen personal identity information to the IRS requesting over $50 million in large-dollar tax refunds (each refund requested ranged in value from $130,000 to $170,000). As a result of these fraudulent filings, the IRS paid out approximately $4.3 million in tax refunds by mailing out tax refund checks to various Miami addresses connected to this scheme. Galvez knew these fraudulent returns were being filed and furthered the scheme by serving as the source to cash these fraudulently obtained large-dollar tax refund checks at check cashers and at various banks. The defendant also participated in the scheme by recruiting a bank employee to open up bank accounts using stolen personal identity information where these fraudulent checks could be deposited.
Mr. Greenberg commended the investigative efforts of IRS-CI, the FBI, and ICE-HSI. This case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov .
Medford Man Sentenced for Oxycodone ConspiracyRead the Press Release
BOSTON – A Medford man, and co-defendant of former NHL player Kevin Stevens, was sentenced in federal court in Boston today in connection with an oxycodone conspiracy.
Christopher Alonardo, 36, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 18 months in prison, three years of supervised release and a fine of $10,000. In December 2016, Alonardo pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone and possession with intent to distribute oxycodone. On May 4, 2017, co-defendant and former NHL player Kevin Stevens was sentenced to three years of probation and ordered to pay a fine of $10,000.
From approximately August 2015 through March 2016, Stevens and Alonardo conspired to distribute oxycodone in southeastern Massachusetts and the Boston area. Stevens supplied wholesale quantities of oxycodone to Alonardo who resold the drugs. On Nov. 5, 2015, Stevens was stopped by police and found in possession of 175 30mg pills of oxycodone that were intended for redistribution by Alonardo.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Martinsburg man accused of stealing government moneyRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia man was indicted today by a federal grand jury on charges he stole money from the government, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Paul A. Bradley, age 52, was indicted on one count of “Theft of Government Money,” and two counts of “Making a Material False Statement.” Bradley allegedly falsely claimed mileage reimbursement for travel to the Veterans Affairs Medical Center in Martinsburg from a Virginia address. The crimes occurred from November 2010 to July 2015.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Department of Veterans Affairs, Office of Inspector General and the United States Department of Veterans Affairs Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Man Sentenced to 54 Months for Child Pornography PossessionRead the Press Release
CONCORD, N.H.: Allan Yianakopolos, 49, of Manchester, New Hampshire, was sentenced to serve 54 months in federal prison for possessing child pornography, announced Acting United States Attorney John J. Farley.
According to court records, law enforcement officers executed a search warrant at the Manchester residence of Yianakopolos in February of 2016. Among the items seized was a cellular telephone that contained hundreds of images and videos of child pornography.
Yianakopolos pleaded guilty to possessing child pornography on January 26, 2017. After serving his54-month prison sentence, he will be on supervised release for ten years.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Manchester and Bedford, New Hampshire. The case was prosecuted by Assistant United States Attorney Georgiana Konesky.
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Louisiana Residents Plead Guilty to Illegal Hunting on Delta National Wildlife RefugeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROBERT “BOOZIE” COSSE, JR., age 40, from Port Sulphur, and DEAN “DINO” OCKMOND, JR., age 36, of Vacherie, pled guilty today to crimes related to illegal hunting on the Delta National Wildlife Refuge.
The Delta National Wildlife Refuge is located on the east bank of the Mississippi River Delta in lower Plaquemines Parish, southeast of Venice. The Refuge is comprised of 48,000 acres of marsh and wetlands that were set aside in the early 1930’s in order to serve as a refuge and breeding grounds for migratory birds and other wildlife.
After receiving complaints of illegal hunting on the Refuge, Special Agents of the United States Fish and Wildlife Service conducted a months-long investigation and determined that COSSE was illegally maintaining a deer stand and a feeder that expelled corn to attract deer and hogs on a difficult-to-access portion of the Delta National Wildlife Refuge. COSSE and his associates repeatedly hunted with firearms at the illegal feeder on the refuge during the winter of 2015-16.
On January 17, 2016, federal agents observed OCKMOND shoot and kill an 11-point white-tailed buck at the illegal feeder. COSSE and OCKMOND then transported the illegally harvested deer in violation of the Lacey Act, which prohibits the transportation or acquisition of wildlife taken in violation of any Federal law or regulation. Both COSSE and OCKMOND pled guilty to one count of violating the Lacey Act.
COSSE pled guilty to 16 misdemeanor counts of violating the Refuge Systems Administration Act related to repeated violations involving: illegal use of a bait to hunt deer or hogs on a refuge; illegal use of a motor vehicle on a refuge; illegal hunting of deer or hogs during a closed season on a refuge; and, the illegal use of a firearm to hunt deer or hogs on a refuge.
COSSE was fined $8,775 and agreed to forfeit to the government a Polaris All-Terrain Vehicle and a John Deere tractor that he was using to illegally traverse the refuge. The Court also placed COSSE on probation for three years, and forbade COSSE from entering any National Wildlife Refuge or engaging in any type of hunting activity during that time.
OCKMOND was fined $2,025 and agreed to forfeit the mounted 11-point buck to the government. The Court also placed OCKMOND on probation for two years, and forbade OCKMOND from entering any National Wildlife Refuge or engaging in any type of hunting activity during that time.
Acting U.S. Attorney Evans praised the work of the Special Agents from the United States Fish and Wildlife Service office located in Lacombe in investigating this matter. Assistant U.S. Attorney Myles Ranier was in charge of the prosecution.
Logansport Man Sentenced to 275 Months ImprisonmentRead the Press Release
HAMMOND-Acting United States Attorney Clifford D. Johnson announced that Johnny Clay Amos, 52, of Logansport, Indiana was sentenced before District Court Judge Philip P. Simon for production of child pornography.
Amos was sentenced to 275 months’ imprisonment followed by 10 years of supervised release.
According to documents in this case, between July 2014 and January 2016, Amos paid individuals in the Philippines to provide minor children to perform sex shows via live-streaming webcam. During this time, Amos made more than 100 money transfers to the Philippines and, on at least ten separate occasions, induced young females to engage in sexually explicit conduct over the internet. On March 18, 2016, a search warrant was executed on Amos’s residence where over 800 videos and images of child pornography were found.
This case was investigated by the Federal Bureau of Investigation and was handled by Assistant United States Attorney Abizer Zanzi.
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Leesburg Gang Member Arrested on Federal Carjacking and Firearms ChargesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Jonathan Kyle Lanier (23, Leesburg) with carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of carjacking, and possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 15 years in federal prison for the carjacking count, up to 5 years’ imprisonment for the conspiracy count, a minimum mandatory 7-year penalty for brandishing a firearm, and up to 10 years in federal prison for the felon in possession charge. The indictment also notifies Lanier that the United States intends to forfeit three firearms that are alleged to have been used in facilitating the offense. Lanier made his initial appearance in Ocala today and was ordered detained pending trial.
