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Monday 10 April 2017
Springfield Business Owner Pleads Guilty to Wire Fraud, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., business owner pleaded guilty in federal court today to a $555,000 wire fraud scheme and to failing to pay taxes on any of the embezzled income.
Rebecca Pargeon, 58, of Springfield, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with wire fraud and filing a false tax return.
Pargeon owned and operated three different medical payment collection businesses – Pargeon Medical Services, LLC, Kids First Pediatric Billing, LLC, and Surgical Billing Solutions, LLC. Pargeon was hired by medical practitioners throughout the country to collect monies owed by their patients and insurance companies as payment for medical services provided. Upon collecting monies owed to a medical practitioner, Pargeon was contractually obligated to deposit the checks she received into the practitioner’s bank account. At the end of each month, the practitioners would pay her a percentage of the monies her businesses collected on their behalf.
By pleading guilty, Pargeon admitted that she embezzled $555,558 from her clients from Jan. 11, 2012, to April 26, 2016. Pargeon took payments she collected, which were made payable to the medical practitioners, and fraudulently deposited them into her business and personal bank accounts without the approval or authority of the medical practitioner. Pargeon did not have the authority to sign their names, endorse any of the checks, or deposit them into her business or personal bank accounts. Pargeon admitted that she fraudulently endorsed and deposited over 740 checks made payable to her medical practitioner clients.
Pargeon also admitted that she failed to report the embezzled income on her federal tax returns for 2012 through 2015. This resulted in a total tax loss to the government of $170,749, without penalty or interest. Pargeon, who prepared the tax returns herself utilizing the Turbo Tax computer tax program, specifically pleaded guilty to failing to report $232,929 in income received from the fraud scheme and earned from her businesses in 2012.
Under the terms of today’s plea agreement, Pargeon must forfeit to the government $726,307, which represents the proceeds of the wire fraud scheme as well as $232,929 in income Pargeon received in 2012 for the fraud scheme and earned from her businesses, but which she failed to report on her 2013 tax return.
Under federal statutes, Pargeon is subject to a sentence of up to 23 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 defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. 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 FBI and IRS-Criminal Investigation.
Spotlight on Idaho U.S. Attorney’s Criminal Immigration ProgramRead the Press Release
BOISE – “The United States Attorney’s Office for the District of Idaho is committed to using its prosecutorial resources to address the most significant threats to public safety and border security in the most effective, consistent, and rational way,” announced Acting United States Attorney Rafael Gonzalez. The U.S. Attorney’s Office prioritizes the prosecution of criminal aliens who return illegally and continue to commit crimes after having been convicted and removed.
The Enforcement and Removal Operations (ERO) section of the Office of Immigration and Customs Enforcement (ICE), and other components of the Department of Homeland Security (DHS), refer matters for criminal prosecution to the U.S. Attorney’s Office. U.S. Attorney’s Office’s Immigration Crimes Coordinator then reviews the matters for prosecution. Over the past ten years, the U.S. Attorney’s Office has, on average, prosecuted 80 criminal immigration cases each year. This number includes prosecutions of criminal aliens who have illegally returned following conviction and removal, and prosecutions of aliens who possessed or used fraudulent immigration documentation while in the United States.
According to DHS, in fiscal year 2016, approximately 240,255 aliens were removed from the United States. Those removals included individuals apprehended in the interior of the United States, as well as those encountered at or near the border or ports of entry. For illegal aliens apprehended in the interior of the country, more than 90 percent had previously been convicted of a crime.
“The U.S. Attorney’s Office, together with its main criminal law enforcement partner, ICE ERO, will vigorously pursue criminal charges against criminal aliens, focusing on those who threaten the safety of our community,” Gonzalez said.
Southern Illinois Public Corruption Task Force Introduces New TiplineRead the Press Release
On Monday, April 10, 2017, Donald S. Boyce, United States Attorney for the Southern District of Illinois, and Brendan F. Kelly, State’s Attorney for St. Clair County, Illinois, announce the introduction of the Southern Illinois Public Corruption Task Force Tip Line: 618-589-7353. There will also be a billboard campaign in connection with the Tip Line.
Anyone with information concerning public corruption occurring within the 38 counties that make up the Southern District of Illinois is encouraged to call the Tip Line. Agents from the FBI, IRS Criminal Investigations, and Illinois State Police will professionally and swiftly investigate any information provided. It is only by citizens alerting law enforcement to public corruption that law enforcement can continue to investigate and prosecute those officials who have betrayed their oaths and the public trust by choosing to make public service into self-service.
St. Clair County State’s Attorney Brendan Kelly said, "Over the past five years, we have greatly increased prosecution of public corruption. With trust in our public institutions at an all-time low, we must do everything we can to protect it from those who would violate it."
U.S. Attorney Boyce said, "Concerned citizens are the government’s biggest asset when it comes to exposing people who are abusing the public’s trust and misusing taxpayer money to line their own pockets. This initiative is designed to solicit the public’s help in identifying and targeting public corruption."
