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Wednesday 26 April 2017
Restaurant Owner Pleads Guilty to Multiple Fraud SchemesRead the Press Release
BOSTON – A restaurant owner pleaded guilty today in federal court in Boston to tax and insurance fraud at 11 Boston-area restaurants and to committing visa and immigration fraud in an effort to remain in the United States unlawfully.
Hazrat Khalid Khan, 57, of Middletown, N.Y., a Pakistani national, pleaded guilty to a five-count Information charging him with conspiring to defraud the Internal Revenue Service, failing to collect and pay over taxes, committing mail fraud, making false statements on a naturalization application, and committing visa fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for August 16, 2017.
Khan’s plea will resolve two open cases in the District of Massachusetts and one in the Southern District of New York. The whereabouts of two of his co-defendants, Khursed Iqbal, 57, and Rahman Zeb, 61, both Pakistani nationals, remains unknown.
According to the Superseding Information, Khan was the partial owner of 11 fried chicken takeout restaurants in the Boston-area, including Boston proper, Roxbury, Chelsea, and Mattapan. As part of a tax fraud scheme that ran for years, Khan and his co-conspirators - generally the managers of these restaurants - defrauded the government and avoided paying payroll and income taxes owed by the stores. They paid their employees in cash and provided tax preparers with false information about the restaurants’ payroll and income, thereby causing the tax preparers to file false tax returns.
Federal law requires employers to withhold payroll taxes, which includes Social Security and Medicare taxes, and then pay them over to the IRS. To avoid paying taxes, Khan and several co-conspirators falsely reported to the IRS the number of employees at their stores - some of whom were undocumented workers - and the wages they paid them. They also failed to file W-2s showing wages paid to employees and falsely described on tax returns their sales, total income, compensation of officers, salaries and wages, and taxable income. Khan and his co-conspirators also failed to withhold payroll taxes and pay them over to the IRS.
The charges of conspiracy and failure to collect or pay over taxes provide for a sentence of no greater than five years in prison; the charge of mail fraud provides for no greater than 20 years in prison; and the charges of naturalization and visa fraud provide for no greater than ten years’ imprisonment. Each of the charges also provides for supervised release for a maximum of three years, a fine, and restitution. Actual sentences for federal crimes are typically less than maximum penalties. 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
Reminderville man indicted on federal drug and firearms chargesRead the Press Release
A Reminderville man was indicted on federal firearms and drug charges, Acting U.S. Attorney David A. Sierleja said.
A federal grand jury returned a three-count indictment charging Michael D. Sammy, 34, with being a felon in possession of firearms and possession with the intent to distribute LSD and methamphetamine.
Sammy was arrested on October 30, 2016 by the Twinsburg Police Department after they found him in his vehicle in possession of 176 squares of LSD, several grams of liquid methamphetamine and multiple firearms including an MP-15 rifle, a Smith and Wesson Cowboy Commemorative Rifle and a Smith and Wesson .9 millimeter pistol. Sammy was prohibited from possessing firearms because of his status as a convicted felon, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the FBI and the Twinsburg Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pharmacist Pleads Guilty to Conspiracy to Pay Healthcare KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Benjamin Nundy (39, Ruskin) today pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison.
According to court documents, Nundy was a licensed pharmacist who co-owned Lifecare Pharmacy in Pinellas County with his business partner, Carlos Mazariegos. In 2014, Nundy, Mazariegos, and Dr. Anthony Baldizzi, a licensed physician, agreed that Lifecare would pay Baldizzi illegal kickbacks for prescriptions of compounded medications written by Baldizzi and filled at Lifecare. In May 2014, Mazariegos, acting on behalf of Lifecare, entered into a marketing agreement with Centurion Compounding Inc., a marketing firm in Pasco County that employed sales representatives to market compounded creams for pain and scars to beneficiaries of healthcare plans, especially TRICARE. These compounded creams typically ranged in price from $900 to $21,000 for a one-month supply.
Between May and November 2014, Centurion directed patients that it had recruited and the physicians within its network to send all of their compounded cream prescriptions to Centurion. Centurion then transmitted these prescriptions to Lifecare to be filled. Mazariegos, Nundy, and the principals of Centurion agreed to pay illegal kickbacks to Baldizzi equal to approximately 10% of the after-cost amount of each claim paid by TRICARE and other healthcare benefit programs as a result of compounded medication prescriptions written by Baldizzi and filled by Lifecare, for Centurion-recruited patients. For example, in December 2014, Mazariegos wrote a check to a car dealership for $71,900, funded with the proceeds from the operation of Lifecare, to pay for a BMW for Baldizzi in partial satisfaction of kickbacks that Lifecare and Centurion owed to him.
Lifecare received approximately $5.3 million from TRICARE for claims made for compounded medications prescribed by Baldizzi resulting from this illegal kickback relationship. Mazariegos and Nundy also billed Medicare $1,064,729 for compounded medications that Lifecare made with bulk powder ingredients when they knew that Medicare only reimbursed for such medications when they were made using crushed tablets.
Carlos Mazariegos pleaded guilty to engaging in a conspiracy to commit healthcare fraud on April 10, 2017.
A grand jury returned an indictment charging Baldizzi with conspiracy, receiving healthcare kickbacks, and engaging in illegal monetary transactions. The case is currently set for trial in January 2018.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Pennsylvania Man Sentenced to More Than 7 Years in Prison for Role in Kidnapping, Jewelry Store RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY HOUSTON, 30, of Allentown, Pennsylvania, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by three years of supervised release, for his role in a violent kidnapping and jewelry store robbery in April 2013.
According to court documents and statements made in court, at approximately 9:00 p.m. on April 11, 2013, HOUSTON, Kasam Hennix, William Davis and Christopher Gay, all of whom were wearing masks and gloves and two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. HOUSTON, Hennix and Davis then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. Timothy Forbes traveled to Fairfield in a separate vehicle, and Gay remained in the Meriden apartment to guard the two other victims.
After HOUSTON, Hennix and Davis arrived at the Fairfield store, they stole jewelry, watches and loose diamonds with a total replacement value of more than $3 million. They then fled in the victim’s car, leaving the two victims bound inside the store. HOUSTON, Hennix and Davis abandoned the victim’s vehicle and got into Forbes’s vehicle. One of the defendants called Gay to advise him that they had successfully carried out the robbery and that he should leave the apartment. The defendants then fled the state.
The five defendants were arrested in May 2013.
Investigators determined that HOUSTON, Forbes and Gay had traveled from Pennsylvania to Connecticut on several occasions in the weeks prior to the robbery in order to track the victims’ movements between Lenox Jewelers in Fairfield and their residence in Meriden. In addition, Forbes and Gay placed a GPS on one of the victim’s vehicles in an effort to make it easier to track him.
On December 8, 2015, HOUSTON pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
Forbes, of Allentown, Hennix, of Easton, Pa., Davis, of Allentown, and Gay, of the Bronx, N.Y., also pleaded guilty to federal charges. On April 17, 2015, Davis was sentenced to 176 months in prison; on January 27, 2016, Gay was sentenced to 102 months in prison, and, on February 8, 2016, Hennix was sentenced to 171 months of imprisonment. Forbes awaits sentencing.
The defendants have been ordered to pay restitution of more than $3.1 million, and have forfeited gemstones, jewelry, watches, a vehicle, and more than $127,000 in cash seized from them at the time of their arrests.
This matter has been investigated by the U.S. Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Pair from Texas indicted for using card-skimming machines on ATMsRead the Press Release
Two people from Texas were indicted for their use of a card-skimming device at an Automated Teller Machine, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
A grand jury eturned a three-count indictment charging Cristina Rolea, 24, and Daniel C. Forentin, 30, both of Fort Worth, Texas, with possession of device-making equipment, including an ATM card-skimming device.
Forentin used an ATM card-skimming device to an ATM owned by a financial institution on Dec. 10, 2016. Rolea used an ATM card-skimming device to an ATM owned by a financial institution on Dec. 11 and Dec. 18, 2016, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Several North Texas Pill Mills Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
DALLAS —John Christopher Ware, a/k/a “Little Chris,” 45, formerly of Dallas but now residing in Houston, appeared yesterday before U.S. District Judge Jane J. Boyle and pleaded guilty to a drug distribution conspiracy stemming from his operation of several “pill mills” in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Ware pleaded guilty to one count of conspiracy to distribute a controlled substance (hydrocodone). The conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Ware remains on bond pending sentencing. Sentencing is scheduled for August 10, 2017.
Co-conspirator Stanley James, Jr., 57, of Dallas and Houston, pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance (hydrocodone). James is scheduled to be sentenced on June 22, 2017.
According to plea documents in the case, Ware and co-conspirators distributed more than 2,000,000 10mg hydrocodone pills through medical clinics in Dallas, Texas and elsewhere. Ware owned and managed these clinics, and operated them illegitimately, knowing that the prescriptions for these pills had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice. Between October 2014 and October 2015 more than 700,000 hydrocodone pills (most of which were 10 mg pills) were distributed in relation to the clinics he owned and operated. The hydrocodone quantities encompass the prescriptions issued by the doctors, physician's assistants, nurse practitioners, and nurses who worked at the clinics that Ware owned, managed, and directed.
A pill mill is a facility that appears to be a medical clinic but in reality distributes large quantities of controlled substances, such as hydrocodone, to the public without regard for medical necessity or therapeutic benefit to the patient. Despite employment of licensed medical practitioners, a pill mill does not operate as a legitimate medical clinic because the controlled-substance prescriptions that are issued are done so with the knowledge that they are not for a legitimate medical purpose in the usual course of professional practice.
According to plea documents in the case, Ware and James owned and operated Great Southwest Medical Clinic on Great Southwest Parkway in Dallas; Arlington Oaks Adult Medical Clinic on Billings Street in Arlington, Texas; and Redbird Family Medical Clinic on Camp Wisdom Road in Dallas. Ware and James owned and operated these three medical clinics under an umbrella company, J.C. Rapha Medical Management Group, LLC.
Ware operated in the following manner at each of the above-identified clinics: The driver, sometimes also known as a “script ring leader,” or another co-conspirator such as someone associated with the clinic, coached the recruit on what to say inside the clinic to obtain a prescription for hydrocodone. The driver or script ring leader paid for the recruit’s visit to the clinic, either by giving the recruit money to pay the clinic or by paying the clinic directly. The clinics only accepted cash from patients seeking pain medications, including hydrocodone, and charged approximately $150 per visit for established patients.
Ware took steps to minimize the possibility of detection by law enforcement at the pill mills, including limiting patients to recruits accompanied by known and trusted drivers. Ware attempted to maximize profit by providing the prescriptions sought by the script ring leaders, including 10mg hydrocodone. To accomplish this, medical practitioners were hired who where willing to write the sought-after prescriptions even though the prescriptions were not being issued for a legitimate medical purpose in the usual course of professional practice.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Myria Boehm is in charge of the prosecution.