According to the indictment, on December 23, 2016, Lanier and three other individuals conspired to rob a male victim of his money, other personal property, and his automobile by arranging a meeting at a remote location in Leesburg between the victim and a female co-conspirator. The victim believed that he was going to meet the woman only; however, shortly after he arrived, Lanier and two other men, Avery Tumer (23, Leesburg) and Timotheus Reed (29, Leesburg), pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Tumer later pistol-whipped the victim and took his car. Thereafter, Tumer, Reed, Lanier, and the female co-conspirator drove the female’s car and the victim’s car back to a residence in Leesburg. They took the victim’s personal property into the residence, and hid the firearms in an attic.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Tumer is currently detained on state charges, awaiting transfer to federal custody. Timotheus Reed faces federal charges and remains at-large.
This case was investigated by the Federal Bureau of Investigation Jacksonville Field Office (Daytona Beach Resident Agency), the Lake County Sheriff’s Office, and the Leesburg Police Department, with assistance from task force members from the Volusia County Sheriff’s Office and the Daytona Beach Police Department. It will be prosecuted by Assistant United States Attorney Dale Campion.
Kaufman Man Sentenced to 84 Months in Federal Prison for Transporting and Possessing Child PornographyRead the Press Release
DALLAS — Mitchell Weston Miller, 23, of Kaufman, Texas, was sentenced today by U.S. District Judge David C. Godbey to serve a total of 84 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Miller has been in custody since his arrest in August 2016.
According to the factual resume filed in the case, on November 23, 2015, Miller used his email account and the Internet to send and transmit files of minors engaged in sexually explicit conduct.
On December 22, 2015, Miller’s Google mail (Gmail) account uploaded eight images of child pornography. A search warrant for this same Gmail account showed the email account was used to trade child pornography and approximately fifty-five emails contained attachments of child pornography. Miller’s cell phone also contained child pornography.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
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Jefferson County man indicted for illegal firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man was indicted today by a federal grand jury for unlawful possessed a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Darnell Antonio Gardner, age 38, was indicted on one count of “Unlawful Possession of a Firearm.” Gardner, having previously been convicted of a felony in Prince George’s County, Maryland, allegedly had a .40 caliber pistol in Jefferson County in June 2016.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Jefferson County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate at Central Virginia Regional Jail Pleads Guilty to Heroin DistributionRead the Press Release
Charlottesville, VIRGINIA – An inmate, who smuggled heroin into the Central Regional Jail and then distributed the drug to other inmates, pled guilty today to federal drug charges, Acting United States Attorney Rick A. Mountcastle and Colonel Frank E. Dyer III, Superintendent of the Central Virginia Regional Jail, announced.
Derrick Lamont Colbert, 39, of Orange, Va., pled guilty this afternoon in the United States District Court for the Western District of Virginia in Charlottesville to three counts of distribution of heroin. Colbert will be sentenced on August 25, 2017 at 11:00 a.m.
According to evidence presented at today’s hearing by Assistant United States Attorney Ronald M. Huber, Colbert was sentenced by a state court on April 28, 2016 for gun and drug charges and received a 12-month active sentence. After sentencing, Colbert was immediately transported from court to the Central Virginia Regional Jail to serve his sentence. The following morning, Colbert was assigned to an “open” cell block, a block that housed many inmates.
Within hours of Colbert being assigned to his cell block, correctional officers at the Central Virginia Regional Jail responded to reports of a sick inmate in that same cell block. Officers discovered Victim A having what appeared to be a seizure. While medical personnel attended to Victim A and called emergency services, other correctional officers screened inmates housed in the cell block and identified four other inmates displaying similar symptoms of drug intoxication. All five inmates were transported to UVA Culpeper Hospital for treatment.
While the affected inmates were being treated at the hospital, other jail personnel conducted an investigation into the source of any drugs that may have been brought into the facility. Ultimately it was determined that Colbert had secreted heroin on his person prior to his sentencing hearing on this previous day and brought the substance into the jail where he distributed the narcotic to other inmates.
The investigation of the case was conducted by the Orange County Sheriff’s Office, the Drug Enforcement Administration and the Central Virginia Regional Jail. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Independence Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Boone, Cooper, Lafayette and Jackson counties.
Joseph Nicko Winters, 45, of Independence, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Dec. 15, 2016, Winters pleaded guilty to participating in a conspiracy to distribute methamphetamine, one count of distributing methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of being a felon in possession of a firearm.
According to court documents, Winters sold an ounce of methamphetamine for $1,400 in a controlled drug buy on Jan. 12, 2016. Law enforcement officers then executed a search warrant at his residence, where they noticed a Hercules 12-gauge shotgun propped up against the bedroom wall. Winters also had a loaded Taurus 9mm pistol in a safe. Officers found several containers with a total of 137.661 grams of pure methamphetamine, as well as drug paraphernalia and approximately $1,200 of the buy money that had been used by a cooperating individual to purchase methamphetamine earlier in the day.
Winters told investigators he had purchased more than a pound of methamphetamine from his supplier two weeks earlier. He admitted he had purchased a half-pound of methamphetamine every week or week and a half for the past three to four months.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Winters has prior felony convictions for possession of a controlled substance and distribution of a controlled substance.
Winters is the first defendant to be sentenced in this case. Co-defendants Douglas Marion Pryor, 55, of Columbia, Mo., and Matthew Allen Hampton, 35, of Franklin, Mo., each pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing. Co-defendant Gregory Alan Kennedy, 53, of Boonville, Mo., pleaded guilty to possessing methamphetamine with the intent to distribute and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Cooper County, Mo., Sheriff’s Department, the Lafayette County, Mo., Sheriff’s Department, the Jackson County Drug Task Force and the East Central Drug Task Force.
Illegal Alien Sentenced to 50 Years in Federal Prison for Production of Child PornographyRead the Press Release
Edwin Velasquez Curuchiche, 40, of Guatamala, formerly residing in Lebanon, Tenn., was sentenced on Friday by United States District Court Judge Waverly Crenshaw to 50 years in prison, for two counts of production of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
Curuchiche was indicted on these charges on August 24, 2016, and pleaded guilty on February 21, 2017.
The defendant’s conduct here is among the most egregious that I have ever seen,” said Acting U.S. Attorney Jack Smith. “It is almost unimaginable that an innocent child and her family were subjected to such horrific acts by an intruder who masked himself as a family friend. The sentence ultimately imposed by the Court should insure that the defendant never has another opportunity to victimize another child.”
According to court documents, Curuchiche lived in a trailer park in Lebanon, Tenn. and in 2015, he befriended a family who lived nearby. During the course of several months, Curuchiche established a relationship with the family and their three children, which included a nine year-old boy, a six year-old girl and an infant. Curuchiche gave them video gaming systems and other electronic devices, taught them how to play the games and offered to play with them when their father was not home.
In September 2015, Curuchiche used a ruse to trick the mother into letting him borrow her house key, after which he copied the key, without her knowledge, before returning it to her. Also in 2015, he learned that the six-year old daughter was running a fever and he took a bag of medicine to the mother and encouraged her to give the child an adult dose of Valium. The parents of the child did not give the medication to their daughter and Curuchiche later attempted to pay the girl’s nine-year-old brother to give her the medication.
