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Monday 17 April 2017
Wilmington Man Sentenced on Second Child Pornography Possession ConvictionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Donald Ray Boles, 59, of Wilmington, Vermont, was sentenced on April 17, 2017, in United States District Court in Burlington, Vermont, to serve 120 months in federal prison after his conviction at trial for possession of child pornography. U.S. District Judge William K. Sessions III also ordered Boles to serve a 10-year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, on September 6, 2011, the Federal Bureau of Investigation executed a warrant to search Boles’ residence for evidence of child pornography. During the search, numerous computers and other digital media were seized. During a forensic examination conducted by the Vermont Internet Crimes Against Children Task Force, approximately 140 images of child pornography were found on various computers and hard drives from the residence. Boles’ computers also contained thousands of images of child erotica, as well as sexually explicit cartoons, anime, and graphic stories. The computers also revealed that Boles communicated over the Internet with other offenders about their shared interest in preschool and toddler girls.
This was Boles’ second conviction for possession of child pornography. In 1999, then-U.S. Customs Service agents executed a search warrant of Boles’ residence for child pornography. Boles was charged and eventually pleaded guilty to one count of possession of child pornography in United States District Court in Vermont. In June 2001, Judge Sessions ordered Boles to serve 15 months imprisonment, followed by two years of supervised release.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI, the Vermont Internet Crimes Against Children Task Force, and the New York State Police in the investigation and prosecution of Boles. The prosecution of Boles was handled by Assistant U.S. Attorneys Barbara A. Masterson and Abagail E. Averbach. Boles was represented by Assistant Federal Defenders Steven L. Barth and Elizabeth K. Quinn.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Waterbury Grocery Store Worker Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAHIR SHAHZAD, 33, of Harrison, New York, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents and statements made in court, SHAHZAD worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. SHAHZAD was the nephew of the store owner and at times acted as the store manager, supervising at least four other individuals who worked at the store. From November 2014 until June 2016, SHAHZAD and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, glass pipes, bongs, and hookahs. SHAHZAD charged the customers’ food stamp cards approximately double the value for these illegal transactions.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
SHAHZAD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 13, 2017, at which time he faces a maximum term of imprisonment of 10 years, a fine of up to twice the gross loss from the offense, and restitution. He is released on a $50,000 bond.
Two men who worked at WB Trade Fair Grocery previously pleaded guilty to the same charges. Raul Carlos Monarca-Gonzalez pleaded guilty on November 28, 2016. On April 7, 2017, he was sentenced to 30 months of imprisonment. Tallat Mahmood pleaded guilty on March 30, 2017, and is scheduled to be sentenced on July 12, 2017.
This matter has been investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Valencia County Woman Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Fabrienne Rosalinda Morales, 40, of Peralta, N.M., was sentenced today in federal court to 18 months in prison followed by three years of supervised release for her heroin trafficking conviction.
Morales and her and co-defendant Christopher Gonzales, 20, of Rio Rancho, N.M., were arrested in Jan. 2016, on a five-count indictment charging Morales and Gonzales with conspiracy, Gonzales with possessing heroin and Suboxone with intent to distribute, and Morales with distributing heroin and Suboxone. The indictment was superseded on Feb. 9, 2016, to add a third defendant, Ismael Vargas, 29, of Belen, N.M., to the conspiracy charge. According to the superseding indictment, the three defendants committed the crimes charged on Aug. 2, 2015, in Sandoval County, N.M. At the time, Gonzales was a corrections officer at the Sandoval County Detention Center.
On Jan. 13, 2017, Morales pled guilty to distributing heroin. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she took heroin to the Sandoval County Detention Center and gave it to a corrections officer.
On March 9, 2017, Vargas pled guilty to Count 1 of the superseding indictment charging him with conspiracy to distribute heroin. In entering the guilty plea, Vargas admitted that on Aug. 2, 2015, while he was an inmate at the Sandoval County Detention Center, he arranged for heroin to be delivered to the jail. Vargas further admitted that he facilitated the payment of money to a corrections officer to get the heroin into the jail. Under the terms of his plea agreement, Vargas faces up to 41 months in federal prison followed by a term of supervised release to be determined by the court. Vargas is currently scheduled for sentencing on June 14, 2017.
On Feb. 28, 2017, Gonzales pled guilty to possessing heroin with intent to distribute. In entering the guilty plea, Gonzales admitted that on Aug. 2, 2015, while he was working as an officer at the Sandoval County Detention Center, he brought heroin to the Detention Center with the intention of delivering it to an inmate. A sentencing hearing for Gonzales is currently scheduled for May 31, 2017.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Edward Han is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Tax Preparer Arrested for Tax EvasionRead the Press Release
CORPUS CHRISTI, Texas – On the eve of the federal tax filing deadline, a local woman has been arrested on charges of tax evasion and aiding in the preparation of false tax returns, announced Acting U.S. Attorney Abe Martinez along with D. Richard Goss of IRS-Criminal Investigation.
A federal grand jury returned a 50-count indictment against Cristina Gonzalez April 12, 2017, which lead to her arrest this morning. She is expected to make her initial appearance before U.S. Magistrate Judge Jason B. Libby at 2:00 p.m. today.
Gonzalez is charged with 46 counts of willfully aiding and assisting in the preparation of false U.S. Income Tax Returns for others as well as four counts of willfully filing a false income tax return for herself. The indictment alleges she knowingly filed tax returns that underreported her income resulting in a substantial tax due to the United States. Gonzalez also aided others in the preparation and filing of income tax returns that were false, according to the charges. Those returns allegedly included tax credits which Gonzalez knew the taxpayers were not entitled to claim.
Each conviction of tax evasion carries a possible maximum sentence of five years in federal prison, while aiding in the preparation of false tax returns carries a three-year-maximum term. Each conviction could also result in up to a $250,000 fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Taos County Man Pleads Guilty to Federal Carjacking ChargeRead the Press Release
ALBUQUERQUE – Richard Howieson, 56, of Costilla, N.M., pled guilty this afternoon in Albuquerque, N.M., to a federal carjacking charge. The plea agreement recommends that Howieson be sentenced to a term of imprisonment within the range of 12 to 36 months followed by a period of supervised release to be determined by the court.
Howieson was arrested on Oct. 11, 2016, on a three-count indictment charging him with carjacking, carrying a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm. The indictment was superseded on Feb. 7, 2017, to charge Howieson with carjacking and carrying a firearm in relation to a crime of violence. According to the indictment, Howieson committed these crimes on Feb. 19, 2013, in Taos County, N.M.
During today’s proceedings, Howieson pled guilty to a felony information charging him with carjacking on Feb. 19, 2013. Howieson remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney George Kraehe.
Suspended Norfolk Treasurer Sentenced to Six Years in PrisonRead the Press Release
NORFOLK, Va. – Anthony L. Burfoot, 48, of Norfolk, was sentenced today to six years in prison and ordered to forfeit $250,000 for conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to obtain property under color of official right, obtaining property under color of official right, and perjury. Burfoot is currently suspended as the Norfolk City Treasurer and is a former Vice Mayor of Norfolk and City Councilman.
“When elected officials engage in corruption it erodes public confidence in our democratic system of government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Burfoot’s well-publicized criminal exploits have eroded public confidence in how their tax dollars are used and managed, and his selfish actions feed the worst perceptions about public employees, of whom the vast majority perform their duties selflessly and admirably. I want to thank the Assistant United States Attorneys and the FBI for their diligence and dedication in pursing this important case.”
“Public corruption is one the FBI’s highest priorities and this case reflects our commitment to the citizens of Hampton Roads to aggressively and relentlessly root out criminal corruption in our community,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “Citizens deserve good governance and faithful service from their public officials. Greed and self-interest have no place in public service and dishonorable officials will be thoroughly investigated and exposed. In this effort one of our most important partners is the public, and we encourage honest citizens to report suspicious activity to the FBI through our regional tip line at 1-844-FIGHTPC.”
Burfoot was found guilty by federal grand jury on Dec. 9, 2016. According to court documents and evidence presented at trail, from 2005 through in or about Feb. 15, 2011, Burfoot engaged in a scheme to defraud the citizens of Norfolk of their right to the honest services of a Norfolk Councilman, Vice Mayor, and Chief Deputy Treasurer. Specifically, Burfoot solicited things of value including money, car payments, and home appliances from individuals with matters before city council and, in exchange, promised to perform specific official acts as well as other actions on an as needed basis on their behalf. Burfoot had illicit relationships with the managers of Tivest Development company as well as Thomas Arney, another developer and local restaurant owner. The managers of Tivest paid hundreds of thousands of dollars to Burfoot and, in exchange, Burfoot voted in favor of City ordinances that provided City-owned land to Tivest for nominal cost and additional City funds for infrastructure improvements. At Burfoot’s request, Arney paid $25,000 to the mother of two of Burfoot’s children after Burfoot promised to obtain the necessary votes for Arney to open a gentlemen’s club on Granby Street in Norfolk. Burfoot also committed perjury, in numerous ways, by claiming under oath during a federal trial that he never accepted nor solicited a thing of value in exchange for performing an official act. Furthermore, according to court records and evidence presented at trial, Ronald Boone, another developer and local restaurant owner, provided cash, gifts, free access to a beach house, other things of value to Burfoot. In exchange, Burfoot performed specific official actions and promised to engage in future official actions to benefit Boone and his business interests.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge District Judge Henry C. Morgan, Jr. Assistant U.S. Attorneys Melissa E. O’Boyle, Uzo E. Asonye, and Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-6.
Second Syracuse Man Pleads Guilty in Connection with Nedrow Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Andrew Grady, 24, of Syracuse pled guilty today in federal court to conspiracy to steal firearms from a licensed dealer in connection with the November 20, 2014 break-in at Intimidator Sports in Nedrow, New York, where nine (9) handguns were stolen, announced United States Attorney Richard S. Hartunian and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ashan M. Benedict.
The burglary occurred during the early morning hours of November 20, 2014, when two persons used a sledgehammer to smash through the front doors of Intimidator Sports, triggering an alarm. Bolt cutters were used to sever a cable securing the nine (9) handguns to a display case after which the thieves fled with the stolen firearms. On January 5, 2015, Syracuse Police stopped a car driven by Leron Ross for failing to observe a stop sign. As officers were checking the status of his suspended driver’s license, Leron Ross drove off. During the ensuing pursuit, Syracuse Police saw Ross throw a handgun from the window of his car, which was later recovered and found to be a Glock .45 caliber pistol stolen in the break-in. A subsequent search warrant executed on the car by Onondaga County Sheriff’s detectives located a sledgehammer and gloves identical to those used in the burglary. Since the burglary, Syracuse Police have recovered four (4) of the stolen pistols in various locations.
Leron Ross was prosecuted by the Onondaga County District Attorney’s Office for Criminal Possession of a Weapon in the Third Degree, and after pleading guilty, was sentenced to serve three and one half to seven years in state prison. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Onondaga County Sheriff’s Department continued to investigate and later filed a federal criminal complaint charging Leron Ross and Andrew Grady with the burglary and conspiracy. Leron Ross pled guilty on June 14, 2016 in federal court to stealing all nine (9) handguns and was subsequently sentenced to serve 60 months in federal prison and ordered to pay $6,686.00 in restitution to the victim.