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Owner of Newark, New Jersey, Automobile Export Business Admits Filing False Tax Returns and Structuring CrimesRead the Press Release
NEWARK, N.J. – A Newark man today admitted filing false tax returns and structuring cash payments to avoid reporting requirements, Acting U.S. Attorney William E. Fitzpatrick announced.
Okoro Ifeanyi, 55, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a two-count information charging him with filing false tax returns with respect to his 2010 through 2013 personal tax returns and with structuring financial transactions in 2007 and 2008 to avoid reporting requirements.
According to the documents filed in this case and statements made in court:
Ifeanyi was the owner and operator of Amiri Mbubu Auto Sales. His primary business was buying used cars in and around New Jersey, often at auto auctions, and exporting the cars to Nigeria.
Ifeanyi admitted to substantially underreporting his income on his 2010, 2011, 2012, and 2013 U.S. individual income tax returns, specifically, failing to report additional taxable income that he earned through his business. According to the information, by failing to report his true income, Ifeanyi avoided paying approximately $461,085 in taxes.
Ifeanyi also admitted to structuring a series of transactions in 2007 and 2008. He made 17 different deposits into his Bank of America account, each less than $10,000, in order to avoid currency reporting requirements.
The filing a false tax return count carries a maximum potential penalty of three years in prison. The structuring count carries a maximum potential penalty of 10 years in prison. Both counts carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 19, 2017.
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 of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney's Office Economic Crimes Unit in Newark.
Defense counsel: Patrick O’keke Esq., New York
Northern California Restaurant Owner Sentenced to Prison for Obstructing the Tax Laws and Harboring Illegal Aliens for ProfitRead the Press Release
A Ukiah, California restaurateur was sentenced to serve 24 months in prison today for corruptly endeavoring to obstruct the internal revenue laws and harboring illegal aliens for profit, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to documents filed with the court, Yaowapha Ritdet, 56, hired Thai nationals who were illegally present in the United States to work at her restaurants, Ruen Tong Thai Cuisine and Walter Café, both located in Ukiah. Ritdet underpaid these employees and instructed them not to speak to anyone about their immigration status. Ritdet also paid her employees in cash and did not pay employment taxes on the cash wages.
Ritdet filed false individual income tax returns for 2007 through 2011 that underreported the gross receipts, sales, and income she received from her two restaurants, and failed to report rental income and a foreign bank account she held in Thailand.
In addition to the term of prison imposed, Ritdet was ordered to serve three years of supervised release and to pay approximately $567,755.65 in restitution to include $70,768.65 to underpaid employees and $496,987 to the Internal Revenue Service (IRS). Ritdet pleaded guilty in August 2016.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS–Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and the U.S. Department of Labor, Wage and Hour Division, which identified the underpayment of wages and overtime, and Trial Attorney Charles O’Reilly of the Tax Division and Assistant U.S. Attorney José A Olivera, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Northern California Restaurant Owner Sentenced to 24 Months in Prison for Obstructing the Tax Laws and Harboring Illegal Aliens for ProfitRead the Press Release
SAN FRANCISCO – Yaowapha Ritdet, a Ukiah, California, restaurateur, was sentenced today to 24 months in prison for corruptly endeavoring to obstruct the internal revenue laws and harboring illegal aliens for profit, announced U.S. Attorney Brian J. Stretch, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Judge Edward M. Chen, U.S. District Judge, following the entry of a plea agreement in August 2016 in which Ritdet admitted committing the crimes.
According to her plea agreement, Ritdet, 56, of Ukiah, admitted she hired Thai nationals who were illegally present in the United States to work at her restaurants, Ruen Tong Thai Cuisine and Walter Café, both located in Ukiah. Ritdet underpaid these employees and instructed them not to speak to anyone about their immigration status. Ritdet also paid her employees in cash and did not pay employment taxes on the cash wages. Ritdet also admitted she willfully filed false individual income tax returns for 2007 through 2011 that underreported the gross receipts, sales, and income received from her two restaurants. In addition, Ritdet acknowledged she failed to report she had a financial interest in an account at a Thai bank.
On August 2, 2016, Ritdet was charged in a superseding information with one count of corrupt endeavor to impede and impair the lawful administration of the internal revenue laws, in violation of 26 U.S.C. § 7212(a), and one count of harboring illegal aliens for private financial gain, in violation of 8 U.S.C. § § 1324(a)(1)(A)(iii), and (B)(i). She pleaded guilty to both counts on August 17, 2016.
In addition to the 24-month prison term and restitution, Judge Chen ordered Ritdet to pay more than $560,000 in restitution— $496,987.00 to be paid to the IRS and $70,768.65 to be paid to the employees whose wages she underpaid. Further, Judge Chen ordered Ritdet to serve three years of supervised release.
Assistant U.S. Attorney José A. Olivera and Trial Attorney Charles O’Reilly of the Tax Division are prosecuting the case. U.S. Attorney Stretch and Acting Deputy Assistant Attorney General Goldberg thanked the prosecutors as well as special agents of IRS–Criminal Investigation; Homeland Security Investigations, who conducted the investigation; and the U.S. Department of Labor, Wage and Hour Division, who identified the underpayment of wages and overtime.
North Carolina Businessman Sentenced to Prison for Stealing Approximately $2.9 Million from NFL PlayersRead the Press Release
A High Point, North Carolina businessman, who provided financial services to professional athletes, was sentenced today to 65 months in prison for wire fraud and filing a false 2011 tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to the documents filed with the court, Michael Rowan, 46, operated Capital Management Wealth Advisors Inc. (CMG) and APS Management LLC (APS), along with his business partner. Through CMG and APS, Rowan provided financial and investment services to professional athletes, including National Football League (NFL) players. Rowan, through CMG and APS, contacted prospective NFL players in college to offer them financial and wealth management services, including bill payment, investment services and financial guidance. Once players were drafted by the NFL, Rowan agreed to provide his services to them for an annual fee of between $15,000 and $50,000. Rowan directed his clients to sign an agreement that allowed Rowan to access their bank accounts. Rowan represented that he would only make transactions that his clients authorized and that were for their benefit.
However, Rowan misused his access and transferred more than $2.9 million into accounts he controlled for his own personal benefit and without his clients’ knowledge or consent. For 2009 through 2013, Rowan failed to report more than $1.4 million of the embezzled funds on his federal tax returns, causing a loss to the Internal Revenue Service (IRS) of more than $479,000.
“Michael Rowan betrayed his NFL football player clients by abusing the trust they placed in him as their financial advisor,” said Acting Deputy Assistant Attorney General Goldberg. “He diverted millions of their money to his personal benefit and then cheated the IRS by failing to pay $479,000 in taxes he owed on his illegal income.”
“Michael Rowan’s offer of financial services amounted to financial fraud,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Rowan took advantage of his client’s financial naivety to steal from them and further compounded his greed by attempting to hide the ill-gotten gains from the IRS.”
In addition to the term of prison imposed, Rowan was ordered to serve one year of supervised release and to pay restitution in the total amount of more than $3.4 million including $2,960,295 to the victim clients and $479,352 to the IRS. Rowan pleaded guilty to wire fraud and filing a false tax return in October 2016.
Acting Deputy Assistant Attorney Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–CI and U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Businessman Sentenced to Prison for Stealing Approximately $2.9 Million from NFL PlayersRead the Press Release
WASHINGTON – A High Point, North Carolina businessman, who provided financial services to professional athletes, was sentenced today to 65 months in prison for wire fraud and filing a false 2011 tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to the documents filed with the court, Michael Rowan, 46, operated Capital Management Wealth Advisors Inc. (CMG) and APS Management LLC (APS), along with his business partner. Through CMG and APS, Rowan provided financial and investment services to professional athletes, including National Football League (NFL) players. Rowan, through CMG and APS, contacted prospective NFL players in college to offer them financial and wealth management services, including bill payment, investment services and financial guidance. Once players were drafted by the NFL, Rowan agreed to provide his services to them for an annual fee of between $15,000 and $50,000. Rowan directed his clients to sign an agreement that allowed Rowan to access their bank accounts. Rowan represented that he would only make transactions that his clients authorized and that were for their benefit.
However, Rowan misused his access and transferred more than $2.9 million into accounts he controlled for his own personal benefit and without his clients’ knowledge or consent. For 2009 through 2013, Rowan failed to report more than $1.4 million of the embezzled funds on his federal tax returns, causing a loss to the Internal Revenue Service (IRS) of more than $479,000.
“Michael Rowan betrayed his NFL football player clients by abusing the trust they placed in him as their financial advisor,” said Acting Deputy Assistant Attorney General Goldberg. “He diverted millions of their money to his personal benefit and then cheated the IRS by failing to pay $479,000 in taxes he owed on his illegal income.”
“Michael Rowan’s offer of financial services amounted to financial fraud,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Rowan took advantage of his client’s financial naivety to steal from them and further compounded his greed by attempting to hide the ill-gotten gains from the IRS.”
In addition to the term of prison imposed, Rowan was ordered to serve one year of supervised release and to pay restitution in the total amount of more than $3.4 million including $2,960,295 to the victim clients and $479,352 to the IRS. Rowan pleaded guilty to wire fraud and filing a false tax return in October 2016.
Acting Deputy Assistant Attorney Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–CI and U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New York Man Charged with Firearms and Heroin Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Espinosa, age 48, of New York, New York, was indicted on April 25, 2017, by a federal grand jury on heroin trafficking and firearms offenses.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Espinosa conspired to distribute and possess with the intent to distribute at least 100 grams of heroin (approximately 4,000 doses) in the Middle District of Pennsylvania from June 1, 2012 through August 31, 2015. Espinosa is also charged with aiding and abetting the distribution of heroin on August 31, 2015.
In addition to the heroin trafficking charges, Espinosa was indicted for possessing a firearm in furtherance of his trafficking activities, and with aiding and abetting the use and carrying of a firearm in relation to drug trafficking activities. Espinosa was further charged with aiding and abetting the transport of a stolen firearm from Pennsylvania to New York.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charges are life imprisonment. The heroin conspiracy charge and firearms possession charge each carry a five-year mandatory minimum sentence of imprisonment. 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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New London Man Sentenced to 5 Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARRY STEWART, also known as “P,” 34, of New London, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers, including STEWART, in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
During the investigation, law enforcement officers conducted several controlled purchases of crack and heroin from STEWART.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging STEWART, Jackson and 11 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.
STEWART has been detained since his arrest on December 9, 2015. On that date, he was in possession of crack and heroin packaged for sale. On November 3, 2016, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).
As part of this sentence, STEWART was ordered to forfeit $3,506 in cash that was seized from him during the investigation and at the time of his arrest.