On September 23, 2015, Curuchiche snuck into the family’s home during the night and recorded himself sexually molesting the six-year-old girl while she slept. Again, on October 1, 2015, Curuchiche snuck into the home and recorded additional videos of himself sexually molesting the child as she slept.
In late October of 2015, the six-year-old child awoke during the night and went to her parent’s bedroom crying that someone had been touching her while she slept. One of her parents checked her bedroom and finding nothing, they assumed the child was imagining things.
On the evening of October 29, 2015, the family returned to their home, after a trip to the store. After entering the home, the daughter went to her bedroom to get a toy. Curuchiche was hiding under the bed and tried to grab her by the arm and quiet her by telling her to play a game on a cell phone, which he had previously given to her. The girl ran to her parents and the father found Curuchiche hiding in his daughter’s bedroom closet, where he held him until police arrived and took him into custody.
Court documents also show that Curuchiche was apprehended in June 2013 when he unlawfully entered the United States. He subsequently failed to appear for an immigration hearing and was living in the U.S. unlawfully when he committed this offense.
This matter was investigated by Homeland Security Investigations and the Lebanon Police Department. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Identity Documents Broker Sentenced on Identification Fraud and Conspiracy ChargesRead the Press Release
A broker of identity documents who conspired with others to provide fraudulently-obtained Puerto Rican documents to customers was sentenced to prison today.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Acting Director Christian J. Schurman of the U.S. Department of State’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Alejandro Tello-Rojas, 36, a Mexican citizen, formerly of Lawrenceville, Georgia, was sentenced to serve 51 months in prison and three years’ supervised release. The defendant was sentenced before U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico. The defendant pleaded guilty on Sept. 14, 2016, to conspiracy to commit identification fraud, to commit human smuggling for financial gain, and to possessing a means of identification of another person in relation to a felony.
According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. As part of the scheme, individuals identified as document runners, located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, located in various cities throughout the United States allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1200 per set.
According to admissions in the plea agreement, Tello-Rojas’ role in the scheme was to act as an identity broker from his home in Georgia, where he usually conducted his business. Tello-Rojas admitted to making arrangements to purchase identity documents from other co-conspirators to facilitate their sale in Georgia. The defendant further admitted possessing and transferring these fraudulent documents to other individuals or “customers,” which were then illegally sold to other individuals living in the United States. The defendant admitted that he knew that these individuals would use these documents to commit Social Security fraud and to illegally impersonate United States citizens.
The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI San Juan and the DSS San Juan Resident Office. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the support of the U.S. Attorney’s Office for the District of Puerto Rico.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; www.fbi.gov/about-us/investigate/cyber/identity_theft; and www.irs.gov/privacy/article/0,,id=186436,00.html.
Husband Sentenced to 10 Years in Prison for Stabbing Wife to Death on Fort McDermitt Indian ReservationRead the Press Release
RENO, Nev. – A member of the Fort McDermitt Paiute-Shoshone Tribe of Nevada and Oregon was sentenced on Monday to 120 months in prison for his conviction for voluntary manslaughter in his wife’s death at their home on the Fort McDermitt Indian Reservation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada. His wife was a member of the Te-Moak Tribe of the Western Shoshone.
Following a six-day jury trial, Nelson Ray McKee, 45, was found guilty of voluntary manslaughter. According to the indictment, on Dec. 31, 2014, McKee stabbed his wife in the chest which resulted in her death. United States District Judge Robert C. Jones presided over the jury trial and sentencing hearing.
The case was investigated by the Bureau of Indian Affairs, Humboldt County Sheriff’s Office, and FBI. The case was prosecuted by Assistant U.S. Attorneys Shannon M. Bryant and Carla B. Higginbotham.
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Henderson Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Carl Burdick, 58, of Henderson, NY, pleaded guilty, before U.S. District Judge Charles J. Siragusa, to transporting a minor across state lines for the purpose of engaging in sexual conduct. The charge carries a minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that Burdick, a long haul truck driver, utilized text messaging and social media to develop a sexual relationship with a 15-year-old female living in the Western District of New York. The defendant engaged in grooming activity over a period of several months in 2015, during which he solicited nude photographs from the victim. In the summer of 2015, Burdick took the victim from her home in Wayne County to the State of Montana in his tractor-trailer, during which time the defendant engaged in criminal sexual activity with the victim.
The plea is the result of an investigation by the Wayne County Sherriff’s Department, under the direction of Barry Virts; the Monroe County Sherriff’s Department, under the direction of Sheriff Patrick O’Flynn; the New York State Police, under the direction of Major Richard Allen; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen. Additional assistance was also provided by the Bivona Child Advocacy Center.
Sentencing is scheduled for August 16, 2017, before Judge Siragusa.
Hauser, Idaho Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that today United States District Judge Rosanna Malouf Peterson sentenced
Jerry William Lindsey, Jr., age 34, of Hauser, Idaho, for Attempted Enticement of a Minor, which a jury found him guilty of committing. Judge Peterson sentenced Lindsey to a ten-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison. Lindsey will be required to register as a sex offender.
According to information disclosed during the February, 2017 jury trial, Lindsey posted an ad entitled, “18 or so” on a well-known local website in December of 2015. The ad contained explicit photographs and described sexual acts. An undercover detective working with the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”) and Homeland Security Investigations responded to the ad, posing as a local thirteen year old. During the course of the communications with the undercover officer, Lindsey repeatedly discussed the graphic sexual acts that he wished to engage in with the purported thirteen year old and sent explicit images of himself to accompany the descriptions of such acts.
Lindsey, a mechanic with a plumbing company, also sought to meet the purported minor on two occasions when he traveled to the Tri-Cities area for work. On one such occasion, Lindsey directed the purported thirteen year old to a residence in Pasco where he was working to engage in sexual acts. He initially suggested that she sneak out to meet him after her parents were asleep, but later provided directions to the purported minor child to meet him that afternoon. Law-enforcement-members of the ICAC team subsequently surveilled Lindsey waiting outside of the residence. Lindsey was later arrested and interviewed by ICAC officers and agents with Homeland Security Investigations. Lindsey advised during the interview that if the purported thirteen-year-old child had arrived at the Pasco residence, he “would have been in a lot of trouble.” Lindsey was charged with Attempted Enticement of a Minor, tried by a jury in Richland, Washington, and found guilty.
Harrington stated, “The sentence imposed in this case reflects how serious the crime of enticement of a minor is, including attempts to do so. The United States Attorney’s Office for the Eastern District of Washington continues to prioritize the investigation and prosecution of child sexual exploitation and abuse cases. The officers and agents with the Southeast Regional Internet Crimes Against Children Task Force and Homeland Security Investigations must be commended for their strong working partnership and tireless commitment to investigating this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May, 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
For information about internet safety education, please visit http://www.justice.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force. The case was prosecuted by Laurel J. Holland and Stephanie J. Lister, Assistant United States Attorneys for the Eastern District of Washington.
Glastonbury Man Pleads Guilty to Conspiracy and Tax Offenses Related to Kickback SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAVED CHOUDHRY, 59, of Glastonbury, waived his right to be indicted and pleaded guilty today in New Haven federal court to conspiracy and tax offenses related to a kickback scheme.