Sentencing for Andrew Grady is scheduled for August 17, 2017, at which time he could receive up to five (5) years in prison, a term of supervised release of up to three (3) years, a special assessment of $100, and a fine of up to $250,000.00. In addition, the Court can order restitution to the victim.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Onondaga County Sheriff’s Department, and the Syracuse Police Department and is being prosecuted by Assistant U.S. Attorneys Richard Southwick and Emmet O’Hanlon with assistance from the Onondaga County District Attorney’s Office.
Scranton Man Sentenced to Seven Years in Prison for Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rodney Whiting, age 24, of Scranton, was sentenced today by United States District Judge Malachy E. Mannion, to serve seven years in prison for the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Whiting previously pleaded guilty to the charge of brandishing a firearm in furtherance of a crime of violence. Rodney Whiting was one of four individuals, including Kwa’shon Roane, age 24, of Gloucester, Virginia, Tracy Whiting, age 24, of Newport News, Virginia, and Kelvin Robinson, age 24, also of Newport News, Virginia, who were indicted by a grand jury in March 2016, for the armed robbery of the Econo Lodge.
Previously, Kwa’shon Roane was sentenced to serve 111 months (9 years and 3 months) in prison by Judge Mannion for charges related to the incident. Kelvin Robinson and Tracy Whiting were each previously sentenced to serve seven years in prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
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.
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Rio Rancho Man Sentenced to Eight Years in Prison for Federal Child Sexual Exploitation ConvictionRead the Press Release
ALBUQUERQUE – Joe Medina, 38, of Rio Rancho, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his conviction for enticing a child to travel in interstate commerce for the purpose of engaging in sexual activity. Medina will serve an eight-year term of imprisonment to be followed by 15 years of supervised release. Medina will be required to register as a sex offender after completing his prison sentence.
Medina’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Acting Police Chief Paul Rogers of the Rio Rancho Police Department (RRPD).
Medina was arrested in Indianapolis, Ind., on July 20, 2015, based on a federal arrest warrant issued on a criminal complaint filed by the FBI in the U.S. District Court for the District of New Mexico. According to the criminal complaint, on July 9, 2015, the victim’s mother filed a missing person’s report to the RRPD asserting that the victim was missing.
The RRPD’s investigation revealed that Medina took the victim to Denver, Colo., where they boarded a bus. On July 12, 2015, Medina was arrested on a New Mexico state warrant when Medina and the victim were found on a bus that had stopped in Indianapolis.
Medina was indicted on Aug. 11, 2015, and was charged with transporting a minor with intent to engage in criminal sexual activity between July 9, 2015 and July 12, 2015, and production of a visual depiction of a minor engaging in sexually explicit conduct.
On Nov. 7, 2016, Medina pled guilty to a felony information charging him with coercion and enticement. In entering the guilty plea, Medina admitted that from July 9, 2015 through July 12, 2015, he enticed the 16-years-old victim to leave Sandoval County, N.M., with the intent to travel to New York, where Medina intended to engage in illegal sexual activity.
This case was investigated by the Albuquerque office of the FBI, RRPD, Corrales Police Department and the New Mexico Regional Computer Forensic Laboratory. The 13th Judicial District Attorney’s Office, U.S. Marshals Service, Indiana State Police and FBI in Denver and Indianapolis assisted in the investigation.
Assistant U.S. Attorney Sarah Mease prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit.
Ohio man responsible for Huntington overdoses sentenced to over 18 years in federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – An Ohio man who was responsible for numerous overdoses in Huntington in August 2016 was sentenced today to 18 years and four months in federal prison, announced United States Attorney Carol Casto. Bruce Lamar Griggs, also known as “Ben” and “Benz,” 22, of Akron, previously pleaded guilty to distribution of heroin.
On the afternoon of August 15, 2016, Griggs went to the area of 914 Marcum Terrace in Huntington and sold heroin to a number of individuals. Several of those individuals provided information to the Huntington FBI Drug Task Force indicating that they bought what they believed to be heroin from someone they knew as “Benz” or “Ben.” Ultimately, those individuals identified Griggs as “Benz” or “Ben.” Approximately 26 individuals who bought heroin from Griggs that afternoon suffered overdoses very shortly after using the drug. Many of the overdose victims required medical attention, which involved taking blood and urine samples. Laboratory tests on those samples indicated the presence of heroin, fentanyl, and carfentanil. Carfentanil is an opioid that is 10,000 times stronger than morphine and is used as an elephant tranquilizer. Griggs admitted that he was responsible for the overdoses and agreed that his sentence could be increased as a result.
The Huntington FBI Drug Task Force led the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Non-Indian Man from Espanola Pleads Guilty to Assaulting Zuni Pueblo WomanRead the Press Release
ALBUQUERQUE – Steven Baros, 34, of Espanola, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an assault charge. The plea agreement includes a recommendation that Baros be sentenced to a term of imprisonment within the range of 18 to 24 months followed by a period of supervised release to be determined by the court.
Baros was charged by criminal complaint on May 17, 2016, with assault resulting in serious bodily injury and assault with a dangerous weapon. According to the complaint, Baros assaulted his intimate partner, a Zuni Pueblo woman, by punching and kicking her arms and legs, kicking and stomping on her head, throwing her to the ground, and threatening her with a knife. Baros also attempted to set the victim’s house on fire before leaving in the victim’s vehicle.
Baros subsequently was indicted on June 30, 2016, and charged with assault with a dangerous weapon, a knife, and assault resulting in serious bodily injury. According to the indictment, Baros committed these crimes on May 5, 2016, on Nambe Pueblo in Santa Fe County, N.M.
During today’s proceedings, Baros pled guilty to assault resulting in serious bodily injury. In entering the guilty plea, Baros admitted that on May 5, 2016, he assaulted the victim by punching and kicking her arms and legs, pulling her hair, throwing her to the ground, and kicking her when she was on the ground.
Baros remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nigerian Man Pleads Guilty to Hacking and Fraud SchemeRead the Press Release
UTICA, NEW YORK – Obinna Obioha, age 31, and a citizen of Nigeria, pled guilty today to wire fraud, and admitted to participating in a scheme to hack into computers and email accounts in the United States for the purpose of stealing money from American companies.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea, Obioha admitted that, while in Nigeria, he worked with others to hack into computers and email accounts used by dozens of victims in the United States and around the world. After monitoring victims’ information to identify imminent commercial transactions, Obioha and his associates created knockoff email addresses that appeared similar to – but varied slightly from – victims’ legitimate email addresses.
Obioha and his associates then used those bogus email accounts to send fraudulent invoices to victims, instructing them to wire funds to bank accounts controlled by Obioha and his associates, under the pretense that the wires were payments for actual deals that had been previously negotiated by the victims. Obioha admitted that between January and September 2016, he was involved in at least 50 wire transfers, and that about $6.5 million was sent to the bank accounts that he and his associates controlled. The accounts received money from fraud victims in New York, Florida, Illinois, Ohio, and Texas, among other places.
Obioha was arrested on October 6, 2016, after flying from Lagos, Nigeria, to JFK International Airport. He has been in custody since that time.
United States Attorney Richard S. Hartunian said: “Foreign criminal enterprises prey upon American businesses and are using increasingly sophisticated means to do so, as demonstrated by this scheme. Obioha’s apprehension and conviction is a reminder that foreign nationals targeting American businesses cannot operate with impunity and that the reach of U.S. law enforcement agencies is global.”
“The FBI plays the long game,” said FBI Special Agent in Charge Vadim D. Thomas. “Today's plea is proof that no matter how distant justice may seem, no matter where criminal enterprises may operate, the FBI and our law enforcement partners are committed to securing justice for our businesses and communities.”
Obioha faces up to 20 years in prison and a maximum $250,000 fine, as well as the possibility of being ordered to pay restitution, when he is sentenced on July 26, 2017 by United States District Judge David N. Hurd. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
New York City Man Sentenced to 37 Months in Prison for Drug DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 17, 2017, Leander Hannibal, 39, of Brooklyn, New York, was sentenced to 37 months in federal prison after his guilty plea to charges that he possessed with the intent to distribute heroin and cocaine base. U.S. District Court Judge William K. Sessions III also ordered that Hannibal serve three years of supervised release after his prison term.
According to court records, in June and July of 2016, Hannibal was bringing quantities of heroin and cocaine base from New York City to Vermont in order to distribute those drugs. After an investigation, on July 15, 2016, agents from the Drug Enforcement Agency (DEA) arrested Hannibal. DEA seized approximately 11 grams of heroin and 28 grams of cocaine base from Hannibal. Hannibal has been in federal custody since.
For his crime, Hannibal faced a statutory maximum term of 20 years in prison. The government and the defense agreed that a 37-month prison sentence was appropriate. In imposing that sentence, Judge Sessions considered the severity of the offense; the harm heroin has caused the Vermont community, and Hannibal’s criminal record, among other factors.
Acting United States Attorney Eugenia Cowles commended the efforts of DEA, the Burlington Police Department, and the Vermont State Police Drug Task Force for their work in this investigation. Acting United States Attorney Cowles noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hannibal is represented by Robert Behrens from the Burlington law firm Behrens, Venman & Sussman.
Monroe County Man’s 12 Year Sentence for Investment Fraud Affirmed by Appellate CourtRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the U.S. Court of Appeals for the Third Circuit affirmed the conviction and sentence of Richard J. Harley, age 73, of Shawnee on the Delaware, who was previously sentenced to serve 12 years in prison by United States District Court Judge A. Richard Caputo in November 2015. Harley was convicted after a two-week jury trial in December 2014, on multiple counts of wire fraud, bank fraud, bankruptcy fraud, and making false statements on bankruptcy schedules relating to an elaborate investment fraud scheme.
According to United States Attorney Bruce D. Brandler, Harley defrauded investors and attempted to defraud the Federal Reserve Bank of New York and several financial institutions by soliciting money based on false claims that his company, RJH and Co. Inc., owned 10 million barrels of oil in Texas worth over $1 billion and had “unrestricted bond power” over billions of dollars of federal reserve bank instruments supposedly held at the Federal Reserve Bank of New York. As a result of the fraud, investors lost approximately $323,800.
The bank fraud charge relate to Harley’s attempt to deposit two phony $500 million checks purportedly issued by the Federal Reserve Bank of New York into several financial institutions. Harley also filed three fraudulent bankruptcy petitions in 2010, 2011 and 2012 where he attempted to discharge the debt he owed to one of the primary victims of the oil scheme.
Harley was previously convicted of mail and wire fraud and sentenced to five years’ imprisonment in 2001 for a scheme that defrauded AIDS patients and investors relating to a fraudulent ozone-enema treatment he claimed cured AIDS.
The prosecution was handled by United States Attorney Bruce D. Brandler and the appeal was handled by Stephen A. Cerutti, II, Chief of Criminal Appeals.
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Mescalero Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Matthew Joel Torres, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this afternoon in federal court in Las Cruces, N.M., to 35 months in prison followed by two years of supervised release for his assault conviction.
Torres was arrested on April 18, 2016, on a criminal complaint charging him with assaulting a Mescalero Apache man by stabbing him twice in the stomach. Torres committed the assault on June 13, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M.