Six Indicted for Defrauding Solano County Energy Company Involving over $2.2M in Total LossRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 25-count indictment on April 6, 2017, charging six defendants in connection with their various roles in defrauding an energy generation company of over $2.2 million, United States Attorney Phillip A. Talbert announced. The indictment was unsealed today, and all six defendants were arraigned today on the indictment.
The defendants have been charged as follows:
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Timothy Chapin, 38, formerly of Lathrop, is charged with three counts of conspiracy to commit mail or wire fraud, five counts of mail fraud, 14 counts of wire fraud, and three counts of conspiracy to commit money laundering.
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Manuel Agueros, 37, formerly of Lathrop, and Dodge City, Kansas, is charged with two counts of conspiracy to commit mail or wire fraud, three counts of mail fraud, 11 counts of wire fraud, and two counts of conspiracy to commit money laundering.
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Jeffrey Reilley, 53, of Ripon, is charged with one count of conspiracy to commit mail and wire fraud and six counts of wire fraud.
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Paul Fournier, 34, of Scottsdale, Arizona, is charged with one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, eight counts of wire fraud, and one count of conspiracy to commit money laundering.
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Jorge Eguiluz, 46, of Stockton, is charged with one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
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Robert Lautenslager, 38, of Castro Valley, is charged with one count of conspiracy to commit mail and wire fraud, two counts of mail fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
According to the indictment, Chapin, Reilley, and Agueros all worked for a Florida-based energy generation company that operated wind farms in the Solano County town of Birds Landing in California. Chapin, a senior business technician, and supervisors Reilley and Agueros executed a scheme that caused the generation of purchase orders for parts and services not actually needed at the wind farms. Those purchase orders were sent to three Arizona-based shell companies that had been set up by Fournier; the shell companies had no facilities and provided no actual products or services. The shell companies then submitted fraudulent invoices to the energy generation company for undelivered products and unperformed services, and were paid on those invoices in an amount just under $2 million. Also according to the indictment, Chapin, Agueros, and Eguiluz engaged in a similar scheme using a company called “J. Eguiluz Labor Service LLC” as the shell company to submit fraudulent invoices and be paid on those invoices. Further still, Chapin and Lautenslager engaged in a similar scheme using a shell company set up by Lautenslager to submit fraudulent invoices and be paid on those invoices.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Nirav Desai is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The money laundering charges are subject to fines of up to $500,000 or twice the value of the property involved in the money laundering transactions. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Sissonville felon who stole seven rifles pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Sissonville man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Jeffrey Phelix, 32, entered his guilty plea to being a felon in possession of a firearm.
Phelix admitted that on October 25, 2016, he broke into a garage at the residence of a licensed firearms dealer and stole seven rifles. One of the rifles Phelix stole had a suppressor attached, which functions as a silencer to reduce the noise from firing the gun and is illegal to possess without the registration required by the National Firearms Act. Phelix was arrested after his fingerprint was recovered from the window of the garage. Phelix was prohibited from possessing any firearm under federal law because of a 2011 felony conviction in Kanawha County Circuit Court for burglary by breaking and entering.
Phelix faces up to 10 years in federal prison when he is sentenced on June 28, 2017.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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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Seventh Defendant Indicted for Oxycodone-Related ChargesRead the Press Release
United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin announced that on April 4, 2017, a federal grand jury returned an eight-count superseding indictment against seven individuals involved in distributing Oxycodone. The original indictment named Lance Bruette (age: 34) of Minocqua, Orvin Kay (age: 57) of Milwaukee, Frank Lawrence (age: 38) of Saint Germain, Mitchell Plantikow (age: 29) of Woodruff, Troy Plantikow (age: 52) of Woodruff and Lacey Stanick (age: 31) of Woodruff, Wisconsin) as the defendants.
The superseding indictment includes Serena Johnson (age: 34) of Lac Du Flambeau as a co-conspirator. Count one of the superseding indictment, charges all seven defendants with conspiracy to distribute oxycodone in violation of Title 21 United States Code Section 846. The other seven counts of the indictment were not changed.
According to the criminal complaint filed against Orvin Kay, certain members of the conspiracy who resided in Northern Wisconsin would drive to Milwaukee and pick up hundreds of oxycodone 30 mg pills per week from Orvin Kay. They would then distribute those oxycodone pills to individual users, as well as co-conspirators who would sell the pills to other individuals. The maximum penalty for all of the charges is 20 years in prison and a $1,000,000 fine.
The following agencies are participating in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice - Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department and the Rhinelander Police Department. The case is being prosecuted by Assistant United States Attorneys Zachary J. Corey and Benjamin Wesson.