According to court documents and statements made in court, CHOUDHRY was employed by a construction company in the Stamford area. Between 2011 and 2014, CHOUDHRY received cash kickbacks from construction contractors in exchange for steering them contracts for work on a project in Stamford. The scheme caused millions of dollars in losses to the victim construction company.
In addition, CHOUDHRY failed to report to the Internal Revenue Service most of the income he received through the kickback scheme.
CHOUDHRY pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on August 18, 2017.
CHOUDHRY also is required to pay back taxes, plus interest and penalties.
CHOUDHRY is released on a $50,000 bond.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Geneva Man Arrested on Cocaine Charge at the BorderRead 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 Joel Torres Diaz, 29, of Geneva, NY, was arrested and charged by criminal complaint with possession with intent to distribute cocaine. The charge carries a mandatory minimum term of 5 years imprisonment and a maximum penalty of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the complaint, on May 12, 2017, the defendant attempted to enter the United States from Canada at the Peace Bridge Port of Entry. Diaz was referred for secondary inspection, and during that inspection, officers searched the 2001 silver Honda Civic that the defendant was driving and found three gray packages inside a shoebox. The packages contained approximately one kilogram of a white powdery substance, which field-tested positive for cocaine.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing on May 22, 2017, at 10:30 a.m.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Fort Wayne Man Sentenced to 151 Months ImprisonmentRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Marlon Cole, 40, of Fort Wayne, Indiana was sentenced before Fort Wayne District Court Chief Judge Theresa Springmann after pleading guilty to possession with the intent to distribute less than 100 grams of heroin.
Cole was sentenced to 151 months imprisonment followed by 3 years supervised release.
According to documents in this case, on July 21, 2016 Cole was in possession with the intent to distribute less than 100 grams of heroin.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was handled by Assistant U.S. Attorney Stacey Speith.
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Fort Polk employee pleads guilty to demanding thousands of dollars in bribes from contractorRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a civilian employee of Fort Polk pleaded guilty to demanding and receiving thousands of dollars from a contracting company performing work on Fort Polk Army installation.
Lucy Ransom, 52, of New Llano, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of bribery. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Ransom was a technical representative at the Fort Polk’s department of public works. From November 2013 to September 2016, Ransom extorted a furniture installation company based in New Paris, Ohio, to pay her thousands of dollars in bribes to conduct business on the Fort Polk military installation. The first instance occurred when the company contacted Ransom about bringing dumpsters to the base to dispose of project-related waste. She told the company manger that he would have to pay her $600 and use government dumpsters. After the first payment, Ransom demanded more money from the manager in exchange for her cooperation.
Ransom would make threats if he did not pay. For instance, she threatened to: make the company’s crew stay late by failing to secure worksites upon completion of jobs; restrict access to government buildings in which the contracting company needed to work; call the company’s general contractors to tell them that the company was performing poorly; write reports documenting poor work performance; and take steps to have the company barred from Fort Polk. On several occasions, Ransom carried out her threats until such time as the company manager paid her bribe money.
Ransom faces up to 15 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for September 12, 2017.
The U.S. Army Criminal Investigations Command conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Fort Dodge Man to Prison for Violating Supervised ReleaseRead the Press Release
A man who violated the terms of his supervised release was sentenced on May 15, 2017, to three years in federal prison.
LaMarcus Lamar Gully, 31, from Fort Dodge, Iowa, received the prison term on May 15, 2017, after a number of findings of violations of supervised release.
Gully admitted he violated a number of terms of his supervision, including failure to comply with drug testing and committing new law violations, which included State of Iowa convictions, one in December 2015 for assault/domestic abuse and another in October of 2016, for two counts of delivery cocaine to another person.
Gully was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gully was sentenced to 36 months’ imprisonment. Gully was also ordered to serve his federal sentence consecutive to any time served on his State of Iowa sentences. He will not have to serve any term of supervised release after the prison term. There is no parole in the federal system.
Gully is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Probation Office and Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 08-3005.
Follow us on Twitter @USAO_NDIA.
Fort Dodge Man to Prison for Violating Supervised ReleaseRead the Press Release
A man who violated the terms of his supervised release was sentenced on May 15, 2017, to three years in federal prison.
LaMarcus Lamar Gully, 31, from Fort Dodge, Iowa, received the prison term on May 15, 2017, after a number of findings of violations of supervised release.
Gully admitted he violated a number of terms of his supervision, including failure to comply with drug testing and committing new law violations, which included State of Iowa convictions, one in December 2015 for assault/domestic abuse and another in October of 2016, for two counts of delivery cocaine to another person.
Gully was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gully was sentenced to 36 months’ imprisonment. Gully was also ordered to serve his federal sentence consecutive to any time served on his State of Iowa sentences. He will not have to serve any term of supervised release after the prison term. There is no parole in the federal system.
Gully is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Probation Office and Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 08-3005.
Follow us on Twitter @USAO_NDIA.
Former Whitman Police Sergeant Pleads Guilty to Embezzling Funds from Disabled VeteransRead the Press Release
BOSTON – A former Whitman, Mass., police sergeant pleaded guilty today in connection with misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans Affairs, and for preparing false income tax returns for clients of his tax preparation business.
Glenn P. Pearson, 60, pleaded guilty today to wire fraud, misappropriation by a federal fiduciary, preparation of fraudulent tax returns and obstruction of the Internal Revenue Service. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 19, 2017.
“Mr. Pearson abused his position as a fiduciary and took advantage of vulnerable members of our society,” said Acting U.S. Attorney Weinreb. “Our veterans deserve the best care, and we will hold accountable those who seek to profit at their expense.”
“Glenn Pearson took advantage of disabled military veterans who could not manage their own financial affairs, by diverting hundreds of thousands of dollars in VA payments to his personal benefit,” said Acting Deputy Assistant Attorney General Goldberg. “He then used his tax preparation business to generate more than $1.5 million in bogus refunds and obstructed IRS audits looking into the fraudulent returns he prepared. Today Pearson is held fully accountable for his abuse of trust and fraudulent conduct.”
“Mr. Pearson now finds himself on the opposite end of the very laws he was once sworn to uphold,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division. “He took advantage of his position as a fiduciary to steal thousands of dollars from disabled veterans. The FBI will do everything we can to protect citizens against fraud and stop those who steal from them.”
“The American tax system is designed to provide vital government services to our citizens, especially disabled veterans, who have paid the highest price for our freedom,” said Acting Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (CI). “Mr. Pearson took advantage of both, motivated by greed and his desired lifestyle. The IRS will use all lawful means to identify and prosecute those, like Pearson, who prepare false tax returns.”
“Pearson deliberately targeted our most vulnerable veterans – those who were unable to handle their own financial affairs,” said Donna L. Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. “Fiduciary fraud, especially in this case of multiple victims, is considered a high priority and aggressively investigated by the VA Office of Inspector General because those veterans deserve protection, not deceit.”