Torres pled guilty on Aug. 24, 2016, to a felony information charging him with assault with a dangerous weapon. In entering the guilty plea, Torres admitted that on June 13, 2015, he assaulted the victim by stabbing him in the abdomen twice with a knife with the intention of causing the victim bodily harm.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Man Who Illegally Imported Chinese Cigarettes Sentenced to PrisonRead the Press Release
LOS ANGELES – A Los Angeles man who pleaded guilty to illegally engaging in the business of importing tobacco products was sentenced today to eight months in federal prison.
Zhi Xiong Chen, 56, of Chinatown, was sentenced by United States District Judge George H. Wu. In addition to the prison term, Judge Wu ordered the defendant to pay $152,278 to United States Custom and Border Protection.
From early 2011 until mid-2016, Chen illegally imported thousands of cartons of Chinese-made cigarettes without the necessary permits and without paying excise taxes.
Chen pleaded guilty in January to the felony offense of illegally engaging in the business of importing tobacco products and admitted that for nearly five years, despite not holding a permit to import tobacco products, he used several addresses to receive 15,128 cartons of Chinese-brand cigarettes. During this time, U.S. Customs and Border Protection officers also stopped approximately 9,824 cartons of Chinese-brand cigarettes at international mail facilities in California and New York intended for Chen.
As part of the scheme, Chen admitted that he attempted to evade paying more than $467,000 in federal and state excise taxes on the cigarettes that he illegally imported.
This case was investigated by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. Food and Drug Administration’s Criminal Investigations, United States Postal Service, and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Tax Division and Trial Attorney Christopher S. Strauss of the Justice Department’s Tax Division.
Man Admits Guilt in Stolen Identity Refund Fraud Scheme Using Hacked UPMC Employee InformationRead the Press Release
PITTSBURGH - A foreign national residing outside of the United States pleaded guilty in federal court to charges of money laundering and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
Yoandy Perez Llanes, 33 pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that early in 2014, tens of thousands of present and former employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database and stole names, Social Security numbers, dates of birth and other personal identifying information. This data was then used to file over 900 false 2013 federal tax returns, which contained requests for tax refunds onto Amazon.com gift cards. Llanes and other conspirators laundered the Amazon.com gift cards to purchase electronic merchandise, which was shipped through reshipping services to Venezuela, and retrieved by Llanes and others. While the perpetrators claimed approximately $2.2 million in unlawful refunds, $1,475,000 million was actually disbursed in unlawful refunds.
Judge Hornak scheduled sentencing for August 18, 2017 at 9:30 a.m. The law provides for a total sentence of not more than 22 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Yoandy Perez Llanes.
Magnolia Man Sent to Prison for Cocaine ConspiracyRead the Press Release
HOUSTON – A 35-year-old Magnolia resident has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez. Jose Jaime Solis Jr. pleaded guilty Nov. 17, 2016.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Solis a sentence of 120 months in federal prison to be immediately followed by five years of supervised release.
Solis and co-defendant Ramon Sanchez were engaged in a scheme to transport cocaine via bus from Laredo to Houston. In March 2016, agents obtained video footage that showed Solis delivering a suitcase packed with more than 12 kilograms of cocaine to a bus in Laredo that was bound for Houston. Authorities arrived at the bus terminal and seized the bag along with the video. Solis ultimately admitted responsibility for the cocaine discovered in the suitcase.
Sanchez, 26 of Laredo, also pleaded guilty and is set for sentencing May 25, 2017.
Both men have been and will remain in custody.
The Drug Enforcement Administration and Border Patrol conducted the Organized Crime Drug Enforcement Task Force Operation. Assistant U.S. Attorney John D. Jocher is prosecuting the case.
Machine Gun with Attached Silencer, Five Handguns Seized During ATF, Providence Police InvestigationsRead the Press Release
PROVIDENCE – A year-long investigation into identifying individuals allegedly possessing or trafficking firearms in and around the Chad Brown neighborhood of Providence, and/or allegedly using firearms in furtherance of drug trafficking crimes, resulted in the seizure of six firearms, including a machine gun with an attached silencer, significant quantities of heroin and fentanyl, and approximately $21,000 in suspected drug proceeds. Four individuals have been indicted by a federal grand jury and detained in federal custody.
In spring 2016, a joint Bureau of Alcohol, Tobacco, Firearms (ATF) and Explosives, ATF Task Force and Providence Police investigation was launched to analyze shell casings retrieved from crime scenes in and around the Chad Brown neighborhood and elsewhere utilizing ATF’s National Integrated Ballistic Information Network (NIBN). NIBN identifies marks left on shell casings unique to a particular firearm. NIBN then assists in linking crime scenes to a firearm. The investigation was expanded to attempt to determine who possessed various firearms used to commit crimes and/or the origin of those firearms.
Acting United States Attorney Stephen G. Dambruch; John H. Hayes, Resident Agent in Charge of ATF in Rhode Island; and Providence Police Chief Colonel Hugh T. Clements, Jr., today announced that since April 2016, a joint ATF, ATF Task Force and Providence Police investigation has resulted in the seizure of a machine gun equipped with a silencer, a .45 caliber semi-automatic pistol, a .40 caliber semi-automatic pistol, a .25 caliber semi-automatic pistol, a .22 caliber revolver; a .380 caliber semi-automatic pistol, various types and quantities of ammunition, substantial quantities of heroin, fentanyl cocaine and crack cocaine, and approximately $21,000 in suspected drug proceeds.
The first of four defendants indicted as a result of these investigations was indicted by a federal grand jury in December 2016. On April 6, 2017, a federal grand jury returned indictments against three other individuals in three separate cases. Arraignments in U.S. District Court in Providence were completed on Friday, April 14, 2017.
Edward Trinidad
On April 6, 2017, a federal grand jury returned a six-count indictment charging Edward Trinidad, 29, of Providence, with possessing and transferring a firearm; possession of an unregistered machine gun; possession of an unregistered silencer; distribution of 100 or more grams of fentanyl laced heroin; and two counts of distribution of heroin and fentanyl.
It is alleged that on June 3, 2016, Trinidad sold a machine gun equipped with a silencer to an undercover ATF agent. It is also alleged that between June 24, 2016, and March 31, 2017, Trinidad sold heroin and fentanyl to the undercover ATF agent.
Kevin Arroyo
On April 6, 2017, a federal grand jury returned a three-count indictment charging Kevin Arroyo, 29, of Providence, with engaging in the business of dealing firearms without a license; possession of stolen firearms; and distribution of heroin. Arroyo was arraigned in U.S. District Court on April 10, 2017, and ordered detained.
It is alleged that on three occasions an undercover ATF agent purchased firearms from Arroyo. It is alleged that on May 26, 2016, Arroyo sold the agent a stolen .25 caliber semi-automatic pistol; on September 21, 2016, Arroyo sold the agent a .22 caliber revolver and 14 grams of heroin; and on April 5, 2017, Arroyo sold the agent a .45 caliber semi-automatic pistol.
General Jones
On April 6, 2017, a federal grand jury returned an eleven-count indictment charging General Jones, 30, of Pawtucket, with five counts of distribution of cocaine; two counts of possession with the intent to distribute cocaine; two counts of distribution of 28 grams or more of crack cocaine; and one count each possession with the intent to deliver 28 grams or more of crack cocaine and one count of possession with the intent to distribute to cocaine. Jones was arraigned in U.S. District Court on April 14, 2017, and ordered detained in federal custody.
It is alleged that during law enforcement’s firearms investigations, Jones sold cocaine and crack cocaine to an individual assisting ATF in their investigations. On the date of Jones’ arrest, March 9, 2017, search warrants were executed at locations associated with Jones. At one location, from inside a safe, law enforcement seized over 375 grams of cocaine, nearly 100 grams of crack cocaine and approximately $13,000 in cash. At a second location law enforcement seized an additional $8,000 in cash.
Lawrence M. Crowell
On December 15, a federal grand jury returned a three-count indictment charging Lawrence M. Crowell, 31, of Providence, with being a felon in possession of a firearm, possession of a firearm in furtherance of drug trafficking and possession with the intent to distribute marijuana. Crowell was arraigned in U.S. District Court on December 19, 2016, and ordered detained in federal custody.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Cranston Police Department, Rhode Island State Police, Providence Fire Department and the Rhode Island Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Los Angeles Man Sentenced to Federal Prison for Fraud Charges Related to Lottery Scheme that Targeted Elderly VictimsRead the Press Release
LOS ANGELES – A Los Angeles man was sentenced today to 18 months in federal prison for his role in a lottery scam that targeted elderly victims with false promises of large cash prizes and cars that would be delivered when victims paid taxes, fees and insurance.
Carl Dean Bullock, 65, of South Los Angeles, pled guilty in February to mail and wire fraud offenses for defrauding victims who were falsely told they had won the Publishers Clearing House sweepstakes or other lottery prizes, but they needed to pay fees or taxes to collect the purported winnings. In addition to the prison term, Bullock was sentenced to three years’ supervised release with specific conditions regarding bank accounts and use of the mail and was ordered to pay restitution to the victims in the total amount of $227,675.21
According to court documents, Bullock admitted that he and his co-schemers collected money from the victims of his scheme via Western Union and MoneyGram wire transfers, money orders sent through the U.S. Mail and direct cash payments. Bullock personally received at least $45,000, some of which he shared with his co-schemers, most of whom were in Jamaica.
The investigation in this case was conducted by the United States Postal Inspection Service, which received substantial assistance from the Glendale Police Department. The prosecution was handled by Assistant United States Attorney Michael G. Freedman of the General Crimes section.
Lexington Man Receives Life Sentence for Distributing Fentanyl Resulting in DeathRead the Press Release
LEXINGTON, Ky. – A federal judge has sentenced a Lexington man to life in prison, for illegally distributing drugs that caused an overdose death in Lexington.
Senior U.S. District Judge Joseph M. Hood formally sentenced 28 year-old Joshua Donald Ewing for distribution of fentanyl and heroin resulting in the death of Jeremy Deaton.
Under federal law, those convicted of illegally distributing Schedule I and II drugs that result in death face a minimum of 20 years and maximum of life in prison. If the defendant has a prior felony drug conviction, they are subject to a mandatory life sentence. A jury found Ewing guilty of the offense earlier this year.
According to the evidence at trial, in February of 2016, Ewing sold a mixture of fentanyl and heroin to Deaton, who thought he was only receiving heroin. Deaton consumed the drugs and died of an overdose. Fentanyl is an extremely powerful opioid that can be as much as 50 times stronger than heroin. A toxicologist confirmed that, had it not been for the fentanyl, Deaton would not have died. The toxicologist further explained that Deaton’s blood contained more than five times the therapeutic range for fentanyl.
At the time he illegally sold the drugs to Deaton, Ewing was on probation for a prior felony drug conviction.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration; and Mark Barnard, Chief of Lexington Police, jointly made the announcement
The investigation was conducted by the DEA and the Lexington Police. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government
Las Cruces Man Pleads Guilty to Federal Child Exploitation ChargeRead the Press Release
ALBUQUERQUE – Ignacio Salcido Jr., 38, of Las Cruces, N.M., pled guilty last week in federal court to transporting a minor in interstate commerce for the purpose of engaging in sexual activity. The plea agreement recommends that Salcido be sentenced to a term of imprisonment within the range of 120 to 135 months to be followed by a period of supervised release to be determined by the court. In the plea agreement, Salcido agreed to pay $210,012 in restitution to any victim who requests restitution prior to sentencing. Salcido will also be required to register as a sex offender.