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). On February 16, 2017, he was sentenced to 10 years of imprisonment.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
New Jersey Doctor Pays $60,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma – Jennifer Dismukes, D.O., has agreed to pay $60,000.00 to settle civil penalty claims stemming from allegations that she violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and the regulations promulgated under that Act, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Dr. Dismukes formerly resided and practiced medicine in Texas. During that time, she provided medical services to Texas patients, as well as Oklahoma patients who traveled to her office in Texas. She then moved her main medical practice to New Jersey and transferred her DEA registration. After moving to New Jersey, she continued to see patients in Texas and began providing medical services to Oklahoma patients by telemedicine.
The United States alleges that between January 1, 2013, and March 8, 2016, Dr. Dismukes issued prescriptions for Schedule II, III, and IV controlled substances for patients in Oklahoma without proper authority because she was not licensed to practice medicine in Oklahoma and did not have required DEA or Oklahoma Bureau of Narcotics registrations. In addition, Dr. Dismukes issued prescriptions for Schedule II, III, and IV controlled substances for patients in Texas without proper authority because she did not have a DEA registration for Texas.
In order to resolve the allegations brought by the United States, Dr. Dismukes agreed to pay $60,000.00.
In reaching this settlement, Dr. Dismukes did not admit liability, and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Agency, Office of Diversion Investigation, and prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Monmouth County, New Jersey, Man Sentenced to Six Years in Prison for Possessing, Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Long Branch, New Jersey, man was sentenced today to 72 months in prison for using his computer to possess and distribute images of child sexual abuse via a peer-to-peer file-sharing network, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Haring, 62, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with possession and distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Haring admitted that he knowingly used a computer from his home to share images and videos of child sexual abuse with other members of a publicly-available, peer-to-peer file-sharing network. Haring also admitted to possessing at least three videos and 600 images of child sexual abuse on his computer and other electronic devices.
In addition to the prison term, Judge Wolfson sentenced Haring to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Charles M. Moriarty Esq.
Molotov Cocktail Maker Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Christopher Nelson Beno, 53, was sentenced today in federal court on charges involving his illegal possession of a Molotov cocktail. Under federal law, a Molotov cocktail is a device controlled by the federal laws pertaining to firearms and dangerous devices. Beno was indicted in November of 2016 on the charge of being a convicted felon in possession of the device. Beno pled guilty to the federal indictment in January of 2017.
United States District Court Judge Callie V. S. Granade sentenced Beno to 30 months’ imprisonment, to be followed by a three-year term of supervised release. Beno will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Beno pay the $100 special mandatory assessment.
The case was investigated by the Baldwin County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/Methamphetamine Trafficker Sentenced to 20 Years in Prison for Trafficking Drugs to HawaiiRead the Press Release
SACRAMENTO, Calif. — Epati Malauulu, 42, of Suisun City, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison for conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Malauulu operated a methamphetamine distribution business that purchased high quality crystal methamphetamine in Northern California and distributed it in Hawaii where it sold at a large profit. Between August 2014 and June 2015, Malauulu was responsible for mailing over 15 pounds of methamphetamine to Oahu.
The investigation began in Hawaii and eventually identified Malauulu as the out-of-state methamphetamine supplier. Co-defendants John Ortiz, 45, of Vallejo; Algernon Tamasoa, 28, of Sacramento; and Francisco Poloai, 45, of Dixon, were also charged in the conspiracy in the Eastern District of California. Ultimately, the investigation led to 44 defendants being charged in the District of Hawaii and four being charged in the Northern District of California (San Francisco).
This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Solano County Multi-Jurisdictional Methamphetamine Enforcement Team, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, the San Francisco Police Department, the Honolulu Police Department, and others. Assistant United States Attorney Richard Bender prosecuted the Sacramento case.
Co-defendants Ortiz and Tamasoa have pleaded guilty to charges stemming from the methamphetamine trafficking activity. Poloai is scheduled for trial on September 25, 2017. The charges against Poloai are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Massachusetts Man Pleads Guilty to Fraud, Identity Theft ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Luis Medina, 49, of Lawrence, Massachusetts, pleaded guilty today in U.S. District Court to submitting a false document to a government agency, social security fraud and aggravated identity theft.
According to court records, in August 2015, Medina, who was working for an asbestos abatement contractor, used a false name and social security number to gain access to the Portsmouth Naval Shipyard in Kittery. Based on the false information, Medina was cleared for access to the shipyard.
Medina faces up to five years in prison and a $250,000 fine on each of the false document and social security fraud charges and a mandatory consecutive two-year sentence on the aggravated identity theft charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Naval Criminal Investigative Service; the New Hampshire State Police; and the Social Security Administration, Office of the Inspector General.
Manteca Man Sentenced to over 11 Years in Prison for Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. —U.S. District Judge Kimberly J. Mueller sentenced Michael Tamblin, 52, of Manteca, to 11 years and three months in prison today for transporting child pornography.
According to court documents, in September and October of 2015, Tamblin surreptitiously filmed a minor child on numerous occasions using a hidden camera. Once Tamblin had those images, he transported them on a USB drive to his place of employment. On February 8, 2017, Tamblin pleaded guilty to transporting child pornography.
Tamblin was a technician at the Lawrence Livermore National Laboratory (LLNL), which is a secured federal laboratory owned by the United States Department of Energy. All internet searches on the LLNL network are recorded and periodically audited. A routine review of internet searches on Tamblin’s computer revealed potentially inappropriate activity. Further investigation led law enforcement officers to obtain search warrants for Tamblin’s residence and vehicles where they found evidence of Tamblin’s crimes. Tamblin has remained in custody since his arrest on February 19, 2016.
This case was the product of an investigation by the Federal Bureau of Investigation and the Department of Energy, Office of Inspector General. Assistant United States Attorneys Rosanne Rust and Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Man Pleads Guilty to Tax EvasionRead the Press Release
HOUSTON – A local man has admitted to willfully attempting to evade or defeat his individual income taxes, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).
According to the plea agreement, Daniel Bart Thedinger willfully filed false joint U.S. Individual Income Tax Returns for years 2009, 2010, 2011 and 2012, failing to report a total of more than $700,000 of income for those years. That income was the result of funds he had diverted from two business partnerships over the years to pay personal expenses, such as private school tuition for his children, renovating his personal residence, vacations and personal training.
During 2012, Thedinger wrote six checks for $15,000 each to a consultant in England and created a false invoice, allegedly from the consultant, to disguise the checks as payments for business expenses. The partnerships claimed the diverted funds as business expenses which reduced the true amounts of income from the partnerships for those years that flowed to Thedinger and were included on Schedules E attached to his IRS forms 1040.
Thedinger has agreed to pay $216,871 in restitution to the IRS to be applied to the additional U.S. individual income taxes he owes for the four years.
U.S. District Judge Lee Rosenthal is set to impose sentencing on Sept. 7, 2017, at which time Thedinger faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Mail Carrier Sentenced for Stealing MailRead the Press Release
WICHITA, KAN. - A Derby man was sentenced Wednesday to 12 months and a day for stealing mail while he worked as a mail carrier, U.S. Attorney Tom Beall said.
Gary W. Yenzer, 34, Derby, Kan., pleaded guilty to one count of theft of U.S. mail. In his plea, he admitted that in August and September 2016 while working as a mail carrier in rural Sedgwick County he stole mail. Investigators learned Yenzer looked for birthday and anniversary cards so he could remove cash and gift cards. He kept the cash and sold some of the gift cards for cash, but he did not use the gift cards for fear of them bring traced to him.
Beall commended the U.S. Postal Service-Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea, Mass., pleaded guilty today in federal court in Boston to RICO conspiracy involving the attempted murder of a rival gang member.
Angel Pineda, a/k/a “Bravo,” 21, a Honduran national who resided in Revere, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and admitted responsibility for the attempted murder of a rival 18th Street gang member in Chelsea in September 2014. U.S. District Court Judge F. Dennis Saylor IV Judge deferred accepting the defendant’s plea agreement until sentencing, and scheduled sentencing for July 26, 2017. If the court accepts the plea agreement, Pineda will be sentenced to 10 years in prison and will be subject to deportation after completion of his sentence.
After a three-year investigation, Pineda was one of 61 defendants named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible. Pineda was a member of the Enfermos Criminales Salvatrucha clique in Chelsea. In furtherance of the MS-13 RICO conspiracy, on Sept. 8, 2014, Pineda and another MS-13 member, Jose Vasquez, a/k/a “Little Crazy,” attempted to murder a rival 18th Street gang member by stabbing him in Chelsea.
The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. 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.
Pineda is the fourteenth defendant to plead guilty in this case.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon, made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Larue County, Kentucky, Resident Sentenced to 78 Months in Prison and Ten Years of Supervised Release for Receipt and Possession of Child PornographyRead the Press Release
Ordered to pay restitution to nine identified victims
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., announced today that a Larue County, Kentucky resident was sentenced yesterday in United States District Court by Senior Judge Charles R. Simpson, III, to 78 months in prison followed by ten years of supervised release. The Court further ordered Benjamin Boyd of Hodgenville, Kentucky to pay $65,000 in restitution to be divided between nine identified victims, after he pleaded guilty to receipt and possession of child pornography.
“Receipt and possession of child pornography are not victimless crimes,” stated United States Attorney John Kuhn. “Every image and every video in this case document a horrific moment of pain and damage inflicted upon an innocent and defenseless child. Circulating and viewing these images simply perpetuate the damage and pain for the victims. Mr. Boyd’s lengthy sentence and the substantial award for restitution to be paid to these victims is a just and appropriate outcome.”
According to the factual basis of the plea agreement, Benjamin Boyd, admitted to receiving and possessing 3,595 images and 2,778 videos of child pornography.
On August 29, 2015, an investigator with Kentucky Office of the Attorney General used
a peer-to-peer program to download 8 files of child pornography from a specific IP address.
That IP address was tracked to Benjamin Boyd of Hodgenville.
Investigators with the Attorney General’s office served a search warrant on Boyd’s residence, on October 15, 2015, and seized numerous electronic storage devices containing child pornography. A forensic review of the electronic devices revealed images and videos of child pornography. The collection contained images of prepubescent children and sadomasochistic conduct. The forensic report also revealed numerous dates and times that Boyd downloaded child pornography via the peer-to-peer program. The downloads occurred on dates ranging from May 4, 2014, through September 9, 2015.
Assistant United States Attorney A. Spencer McKiness prosecuted the case. The Kentucky Attorney General’s Office conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources.
Kingston Woman Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shavonne Saxon, age 29, a Kingston, Pennsylvania resident, was indicted on April 25, 2017, by a federal grand jury on crack cocaine trafficking, cocaine trafficking, and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Saxon possessed with the intent to distribute more than 28 grams of cocaine base (crack), and possessed with the intent to distribute cocaine, in March and April 2017. The indictment also alleges that Saxon possessed a firearm in furtherance of her drug trafficking and with being a felon in possession of a firearm and ammunition.