From 2007 to 2012, Pearson was a U.S. Department of Veterans Affairs-appointed fiduciary for eight disabled veterans. Pearson took advantage of that position by misappropriating and embezzling VA-issued benefit money out of the accounts of several veterans for whom he served.
Beginning in 2012, Pearson operated a tax preparation business called FTS Tax Services, through which he prepared false tax returns for clients for a fee. From 2012 through 2015, Pearson prepared numerous tax returns that included false credits and fictitious deductions in an effort to get his clients larger refunds than they were entitled to receive. When Pearson’s clients were audited by the IRS, Pearson took steps to obstruct the audits by making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gain or loss to the victims; the charge of misappropriation of funds by a fiduciary provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gain or loss to the victims; preparing false tax returns provides for a sentence of three years in prison, one year of supervised release and a fine of $250,000; attempting to interfere with the administration of internal revenue laws provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. According to the terms of the plea agreement, Pearson will pay restitution to the victims, the VA and the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Goldberg, FBI SAC Shaw, IRS-CI Acting SAC O’Connell and VA-OIG SAC Neves made the announcement today. Assistant U.S. Attorney Vassili Thomadakis, of Weinreb’s Criminal Division, and Karen Kelly, Assistant Chief of the Justice Department’s Tax Division, are prosecuting the case.
Former Tax Return Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
RICHMOND, Va. – A Chester woman who worked as a tax return preparer from 2011 through 2015 pleaded guilty today to filing false tax returns.
According to the statement of facts filed with the plea agreement, Crystal Charmae Jackson, 44, admitted to conspiring with David Wayne Schneider to prepare and file false returns on behalf of clients that contained false entries as to clients’ Schedule C income, losses from small businesses, as well as clients’ dependents. These false entries resulted in the issuance of inflated refunds to the clients. On many occasions, those fraudulently obtained refunds were deposited into the bank accounts of Zimmerman Bail Bonding, a company owned by Schneider. Schneider was sentenced to 24 months in prison in April 2016, and ordered to pay $515,104.74 in restitution to the IRS for losses resulting from his preparation of false tax returns.
Jackson pleaded guilty to conspiracy to submit false claims, and making false claims. Jackson faces a maximum penalty of 15 years in prison when sentenced on September 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Anthony Scott, Special Agent-in-Charge, U.S. Department of Treasury, Office of Inspector General; and Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the plea. Assistant U.S. Attorney Michael C. Moore is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-155.
Former State Senator Sentenced to Eight Months for Mail and Tax FraudRead the Press Release
Winston-Salem, N.C. – A former North Carolina state senator was sentenced today to eight months in prison on federal fraud and tax charges, announced Acting United States Attorney Sandra J. Hairston.
Fletcher Lee Hartsell, Jr., who represented parts of Cabarrus and Union Counties as a State Senator from 1991 until 2016, previously pleaded guilty to one count of mail fraud and two counts of filing false tax returns before United States District Judge Thomas D. Schroeder. Hartsell admitted that he engaged in a scheme to defraud and to obtain money through false pretenses by soliciting funds through the mail for the Hartsell for NC State Senator Committee, using those funds for personal goods and services not authorized under state campaign finance laws, and then misrepresenting such expenditures on filed campaign disclosure reports. Hartsell further admitted that he made knowing and willful false statements in federal income tax returns filed both in his personal capacity and on behalf of a corporation he co-managed.
Hartsell agreed to pay full restitution to the Internal Revenue Service in the amount of $63,516 and to forfeit $184,059.88 in proceeds derived from his criminal conduct.
“Transparency, honesty, and integrity on the part of elected officials allows citizens to make informed decisions about their campaign contributions and at the ballot box. This sentence should serve as a reminder that those occupying positions of public trust will be held accountable under the same criminal laws as their constituents,” said Acting United States Attorney Hairston.
“Mr. Hartsell has learned first-hand what happens when you abuse the power granted to you as an elected official. He must pay back the American people; money that he used for his own expenses and prison time for degrading our democratic process,” said John Strong, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in North Carolina.
“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of their position,” said Internal Revenue Service – Criminal Investigations (“IRS-CI”) Special Agent in Charge Thomas J. Holloman, III. “If you commit a crime, status as a political leader will not protect you from federal prosecution. Hartsell made a conscious decision to deceive and benefit personally at the expense of the citizens of Cabarrus and Union counties.”
The investigation was investigated by the FBI and IRS-CI with assistance from the North Carolina State Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney JoAnna G. McFadden.
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Former Pulaski County Sheriff's Office Employee Pleads Guilty, Admits to Stealing Sheriff's Office FundsRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Pulaski County Sheriff’s Office (PCSO) employee Kelvin Hendrix, 48, of Bauxite, pleaded guilty to conspiracy to commit mail fraud. Jennifer Gann, 36, of North Little Rock, who conspired with Hendrix to steal funds from the PCSO, also pleaded guilty to the same charge.
Hendrix and Gann each waived indictment and pleaded to a one-count federal Information. Today’s hearings took place in Little Rock before United States District Court Judge D.P. Marshall Jr., who will sentence Hendrix and Gann on October 12.
As detailed in the change of plea hearings, between April 2011 and April 2016, Hendrix, a former Quartermaster for the Pulaski County Regional Detention Center who worked for the PCSO for 25 years, and Gann, a former employee at Cruse Uniforms & Equipment, devised a scheme to steal funds allocated by the PCSO for the purchase of uniforms and equipment. The pair then used those stolen funds to purchase firearms and other goods from Cruse for personal use.
As the Quartermaster, Hendrix managed the purchase and distribution of uniforms and equipment for all employees working at the jail. All uniforms and equipment for these employees are purchased from Cruse. Gann was the Inside Sales Manager for Cruse and worked for Cruse for 16 years.
Detention Center employees received a uniform and equipment monetary allowance, to be used at Cruse. As part of the scheme, Hendrix provided Gann a list of employees who had not used their entire allowance, and Gann created false purchase invoices for items purportedly purchased by those employees. Based on those false purchase orders, the PCSO remitted payment (via the United States Postal Service) to Cruse. Gann would then produce another invoice showing the items as returned, and credit the value of the items to Hendrix—rather than the PCSO—in the form of a store credit.
As an example, on December 2, 2015, Gann created a purchase invoice with information provided by Hendrix, for the purchase of 42 PCSO tee shirts. The total charged to PCSO in connection with this purchase invoice was $526.47. Gann then created a return of merchandise invoice documenting the return of the 42 shirts, but issued $526.47 in store credit to Hendrix personally. That same day Hendrix purchased two handguns—a Glock Model 43 and a used Glock Model 30—for $553.72, primarily paid for with the store credit.
Hendrix purchased more than 40 firearms in this manner. Hendrix and Gann also admitted in their plea agreements that, throughout the entirety of the scheme, PCSO’s loss amount is between $40,000 and $95,000. The issue of the exact amount of restitution will be determined at sentencing.
The charge of conspiracy to commit mail fraud, pursuant to 18 U.S.C. § 371, carries a statutory penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Benecia B. Moore.