Salcido was arrested on Aug. 26, 2016, by Homeland Security Investigations (HSI) on a criminal complaint alleging that he transported a child under the age of 18 years in interstate commerce on Aug. 22 and 23, 2016, with the intention of engaging in sexual activity. According to the criminal complaint, Salcido traveled with the victim from Phoenix, Ariz., to Juarez, Mexico, then to Las Cruces, and engaged in sexual activity with the victim during that time. Salcido subsequently was indicted on the same charge on Nov. 9, 2016.
According to court documents, Salcido picked up the victim on the side of the road in Phoenix on Aug. 22, 2016, while traveling with two other individuals (witnesses) from San Diego, Calif. Court documents further allege that the witnesses observed Salcido attempt to sexually abuse the victim on several occasions during the trip while the victim was sleeping in the vehicle. Later that day, Salcido drove the victim and the witnesses into Juarez, where he again attempted to sexually abuse the victim while the witnesses were not in the vehicle. After returning to the United States, Salcido drove the victim and the witnesses to his residence in Las Cruces. At his residence, Salcido allegedly forced the victim to engage in sexual activity. The investigation into Salcido began on, Aug. 23, 2016, when one of the witnesses reported the sexual assault to school officials in Las Cruces.
On April 12, 2017, Salcido pled guilty to the indictment and admitted that on Aug. 22, 2016, he transported the victim, who was under the age of 18 years, in interstate commerce for the purpose of engaging in sexual intercourse with the victim. Salcido remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department with assistance from the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorneys Alexander B. Shapiro and Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Kanawha County man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to possessing stolen mail, announced United States Attorney Carol Casto. Jason Lee Spradling, 34, of Pinch, faces up to five years in federal prison and a $250,000 fine when he is sentenced on July 5, 2017. As part of his plea agreement, he has also agreed to pay restitution to the victims as ordered.
Spradling admitted that he possessed a large quantity of stolen mail, and that he knew the mail in his possession had been stolen. Specifically, Spradling admitted to stealing a box of checks from a mailbox and attempting to cash one of the checks in December 2015. Spradling also admitted that in July 2015, he was found in possession of hundreds of pieces of mail stolen from the Elkview area. Spradling further admitted that he had no legal right to possess the mail, nor to cash any checks contained within the stolen mail.
The United States Postal Inspection Service and the Kanawha County Sheriff’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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KC Woman Pleads Guilty to Marriage FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to her role in a marriage fraud conspiracy after participating in a wedding sting operation staged by federal agents.
Stephanie Harris, 22, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an Aug. 31, 2016, federal indictment.
Harris admitted that she participated in a conspiracy to assist African nationals in circumventing immigration laws by arranging fraudulent marriages. Co-defendants Delmar Dixon, 49, Kakeland Barnes, 37, Shakeisha Harrison, 37, and Traci R. Porter, 44, all of Kansas City, also have pleaded guilty to their roles in the marriage fraud conspiracy. In addition to the conspiracy, Dixon pleaded guilty to falsely swearing in an immigration matter.
Dixon admitted that he arranged 30 to 40 fraudulent marriages, including his own. Dixon charged the African nationals $1,000 upfront for his services, which included providing them U.S. citizen spouses. The African nationals were additionally required to pay $500 to the spouse at the time of the wedding, and an additional $500 immediately after completion of the wedding. They were required to pay their spouses $250 each month after the weddings until the immigration process was complete. The African nationals were coached by Dixon on how to make their marriages appear legitimate.
Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) agents utilized a confidential informant in a pretend ceremony that was staged by ICE-HSI. The confidential informant arranged a meeting with Dixon, paid the required fees, and married Harris, the spouse provided to him by Dixon, in a pretend ceremony staged by ICE-HSI on Nov. 24, 2015. The confidential informant continued to pay the $250 monthly fee to Harris for the fraudulent purported marriage through August 2016.
On a prior occasion, Dixon arranged for a marriage between Harris and a Kenyan national. Although they applied for and received a marriage license, they did not marry.
ICE-HSI also utilized an undercover agent in their investigation. The agent met with Dixon, who introduced the agent to Barnes, his intended spouse, on Jan. 23, 2016. Dixon advised the undercover agent that he and Barnes should rent an apartment in the Kansas City area and obtain life insurance policies together. The undercover agent also spoke alone with Barnes. Barnes told the agent she was involved with another man and had three children. She signified she understood the marriage would be a business transaction. The agent made a payment to Dixon and kept in contact with Dixon regarding his marriage. On February 19, 2016, the undercover agent wired $250 to Barnes and $500 to Dixon. Both retrieved the payments later that day. Dixon also offered the undercover agent $300 for each new client he referred.
Under federal statutes, Harris is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Justice Department Settles Lawsuit Against South Dakota Business on Behalf of Air National Guard MemberRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with BioFusion Health Products Inc., based in Rapid City, South Dakota. The settlement resolves claims that BioFusion violated the Uniformed Services Employment and Reemployment Rights Act (“USERRA”) when it failed to reemploy South Dakota Air National Staff Sgt. Amber Ishmael following an extended military leave and when it eventually terminated her employment. At the time of her termination, Staff Sgt. Ishmael was a Senior Airman with the Air National Guard, where she has served honorably since 2010.
According to the complaint that the department filed in the United States District Court for the District of South Dakota, Staff Sgt. Ishmael’s military service was a motivating factor in BioFusion’s decisions to deny her request for reemployment and to terminate her employment. Staff Sgt. Ishmael was terminated following her deployment to attend Airmen Leadership School, a professional military education training associated with her military service. Under the terms of the settlement agreement, BioFusion has agreed to pay $3,000 in back pay to Staff Sgt. Ishmael. USERRA safeguards the rights of uniformed servicemembers to return to their civilian employment following absences due to military service obligations and protects servicemembers from discrimination on the basis of their military obligations.
“The United States has a solemn obligation to ensure that those selfless Americans who serve in the nation’s Armed Forces enjoy every opportunity to advance their civilian careers,” said Acting Associate Attorney General Jesse Panuccio. “The Department of Justice will be unwavering in protecting the rights of our nation’s service members and we will continue to hold accountable employers who violate those rights.”
“As a member of the Air National Guard, Staff Sgt. Ishmael was called upon to leave her civilian employment and serve our nation,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Our role at the Department of Justice is to protect the rights of the men and women who defend our freedom and safeguard our way of life, and this settlement demonstrates our robust and continuing commitment to those efforts.”
“Members of our Air National Guard must frequently sacrifice time away from their families and civilian jobs in service to our country,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “When military obligations require servicemembers to be absent from their jobs, their employment rights must be protected. The Civil Rights Section at the U.S. Attorney’s Office in South Dakota is committed to protecting those rights. This settlement agreement demonstrates that when employers disregard their obligations under USERRA, our office will hold them accountable for their violations.”
This case stems from a referral by the U.S. Department of Labor (“DOL”) following an investigation by the DOL’s Veterans’ Employment and Training Service (“VETS”). After resolution failed, VETS referred the complaint to the Justice Department’s Civil Rights Division. This lawsuit was handled by Assistant U.S. Attorney Alison Ramsdell of the U.S. Attorney’s Office in the District of South Dakota, with the assistance of the Civil Rights Division, both of whom work collaboratively with DOL to protect the jobs and benefits of servicemembers.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/crt-military, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra/main.htm.
Investigations by IRS Lead to Cases Against Tax Return PreparersRead the Press Release
PITTSBURGH - The United States Attorney’s Office for the Western District of Pennsylvania and Internal Revenue Service-Criminal Investigations announced today recent actions to deter violations of the federal income tax laws. As the April 18th deadline approaches for the timely filing of income tax returns, citizens are reminded to fulfill their obligations and to rest assured those who chose not to do so will be prosecuted.
Acting U.S. Attorney Soo C. Song stated, “Most people voluntarily pay their fair share of taxes in a timely manner. Criminal penalties are reserved for the most flagrant and egregious violators. Those who consider committing tax fraud should recognize that their actions negatively impact all of us and personally expose them to stringent monetary penalties and potential prison time.”
“Tax fraud exists in many forms, from unscrupulous tax preparers filing false and fraudulent returns, to identity thieves, to those who devise complex schemes to hide their income and evade paying the taxes they owe,” said Acting Special Agent in Charge Greg Floyd. “IRS-Criminal Investigation pursues tax cheats year round. As the filing deadline quickly approaches, those who are contemplating engaging in tax fraud should know that they will be pursued.”
The offices continue to uncover the fraudulent refund schemes that occur in Western Pennsylvania and to bring those who perpetrate them to justice. Some of the recent cases being prosecuted by the district follow.
Man Admits Guilt in Stolen Identity Refund Fraud Scheme Using Hacked UPMC Employee Information
A foreign national residing outside of the United States pleaded guilty in federal court to charges of money laundering and aggravated identity theft.
Yoandy Perez Llanes, 33, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that early in 2014, tens of thousands of present and former employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database and stole names, Social Security numbers, dates of birth and other personal identifying information. This data was then used to file over 900 false 2013 federal tax returns, which contained requests for tax refunds onto Amazon.com gift cards. Llanes and other conspirators laundered the Amazon.com gift cards to purchase electronic merchandise, which was shipped through reshipping services to Venezuela, and retrieved by Llanes and others. While the perpetrators claimed approximately $2.2 million in unlawful refunds, $1,475,000 million was actually disbursed in unlawful refunds.
Judge Hornak scheduled sentencing for August 18, 2017 at 9:30 a.m. The law provides for a total sentence of not more than 22 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Yoandy Perez Llanes.
New York State Man Sentenced for Role in Stolen Identity Refund Fraud Scheme
A resident of Rosedale, New York has been sentenced in federal court to 36 months in jail on his conviction of conspiracy to commit wire fraud.
United States District Judge David S. Cercone imposed the sentence on Adetunji Gbadegeshi, 60, of Rosedale, New York.
According to information presented to the court, Gbadegeshi used the hundreds of stolen identities found in his house to open bank accounts that were used as repositories for fraudulently obtained federal tax refunds. Gbadegeshi would then remove the money from the accounts and distribute it to his co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Monument Company Worker Embezzled $12.9 Million from Employer
An Allegheny County resident pleaded guilty in federal court to charges of mail fraud, wire fraud, tax evasion, and money laundering.
Cynthia A. Mills, 56, of McKees Rocks, Pa., pleaded guilty to six counts (one count of mail fraud, three counts of wire fraud, one count of tax evasion, and one count of engaging in monetary transactions in criminally derived property) before United States District Judge Nora Barry Fischer. In connection with the guilty plea, the court was advised that from February 1999 to May 2015, Mills embezzled $12,969,774.42 from Matthews International Corporation where she was employed as a Cashier and Treasury Specialist.
Judge Fischer scheduled sentencing for July 28, 2017, at 9:30 a.m. The law provides for a total sentence of 95 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
$6 million DOD Fraud, $1 million paid in illegal gratuities, 5 charged with tax violations
Five Informations have been filed in federal court in Pittsburgh charging three local residents and two residents of the greater Detroit area with crimes of major fraud against the U.S. Department of Defense, tax violations and illegal gratuities.