The case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and by the Kingston Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charges are life imprisonment. The charge for possessing over 28 grams of crack cocaine, and the charge for possessing a firearm in furtherance of narcotics trafficking each carry a five-year mandatory minimum sentence of imprisonment. 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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Jim Thorpe Man Indicted on Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Isaiah Moore-Brown, age 28, a Jim Thorpe, Pennsylvania resident, was indicted on April 25, 2017, by a federal grand jury on crack cocaine trafficking, cocaine trafficking, and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Moore-Brown with conspiring to distribute and possess with the intent to distribute more than 28 grams of cocaine base (crack), and with possessing with the intent to distribute cocaine and crack cocaine, from December 1, 2012 through January 11, 2017. Moore-Brown also is charged with possessing a firearm (Springfield Arms .45, Ruger LC .380, and Smith and Wesson .9mm) in furtherance of his narcotics trafficking and with being a felon in possession of firearms and ammunition. The indictment also seeks forfeiture of the firearms and ammunition.
The matter was investigated by Homeland Security Investigations and by the Pennsylvania Office of the Attorney General. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charges are life imprisonment. The charge for conspiring to distribute and possess with the intent to distribute over 28 grams of crack cocaine, and the charge for possessing a firearm in furtherance of narcotics trafficking each carry a five-year mandatory minimum sentence of imprisonment. 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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Jewelry Robber Sentenced to 150 Months in Federal PrisonRead the Press Release
DALLAS — Hilton Murdock Aitch, age 56, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 150 months in federal prison, following his guilty plea in November 2016 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney John Parker of the Northern District of Texas.
Aitch pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Aitch has been in custody since his arrest in March 2016.
Aitch was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Joshua Deunte Caldwell, 26, Dominique Pearson, 25, Irving Tyrone Flanagan, 47, Larry Solomon, 42, Terrence Lynn Thompson, 53, Anthony Ray Turner, Jr, 25, Treveon Dominique Anderson, 26, Michael Cornelious, 27, Xavier Rashad Ross, 25, and Vanlisa Scott, 47, were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Out of the twelve, nine have pleaded guilty, two are set for trial in January 2018, and one has not made an appearance in the Northern District of Texas.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing long-sleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Aitch and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Jamaican Man Sentenced on Immigration 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 David Hill, 39, of Rochester, NY, who was convicted of illegal reentry after having been previously deported due to a conviction for an aggravated felony, was sentenced to 18 months in prison by U.S. District Judge Charles Siragusa.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that the defendant, who is a citizen of Jamaica, was convicted of Robbery in state court in 2006. After serving a 42-month sentence, Hill was deported to Jamaica and prohibited from reentering due to his conviction. On August 16, 2016, the defendant was found in the Western District of New York, having unlawfully reentered the United States. Hill was found after an investigation revealed that the defendant had attempted to obtain false identification documents at the New York State Department of Vehicles using an alias.
The sentencing is the result of an investigation by the United States Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; the New York State Police, under the direction of Major Richard Allen; and the New York State Department of Motor Vehicles, under the direction of Executive Deputy Commissioner Theresa Egan.
IRS Impersonators Steal Nearly $9 Million from Thousands of Victims in Nationwide SchemeRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), and Robert G. Feldt, Special-Agent-in-Charge, Social Security Administration, Dallas Field Division, announced today the unsealing of a superseding indictment and the Tuesday arrests of seven individuals who participated in a nationwide scheme to steal nearly $9 million from unsuspecting taxpayers by impersonating Internal Revenue Service (IRS) agents.
The superseding indictment, returned by a grand jury in the Eastern District of Arkansas on April 4, 2017 and unsealed today, charges 10 individuals with conspiracy to commit wire fraud. Two defendants—Jeniffer Valerino Nuñez and Dennis Delgado Caballero—were also named in 21 counts of wire fraud. Nuñez and Caballero, who were previously arrested in Miami on May 23, 2016, and remain in federal custody, were first named in the original indictment filed on June 8, 2016.
Tuesday’s operation, which lasted into the evening, resulted in the arrest of seven of the individuals named in the superseding indictment. Those seven are all Cuban nationals who were living in south Florida, primarily Miami. Tuesday’s arrests took place in Miami and West Palm Beach, Florida. Lazaro Hernandez Fleitas, 34, of Orlando, remains at large.
“This fraud scheme has victimized thousands of innocent people all across the country, including a number of citizens here in Arkansas,” Harris said. “These defendants pretended to be government employees and scared victims with spurious threats of legal action and imprisonment, and in doing so sought to take advantage of the most vulnerable among us. This indictment reflects our commitment to protecting our citizens from fraud, and holding accountable those who steal from honest citizens.”
In the scheme, individuals purporting to be employees of the IRS would call and threaten victims with legal action, arrest, and imprisonment for a supposed debt owed to the IRS. The callers made these threats and used other methods of intimidation to persuade the victims to wire money utilizing MoneyGram, Walmart-2-Walmart Money Transfer, and other wire-transfer services.
“No legitimate employee of the United States Treasury Department or the Internal Revenue Service will demand that anyone make payments via MoneyGram, Western Union, Walmart-2-Walmart Money Transfer, or any other money wiring method, for any debt to the IRS or the Department of the Treasury,” George said. “Nor will the Department of the Treasury demand that anyone pay a debt or secure one by using iTunes cards or other prepaid debit cards. If you receive one of these calls, hang up immediately and go to the Treasury Inspector General for Tax Administration (TIGTA) scam reporting page to report the call.”
In addition to Arkansas, investigators located wire transfer collections as part of the scheme in the following states: Oklahoma, Colorado, Indiana, Minnesota, Wisconsin, Utah, Idaho, Kansas, Missouri, Florida, Illinois, Iowa, Louisiana, Texas, Tennessee, Mississippi, Alabama, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Maryland, New Jersey, Pennsylvania, Massachusetts, Rhode Island, and New Hampshire, and Washington, D.C. Currently, investigators have identified 7,797 nationwide victims for a total discovered loss amount of $8,958,995.71.
“These arrests demonstrate that TIGTA and its law enforcement partners continue to make significant progress in our investigations related to the IRS impersonation scam that continues to sweep the country,” George said. “Over the past three years, this scam has resulted in reported taxpayer losses of more than $55 million. The scammers are relentless and so are we. Our investigators will not rest until we have brought those responsible for this scheme to justice.”
“The Social Security Administration, Office of the Inspector General (SSA-OIG) is committed to closely working with our law enforcement partners to pursue identity thieves who deceive and defraud American taxpayers,” Feldt said.
The maximum penalties for conspiracy to commit wire fraud and wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, and not more than three years supervised release.
Investigators verified the identity of the suspects and their activities through a variety of investigative methods. TIGTA and the SSA-OIG led the investigation. The case is being prosecuted by Assistant United States Attorneys Hunter Bridges and Jana Harris.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
US v. Caballero et al, Case No. 4:16-cr-124-BRW
Caballero IRS Scam Superseding Indictment
DEFENDANTS
Angel Chapotin Carrillo, 42, Hialeah, Florida
Dennis Delgado Caballero, 39, Miami, Florida
Ricardo Fontanella Caballero, 25, Hialeah, Florida
Elio Carballo Cruz, 40, Miami, Florida
Esequiel Bravo Diaz, 23, Miami, Florida
Lazaro Hernandez Fleitas, 34, Orlando, Florida
Jeniffer Valerino Nuñez, 21, Miami, Florida
Yosvany Padilla, 26, Hialeah, Florida
Alfredo Echevarria Rios, 43, Miami, Florida
Alejandro Valdes, 25, West Palm Beach, FloridaHudson County, New Jersey, Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man who was arrested yesterday while robbing a Wells Fargo Bank made his initial appearance today in federal court, Acting U.S. Attorney William E. Fitzpatrick announced.
Billy Le, 25, is charged by complaint with one count of bank robbery. Le appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to the complaint:
On April 25, 2017, Le entered a Wells Fargo Bank in Jersey City wearing a black gas mask and holding a black duffle bag in one hand and a long metal rod with a red tip in the other hand. Waiving the metal rod, Le approached a teller and yelled, “Give me your money. Give me all your money.” A different bank employee immediately called the police.
Still wielding the metal rod, Le climbed onto the teller’s counter and threatened the teller with violence. A bank customer approached Le from behind, pulled him off the counter, and held him down until law enforcement officers arrived minutes later.
Law enforcement officers arrested Le at the scene and recovered the duffle bag and the metal rod, which appeared to be a pipe bomb. The officers evacuated the bank, after which Emergency Service Unit officers examined the device and determined that it was not an explosive. The duffle bag contained, among other things, a large knife.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hudson County Prosecutor’s Office, under Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Chief Philip D. Zacche, with the investigation.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Greenville Man Receives 10 Years on Child Porn ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Alton Davis, age 47, of Greenville, was sentenced today in federal court in Greenville, for possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce Howe Hendricks of Charleston sentenced Davis to 120 months in the Bureau of Prisons.
Evidence presented at the change of plea hearing established that on October 14, 2015, an undercover officer downloaded from the defendant two child porn images using peer-to-peer software. Based on this download, law enforcement determined his IP address, street address, and obtained a search warrant.
On November 10, 2015, the warrant was executed at the defendant’s home. He was present and agreed to talk. He admitted to using his computer and the internet to search for pornography and using search terms associated with child pornography. He admitted to viewing images of child porn on his computer. Davis was previously convicted in 2004 of child pornography possession.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of 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, please visit www.projectsafechildhood.gov.
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Goddard Man Sentenced in Two Commercial RobberiesRead the Press Release
WICHITA, KAN. B A Goddard man was sentenced Wednesday to 41 months in federal prison for two commercial robberies in Wichita, U.S. Attorney Tom Beall said.
Austan Kinnaird, 26, Goddard, Kan., pleaded guilty to two counts of robbery. In his plea he admitted that on Dec. 24, 2015, he robbed Golf Headquarters at 848 N. Webb Road in Wichita. He entered the store wearing a wig and a cap. He showed the clerk what looked like a firearm and demanded money before he fled the store with the stolen cash.
In his plea, he further admitted that on April 29, 2016, he robbed a branch of Intrust Bank in a Dillons grocery store at 9450 E. Harry in Wichita. He gave the teller a note demanding money and fled the bank with the cash. He was identified after surveillance photos were made public.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Four from Northeast Ohio indicted for federal firearms violationsRead the Press Release
Four men were indicted on federal firearms charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Duane E. Spagnola, 30, of Warren, Dwaylen D. Sellers, 22, of Youngstown, and Corey D. Johnson, 26, of Cleveland, are charged with being felons in possession of a firearm and ammunition. Timothy C. Bowers, 45, of Conneaut, is charged with being a felon in possession of firearms and ammunition, and maintaining a drug premises.
The cases are unrelated.
Spagnola possessed a Colt, model Trooper Mark III, .357 magnum caliber revolver, and ammunition,
on Feb. 21, 2017, after having been convicted of attempted felonious assault in the Cuyahoga County Court of Common Pleas in 2014, according to the indictment.