Former Massachusetts Police Sergeant Pleads Guilty to Embezzling Funds from Disabled Veterans and Running Fraudulent Tax Preparation BusinessRead the Press Release
A former Whitman, Massachusetts police sergeant pleaded guilty today to wire fraud, preparing false income tax returns for clients of his tax preparation business, obstructing the internal revenue laws and misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans ffairs (VA), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney William D. Weinreb for the District of Massachusetts.
According to documents filed with the Court, from 2007 to 2012, Glenn P. Pearson, 61, was appointed a VA fiduciary for eight disabled veterans of the U.S. armed forces. A veteran, who has been awarded VA benefits but is unable to manage his or her funds due to injury, disease, mental incompetence or infirmities of advanced age, can have another individual, referred to as a fiduciary, appointed by the VA to receive funds on the veteran’s behalf and to manage those funds for the benefit of the veteran. Pearson used his position as a fiduciary to misappropriate and embezzle more than $250,000 in VA-issued benefit money from the accounts of several veterans.
Moreover, beginning in 2012, Pearson operated FTS Tax Services, a tax preparation business through which he prepared false tax returns for clients for a fee. From 2012 through 2015, Pearson prepared numerous tax returns that included false credits and fictitious deductions in an effort to get his clients bigger refunds than they were entitled to receive. When Pearson’s clients were audited by the Internal Revenue Service (IRS), Pearson took steps to obstruct the IRS—including making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits. Pearson admitted to causing a tax loss of more than $1.5 million.
“Glenn Pearson took advantage of disabled military veterans who could not manage their own financial affairs, by diverting hundreds of thousands of dollars in VA payments to his personal benefit,” said Acting Deputy Assistant Attorney General Goldberg. “He then used his tax preparation business to generate more than $1.5 million in bogus refunds and obstructed IRS audits looking into the fraudulent returns he prepared. Today, Pearson is held fully accountable for his abuse of trust and fraudulent conduct.”
“Mr. Pearson abused his position as a fiduciary and took advantage of vulnerable members of our society,” said Acting U.S. Attorney Weinreb. “Our veterans deserve the best care, and we will hold accountable those who seek to profit at their expense.”
“Mr. Pearson now finds himself on the opposite end of the very laws he was once sworn to uphold,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division. “He took advantage of his position as a fiduciary to steal hundreds of thousands of dollars from disabled veterans. The FBI will do everything we can to protect citizens against fraud, and stop those who steal from them.”
“The American tax system is designed to provide vital government services to our citizens, especially disabled veterans, who have paid the highest price for our freedom,” said Acting Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (CI). “Mr. Pearson took advantage of both, motivated by greed and his desired lifestyle. The IRS will use all lawful means to identify and prosecute those, like Pearson, who prepare false tax returns.”
“Pearson deliberately targeted our most vulnerable veterans – those who were unable to handle their own financial affairs,” said Special Agent in Charge Donna L. Neves of the VA Office of Inspector General (OIG), Northeast Field Office. “Fiduciary fraud, especially in this case of multiple victims, is considered a high priority and aggressively investigated by the VA Office of Inspector General because those veterans deserve protection, not deceit.”
Sentencing is scheduled for Sept. 19 before Judge Saris. Pearson faces a statutory maximum sentence of 20 years in prison for wire fraud, five years in prison for misappropriation of funds by a fiduciary, three years in prison for preparing false tax returns, and three years in prison for attempting to interfere with the administration of internal revenue laws. As part of the terms of the plea agreement, Pearson will make restitution to the veterans, the VA and the IRS. Pearson also faces a period of supervised release and monetary penalties. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Weinreb thanked special agents of IRS–CI, FBI and VA-OIG, who conducted the investigation, and Assistant U.S. Attorney Vassili Thomadakis and Assistant Chief Karen Kelly of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Manager of Public Utility Arrested for Defrauding the Public Utility and Its Customers Out of More Than $3.8 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that JOHN FARCHIONE, a former customer operations manager of a public utility company (the “Public Utility”), and LOUIS BENDEL, who ran a business purporting to assist customers with payments to the Public Utility, were arrested this morning and charged with honest services fraud, bank fraud, mail fraud, aggravated identity theft, and conspiracy, for their roles in a scheme to defraud the Public Utility and its customers out of more than $3.8 million. BENDEL was presented today before U.S. Magistrate Judge Gabriel W. Gorenstein. FARCHIONE was arrested in Maine this morning and was presented in federal court there today.
Acting U.S. Attorney Joon H. Kim said: “John Farchione, an employee of a public utility, and Louis Bendel, the owner of a payment processing vendor, allegedly stole more than $3.8 million from the public utility and its customers. As alleged, instead of providing the fair and honest services the public deserves and the law requires, the defendants instead looked to the public utility as a vehicle to satisfy their personal greed. We thank our partners at the FBI for protecting New York’s public utilities and their customers.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Farchione, aided by his inside knowledge of the billing and payment process of the public utility for which he worked, found a way to exploit procedures in furtherance of a scheme abetted by Bendel. Bendel, whose job it was to remit customer payments to the utility company, allegedly conspired with Farchione to subvert the system, allowing for their personal enrichment to the detriment of the company and its consumers. The right to honest services is something every member of the public should enjoy, and those who stand in the way will most certainly be held accountable.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From at least in or about 2005, up to and including in or about November 2016, FARCHIONE and BENDEL engaged in fraudulent schemes resulting in the theft of more than $3.8 million from the Public Utility and its customers.
FARCHIONE, who was employed by the Public Utility as a manager in Customer Operations during the relevant time period, devised and implemented the scheme, using his knowledge of the Public Utility’s billing and payment processes. FARCHIONE carried out the scheme with BENDEL, who operated a business that aggregated payments from customers of the Public Utility for the purpose of passing such payments on to the Public Utility. FARCHIONE and BENDEL effected the fraud in part through conspiring to submit fraudulent checks and payments to the Public Utility, in amounts owed by customers who provided cash to BENDEL believing he would submit those payments to the Public Utility on their behalf.
In fact, however, FARCHIONE and BENDEL kept the customer cash for themselves and submitted fraudulent checks to the Public Utility that purported to convey aggregated payments by multiple customers of the Public Utility. FARCHIONE, by virtue of his position as an employee of the Public Utility, was able to conceal the nature of the fraudulent checks, and thereby perpetuate the fraudulent scheme, through his knowledge of and access to the Public Utility’s account payment system.
Additionally, FARCHIONE and BENDEL conspired to create fraudulent positive balances on certain customer accounts associated with BENDEL, causing the Public Utility to issue unearned account refunds, the proceeds of which were obtained and shared by FARCHIONE and BENDEL.
* * *
FARCHIONE, 64, of Queens, and BENDEL, 69, of Seaford, Long Island, are each charged with one count of honest services fraud, which carries a maximum sentence of 20 years in prison; mail fraud, which carries a maximum sentence of 20 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to commit honest services fraud, mail fraud, and bank fraud, which carries a maximum sentence of 30 years in prison; and aggravated identity theft in connection with the fraudulent schemes, which carries a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Kim praised the investigative work of the FBI in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
[1] The charges contained in the Complaint are merely accusations, and FARCHIONE and BENDEL are presumed innocent unless and until proven guilty.