Thomas G. Buckner, 65, of Gibsonia, Pennsylvania, and his brother, John P. Buckner, 67, of Lyndora, Pennsylvania, were each named in three count Informations charging them in one count with defrauding U.S. Army Tank-Automotive and Armaments Command (TACOM), and two counts of income tax evasion.
According to the Informations filed with the court, the Buckner brothers were 50/50 owners of Ibis Tek, LLC (hereinafter Ibis Tek). Ibis Tek’s main office was located at 912 Pittsburgh Street, Butler, Pennsylvania 16002, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, Saxonburg, PA 16056. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations. TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (hereinafter Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709. Both Buckner brothers were charged with income tax evasion for 2009 and 2010 for not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below.
Harry H. Kramer, 52, of Wexford, Pennsylvania, was named in a three count Information charging him in Count One for his role as CFO of Ibis Tek in the above described major fraud against TACOM. Counts Two and Three charge him with filing false returns for Ibis Tek for 2009 and 2010.
David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) was named in a one count information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw, concealing the true source of the monies, and concealing the purpose for the monies. David Buckner owned D & B Cycle Parts and Accessories.
Anthony A. Shaw, 55, of Rochester Hills, Michigan, was named in a five count Information. Shaw, then a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw is charged in Counts One and Two with demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks and wire transfers by Thomas Buckner to and through D & B Cycle Parts and Accessories for Shaw. Counts Three and Four charge Shaw with income tax evasion for 2009 and 2010 for not reporting payments from Thomas and John Buckner totaling in excess of $1,000,000. In Count Five Shaw is charged with making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner.
For Thomas and John Buckner, the law provides for a maximum total sentence of 20 years in prison, a fine of $1,500,000, or both. For Kramer, the law provides for a maximum total sentence of 16 years in prison, a fine of $1,500,000, or both. For David Buckner, the law provides for a maximum total sentence of 3 years in prison, a fine of $250,000, or both. For Shaw, the law provides for a maximum total sentence of 19 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
Physician Charged with Willfully Failing to File Income Tax Returns
A medical doctor has been charged by Information in federal court in Pittsburgh with three counts of willfully failing to file income tax returns.
According to the Information filed yesterday, Rodney J. Williams of Washington County failed to file tax returns from 2009 to 2011. During those three years he had gross income of $790,385.
The law provides for a maximum total sentence of not more than three years in prison, a fine of $300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
Five Indicted Separately in Fraudulent Tax Return Scheme
Five residents of Western Pennsylvania have been separately indicted by a federal grand jury in Pittsburgh on charges of bank fraud, bank and mail fraud conspiracy and conspiracy to defraud the United States.
A two-count indictment returned by the federal grand jury, charging bank and mail fraud conspiracy and conspiracy to defraud the United States named Sean Brooks, 27, currently incarcerated. Three two-count indictments returned by the federal grand jury, charging mail fraud conspiracy and conspiracy to defraud the United States named Amber Eubanks, 27, of Pittsburgh, Brandon Prater 29, currently incarcerated, and Simone Prater, 29, of Pittsburgh, as sole defendants in each indictment. A one-count indictment charging bank fraud named Tyrone Gossett, 63, of Pittsburgh as the sole defendant.
According to the indictments, Sean Brooks, who was, at all material times, incarcerated, prepared and arranged for the filing of more than one hundred fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Amber Eubanks, Brandon Prater, Simone Prater, and Tyrone Gossett assisted the conspiracy in a variety of ways, including sending the Internal Revenue Service the fraudulent tax returns, receiving forging, depositing and cashing the fraudulently obtained refund checks, disbursing the proceeds of the fraud amongst the conspirators, and proving personal identification information to Brooks for use in the fraudulent tax returns.
The law provides for a maximum total sentence of 35 years in prison, a fine of $1,250,000 or both for the charges pending against Sean Brooks. The law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both for the charges pending against Amber Eubanks, Brandon Prater and Simone Prater. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both for the charge pending against Tyrone Gossett. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
Most tax return preparers provide professional tax service. However, a few set out to use the personal and financial information provided to them to perpetrate fraud or other scams that can hurt their customers. Earlier this year, the IRS warned taxpayers that they are legally responsible for what is on the tax return even if someone else prepared the tax return. Taxpayers should be vigilant and ensure that their chosen return preparer reports accurate information. The IRS also warned the public about various schemes deployed by dishonest return preparers in its Dirty Dozen Tax Scams https://www.irs.gov/uac/newsroom/irs-summarizes-dirty-dozen-list-of-tax-scams-for-2017.
Former Summersville Bank Officer Pleads Guilty to Fraud, ID Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Summersville, Mo., bank officer pleaded guilty in federal court today to a fraud scheme in which he took out loans for himself by stealing the identity information of bank customers.
Keith Ray Smith, 44, of Summersville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of making false statements on a loan application and one count of aggravated identity theft.
Smith was employed as the bank loan officer and compliance officer at Community Bank in Summersville. Smith admitted that he took out numerous loans in the names of several bank customers without their authorization. Smith submitted loan applications for varying amounts, totaling $81,040, between 2015 and June 2016. Smith admitted that he used the personal identification information of bank customers, including their bank account information and social security numbers, to falsely submit the loan applications.
Smith approved the loan applications for funding, then transferred the monies to his personal bank account and spent the monies to either gamble or pay for personal expenses.
In addition, Smith admitted that he had used his mother’s and brother’s personal information to apply for approximately $70,000 in loans without their knowledge or approval in 2010 and 2011. Smith approved the loans and deposited the proceeds from the fake bank loans into his personal bank account to pay for his gambling addiction. Smith agreed to repay all the money owed in 2012, and his mother and brother agreed to resubmit new loan documents that would take the place of the original false loan documents. Smith’s mother and brother told agents they allowed the new loan applications to be created because they did not want him to get into trouble.
Under the terms of today’s plea agreement, a joint recommendation will be made to the court for a sentence of two years and one day in federal prison without parole. Smith must forfeit to the government $151,040, which represents the proceeds of his criminal conduct. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC – Office of Inspector General, the Federal Housing Finance Agency-Office of the Inspector General and the FBI.
FCI-Berlin Inmate Sentenced to 30 Months for AssaultRead the Press Release
CONCORD, N.H. – Acting U.S. Attorney John J. Farley announced today that Ruben Garcia, 32, an inmate at FCI-Berlin was sentenced to 30 months in federal prison after pleading guilty to assaulting another inmate with a homemade weapon. Garcia’s sentence will be consecutive to the current 151 month sentence he is serving for conspiracy to possess with the intent to distribute cocaine and marijuana.
Documents filed with the court and statements made at the today’s hearing established that on September 8, 2016, prison staff members observed Garcia assaulting another inmate by striking him repeatedly with a weapon made out of a lock in an athletic sock. The attack was captured by the prison’s video security system. Garcia pleaded guilty to the assault charge on December 23, 2016.
The case was investigated by the Bureau of Prisons staff at FCI-Berlin. It was prosecuted by Assistant United States Attorney Don Feith.
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Dothan Woman Sentenced for Medicaid FraudRead the Press Release
Montgomery Alabama – Catrina R. Copeland, 43, of Dothan, Alabama, was sentenced to five months in prison and five months of home confinement on Wednesday, April 12, 2017 for defrauding the Alabama Medicaid Agency and the federal government, announced Acting U.S. Attorney A. Clark Morris, Alabama Attorney General Steven T. Marshall, and Health and Human Services Office of Inspector General Special Agent in Charge Derrick L. Jackson.
Copeland was the owner of The Counseling Place, a Dothan company that contracted with the Alabama Medicaid Agency to provide counseling services to at risk youth. Records indicate that the Counseling Place received most of its business through referrals from schools and juvenile courts. Copeland also worked for the business as a counselor. An investigation by the Alabama Attorney General’s Medicaid Fraud Control Unit found that Copeland was billing the Alabama Medicaid Agency for counseling services that were never actually provided.
“When you defraud Medicaid, you are stealing from every taxpayer,” stated Acting U.S. Attorney Morris. “The U.S. Attorney’s Office is dedicated to working with our law enforcement partners to identify this type of criminal activity and bring the wrongdoers to justice.”
“Medicaid fraud not only targets taxpayers, but also victimizes the most vulnerable of our state who rely on Medicaid services for their well-being,” said Attorney General Steven T. Marshall. “I applaud the partnership of the Alabama Medicaid Agency, the Medicaid Fraud Control Unit of the Attorney General’s Office and the U.S. Attorney’s Office for working as a team to secure a conviction in this case. Medicaid fraud will not be tolerated and those who commit such crimes will be held to account.”
"This investigation is an excellent example of collaboration between the state and federal law enforcement community working together to serve the American taxpayer,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “The Office of Inspector General will continue to work aggressively to eliminate this type of greed in our health care system.”
The Program Integrity Division of the Alabama Medicaid agency referred this case to the Alabama Attorney General’s Medicaid Fraud Control Unit (MFCU) for investigation. MFCU and the U.S. Department of Health and Human Services Office of Inspector General investigated this case, with Assistant U.S. Attorney Jonathan S. Ross and Assistant Attorney General Bruce Lieberman prosecuting.
Detroit woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit woman who was caught in Huntington with heroin in December 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Ebony Inez-Latee Johnson, 43, entered her guilty plea to possession with intent to distribute heroin.
On December 4, 2016, an officer with the Huntington Police Department conducted a traffic stop of a vehicle Johnson was driving at the intersection of 9th Avenue and 10th Street in Huntington. During the stop, the officer located a bag containing approximately 23 grams of heroin that was concealed in Johnson’s jacket pocket. The heroin was packaged in 43 individually wrapped bags, and Johnson admitted at her plea hearing that the heroin was intended for distribution.
Johnson further admitted at the hearing that, on April 14, 2016, a trooper with the Michigan State Police conducted a traffic stop of a vehicle operated by Johnson in Taylor, Michigan. The trooper seized approximately 124 grams of heroin and 135 thirty mg oxycodone tablets from the vehicle.
Johnson faces up to 20 years in federal prison when she is sentenced on July 31, 2017.
The Huntington FBI Drug Task Force and the Huntington Police Department conducted the investigation, with assistance from the Michigan State Police. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was among a group arrested for distributing heroin in Huntington in 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Damond Idress Robinson-King, 23, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
On October 5, 2015, members of the Huntington FBI Drug Task Force conducted a search at 1826 Old 16th Street Road in Huntington after an investigation revealed multiple individuals from Detroit were using the residence to store and distribute heroin. During the search, agents located Robinson-King and two other individuals inside the residence. Agents also seized approximately 306 grams of heroin and $51,479 in United States currency. Robinson-King admitted at his plea hearing that he and the other individuals intended to sell the heroin.
Robinson-King faces at least five and up to 40 years in federal prison when he is sentenced on July 31, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Pleads Guilty to Making a False Statement on Tax ReturnRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on Friday, April 14, 2017, Gerald W. Neigelsen (age: 73) of East Troy, Wiscosnin pleaded guilty to a one-count information charging him with making a false statement on Internal Revenue Service Form 1040. As part of the plea agreement, Niegelsen agreed to pay restitution of $457,269 in back taxes to the Internal Revenue Service (IRS). He faces up to three years’ imprisonment, a $100,000 fine, one year of supervised release, and a $100 special assessment. Niegelsen’s sentencing is scheduled for July 6, 2017.