Sellers possessed a Colt, model Trooper MK V, .357 Magnum revolver, and ammunition on Feb. 3, 2017, after having been convicted of robbery in the Mahoning County Court of Common Pleas in 2016, according to the indictment.
Johnson had a Smith and Wesson .40-caliber pistol and ammunition on Oct. 3, 2016, despite a 2010 conviction in Cuyahoga County Common Pleas Court, according to the indictment.
Bowers possessed a Hi-Point, model 4095, .40 caliber rifle, a New England Firearms, model Pardner, 20-gauge shotgun, a Hopkins & Allen, .32 caliber revolver, a Savage Arms, model Mark II, .22 caliber rifle, and ammunition on Jan. 11, 2017, after having been convicted of illegal manufacturing of drugs in the Ashtabula County Court of Common Pleas in 2008, according to the indictment.
Bowers also maintained a premises on East Main Road in Conneaut, for the purpose of distributing and using controlled substances, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The Spagnola case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Warren Police Department.
- Sellers case is being prosecuted by Toepfer following an investigation by the ATF and the Youngstown Police Department.
- Johnson case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the FBI Safe Streets Task Force and the Twinsburg Police Department.
The Bowers case is being prosecuted by Toepfer following an investigation by the ATF, the Conneaut Police Department, and the Ohio Adult Parole Authority.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Defendants Sentenced to Prison in Multi-Million Dollar Health Care Fraud Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Four defendants, including two sober home owners, the clinical director of a substance abuse treatment center, and a sales representative for multiple diagnostic laboratories were sentenced to prison for their participation in a health care fraud scheme that involved the filing of fraudulent insurance claim forms and licensing documentation.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Bryan Kummerlen, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, was sentenced to 84 months in prison, to be followed by one year of supervised release. Michael Bonds, 45, of Delray Beach, was sentenced to 48 months incarceration, to be followed by three years of supervised release. Stefan Gatt, 27, of Deerfield Beach, was sentenced to 18 months in prison, to be followed by three years of supervised release. The defendants previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. Davis also pled guilty to one count of managing, leasing, profiting from, and making available a place (one of her sober homes) for the purpose of the unlawful distribution and use of controlled substances, in violation of Title 21, United States Code, Section 856(a).
In a separate but related case, Licensed Mental Health Counselor Dr. Barry Gregory (case no. 9:17-cr-80033-DMM), 62, of Wellington, was sentenced to 57 months in prison, to be followed by 3 years of supervised release. Gregory previously pled guilty to one count of conspiracy to commit health care fraud and one count of knowingly falsifying a matter involving health care benefit programs, in violation of Title 18, United States Code, Sections 1035(a)(1) and 2.
Sentencing is scheduled for May 17, 2017 for co-defendants Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, and Laura Chatman, 44, of Boynton Beach. Sentencing is scheduled for June 7, 2017 for Donald Willems, 40, of Weston. A hearing regarding restitution for all defendants will occur on July 7, 2017. Trial is scheduled for September 5, 2017 for defendant Joaquin Mendez, 52, of Miramar.
According to court documents, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., Total Recovery Sober Living LLC, and other sober homes, which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, Chatman, Davis, and Bonds permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth Chatman, Bonds, and Davis referred the sober homes’ residents who had insurance to treatment centers owned by Kenneth Chatman but titled in the name of Laura Chatman. These treatment centers purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. In most instances, defendant Kenneth Chatman knew that the sober home residents referred to the treatment centers, Journey to Recovery LLC, in Lake Worth, Florida, and Reflections Treatment Center, LLC, in Margate, Florida, were using drugs. Defendant Gregory was the Clinical Director of Reflections Treatment Center and Journey to Recovery, and was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees. Gregory was aware that Kenneth Chatman was the true owner of some of these sober homes, but they were placed in other people’s names in an attempt to hide Chatman’s true ownership and control over the businesses. Gregory also knew that Chatman was paying kickbacks and bribes to sober home owners for referring their residents to Reflections and Journey for treatment, and that these kickbacks and bribes were disguised as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” Bonds, Davis, and Gregory further admitted that bribes and kickbacks were paid to insured patients who attended treatment, in the forms of free or reduced rent and other items. Bonds and Davis also admitted that residents of their sober homes were continuing to use controlled substances and that their sober homes were not, in fact, places where persons abstained from the use of drugs and alcohol. Rather, the defendants allowed their sober homes to be used by residents to continue abusing drugs and alcohol while attending ineffective and improperly licensed treatment centers in exchange for free rent.
Defendant Kenneth Chatman hired doctors, including defendants Mendez and Willems, to serve as medical directors of his treatment centers. The doctors ordered drug treatment and drug testing for the sober home residents, specifically expensive urine and saliva drug screens and allergy testing, regardless of whether such treatment and testing were medically necessary. The defendants provided services meant solely to maximize insurance reimbursements. In some instances, defendants Kenneth Chatman and Davis submitted urine and saliva samples from employees instead of urine and saliva from patients. In other instances, defendant Kenneth Chatman caused confirmatory testing to be performed and billed for residents who left the sober homes and were no longer receiving treatment at the treatment centers. Defendants Mendez and Willems also falsely documented patient files to make it appear as though they reviewed the test results. Defendant Gatt admitted that he knew the bodily fluid samples that he collected from Reflections came from employees and that he paid kickbacks to Chatman for Chatman to continue referring lucrative lab testing to him. Defendant Gregory admitted that the drug testing was “useless” because it was not used to direct the patients’ treatment and that as many as 90% of patients were testing positive for the continued use of controlled substances while purportedly obtaining treatment. Gregory knew that Kenneth Chatman was advising patients that they were allowed to continue using controlled substances. On some occasions when Gregory recommended referring relapsed patients to detox or other facilities, Chatman, who had no medical or clinical training, would overrule Gregory’s recommendations because discharging the patients would end Chatman’s ability to bill the patients’ insurance plans.
Defendants Kenneth Chatman and Davis engaged in various tactics to keep patients from being able to leave Reflections and Journey, including threatening violence, and confiscating their belongings, such as car keys, telephones, medications, and food stamps, in order to maintain the ability to continue fraudulently billing their insurance companies.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers. Gregory, who also owned a consulting firm that assisted substance abuse treatment facilities in obtaining licensure, filed documents with the Florida Department of Children and Families and assisted with audits to help Chatman receive permanent DCF licenses for Reflections and Journey.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former State Representative Erik Fresen Pleads Guilty for Failing to File Tax ReturnRead the Press Release
Former State Representative Erik Fresen pled guilty today, before U.S. District Judge Robert N. Scola, for failing to file a federally required tax return.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Erik Fresen, 40, of Miami-Dade County, pled guilty to one count of failing to file a tax return, in violation of Title 26, United States Code, Section 7203. He faces a maximum sentence of one year in prison.
According to the court record, Fresen and his wife were required to file a tax return with the Internal Revenue Service (“IRS”) by April 15, 2012, because they had total gross income in 2011 of $270,236. This included Fresen’s income from a private company ($150,000), where Fresen was employed as a zoning consultant, and from the State of Florida ($28,891), where Fresen was employed as a legislative representative. Both of these entities reported Fresen’s income to the IRS on Form W-2 and withheld from Fresen’s wages federal income tax due and owing on the defendant’s earnings. Fresen also received non-Form W-2 income for consulting services he provided through a company named Neighborhood Strategies LLC and he failed to pay taxes on this unreported portion of his 2011 income, in the amount of $30,324. Despite knowing that he was required to file a tax return with the IRS based on these various sources of income, Fresen failed to timely file a tax return for the 2011 tax year.
Mr. Greenberg commended the investigative efforts of IRS-CI for their work on this case. This case is being prosecuted by Assistant U.S. Attorneys Harold E. Schimkat and 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 www.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former RMBS Trader Sentenced to 2 Years in Prison, Fined $2 Million, for Securities FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JESSE C. LITVAK, 42, of Boca Raton, Fla., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for engaging in fraudulent residential mortgage-backed securities (RMBS) trades. Chief Judge Hall also ordered LITVAK to pay a $2 million fine.
“This sentence sends an unequivocal message that fraud in the residential mortgage backed securities trading market will be met with serious punishment,” said U.S. Attorney Daly. “Jesse Litvak took advantage of his victims through his repeated and brazen lies, and as the Court correctly found, Litvak’s lies led to more than $6 million in unearned profits for his employer. Simply put, Litvak lied to investors to cheat them and make more money for himself. This has been a demanding and lengthy prosecution. I thank our prosecutors and the SIGTARP and FBI agents for their tireless professionalism throughout this case. Our criminal investigations of individuals and institutions involved in fraudulent RMBS trading activities remain active and ongoing.”
“Today former Jefferies trader Jesse Litvak was sentenced to federal prison for lying to customers about the prices of residential mortgage backed securities to criminally enrich his firm’s profit and his bonus based on the profit,” said Christy Goldsmith Romero, Special Inspector General for TARP. “This fraudulent pursuit of profit victimized customers including a fund trading with taxpayer dollars – part of a TARP program that unlocked frozen credit markets during the crisis. Despite making more than $15 million in four years, Litvak was motivated by greed to lie in 76 trades with 35 victims. Now Litvak has faced justice for his crimes. Since his arrest by SIGTARP special agents, broker dealers have changed their sale practices to prevent this type of fraud. SIGTARP commends U.S. Attorney Daly and prosecutors Jonathan Francis, Heather Cherry and William Nardini and for fighting crime in the residential mortgage backed securities market.”
“The prison term imposed today serves as another example that justice prevails over greed, deceit and criminal behavior,” said FBI Special Agent in Charge Ferrick.
On January 27, 2017, a jury found LITVAK guilty of one count of securities fraud. According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used billions of dollars of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds.
LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.
The jury found that LITVAK engaged in a scheme to defraud. As a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. LITVAK exploited this information by misrepresenting to his PPIP fund victim the price Jefferies paid for a RMBS bond in order to increase Jefferies’ profit on the trade.
LITVAK has been released on bond since his arrest on January 28, 2013.
On March 7, 2014, LITVAK was convicted after trial of 10 counts of securities fraud, one count of TARP fraud and three counts of making false statements to the government. Chief Judge Hall subsequently sentenced him to 24 months of imprisonment and a fine of $1.7 million. LITVAK appealed his conviction and, on December 8, 2015, the U.S. Court of Appeals for the Second Circuit reversed the judgment of conviction as to the TARP fraud and making false statement charges, and remanded the matter for a new trial on the securities fraud charges.
The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and paid a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty included up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also addressed deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures included Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
This matter was investigated by SIGTARP and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Jonathan Francis, Heather Cherry and William Nardini.
Former New York Resident Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Poughkeepsie, New York, pleaded guilty today in U.S. District Court in the Southern District of New York to filing fraudulent tax returns for others and for himself, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joon H. Kim for the Southern District of New York.