Former Dunkirk Mayor Sentenced for Using Campaign Contributions for His Own Personal BenefitRead 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 former City of Dunkirk Mayor Richard L. Frey, 85, of Dunkirk, NY, who was convicted of wire fraud involving a scheme to defraud his mayoral campaign and his supporters by stealing campaign contributions for his personal benefit, was sentenced to six months home confinement by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $54,361.30.
Assistant U.S. Attorney John D. Fabian and Department of Justice Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section, who handled the case, stated that the defendant was the City of Dunkirk mayor from January 2002 until January 2012. During that time, Frey had substantial personal debt.
From January 2003, to June 2012, the defendant devised and executed a scheme to defraud the co-owners of a hospitality company that owned a hotel in Dunkirk and the owner of a food production company in Dunkirk by inducing them to make contributions to his mayoral and other political campaigns. After receiving checks from these individuals, Frey, rather than depositing the funds into a campaign or official account, simply spent them for his own personal benefit. The contributions totaled $54,361.30. In addition, Frey failed to report or disclose the contributions on his campaign disclosure reports, which is required of local candidates for public office.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the U.S. Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Brad Geary.
Five Plead Guilty for Conspiring to Obstruct IRS, Wire FraudRead the Press Release
Abingdon, VIRGINIA – Five Max Meadows, Virginia residents, who skimmed over $1 million in cash from a Wythe County store and then failed to pay taxes on that money, pled guilty today to federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Harold Hart, 80, Larry Dean Ball, 68, Mary Carroll Ball, 67, Katrina Rose Freeman, 42, and Gary Daniel Musick, 45, all of Max Meadows, waived their rights to be indicted and pled guilty today to Informations charging them each with one count of conspiracy to impair, impede or obstruct the lawful function of the Internal Revenue Service and to commit wire fraud. At sentencing, each defendant faces a maximum possible penalty of up to five years in prison and a fine of up to $250,000.
The defendants have agreed to pay, within 60 days of today’s hearing, over $440,000 in evaded federal taxes, interest and penalties, over $100,000 in evaded state taxes, interest, and penalties, over $40,000 in fines, and a forfeiture of over $29,000. The United States seized over $275,000 in cash from the defendants while executing search warrants in Wythe County in August 2016.
According to evidence presented at today’s hearing by Assistant United States Attorney Randy Ramseyer, The Old Fort Western Store in Wythe County was opened in the 1990s by Hart and Larry Ball and is operated as a retail western wear facility that sells western apparel, footwear, saddles and other items. Hart is the grandfather of Freeman and Musick. Larry Ball is the husband of Mary Ball and the father of Freeman.
Beginning in 2010, Hart, Larry Ball, Mary Ball, Freeman and Musick agreed that cash would be skimmed from the income of Old Fort, no sales tax would be paid on the skimmed cash, some of the skimmed cash would be used to pay certain employees a cash payroll in addition to their regular pay checks, some of the skimmed case would be used to pay Old Fort Partnership rent in addition to the rent check it received each month and the remainder of the skimmed cash would be disturbed to Hart, Larry and Mary Ball, Musick and Freeman and another person.
Between 2010 and 2016, the conspirators skimmed $1,121,458 in cash from Old Fort for the purpose of hiding this income from the Internal Revenue Service and the Virginia Department of Taxation.
United States District Judge James P. Jones accepted the defendants guilty pleas and scheduled sentencing hearings for September 18, 2017, in Abingdon.
The investigation of the case was conducted by the Bristol, Virginia, office of the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 MillionRead the Press Release
Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.
“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”
Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.
The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.
The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.
“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”
“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”
The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 MillionRead the Press Release
Fort Myers, FL - Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.
“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Muldrow. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”
“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”
Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.
The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.
The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.
“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”
The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Federal Officials Close Review of Fatal Shooting of Antwun ShumpertRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the Northern District of Mississippi and the Civil Rights Division of the Justice Department announced today that they have completed a thorough, independent investigation into the fatal shooting of Antwun Shumpert on June 18, 2016, by Tupelo Police Department Officer Tyler Cook. This investigation revealed that the evidence is insufficient to prove, beyond a reasonable doubt, that Cook violated federal civil rights laws. Accordingly, the U.S. Attorney’s Office for the Northern District of Mississippi and the Civil Rights Division of the Justice Department will not pursue federal criminal civil rights charges against Cook.
Officials from the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division met with members of Shumpert’s family today to inform them of this decision.
The U.S. Attorney’s Office for the Northern District of Mississippi, the Department of Justice’s Civil Rights Division, and the Federal Bureau of Investigation (FBI) conducted a comprehensive, independent review of the circumstances related to Shumpert’s death. The investigation included a review of witness interviews; the autopsy report; crime-scene reports; photographs; surveillance video that recorded auxiliary areas of the crime scene; police radio traffic; incident reports; an interview with the medical examiner; and an interview with the officer.
In conducting the review, federal authorities were tasked with determining whether Cook violated federal law by willfully using unreasonable force against Shumpert. Under the applicable federal criminal civil rights statute, prosecutors would be required to establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived Shumpert of a constitutional right. To establish willfulness, federal authorities would be required to show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence, necessity, or poor judgment are not sufficient to establish a federal criminal civil rights violation.
The evidence in this investigation showed that on June 18, 2016, the Tupelo Police Department was conducting a surveillance operation. At around 9:30 at night, officers observed a tan car stop for a short time in a motel parking lot before leaving. Officer Joseph Senter followed the car and noted that it did not properly use a turn signal and was missing a tag light, both of which are traffic violations. Officer Senter signaled to the car to stop, but the car traveled several more blocks before stopping. Immediately after Shumpert stopped the car, he fled on foot. Officer Senter ordered Shumpert to return to the vehicle, but he did not. Officer Senter began chasing Shumpert and radioed for assistance.
Cook was among the officers who responded to Officer Senter’s call for assistance. Cook stopped his car on Harrison Street and got out along with his patrol dog. The patrol dog picked up a scent and led Cook to a ditch behind a house at 916 Harrison Street. The house had a crawl space below it, and Cook saw a hand holding the door shut. Cook reported that he drew his weapon, opened the door to the crawl space, and saw Shumpert. He ordered Shumpert to come out or the dog would bite him, but Shumpert did not emerge. Cook then instructed the dog to bite Shumpert. The dog bit Shumpert on the arm, and Shumpert began punching the dog and grabbing its head. Shumpert escaped the dog by taking off his own shirt—which the dog had hold of—and ran out of the crawl space to tackle Cook.
Cook said he landed a couple of punches on Shumpert before Shumpert forced him to the ground. Once on the ground, Cook said that he was punching with both hands, including the hand that was holding his gun, and may have struck Shumpert with his gun. Cook described Shumpert as being on top of him and striking him in the face multiple times. Cook said that he “tried to fight back but I began to see stars and thought I was going to loose [sic] consciousness and I was in fear for my life.” Cook then remembers shooting his gun three or four times.