The IRS investigation revealed that Niegelsen willfully filed false Individual Income Tax Returns in 2009, 2010, 2011, and 2012. Niegelsen was the owner-operator of a business offering pier installation, removal and storage services as well as snow removal for clients in Wisconsin and Illinois. Niegelsen concealed significant unreported gross receipts in connection with the operation of the business. From 2009 through 2012, Niegelsen conducted numerous transactions in which he cashed over 3,000 checks. The checks included $1,990,931 of unreported business receipts written to “G.W. Niegelsen” that were converted into cash instead of being deposited into the business account.
This case was investigated by IRS Criminal Investigation. The case is prosecuted by Assistant United States Attorney Bridget J. Domaszek.
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Darby Man Pleads Guilty to Aiding in Preperation of Fraudulent Tax ReturnsRead the Press Release
Mohamed Waritay, 41, of Darby, Pennsylvania entered pleas of guilty to a two-count Information charging him with aiding and assisting in the preparation of false and fraudulent tax returns for his clients, announced Acting United States Attorney Louis D. Lappen.
According to court documents, the charges arose from Waritay’s scheme, which included tax years 2009 through 2014, in which he placed materially false items on the fraudulent tax returns such as inflated deductions, bogus tax credit amounts and fictitious dependent identities. The inflated deductions included itemized deductions such as gifts to charity, medical expenses and unreimbursed employee expenses on IRS Form 2106. Waritay also placed bogus tax credit amounts on the fraudulent tax returns related to education and residential energy credits, and falsely documented dependents by placing the biographical information of unrelated children on his clients’ returns, in order to defraud the United States government. Waritay’ scheme caused a tax loss to the United States in the amount of approximately $175,939.00. Additionally, during the course of the IRS investigation into Waritay’s conduct, Waritay met with one of his clients twice prior to that client’s scheduled interview with IRS agents. During those meetings, Waritay instructed his client to lie and provide false statements to IRS agents conducting the client’s interview in a corrupt effort to impede the investigation.
The defendant faces a maximum possible sentence of 6 years imprisonment, 3 years supervised release, $200,000 fine, $200 special assessment
The case was investigated by Internal Revenue Service, Criminal Investigations and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
Cross Lanes felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Fred Wallace Hammon, Jr., 36, entered his guilty plea to being a felon in possession of a firearm.
Hammon admitted that on September 1, 2016, he possessed Remington, Model 742 Woodsmaster, .30-06 caliber rifle. Hammon was prohibited from possessing any firearm under federal law because of felony convictions in Kanawha County Circuit Court in 2000 for two counts of aggravated robbery and in 2011 for wanton endangerment, being a felon in possession of a firearm, and possessing a firearm on the grounds of an educational facility.
Hammon faces up to 10 years in federal prison when he is sentenced on July 13, 2017.
The Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Convicted Felon Sentenced to 10 Years for Possessing FirearmsRead the Press Release
RICHMOND, Va. – A convicted felon who possessed four firearms, including two weapons capable of accepting large capacity magazines, was sentenced today to a statutory maximum sentence of 10 years in prison.
Marvin Whiters, 29, of Richmond, pleaded guilty on January 12. According to court documents, on April 28, 2016, officers observed Whiters distribute heroin to a cooperating witness at a gas station close to Whiters’ residence. Later that day, the Richmond Police Department executed a search warrant at Whiters’s residence and discovered drugs and four firearms, including an M-4 carbine, semi-automatic rifle; an AK semi-automatic pistol; two semi-automatic 9mm pistols; 500 rounds of ammunition; a rifle optic; additional amounts heroin and packaging; and a bulletproof vest. The M-4 carbine and the AK pistol were firearms capable of accepting large capacity magazines.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-131.
Cincinnati Woman Pleads Guilty to Embezzlement Scheme, Defrauding IRSRead the Press Release
CINCINNATI – Angelia Zwick, also known as Angelia Strunk, 46, of Cincinnati, pleaded guilty in U.S. District Court today to charges related to an embezzlement scheme that defrauded her employer. Specifically, she pleaded guilty to one count of wire fraud and one count of willfully filing a false income tax return with the Internal Revenue Service (IRS).
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Jason Hayden, Acting Special Agent in Charge, U.S. Secret Service, announced the plea entered into today before U.S. District Judge Susan J. Dlott.
According to court documents, from approximately July 2009 through May 2013, Angelia Zwick worked for Sheakley Group, Inc. and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC, a company owned by Zwick.
As a result, Zwick took more than $328,000 of workers’ compensation refunds intended for her employer or its clients and diverted those refunds into bank accounts that she controlled.
In addition, Zwick filed false income tax returns with the IRS for the 2010, 2011, and 2012 income tax years, for which she owes $121,810 in additional income taxes. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer and she claimed false expenses for Amerihealth. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share.”
Wire fraud is a crime punishable by up to 20 years in prison and filing a false income tax return with the IRS carries a potential maximum sentence of three years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.
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Cardi Corp. to Pay $500,000 Civil Settlement to Resolve Federal Claims of Improper Installation of I-Way Crash RailingRead the Press Release
PROVIDENCE – Acting United States Attorney Stephen G. Dambruch and Todd A. Damiani, Special Agent-in-Charge of the Region One Office of Inspector General for the U.S. Department of Transportation, today announced that Cardi Corporation, the primary contractor responsible for construction of the I-195 I-way project and the Providence River Bridge, will pay $500,000 to resolve the federal government’s claims that in 2007 Cardi Corporation improperly installed a crash railing on the I-195 I-Way bridge and its approach.
An investigation by the United States Attorney’s Office and the Region One Office of Inspector General for the U.S. Department of Transportation concluded that Cardi improperly installed the crash railing by cutting, eliminating, or altering key segments of structural reinforcing steel rebar that was intended to anchor the railing to the bridge. The government alleges that these changes rendered the railing unsafe, inadequate and, unfit for its intended use and/or not in compliance with project specifications.
The railing is a critical part of the safety systems designed to prevent vehicles from veering off the roadway in the event of a crash. In some areas, the rail is all that lies between the roadway and the river below. The defect in the rail, installed in 2007, came to light in 2013 when a vehicle crashed into the railing, prompting further investigation and testing.
Based on the findings of its investigation, the federal government alleges that the rail actually installed by Cardi was materially different from the design specification required by its contract with RIDOT, and from FHWA-mandated safety standards. The federal government, which funded 80% of the cost of the bridge project through the Federal Highway Administration (“FHWA”), alleges that Cardi made these changes to the rail’s design without necessary approvals from the Rhode Island Department of Transpiration (“RIDOT”), the state agency responsible for overseeing the bridge project.
Under the terms of the civil agreement, Cardi will pay $500,000 to resolve the federal government’s civil claim, which represents a full recovery of FHWA federal funds used for the installation of the rail. The rail in question, which was installed in a section of the bridge project known as Contract 7, has since been replaced with a new design that meets FHWA safety criteria. The federal government did not fund or contribute to any of the costs of this repair.
“When the federal government spends money on infrastructure projects, it does so with the clear expectation that taxpayers will get what they pay for: safe, conforming, and adequate work.” said Acting U.S. Attorney Stephen G. Dambruch. “When that fails to happen, this Office will not hesitate to use all means at our disposal to ensure that federal funds are used properly, and that the roads and bridges that federal dollars pay for are safe for the driving public.”
“As evidenced by this settlement agreement with Cardi Corporation, we remain steadfast in our commitment to ensuring the integrity of the programs designed to maintain and improve our nation’s transportation infrastructure,” said Todd Damiani, regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
The government’s case was handled by Assistant U.S. Attorneys Zachary A. Cunha, Richard B. Myrus, and Bethany N. Wong.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
California Man Sentenced to 235 Months in Prison for Large-Scale Methampetamine, Cocaine and Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Reginald Braddy, age 33, formerly of San Bernardino, California, was sentenced today by U.S. District Court Judge Malachy E. Mannion to serve 235 months’ imprisonment (19 years and 7 months) for large-scale methamphetamine, cocaine and heroin trafficking in Monroe County.
According to United States Attorney Bruce D. Brandler, Braddy was convicted of conspiracy to distribute in excess of nine kilograms of methamphetamine, as well as additional amounts of cocaine and heroin, after a four-day jury trial before Judge Mannion in May 2016. Another individual, Fontaine Horton, age 37, also of San Bernardino, was also convicted of conspiracy to distribute methamphetamine, cocaine and heroin, as well as two counts of distributing methamphetamine.
Braddy and Horton were charged with obtaining high-quality methamphetamine from sources in California, along with heroin and cocaine, which they then distributed for profit in the Monroe County area between 2012 and 2014. Fontaine Horton is currently awaiting sentencing.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Officers from the Orange County, California Sheriff’s Office, the Scranton Police Department, and Plainfield Township, Pennsylvania, Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa.
This case 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.
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Bergen County Man Admits Robbery of New Jersey Bar, Carjacking, and Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – A Bergen County man today admitted that he participated in the December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Jostin Reyes, 21, of Waldwick, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.
According to documents filed in this case and statements made in court:
Reyes admitted that on Dec. 25, 2015, he and others forcibly robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Reyes and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Reyes admitted that he and others forced the driver into the back of the vehicle and took over driving. Reyes also admitted that he and others caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for Aug. 2, 2017.
Reyes and five other defendants were originally charged by federal criminal complaint in November 2016. Reyes, Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 19, of Suffern, New York, and Juan Chiliseo-Vega, 20, of Suffern, are charged with the bar robbery, as well as the carjacking and kidnapping that took place afterwards. Balmore Carrillo-Iraheta, 19, of Suffern, and Oscar Avalos-Cortez, 23, of New City, New York, are only charged with the bar robbery.
Chiliseo-Vega and Guillermo Carrillo-Iraheta previously pleaded guilty in Newark federal court to separate informations in connection with their involvement in the conspiracy. They await sentencing.
The charges against Barahona, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Michele Ann Adubato Esq., Bayonne, New Jersey
Atlantic City, New Jersey, Man Sentenced to Six Months in Prison, Six Months Home Confinement, for Conspiring to Defraud IRS of Nearly $120,000 in TaxesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to six months in prison and six months home confinement for his role in a conspiracy to defraud the IRS of $119,880 in income taxes over three years, Acting U.S. Attorney William E. Fitzpatrick announced today.
John Schultz, 74, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:Schultz, William Boland, and another conspirator were partners in Royal Rolling Chairs Inc., a business based in Atlantic City that provided rolling chair transportation services to patrons on the boardwalk. As owners, they were responsible for accurately reporting income received by the business to the IRS.
Schultz admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted that the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.
In addition to the prison term, Judge Rodriguez sentenced Schultz to one year of supervised release – which includes the six months of home confinement – fined him $3,000, and ordered him to pay $31,110 in restitution.
Boland previously pleaded guilty to the same conspiracy charge and is scheduled to be sentenced by Judge Rodriguez on May 4, 2017. Abdus Mian, the bookkeeper for Royal Rolling Chairs, pleaded guilty to making false statements to federal investigators and was sentenced on April 4, 2016, to one year of probation.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Field Office, with the investigation leading to today’s sentencing.