“Just about a week ago, many Americans did their civic duty and sent off their returns to the IRS, enclosing checks for taxes duly owed,” said Acting Deputy Assistant Attorney General Goldberg. “They have the right to expect that those like Damyon Shuler who threaten the integrity of the tax system by preparing fraudulent returns and submitting false refund claims will be fully prosecuted.”
“Damyon Shuler stole from the U.S. Treasury by preparing and filing false tax returns,” said Acting U.S. Attorney Kim. “We thank our partners at the Justice Department’s Tax Division and IRS Criminal Investigations for their work in bringing Shuler’s crimes to light.”
“People who create and promote fraudulent tax schemes against the United States, will be held accountable,” said Special Agent in Charge James D. Robnett of the IRS-CI New York Field Office. Today’s guilty plea by Mr. Shuler again emphasizes that IRS-Criminal Investigation will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
Damyon Shuler, 47, pleaded guilty to filing his own fraudulent tax return and filing a fraudulent return on behalf of another taxpayer. Between February 2010 and March 2011, Shuler approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the IRS, for which he charged a $4,000 to $5,000 fee. Shuler then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return. To generate the fraudulent refunds, Shuler reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, Shuler did not list himself as the preparer. Shuler also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, Shuler’s fraudulent refund scheme led to losses of more than $1.2 million.
Sentencing is scheduled for Sept. 14. Shuler faces a statutory maximum sentence of three years in prison for each count of filing a fraudulent return, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kim praised the outstanding work of special agents of IRS–CI, who conducted the investigation, and Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former New York Resident Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced that DAMYON SHULER pled guilty today to charges relating to his preparation and filing of federal income tax returns that sought refunds based on the fraudulent claim that the taxpayers were entitled to slave-reparations payments.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Damyon Shuler stole from the U.S. Treasury by preparing and filing false tax returns. We thank our partners at the Justice Department’s Tax Division and IRS Criminal Investigations for their work in bringing Shuler’s crimes to light.”
Tax Division Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Just about a week ago, many Americans did their civic duty and sent off their returns to the IRS, enclosing checks for taxes duly owed. They have the right to expect that those like Damyon Shuler who threaten the integrity of the tax system by preparing fraudulent returns and submitting false refund claims will be fully prosecuted.”
IRS-CI Special Agent in Charge James D. Robnett said: “People who create and promote fraudulent tax schemes against the United States will be held accountable. Today’s guilty plea by Mr. Shuler again emphasizes that IRS-Criminal Investigation will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
In January 2011, SHULER prepared a 2010 federal income tax return for a client claiming a bogus refund of $61,300. To generate the fraudulent refund, SHULER reported a fake capital gain of $60,575 and a tax paid on that income in the exact same amount. He also attached to the return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Taxes Black Investme (sic)” had paid the taxes to the IRS. To conceal that he prepared this return, SHULER did not list himself as the preparer.
In February 2010, SHULER also prepared a 2009 federal income tax return for himself that included a false Form 2439 claiming that taxes had been paid to the IRS on his behalf in the amount of $50,575 and fraudulently claiming a refund of $46,685.
SHULER has agreed to pay restitution to the IRS in the amount of $1,233,130 for this tax scheme.
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SHULER, 47, pled guilty to the filing of his own false income tax return and the preparation and filing of a return on behalf of one of his clients. SHULER faces a statutory maximum sentence of three years in prison and a $250,000 fine on each of the two counts to which he pled guilty, and will be sentenced before United States District Judge Nelson S. Román on September 14, 2017, at 9:30 a.m.
Mr. Kim praised the outstanding work of the Internal Revenue Service, Criminal Investigation Division. He also thanked the U.S. Department of Justice’s Tax Division for its significant assistance in the prosecution.
This case is being handled by the Office’s White Plains Division. Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich are in charge of the prosecution.
Former Nashville General Sessions Judge Indicted on Federal Obstruction ChargesRead the Press Release
Cason “Casey Moreland, 59, of Nashville, Tenn., was indicted by a federal grand jury today on five counts of obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Moreland was initially arrested on March 28, 2017, pursuant to a criminal complaint charging him with several obstruction charges.
According to the indictment, Moreland was a General Sessions Judge in Nashville, Tenn. and in February 2017, he became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury. The indictment alleges that after learning of the nature of the investigation, Moreland took steps to obstruct and interfere with the investigation by devising a scheme to pay a material witness to recant her previous statements, which implicated his criminal conduct in trading sex for judicial favors.
The scheme included Moreland’s attempt to disguise his involvement in the obstruction by using a burner phone registered in a fictitious name and communicating only through an individual who subsequently became an informant, working at the direction of the FBI. The indictment also alleges that Moreland took further actions and devised a scheme to have drugs planted in the witness’ car and to orchestrate a traffic stop by police, in which the drugs would be found, so that she would be arrested and her credibility destroyed.
Counts 1, 2 & 5 of the indictment carry a maximum penalty of 20 years in prison. Counts 3 &4 carry a maximum of 10 years in prison. Each count also carries a fine of up to $250,000.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender and Trial Attorney Lauren Bell, of the Public Integrity Section of the Department of Justice.
Former Louisville Metro Police Department Detective Sentenced to Five Months Incarceration and Five Months Home Detention – Pleaded Guilty to Theft from Interstate ShipmentRead the Press Release
Stole contents of packages while working as a drug interdiction task force officer
Forfeited $74,745.99
LOUISVILLE, Ky. - United States Attorney John E. Kuhn, Jr. today announced the five month prison sentence followed by five months home detention, of a former Louisville Metro Police Department Detective, by Senior Judge Thomas B. Russell, in United States District Court, for stealing contents of packages while working as a drug interdiction task force officer.
Kyle Willett, 48, of Spencer County, Kentucky, remains free on an unsecured bond following today’s sentencing hearing. Willet waived indictment by grand jury and plead guilty to a felony Information on December 21, 2016, before Magistrate Judge Dave Whalin, charging the former detective with theft from interstate shipment. A condition of the plea agreement required Willet to forfeit $74,745.99.
Willett admitted to stealing cash from a United Parcel Services (UPS) shipping sorting facility in Louisville, Kentucky, while working as a drug interdiction task force officer.
From January 2016 through August 2016, Willett, while working as an interdiction task force officer, would identify UPS packages that possibly contained cash. He would then take the packages to his vehicle and open them. On a number of occasions, Willett then stole the contents of packages. During this period, he stole approximately $74,745.99 in cash from these packages. As part of the plea agreement, Willett forfeited proceeds traceable (directly and indirectly) to such violation, including but not limited to: a) $72,000 in United States Currency; b) $520.00 in United States Currency; and c) $2,225.99 in United States Currency.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Louisville Metropolitan Police Department’s Public Integrity Unit and the Federal Bureau of Investigation (FBI).
Former Investment Advisor Sentenced to 72 Months in Prison for $5 Million Securities Fraud SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of BRADLEY THOMAS SMEGAL, 63, to 72 months in prison for stealing more than $5.1 million from several of his investment advisory clients. SMEGAL, who pleaded guilty on August 11, 2016, to two counts of securities fraud, was sentenced today before U.S. District Judge David S. Doty in Minneapolis, Minn.
“The defendant stole from clients who trusted his professional investment advice,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office. “The sentence handed down today sends a clear message that those who abuse their positions of trust for personal gain will be brought to justice and held accountable for their crimes.”
According to his guilty plea and documents filed in court, SMEGAL was a registered broker and investment advisor from 1980 until May 2012 when the Financial Industry Regulatory Authority (FINRA) barred him from the securities industry.
According to his guilty plea and documents filed in court, between August 2007 and January 2013, SMEGAL convinced several investment advisory clients to invest in entities in which SMEGAL had an undisclosed ownership or management role, or otherwise controlled the bank accounts. SMEGAL told investors that these entities were involved in international infrastructure and mining projects, among other things. SMEGAL, without disclosing his personal stake, often described the investments as conservative and guaranteed specific rates of return to the clients.
According to his guilty plea and documents filed in court, SMEGAL fraudulently convinced his clients to invest approximately $5.14 million into these entities. He diverted $825,900 of those funds to his personal bank account. As part of an effort to hide this theft, SMEGAL often routed the money through multiple bank accounts before depositing it into his personal account. In order to keep the scheme going, SMEGAL sometimes made Ponzi-type payments to investors.
According to his guilty plea and documents filed in court, just prior to being barred by FINRA, in November 2011, Wells Fargo, where SMEGAL had been working, terminated his employment. SMEGAL had not disclosed to his employer that he had a financial interest in all of the entities to which he steered his investment advisory clients. After he was terminated, SMEGAL led certain clients to believe that he was still employed by Wells Fargo.
This case is the result of an investigation conducted by the FBI and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney David M. Maria.
Defendant Information:
BRADLEY THOMAS SMEGAL, 63
Minneapolis, Minn.
Convicted:
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Securities fraud, 2 counts
Sentenced:
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72 months in prison
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Two years of supervised release
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$4,978,195.35 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Former Framingham Housing Authority Employee Sentenced for Embezzling Rent PaymentsRead the Press Release
BOSTON – A Milford woman was sentenced yesterday in federal court in Boston in connection with embezzling over $70,000 in rent payments owed to the Framingham Housing Authority (FHA).
Rosa A. Famania, 33, was sentenced by U.S. District Court Chief Judge Patti B. Saris to five months in prison and three years of supervised release. In addition, Famania must complete five months in a residential or inpatient substance abuse facility upon her release from prison and pay approximately $70,649 in restitution to the FHA. In December 2016, Famania pleaded guilty to one count of embezzling money from an agency receiving federal funds.
In February 2010, Famania began working for FHA as an accounting assistant. She resigned from her position in August 2015, shortly after FHA suspended her in connection with an internal investigation into missing rent payments. Famania’s responsibilities at the FHA included collecting cash rent payments from FHA tenants, recording the cash payments in the FHA electronic accounting system, securing the cash payments in a locked cash box and depositing the cash payments into an FHA bank account.
Between February 2014 and August 2015, Famania stole approximately 181 cash rental payments totaling $70,649 from FHA and used an FHA accounting software program to conceal the ongoing theft. Specifically, Famania collected the cash rent payments, but rather than depositing the payments into the FHA bank accounts, she kept the payments and adjusted the tenants’ balance downward using the accounting software. From July 2014 to July 2015, Famania deposited approximately $55,100 in cash to a personal bank account. Furthermore, from August 2014 to August 2015, Famania transferred approximately $41,400 of those funds in the form of treasurer checks into another bank account that she controlled. Postal records additionally revealed that Famania obtained 19 U.S. Postal Service money orders totaling $17,900 in 2014.
Acting United States Attorney William D. Weinreb; Christina Scaringi, Special Agent in Charge of the United States Department of Housing and Urban Development, Office of Inspector General, New York Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Framingham Police Chief Kenneth Ferguson, made the announcement. Assistant U.S. Attorney William F. Bloomer of Weinreb’s Public Corruption Unit prosecuted the case.