Three other officers, none of whom could see the incident, each reported hearing about four gunshots in quick succession. Three civilian witnesses heard the shooting as well, but none saw it. Two officers ran to the scene immediately after the shooting. Radio traffic shows that the officers called for medical support within two minutes of the shooting, and that Shumpert was transported to North Mississippi Medical Center several minutes after that. He died from the gunshot wounds about five hours later.
In this instance, there is no reliable evidence to contradict the assertion that Cook fired at Shumpert because he perceived him to be a deadly threat to himself and others. When officers first encountered Shumpert, they attempted to defuse the situation using repeated verbal commands to surrender. Cook also attempted to use non-lethal means, including the patrol dog. It was only when Shumpert punched Cook in the head and Cook feared losing consciousness that he fired his gun.
Based on a legal analysis of the record, the U.S. Attorney and the Civil Rights Division have concluded that there is insufficient evidence to establish that Cook acted with the requisite criminal intent. Therefore, after a careful and thorough review, experienced federal prosecutors have determined that the evidence is insufficient to prove, beyond a reasonable doubt, that Cook violated 18 U.S.C. § 242. Accordingly, the review into this incident has been closed without prosecution.
The U.S. Attorney’s Office, the Civil Rights Division, and the FBI are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
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Federal Grand Jury Indicts Texas State Senator Carlos UrestiRead the Press Release
In San Antonio today, a federal grand jury returned two separate indictments against District 19 Texas State Senator Carlos I. Uresti announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. Three other individuals were also charged by the grand jury.
FOUR WINDS INDICTMENT
This indictment charges Uresti, age 53, of San Antonio, Four Winds Chief Executive Officer Stanley P. Bates, age 45, of San Antonio, and Four Winds consultant Gary L. Cain, age 60, of San Antonio, with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The indictment also charges Uresti with five substantive counts of wire fraud, two counts of securities fraud; one count of engaging in monetary transactions with property derived from specified unlawful activity; and, one count of being an unregistered securities broker. The indictment also charges Bates with one count of wire fraud; two counts of securities fraud; and, three counts of engaging in monetary transactions with property derived from specified unlawful activity. The indictment also charges Cain with seven counts of engaging in monetary transactions with property derived from specified unlawful activity.
The indictment alleges that the defendants developed an investment Ponzi scheme to market hydraulic fracturing (fracking) sand for oil production. It further alleges that the defendants made false statements and representations to solicit investors in Four Winds. The defendants allegedly used funds from more recent investors to pay earlier investors and for personal expenses.
For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction. For each money laundering charge, the defendants face up to ten years in federal prison upon conviction. Uresti faces up to 20 years in federal prison upon conviction of being an unregistered securities broker.
REEVES COUNTY INDICTMENT
This indictment charges Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
The indictment alleges that from January 2006 to September 2016, the defendants conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company. The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company.
Upon conviction of the charges contained in this indictment, the defendants face up to five years in federal prison for conspiracy to commit bribery and up to 20 years in federal prison for conspiracy to commit money laundering.
It is anticipated that initial appearances for Uresti, Bates and Cain will be tomorrow at 11:00am before United States Magistrate Judge Henry Bemporad in San Antonio. Farthing’s initial appearance is expected to occur at 11:00am on Thursday in front of Judge Bemporad.
The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, Internal Revenue Service-Criminal Investigation (IRS-CI), Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eight Individuals Charged in Connection with Armed Drug Distribution in OrlandoRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of a
criminal complaint charging eight individuals with conspiracy to distribute a controlled substance and distribution and possession with the intent to distribute a controlled substance. Eric Jean Gilles (Miami, 36), Jimmy Remy Fernetus (Miami, 30), Edson Gelin (Orlando, 39), Raymond Mike Ayap (Orlando, 41), Ronny Joseph (Orlando, 32), Cristobal Sotomayor-Cebollero (Orlando, 31), Kissinger St. Fleur (Orlando, 35), and Gerardson Norgaisse (Orlando, 32) each face a maximum penalty of 20 years in federal prison for each controlled substance charge. Additionally, Gilles, Fernetus, and Gelin each face an additional and consecutive term of five years, up to life, in federal prison for possessing a firearm in furtherance of a drug trafficking offense.According to the complaint, Gilles and Fernetus, members of a drug trafficking organization with ties to South Florida, were selling cocaine and “crack” cocaine from houses on 1621 Grand Street and 1427 18th Street, both located south of downtown Orlando. Gelin, who was stopped while traveling north towards Orlando on the Florida Turnpike on June 8, 2016, with two kilograms of cocaine, had also been selling cocaine at the house on Grand Street. All three--Gilles, Fernetus, and Gelin--were armed with handguns when purchases were made from the houses. Gelin also later sold cocaine from 2824 West Harwood Street in Orlando.
Ayap, Joseph, Sotomayor-Cebollero, St. Fleur, and Norgaisse each purchased distribution amounts of cocaine at one of the residences during the course of the investigation.
Gilles, Gelin, Ayap, and Joseph have been arrested and are being held in federal custody. Sotomayor-Cebollero is being held on unrelated state charges. Fernetus, St. Fleur, and Norgaisse have not yet been apprehended.
Search warrants have been executed at all three residences in connection with this investigation. Agents have recovered firearms, cocaine, and drug paraphernalia at all three locations, including three handguns, two assault rifles, and thousands of dollars in cash.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation was conducted by the Drug Enforcement Administration, with assistance from the Metropolitan Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It’s also part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It will be prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Dunkirk Couple Arrested on Cocain ChargesRead 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 Minerva Maestre, 49, and Hector Mercado-Torres, 23, both of Dunkirk, were arrested and charged by complaint with conspiracy to possess with intent to distribute and distribution of cocaine and crack cocaine; and maintaining a drug involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on April 28, 2017, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration executed a search warrant at 51 E. Second Street in Dunkirk, NY, which is the residence of the defendants. During the search, officers seized 18 packages of suspected crack cocaine and cocaine, plastic baggies, and $171,962 in cash. The complaint further alleges that defendants distributed crack cocaine from the residence.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending a detention hearing.
The complaint is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Dunkirk Police Department, under the direction of Chief David Ortolano.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Dominican national has pleaded guilty in federal court to using a stolen Social Security number in order to obtain a Massachusetts driver’s license.
Julio Cesar Baez-Mejia, 37, a Dominican national formerly residing in Lawrence, pleaded guilty today to one count of misuse of a Social Security number. U.S. District Court Judge George A. O’Toole scheduled sentencing for Sept. 12, 2017. Mejia-Baez is currently serving an 18-month sentence in the Lawrence Correctional Alternative Center for assault with a deadly weapon, breaking and entering and malicious destruction of property.
On Nov. 19, 2012, Baez-Mejia entered a Massachusetts branch of the Registry of Motor Vehicles and applied for a Massachusetts Class D Driver’s License under the name of an American citizen from Puerto Rico. On the application, the defendant listed the name, date of birth, and Social Security number of the American citizen as his own. Baez-Mejia then signed the license application and was issued a driver’s license under the stolen identity.
The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Baez-Mejia will be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.