The government is represented by Deputy Attorney in Charge Matthew J. Skahill of the U.S. Attorney's Office in Camden.
Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City
Akron men sentenced to 15, 10 years in prison for selling fentanylRead the Press Release
Two Akron men were sentenced to prison for selling fentanyl, Acting U.S. Attorney David A. Sierleja said.
Brian L. Williams, 54, was sentenced to 15 years in prison by U.S. District Judge John Adams.
Adams sentenced Terrance L. Ford, 50, to 10 years in prison.
“Drug dealers such as these are responsible for the wave of death that has plagued our state over the past few years,” Sierleja said. “Aggressive enforcement, combined with education, prevention and treatment, are all key parts to our comprehensive strategy to combating this epidemic.”
Detectives from the Akron Police Department’s Narcotics Unit and agents from the Drug Enforcement Administration searched the home of Williams and Ford on July 27, 2016 and recovered over 100 grams of a substance containing fentanyl along with several fentanyl patches, according to court documents.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Akron Police Department and the DEA.
Friday 14 April 2017
York Man Charged with Armed Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed today in U.S. District Court in Harrisburg charging a York man with bank robbery.
According to United States Attorney Bruce D. Brandler, Ryan Warnick, age 37, assisted Derek Bowman, age 34, of York in an armed robbery of the PNC Bank located in York, Pennsylvania on January 9, 2016, by acting as the get-away driver. Bowman was sentenced to serve 141 months’ imprisonment on February 16, 2017.
This matter was investigated by the Springettsbury Township Police Department and the Federal Bureau of Investigation. The prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to twenty-five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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With the Individual Income Tax Filing Deadline Approaching, Justice Department Warns Willful Violations of Tax Laws Are CriminalRead the Press Release
WASHINGTON - With the annual tax return filing deadline almost upon us, the vast majority of taxpayers are complying with their legal obligation to file accurate returns and pay the taxes that they owe. However, there are taxpayers who attempt to evade paying their fair share of taxes, file false returns, fail to file returns or seek to obstruct the Internal Revenue Service (IRS)’s efforts to assess or collect monies that are due. The Justice Department’s Tax Division warns taxpayers who attempt to violate the federal tax laws that they face prosecution, jail, restitution and significant monetary penalties.
“Most Americans follow the tax law and rightfully expect that each of their fellow citizens will do the same,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Yet every year some taxpayers try to take a different path – they hide money offshore, declare only a small portion of their income, make up bogus deductions and lie to the IRS if they are caught. With this year’s filing deadline approaching, these taxpayers should stop, reverse course and simply pay what they owe. As the Justice Department’s recent criminal prosecutions make clear, the consequences for willful violations are severe: jail time and substantial monetary penalties.”
“The majority of Americans file their taxes without issue and they would tell you that they want strong enforcement of the tax laws to ensure that we are all paying our fair share,” said Chief Richard Weber of IRS Criminal Investigation. “For those thinking about intentionally evading the tax laws – IRS-CI has the finest financial investigators and are trained to follow the money trail wherever it may lead.”
Over the past year, the Tax Division and the U.S. Attorney’s Offices have worked closely with the IRS and other law enforcement partners to enforce the nation’s tax laws fully, fairly and consistently through criminal investigations and prosecutions across the country, as evidenced by the sampling of recent convictions listed below. These enforcement efforts continue year-round.
Recent Tax Evasion and Filing False Tax Returns Prosecutions:
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In March, Denver Nichols, a Labadie, Missouri roofing contractor, pleaded guilty to filing false 2007 and 2008 income tax returns. Nichols operated his roofing business under the name Eagle Roofing Co. He late filed false 2007 and 2008 returns that underreported his business’s gross receipts by approximately $959,500 and $794,680.
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In March, Stephen Leib, a Philadelphia, Pennsylvania tech business owner, pleaded guilty to tax evasion. Leib owned New Wave Logistics Inc. He evaded more than $800,000 in taxes by cashing a significant amount of his business’s gross receipts at a check cashing facility, lying to his accountant about the total amount of income he earned and filing false tax returns.
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In March, Jeffrey Nowak, a Las Vegas, Nevada liquor storeowner, was sentenced to serve 41 months in prison for tax evasion and conspiring to defraud the United States. Nowak conspired with Ramzi Suliman, with whom he jointly owned and operated liquor stores in Las Vegas. Nowak and Suliman skimmed cash receipts and provided their accountant with a phony set of books that omitted nearly $4 million in cash receipts.
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In February, Jose Echeverria, a Chelan Falls, Washington businessman, pleaded guilty to filing a false individual income tax return. Echeverria owned and operated a produce sales business. He underreported his income by approximately $564,292.
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In December 2016, James and Mardeen Perin, former owners of Sully’s Pub in West Des Moines, Iowa, pleaded guilty to aiding and assisting in filing a false tax return. The Perins filed a false 2013 tax return that did not report cash that they earned through their business.
Recent Failure to File Tax Returns Prosecutions:
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In March, James Burton and Lucretia Pecantte-Burton, two Louisiana attorneys, pleaded guilty to failing to file individual income tax returns. Burton and Pecantte-Burton were partners of the law firm Pecantte-Burton & Burton (PB&B) and regularly received cash payments. They also had a partnership interest in a tax return preparation business. Burton and Pecantte-Burton did not file 2007 through 2009 income tax returns.
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In February, Samuel Frazier, a Gulfport, Mississippi businessman, was sentenced to serve 12 months in prison for failing to file an individual income tax return. Frazier owned two companies in Gulfport: Frazier Fire Systems LLC and EZ Haul Demolition and Construction LLC. Frazier failed to file a 2009 tax return despite earning more than $618,253 in income.
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In December 2016, John Raschella, a former Parma, Ohio resident, was convicted at trial for failing to pay more than $1 million in income taxes, interest and penalties for 1995, 1996 and 1998 through 2012 on income earned as an insurance salesman. He also failed to timely file income tax returns between 1989 and 2012.
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In June 2016, Carlos Cortes, a San Antonio, Texas artist, was sentenced to serve 12 months in prison for failing to file an individual income tax return. Cortes did not file tax returns for 2006 through 2009, despite earning more than $1.3 million in income during this time.
Recent Prosecutions Involving the Use of Nominee Entities and Offshore Bank Accounts to Hide Assets and Income:
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In March, Casey Padula, a Port Charlotte, Florida owner of Demandblox, a marketing and information technology business, pleaded guilty to conspiracy to commit tax and bank fraud. Padula conspired to move more than $2.5 million to offshore accounts in Belize and disguised them as business expenses in the corporate records. Padula used the funds to pay for personal expenses and purchase significant personal assets.
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March, Masud Sarshar, a Los Angeles, California businessman, was sentenced to serve 24 months in prison for hiding more than $23.5 million in offshore bank accounts. Sarshar maintained several undeclared bank accounts at Israeli banks, both in his name and in the names of entities that he created. Between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to those undeclared accounts and earned more than $2.5 million in interest income. Sarshar reported none of this income on his individual and corporate tax returns.
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In January, three Orange County, California residents pleaded guilty to hiding millions of dollars in secret foreign bank accounts. Dan Farhad Kalili, David Ramin Kalili and David Shahrokh Azarian, willfully failed to file legally required reports, commonly known as FBARs, disclosing their bank accounts in Switzerland and Israel.
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In January, Peggy and John DeYoung, a Missoula, Montana couple, pleaded guilty to conspiring to defraud the United States. The DeYoungs had not filed an income tax return since 1998. Peggy DeYoung earned income through her ownership interest in two companies that owned Southern California mobile home parks. The DeYoungs also established a number of purported trusts. They owned bank accounts in the names of these trusts using fabricated taxpayer identification numbers and paid personal expenses from the accounts, causing a tax loss of $376,350.
Recent Prosecutions of Attempts to Obstruct IRS Efforts to Assess and Collect Taxes:
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November 2016, Richard Thomas Grant, a Point Richmond, California man, was sentenced to serve 33 months in prison. Grant stopped filing income tax returns and paying income taxes despite earning significant income as a partner with an engineering company. Grant attempted to frustrate IRS collection and audit efforts by filing lawsuits against the IRS. To conceal his income, Grant used prepaid debit cards and money orders to pay personal expenses.
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In November 2016, Steven Headden Young of St. Petersburg, Florida, was sentenced to serve 21 months in prison. Young evaded a substantial portion of his individual income taxes for 2007 through 2011 and interfered with an IRS audit. He fabricated a letter from the IRS to a bank directing the bank to send subpoenaed records to a bogus address.
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In October 2016, Henti Lucian Baird, a Greensboro, North Carolina resident and former IRS revenue officer, pleaded guilty. Baird filed tax returns each year but has not paid since at least 1998. Baird created nominee bank accounts to hide hundreds of thousands of dollars from the IRS, submitted false information to the investigating IRS officer regarding these accounts and transferred funds from nominee accounts to avoid impending IRS levies.
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June 2016, Paul Tharp, a North Carolina man, was sentenced to serve 21 months in prison. Tharp failed to file tax returns for 2003 through 2006, and the IRS assessed income tax against him for those years. Tharp attempted to evade payment of his tax debt by filing false disclosures with the IRS, omitting businesses that he owned as well as bank accounts and rental income.
More information about the Tax Division’s criminal and civil enforcement efforts in these and other areas is on the division’s website. The IRS website also has information about how to report tax fraud.
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Winner Woman Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, woman convicted of Felon in Possession of a Firearm was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Amber Rae Millian, age 34, was sentenced to 6 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Millian was indicted by a federal grand jury on April 8, 2015. She pled guilty on January 3, 2017.
The conviction stems from an incident that occurred on November 18, 2014, wherein Millian was arrested for spotlighting deer on the edge of Winner. Millian, having previously been convicted of a felony, was in possession of a .22 caliber rifle and multiple rounds of .22 caliber ammunition at the time of her arrest. As part of her sentence, Millian will forfeit ownership of the firearm and ammunition.
This case was investigated by the South Dakota Department of Game, Fish and Parks, and the Federal Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jennifer Mammenga and Kirk Albertson prosecuted the case.
White River Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a White River, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 11, 2017, by U.S. District Judge Roberto A. Lange.
Stephan George Jones, age 45, was sentenced to 120 months in custody, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted by a federal grand jury on May 17, 2016. He pled guilty on January 24, 2017.
Between September of 2013 and May of 2016, Jones knowingly and intentionally conspired with others to distribute more than 500 grams of methamphetamine, a Schedule II controlled substance, in South Dakota. Jones received distributable quantities of methamphetamine from individuals who knew that he intended to engage in further distribution of it. Jones also provided methamphetamine to others, knowing that they intended to engage in further distribution of it within South Dakota. It was reasonably foreseeable to Jones that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy. Jones admitted that between 1.5 and 5 kilograms of methamphetamine was involved in the criminal offense, and that he was an organizer, leader, manager, or supervisor in the criminal activity.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Welling Man Found Guilty of Multiple Counts of Controlled Substance CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that IAN ALEXANDER BOWLINE, age 32, of Welling, Oklahoma was found guilty of 7 counts of OBTAINING A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Section 843(a)(3) and Title 18, United States Code, Section 2; 7 counts of USE OF A REGISTRATION NUMBER OF ANOTHER PERSON TO OBTAIN A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Section 843(a)(2) and Title 18, United States Code, Section 2; 1 count of ATTEMPTING TO OBTAIN A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Sections 843(a)(3) and 846 and Title 18, United States Code, Section 2; and 1 count of ATTEMPTING TO USE A REGISTRATION NUMBER OF ANOTHER PERSON TO OBTAIN A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Sections 843(a)(2) and 846 and Title 18, United States Code, Section 2. The jury trial began on Tuesday, April 4, 2017 and concluded on Wednesday, April 12, 2017 with the guilty verdicts.