Former Fort Stockton Teacher Sentenced for Wire Fraud SchemeRead the Press Release
In Alpine this morning, a federal judge sentenced George Mariadas Kurusu, a 58-year-old Indian national and a former Fort Stockton Independent School District (FSISD) teacher, to time served (approximately 11 months) and ordered him to pay $53,004.51 restitution for a wire fraud scheme involving the hiring of Indian nationals to teach in the United States. United States District Judge Louis Guirola also ordered that Kurusu forfeit $5,987.49 to the Government and serve three years of supervised release. Kurusu has been in federal custody since his arrest in May 2016.
United States Attorney Richard L. Durbin, Jr., Steven Grell, Special Agent in Charge of the Dallas Regional Office, U.S. Department of Labor, Office of Inspector General, and Michael V. Perkins. Special Agent in Charge of the Houston Field Office, U.S. Department of State, Bureau of Diplomatic Security Service made the announcement today.
On January 19, 2017, Kurusu pleaded guilty to two counts of wire fraud; one count of fraud in foreign labor contracting; one count of tampering with a witness, victim or an informant; and, one count of making a false statement on a visa application. By pleading guilty, Kurusu admitted that from December 2012 to May 2016, he defrauded several individuals out of more than $50,000 for a “visa package” provided by a company he owned which promised H1-B visas, teaching jobs, and the maintenance of those jobs and visas for his victims.
According to court records, Kurusu, a H1-B visa holder, established a separate business, Samaritan Educational Services (Samaritan), which he personally obtained financial benefits in violation of his visa. Kurusu also lied on an application to renew his visa. However, Kurusu began placing advertisements in a newspaper in Hyderabad, India, providing services for a fee to individuals who were seeking teaching positions in the United States. Kurusu led applicants to believe that they had to go through his business in order to both obtain a visa and a job. Kurusu inserted himself between the applicant and both the State Department, issuer of visas, and the FSISD, who paid for the visa and did the hiring. Kurusu, through his business, had the victims pay large fees on the pretext they were solely to be used to complete paperwork and none would go to him. Kurusu paid those nominal fees, but pocketed the rest. The victims initially set up all the paperwork for the visa and to obtain a job at FSISD then provided Kurusu such information along with other personal information. Kurusu, in promoting his scheme, used this information to place a buffer between the victims and both the State Department and FSISD. Kurusu further insured his scheme was not revealed when he ordered the victims not to mention to the State Department they enlisted the services of Samaritan and not to contact FSISD directly, but only through him.
When the victims arrived in the United States, in particular within the FSISD, Kurusu had the victim’s set up a bank account and an Electronic Transfer of Funds (ETF) where 15% of their monthly paychecks, before taxes, were wired to Kurusu’s Samaritan business bank account. Kurusu advised the victims this was for consulting fees, then later for his “services” to make sure they had continuous employment and to maintain their visas-- two things of which Kurusu had no control. When the victims began questioning the arrangement, Kurusu warned the victims that if they did not pay, they would lose their jobs and their visas; and again, advised them not to contact the FSISD otherwise they would jeopardize all H1-B visa holders in the district. FSISD was unaware of the defendant’s scheme.
Once Kurusu became aware an investigation was being conducted, he went to the victims and informed them not to talk to law enforcement. Kurusu told them that if they did speak to law enforcement, he, them, and all the other H1-B visa holders in the district would lose their jobs, lose their visas, and be deported.
This investigation was conducted by agents with the U.S. Department of Labor, Office of Inspector General, Dallas Regional Office, the U. S. State Department, Diplomatic Security Service, Houston Field Office, with the assistance of the U.S. Border Patrol in Fort Stockton, Texas. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Former Chicago Police Dispatcher Sentenced to More Than Three Years in Prison for Scheming to Smuggle Contraband into Cook County JailRead the Press Release
CHICAGO — A former dispatch supervisor for the Chicago Police Department was sentenced today to more than three years in prison for providing government information to her boyfriend in an effort to help smuggle contraband into Cook County Jail.
STEPHANIE LEWIS used her position in the City of Chicago Office of Emergency Management and Communications to access law enforcement databases to locate the personal information of a corrections officer at the jail. Lewis provided the information to her boyfriend, an inmate in the jail who had schemed with the officer and others to sneak in the contraband to sell to other inmates. Lewis admitted in a plea agreement that she knew her boyfriend and the others used the information to threaten the officer with physical harm unless he continued with the scheme and smuggled additional contraband into the jail.
Lewis, 43, of Chicago, pleaded guilty earlier this year to one count of conspiracy to commit extortion. U.S. District Judge Charles R. Norgle imposed the 41-month sentence in federal court in Chicago.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Cook County Sheriff Thomas J. Dart; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Lewis is one of five defendants convicted in the case. The prior convictions include the corrections officer, JASON MAREK, who admitted delivering contraband, including marijuana, tobacco and alcohol, to a jail inmate after tucking it into sandwiches and sneaking it past security. Marek was assigned to a maximum-security tier of the jail when he smuggled in the goods in May and June of 2013. Marek is awaiting sentencing.
Two other defendants, including Lewis’ boyfriend, PRINCE JOHNSON, of Chicago, have pleaded not guilty and are awaiting trial.
The government is represented by Assistant U.S. Attorney Megan Cunniff Church.
Five Inmates Arrested at Federal Correctional Institution – Fort Dix for Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – Five men imprisoned on child pornography charges were arrested today at the Federal Correctional Institution-Fort Dix and charged with new counts of distributing images and videos of child sexual abuse within the prison, Acting U.S. Attorney William E. Fitzpatrick announced.
The inmates were charged with using contraband cellphones and micro SD cards to distribute the images, as well as selling and possessing with intent to sell the images and videos on federal property and conspiracy to commit these offenses. They are scheduled to appear later today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
“These five defendants, each having been previously convicted and imprisoned for trafficking in child pornography, have allegedly continued while in prison to trade and profit from the exploitation and sexual abuse of innocent children,” Acting U.S. Attorney Fitzpatrick said. “The federal law enforcement community is committed to protecting our nation’s children by exhaustively investigating and aggressively prosecuting those who seek to do them harm.”
“Anyone who sexually exploits children, whether incarcerated or not, will be relentlessly pursued and brought to stand trial for their heinous crimes,” stated Timothy Gallagher, Special Agent in Charge of the FBI's Newark Field Office. “The FBI and our law enforcement partners are resolute in this commitment and remain ever vigilant in protecting one of society’s most vulnerable members, our children.”
According to documents filed in this case and statements made in court:
Anthony C. Jeffries, 31, of Orange, Virginia, is serving a 168-month sentence, with a scheduled release date of Aug. 13, 2022, following his guilty plea in the Western District of Virginia to three counts of distribution of child pornography and one count of possession of child pornography. He is allegedly a leader of the Fort Dix child pornography network, and maintained a “cloud” account containing images and videos of child sexual abuse. Jeffries allegedly transferred a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016. The micro SD card included videos involving prepubescent children, including infants and toddlers and depictions of child sexual abuse.
Brian J. McKay, 46, of Brookhaven, Pennsylvania, is serving a 180-month sentence, with a scheduled release date of June 28, 2021, following his guilty plea in the Eastern District of Pennsylvania to one count of distribution of child pornography and one count of possession of child pornography. McKay is charged with allegedly transferring micro SD cards containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016, and on Feb. 15, 2017, on behalf of other inmates (conspirators Allen and Roffler, below). The first micro SD card included child sexual abuse videos involving prepubescent children as well as bestiality. The second micro SD card included hundreds of images and videos of child sexual abuse.
Jordan T. Allen, 30, of Plain City, Ohio, is serving a 102-month sentence, with a scheduled release date of Dec. 30, 2018, following his guilty plea in the Southern District of Ohio to one count of receipt of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Feb. 15, 2017, in exchange for the micro SD card that McKay transferred to the informant on that date. Allen told the informant that he utilized The Onion Router (also known by its acronym, “TOR”) to access images of child sexual abuse.
Christopher D. Roffler, 29, of Virginia Beach, Virginia, is serving a 100-month sentence, with a scheduled release date of Aug. 22, 2019, following his guilty plea in the Eastern District of Virginia to one count of transportation of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Nov. 1, 2016, in exchange for the micro SD card that McKay transferred to the informant on that date.
Erik M. Smith, 35, of Iron Mountain, Michigan, is serving a 235-month sentence, with a scheduled release date of March 26, 2027, following his guilty plea in the Western District of Michigan to one count of receipt of child pornography. He is charged with distribution of images of child sexual abuse and selling and possessing with intent to sell images of child sexual abuse on federal property. Smith allegedly sold a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Feb. 15, 2017. Smith stated that he had sufficient postage stamps – a form of illicit currency among inmates – in order to obtain a cellphone to access the cloud account.
The counts of distributing child pornography, selling and possessing with intent to sell child pornography, and conspiracy to commit these offenses – due to the prior convictions of each of the defendants – carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrests. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Gabriel Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Scranton Man Indicted for Felon in Possession of a Firearm, Possession with Intent to Distribute Crack Cocaine and Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Justin Dewayne Barr, age 32, of Scranton, South Carolina, was charged in a three-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute crack cocaine and cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Barr could receive is a fine of $250,000.00 and/or life imprisonment. The case was investigated by the Florence County Sheriff’s Office, Lake City Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is assigned to Assistant United States Attorney Lauren Hummell of the Florence office for prosecution.
Loris Man Indicted for Felon in Possession of a Firearm, Possession with Intent to Distribute Crack Cocaine and Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Brian O’Neal Knox, age 32, of Loris, South Carolina, was charged in a three-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute crack cocaine and cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Knox could receive is a fine of $250,000.00 and/or life imprisonment. The case was investigated by the Horry County Police Department, the Horry County ATF Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Court Bars Kansas City Tax Return Preparers from Preparing Tax Returns for OthersRead the Press Release
A federal court in Kansas City, Kansas has permanently barred Everett Bias and Integrity Solutions Tax Consultants Inc. (ISTC) from preparing federal tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Bias and ISTC prepared false returns for customers located in both Kansas City, Kansas and Kansas City, Missouri. In addition to barring the defendants from preparing tax returns, the court ordered the defendants to contact all customers for whom they prepared federal tax returns since 2014 to inform them of the permanent injunction and provide the United States with a list of all of these persons.
According to the government’s complaint, Bias and ISTC unlawfully prepared federal tax returns that lowered their customers’ federal tax liabilities by using S corporations. This type of corporation passes corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. According to the government’s complaint, Bias and ITSC:
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Failed to report S corporation pass-through income as taxable income on the customers’ personal income tax returns;
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Falsely lowered the income of customers’ S corporations and then reported that false lowered income amount on the customers’ personal income tax returns;
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Improperly double-deducted customers’ personal expenses, such as mortgage interest and real estate taxes, on customers’ corporate and personal returns; and
- Concocted S corporations in order to improperly deduct customers’ personal expenses as business expenses and lower pass through income or create a phony flow through loss.