Beginning in or about 2010, and continuing until the date of the service of a search warrant at Bowline’s residence on May 7, 2013, Bowline lead an organization aimed at obtaining Oxycodone by utilizing false prescriptions manufactured by Bowline and distributed to other coconspirators who, in turn, presented the false prescriptions to pharmacies and obtained 90 to 120 count Oxycodone pills at 30 mg. dosages per pill. The false prescriptions were generated by Bowline, contained valid DEA physician license numbers, and were printed on special watermark paper used by physicians when writing prescriptions. Bowline obtained the DEA physician numbers and paper from the internet.
The false prescriptions were presented to pharmacies in Oklahoma, Arkansas, and Missouri. The evidence presented at trial included items seized from a search of Bowline’s residence. Agents seized a computer, laptop, and thumbdrives which contained approximately 90 blank prescriptions in a format used to produce and print the prescriptions and 50 completed prescriptions that had been illegally passed at pharmacies within and outside Oklahoma. Prosecutors also presented false prescriptions that had been filled by various pharmacies and identified as being manufactured and signed by Bowline. During the course of the trial, evidence was presented that Bowline was involved in the diversion of approximately 14,000 Oxycodone pills.
The verdicts obtained are the result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
Acting United States Attorney Douglas A. Horn stated, “The diversion of Opioids such as Oxycodone has caused irreparable harm to those who have fallen prey to its addictive qualities. This office will continue to vigorously pursue and prosecute individuals who develop and utilize sophisticated means to obtain Oxycodone, or other legally prescribed medications, and distribute them to others thereby perpetuating the destructive cycle of Opioid addiction.”
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
statutory range of punishment for each count is not more than 4 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorneys Shannon Henson and John David Luton represented the United States.
Vallejo Man Sentenced to 7 Years in Prison After Facebook Reported Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E Burrell Jr. sentenced Robert Patton McGee, 53, of Vallejo, today to seven years in prison for distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Facebook reported to the National Center for Missing and Exploited Children (NCMEC) that someone had uploaded suspected images of child pornography to a Facebook profile. The investigation of these profiles led law enforcement to execute a search warrant at McGee’s residence in June 2014. When interviewed by law enforcement officers, McGee admitted to sending and receiving child pornography through Facebook and email. Analysis of Facebook and email addresses used by McGee showed that between November 10, 2011, and May 9, 2014, McGee distributed thousands of images and videos containing child pornography.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Jeremy J. Kelley 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.
U.S. Attorney and IRS Announce Message to Potential Tax CheatsRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including a listing of recent tax fraud prosecutions and sentences.
“During this time of the year, IRS will receive millions of tax returns from honest taxpayers who file their returns on time and pay all the taxes they owe,” said U.S. Attorney Bruce D. Brandler. “Today’s warning is not for them; it is for tax cheats who break tax laws and abuse our tax system. If you belong in this category, pay close attention. My office will hold accountable anyone who participates in a tax fraud scheme that puts an added tax burden on honest taxpayers and drains our public finances.”
“With the 2017 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said IRS Criminal Investigation Acting Special Agent in Charge Gregory Floyd. "IRS Criminal Investigation will vigorously investigate those individuals who knowingly and willfully evade their tax obligation."
FILING FALSE TAX RETURNS AND EVASION
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for filing false federal tax returns and committing tax evasion. Defendants have received substantial sentences for tax fraud, ranging from several years in prison to home confinement. Restitution is mandatory and often includes substantial interest and penalties. For example, the following individuals were charged and/or sentenced for tax fraud recently:
Angel P. Oliva, of Carlisle, Pennsylvania, was charged in a criminal information on April 14, 2017, for aiding in filing a false tax return related to payroll taxes. Oliva was part owner of the Middlesex Diner in Carlisle, Pennsylvania. It is alleged that Oliva evaded the payment of all employment taxes from 2011 through 2014, by reporting only a portion of the wages paid to the diner employees. The total tax loss alleged is approximately $809,000.
Michael Runco, of Olyphant, Pennsylvania, was charged in a criminal information on April 3, 2017, for failing to pay the IRS employment taxes withheld from his employees’ paychecks and filing a false personal income tax return omitting substantial personal income in 2010. Runco operated Runco Transportation, Inc., a business that provided school bus transportation services under contract with Mid Valley School District, Lackawanna County, Pennsylvania. During 2006 through 2010, Runco Transportation, Inc. employed as many as 12 individuals. While federal employee employment taxes were withheld from employee paychecks, Runco allegedly failed to account for and pay these tax monies over to the IRS on behalf of his employees. Runco also received compensation from his company but failed to report this income on his 2010 personal income tax return. The total tax loss to the IRS is alleged to be approximately $78,578. Runco is scheduled to enter a plea of guilty on April 19, 2017.
Joseph Andershonis, of Stroudsburg, Pennsylvania, pleaded guilty on March 20, 2017, for failing to pay employment taxes. Andershonis owned and operated Just Very Affordable, Inc., a Stroudsburg home renovation business, and failed to pay employment taxes from the first quarter of 2010 to the last quarter of 2012, resulting in a tax loss of more than $212,000. Sentencing is scheduled for June 22, 2017.
Diego Rojas, of Dunmore, Pennsylvania, pleaded guilty on March 7, 2017, to making false claims against the government. Rojas deposited more than 350 United States tax refund treasury checks, at least 250 which were identified as fraudulent, into the check cashing company he owned and operated, Dunmore Check Cashing. The value of the checks was more than $1.6 million. Rojas agreed to make full restitution in the amount of $1,669,864 to the Internal Revenue Service. Sentencing is scheduled for June 20, 2017.
Theodore Martin and his wife, Arminda Martin, of Ravenna, Ohio (formerly resided in York County), were both sentenced to one year and one day imprisonment on October 18, 2016. The Martins operated three cemetery businesses, including Suburban Memorial Gardens in Dover, Pennsylvania, and Grandview Memorial Park and Fairview Memorial Park in Ohio. The Martins failed to report to the Internal Revenue Service $786,533 they received from the operations of the cemeteries located in Ohio during the years 2008, 2009, 2010 and 2011. The Martins were ordered to pay restitution in the amount of $304,837.
Jeffrey Miller, of Shavertown, Pennsylvania, pleaded guilty on October 12, 2016, for failing to pay his companies employment taxes and failing to pay his personal taxes. From the first quarter of 2010 to the last quarter of 2012, Miller failed to pay the employment taxes for JMSI Environmental Corporation which he owned and operated. Additionally, Miller failed to file his own personal income tax returns from 2008 through 2011. These actions resulted in a tax loss of more than $473,000. Sentencing is scheduled for June 15, 2017.
Paul Biko, of Harrisburg, Pennsylvania, was sentenced on September 21, 2016, to 18 months’ imprisonment for federal tax fraud in relation to his three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. Biko was ordered to pay restitution in the amount of $437,336.
Joel Fuller, formerly of Hazleton, Pennsylvania, was charged in a Criminal Information on September 9, 2016, with failing to remit federal payroll taxes to the IRS. Fuller owned and operated two Hazleton, Pennsylvania-based marketing businesses that sold time shares to prospective clients on behalf of vacation companies, from 2010 through 2013. The Information alleges that Fuller withheld federal payroll taxes from his employees’ paychecks, but failed to then remit those taxes, totaling approximately $180,000 to the Internal Revenue Service. Fuller is scheduled to plead guilty and be sentenced on June 14, 2017.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are conducting a continuing major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them.
The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity Theft
• Phone Scams
• Phishing
• Return Preparer Fraud
• Offshore Tax Avoidance
• Inflated Refund Claims
• Fake Charities
• Falsely Padding Deductions on Returns
• Excessive Claims for Business Credits
• Falsifying Income To Claim Credits
• Abusive Tax Shelters
• Frivolous Tax Arguments
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
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U.S. Air Force Service Members Charged with Sex Offenses Involving A MinorRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that two active duty service members of the United States Air Force have been charged with sex offenses alleged to have occurred on the Dover Air Force Base in Dover, Delaware. Airman First Class Dalian Washington, 25, has been arrested and charged by criminal complaint with Sex Trafficking of a Child and Sexual Abuse of a Minor. Airman First Class Akeem Beazer, 21, has been arrested and charged by criminal complaint with Sexual Abuse of a Minor.
According to the criminal complaints, in approximately August of 2016, Washington obtained a 15-year-old female child for the purpose of having sex with her. Washington picked the child up at the Dover Division of Motor Vehicles (“DMV”) from a man he believed to be her “pimp” in exchange for $20. Washington then took her to his dorm room on base, where she stayed, off and on, for several months. Washington enlisted Beazer to help him look after the child, and Beazer began having sex with her, too.
Washington and Beazer were arrested on March 31, 2017, and they made their initial appearances in United States District Court that afternoon. Washington and Beazer waived their rights to preliminary and detention hearings. They will remain in custody pending further proceedings.
If convicted, Washington faces a mandatory minimum sentence of at least ten years, and up to twenty years, in prison. Beazer faces a maximum sentence of fifteen years in prison.
Any person possessing information about this matter is encouraged to contact the Federal Bureau of Investigation at (410) 265-8080.
The case is being investigated by the United States Air Force Office of Special Investigations, the Delaware State Police, the Delaware Department of Justice, and the Federal Bureau of Investigation. Assistant United States Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
The charges in the criminal complaints are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Men and One Woman Charged with First Degree Burglary and LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, men and an Eagle Butte, South Dakota, woman have been indicted by a federal grand jury for First Degree Burglary and Larceny.
Heideman, age 24, Tristan Yellow Horse, age 31, and Nicole Condon, a/k/a Nicole Garreau, a/k/a Nicole Yellow Horse, age 39, were indicted on January 19, 2017. Yellow Horse appeared before U.S. Magistrate Judge Mark A. Moreno on February 27, 2017, and pled not guilty to the Indictment.
Nicole Condon appeared before U.S. Magistrate Judge Mark A. Moreno on January 30, 2017, and pled not guilty to the Indictment.
Joshua Heideman appeared before U.S. District Court Judge Roberto A. Lange on March 22, 2017, and pled guilty to First Degree Burglary. A presentence investigation report was ordered and a sentencing date was set for June 5, 2017.
The Indictment alleges that on October 8, 2016, Heideman, Yellow Horse, and Condon unlawfully entered and remained in someone’s residence with the intent to steal the property of the owner, and aided and abetted in the commission of that offense.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Yellow Horse and Condon are presumed innocent until and unless proven guilty.
This investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Yellow Horse, and Condon were remanded to the custody of the U.S. Marshals Service. The jury trial for Condon and Yellow Horse is currently scheduled for July 25, 2017.