The government similarly alleged that Bias and ISTC concocted businesses for customers claiming that they were sole proprietors -- which are required to report its profit or loss on a Schedule C (Form 1040, Schedule C, “Profit or Loss from Business”) to the income tax return -- then fabricated the income and expenses of the fictitious business to show a loss, which falsely lowered their customers’ taxable income. Finally, the government alleged that Bias and ISTC fabricated itemized deductions such as unreimbursed employee business expenses and medical/dental expenses on their customers’ personal tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Federal Court Bars Kansas City Tax Return PreparersRead the Press Release
WASHINGTON — A federal court in Kansas City, Kansas has permanently barred Everett Bias and Integrity Solutions Tax Consultants Inc. (ISTC) from preparing federal tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Bias and ISTC prepared false returns for customers located in both Kansas City, Kansas and Kansas City, Missouri. In addition to barring the defendants from preparing tax returns, the court ordered the defendants to contact all customers for whom they prepared federal tax returns since 2014 to inform them of the permanent injunction and provide the United States with a list of all of these persons.
According to the government’s complaint, Bias and ISTC unlawfully prepared federal tax returns that lowered their customers’ federal tax liabilities by using S corporations. This type of corporation passes corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. According to the government’s complaint, Bias and ITSC:
- Failed to report S corporation pass-through income as taxable income on the customers’ personal income tax returns;
- Falsely lowered the income of customers’ S corporations and then reported that false lowered income amount on the customers’ personal income tax returns;
- Improperly double-deducted customers’ personal expenses, such as mortgage interest and real estate taxes, on customers’ corporate and personal returns; and
- Concocted S corporations in order to improperly deduct customers’ personal expenses as business expenses and lower pass through income or create a phony flow through loss.
The government similarly alleged that Bias and ISTC concocted businesses for customers claiming that they were sole proprietors -- which are required to report its profit or loss on a Schedule C (Form 1040, Schedule C, “Profit or Loss from Business”) to the income tax return -- then fabricated the income and expenses of the fictitious business to show a loss, which falsely lowered their customers’ taxable income. Finally, the government alleged that Bias and ISTC fabricated itemized deductions such as unreimbursed employee business expenses and medical/dental expenses on their customers’ personal tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Contractor Arrested for Violating Civil Rights of A Visitor at the Social Security AdministrationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Anthony Levey, Region 2 Director of the Federal Protective Service (“FPS”), announced today the unsealing of criminal charges against EDWIN CABAN, a Protective Security Officer, in the assault of a member of the public at a branch of the Social Security Administration (“SSA”). CABAN was charged with violating the civil rights of the victim by pushing the victim over a desk and then repeatedly punching the victim in the ribs without physical provocation. CABAN also is charged with filing a false report and making false statements to FPS agents to cover up the incident. CABAN was arrested this morning and is expected to be presented in federal court later today.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The Federal Protective Service’s mission is to protect federal facilities, including employees and visitors. But in this case, we’ve alleged, an innocent visitor needed protection from a violent and unprovoked attack by Protective Security Officer Edwin Caban, which fractured the visitor’s ribs. Officer Caban then allegedly lied about the incident, falsely claiming the victim was disruptive and required removal from the building.”
FPS Region 2 Director Anthony Levey said: “The Federal Protective Service relies heavily on security guard contract vendors and the security guards they employ to assist in our mission of securing federal facilities throughout the nation. We recognize the importance of citizens being able to conduct business with their government safely and free from mistreatment, and will not tolerate conduct that infringes on this ability. We are taking these allegations of misconduct seriously. As soon as FPS learned of the allegations, we immediately took steps to remove this PSO from his position at the SSA building, and FPS agents were assigned to investigate further. FPS agents conducted interviews, collected evidence, and as a result, a complaint was filed by the United States Attorney’s Office for the Southern District of New York. SDNY issued an arrest warrant which was promptly executed, safely and professionally, by FPS law enforcement members. We would like to thank our colleagues in the United States Attorney’s Office for their guidance, assistance, and support throughout the course of this investigation.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
The SSA has multiple branch offices located throughout New York City, where claimants may request SSA services and make inquiries regarding social security benefits and Social Security cards. One branch office is located at 123 William Street (the “123 William Office”), in Manhattan. The 123 William Office is staffed by two Protective Security Officers, who are employees of a contractor for the Federal Protective Service of the United States Department of Homeland Security. The 123 William Office has several surveillance cameras, which captured the assault.
The Assault and Cover-Up
At approximately 12:37 p.m. on June 22, 2016, the victim (“Victim-1”) entered the 123 William Office, wheeling an elderly gentleman in a wheelchair into the reception area. CABAN attempted to move the wheelchair, which Victim-1 asked him not to do. After CABAN stepped away, Victim-1 withdrew a cellphone from his pocket. CABAN then walked back to Victim-1 and repeatedly accused him of taking a picture with his cellphone, which Victim-1 denied.
As recorded by security camera footage obtained from the SSA, CABAN at this point reached out toward Victim-1, and Victim-1 put both of his hands up in the air, with his palms facing CABAN. CABAN then took hold of Victim-1’s waist with both hands, pivoted, turned Victim-1 around, and then pushed Victim-1 backward toward the elevator bank. CABAN continued to push Victim-1 backward, toward a desk adjacent to the opening to the elevator bank, until Victim-1 fell backward over the desk. CABAN then took hold of Victim-1’s arms, and, as Victim-1 struggled to shake free of CABAN’s hold, CABAN took Victim-1 into the elevator bank.
After a brief struggle in the elevator bank, CABAN pushed Victim-1 up against a wall. Placing his left hand at the base of Victim-1’s throat, CABAN pinned Victim-1 against the wall. As Victim-1 stood there, not moving, with his hands up in the air in a gesture of surrender, CABAN punched Victim-1 four times in the chest and ribs. Victim-1 collapsed forward, and CABAN continued to hold on to Victim-1 as Victim-1 remained bent forward, clutching his abdomen.
At this point, CABAN’s partner, another Protective Security Officer (“PSO-1”), arrived in the elevator bank from a back area of the office and approached CABAN and Victim-1. CABAN let go of Victim-1, who remained against the wall, not moving. As PSO-1 stood a few feet away, CABAN punched Victim-1 again in the chest. After several minutes passed, CABAN and PSO-1 escorted Victim-1 out of the elevator bank and back into the main floor area, back toward where the man in the wheelchair was waiting.
As a result of the attack, Victim-1 suffered bodily injuries, including fractured ribs, bruising, and physical pain.
Shortly after the assault, Victim-1 called 911 and two New York City Police Department officers responded. One of these officers (“Officer-1”) entered the 123 William Office and spoke with CABAN about Victim-1’s allegations. CABAN stated to Officer-1 that he put his hands on Victim-1 to remove him from the office, at which point Victim-1 “flopped” onto the desk, knocking things over. CABAN denied touching Victim-1 after that point and denied entering the elevator bank during the incident.
That same afternoon, CABAN placed a telephone call to an FPS reporting center, in which CABAN made an oral report about the incident. CABAN stated that there was “a disruptive client in here that needed to be escorted out;” he did not disclose that he struck Victim-1.
After the incident, CABAN and PSO-1 discussed the event. PSO-1 wrote and submitted a Security Incident Report. CABAN asked PSO-1 to show him the report, which PSO-1 did. In that report, the only reference to use of force is PSO-1’s note that CABAN was “attempting to detain [Victim-1]” when PSO-1 arrived in the elevator bank. PSO-1 did not state in that report that CABAN struck Victim-1.
CABAN also wrote and submitted a Security Incident Report. In that report, CABAN stated that, as he “attempted to guide [Victim-1] out” of the office, Victim-1 “yelled and jumped onto the security desk flairing [sic] arms and legs knocking equipment around.” CABAN then stated that he placed Victim-1 in an “arm bar” and “took him by the elevator banks,” that Victim-1 “tried to break [his] hold” at which point CABAN “grabbed him under his chin” and “mainta[ined] a hold of his arm.” CABAN stated that PSO-1 then arrived. CABAN reported no other use of force against Victim-1. In particular, nowhere in the report did CABAN state that he struck Victim-1.
CABAN was interviewed twice by FPS agents. During the course of the first interview, CABAN hand-wrote and signed an affidavit. In those interviews and in that affidavit, CABAN denied that he spoke with PSO-1 about the incident after it occurred and denied seeing PSO-1’s report, though he did both. CABAN also falsely stated that Victim-1 threw himself over the desk, when in fact CABAN pushed Victim-1 over the desk, and that Victim-1 was resisting detention when CABAN struck him, when in fact Victim-1 was not resisting at that time.
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CABAN, 55, of Astoria, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison, and one count of filing false forms and making false statements, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FPS.
The case is being handled by the Office’s Public Corruption and Civil Rights Units. Assistant U.S. Attorneys Alison Moe and Jacob Lillywhite are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Falmouth Doctor Sentenced to Two Years for Tax Evasion, Illegal Drug Distribution and Health Care FraudRead the Press Release
Contact: David B. Joyce
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Dr. Joel A. Sabean, 69, of Falmouth, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to two years in prison and three years of supervised release for tax evasion, drug distribution for other than legitimate purposes, and health care fraud. He was also ordered to pay $5,311 in restitution, file amended tax returns and pay all outstanding tax obligations. He was convicted following a two-week jury trial on November 18, 2016.
According to court records, between January 2008 and December 2013, the defendant sent over $2.3 million to a relative who resided in Florida and had her fabricate and send him phony medical bills so that he could write off about $3 million in medical expenses on his 2008 through 2012 income tax returns. From 2007 through 2014, the defendant also wrote invalid prescriptions for the relative, in her name and the names of others, for controlled and non-controlled drugs, some of which were illegally reimbursed by the defendant’s insurance company that did not cover the relative. These prescriptions were invalid because, among other things, they were issued to a close family member who was not a patient without a medical examination.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the U.S. Drug Enforcement Administration, Portsmouth (NH) Tactical Diversion Squad.
Evansville man sentenced for receiving child pornography from a woman in the PhilippinesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney, announced today that Bradley J. Hancock, 33 of Evansville, Indiana, was sentenced immediately following his plea of guilty to one count of Receipt of Sexually Explicit Material Involving Minors to 84 months in prison by U.S. District Judge Richard L. Young. This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and Evansville Police Department.
During his guilty plea, Hancock admitted to having received multiple images depicting a minor under the age of 12 engaging in sexually explicit conduct. Hancock explained that he used social networking software to meet a woman living in the Philippines. Hancock then persuaded the woman to send him sexually explicit images of a minor female in her care. Hancock received and viewed the images that were of a child approximately one to two years old. Hancock described himself as having an ongoing problem involving sexual attraction to minors.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed a 20-year term of supervised release following Hancock’s release from prison. Hancock must register as a sex offender, must not have unsupervised contact with minors, and must participate in a sex offender treatment program while on supervision. Hancock must forfeit the computer and cellular phone he used in the commission of the offense.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."