An indictment and a criminal complaint is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Rochester Man Pleads Guilty to Armed Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Oliver, 26, of Rochester, NY, pleaded guilty to possession with intent to distribute cocaine and carrying a firearm during a drug trafficking crime, before U.S. District Judge Charles J. Siragusa. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, a fine of $1,000,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on September 18, 2016, a Rochester Police Department officer was on patrol in the Joseph Avenue area in Rochester. The officer saw a 2014 Ford Focus almost strike someone on a bicycle when it was turning right onto William Warfield Drive. A records check revealed that the vehicle had been reported stolen.
A short while later, the officer approached the parked car which was still running. Oliver was in the driver’s seat. As he approached the driver’s side door, the officer could smell burnt marijuana. He asked Oliver about the smell and the defendant motioned to a burnt marijuana cigarette located in the center console. The officer then instructed Oliver to get out of the car, which he did. Once out of the car, the officer placed the defendant in handcuffs and then lifted Oliver’s shirt and found a loaded handgun hanging out of his right pants pocket. A search of Oliver’s car recovered 13 individual glassine bags of cocaine.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing is scheduled for July 11, 2017, at 10:00 a.m. before Judge Siragusa.
Randolph County Resident Charged with Methamphetamine OffenseRead the Press Release
On April 4, 2017, a Randolph County man was charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Brian A. Mudd, 59, of Ruma, was charged in a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between June 2016 and December 8, 2017, in Randolph County. On April 10, 2017, Mudd made his initial appearance in federal court. He was ordered held without bond pending an April 13, 2017, detention hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Chester Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office also assisted in the investigation. The case is assigned to Assistant United States Attorneys Amanda A. Robertson and Adam E. Hanna for prosecution.
Preston County woman guilty of embezzlementRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Bruceton Mills, West Virginia woman has been convicted of embezzling $87,529 from West Virginia University, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Loretta J. Reckart, age 55, pled guilty today to one count of “Theft Concerning Programs Receiving Federal Funds.” Reckart admitted to embezzling while employed by West Virginia University from October 2010 to July 2016 in Monongalia County.
Reckart faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams prosecuted the case on behalf of the government. The United States Department of Health and Human Services - Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Physician Pleads Guilty to One Count of Conspiracy to Pay and Receive Illegal KickbacksRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOBIE CREAR, M.D., age 70, of New Orleans, pled guilty today to one count of conspiracy to pay and receive illegal kickbacks.
On December 12, 2016, CREAR, who operated Comprehensive Nursing and Home Health Service, Inc. (Comprehensive), was charged in a Bill of Information for illegally paying recruiters to bring Medicare beneficiaries to Comprehensive causing a loss to Medicare in the amount of $810,556.
CREAR faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Sarah S. Vance set sentencing for July 12, 2017.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
Philadelphia Man Sentenced to 84 Months for Defrauding the IRSRead the Press Release
Today, United States District Court Judge Legrome D. Davis sentenced Ahmed Kamara, 41 of Collingdale, Pennsylvania, to 84 months’ imprisonment for conspiring to defraud the Internal Revenue Service by filing false federal income tax returns, announced Acting United States Attorney Louis D. Lappen. Defendant Kamara pleaded guilty to preparing and filing false federal income tax returns, wire fraud, and aggravated identity theft on July 18, 2016.
Ahmed Kamara and five co-conspirators were charged with conspiring to file false federal tax returns for themselves and others. As a manager of Medmans Financial Services, a tax preparation business operating out of Philadelphia, Kamara prepared fraudulent federal income tax returns for himself and his clients. From 2008 to 2013, Kamara obtained names, dates of birth, and social security numbers of children in foster care, and falsely claimed that these children were the dependents on the fraudulent federal income tax returns he prepared for himself and his clients. Over this period of time, Kamara prepared 1,217 returns which resulted in a tax loss to the Internal Revenue Service of approximately $7,972,093.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Frank Costello.
Orange County Man Sentenced to over 9 Years for Operating Fake Law Firms that Promised to Help Struggling HomeownersRead the Press Release
SANTA ANA, California – A Brea man was sentenced today to 109 months in custody for operating a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm.
Bryan D’Antonio, 50, was sentenced by United States District Judge David O. Carter, who ordered the defendant to spend 97 months in federal prison and to serve the final year of the sentence in a halfway house. In addition to the sentence of over eight years, Judge Carter ordered D’Antonio to pay $3,826,977 in restitution.
D’Antonio pleaded guilty last August to one count of conspiracy to commit mail and wire fraud in relation to his role as owner and operator of Rodis Law Group (RLG) and America’s Law Group (ALG). D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme that induced homeowners to pay between $3,500 and $5,500 for the services of RLG and its successor entity, ALG.
In connection with his gulty plea, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stating that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys.
D’Antonio was previously convicted of mail and wire fraud and was sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. And, in violation of the permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation in which employees routinely misrepresented the services RLG and ALG would provide.
“While still under court supervision after serving a prison term in another telemarketing case, D’Antonio oversaw what was essentially a boiler room operation that preyed upon struggling homeowners,” said Acting United States Attorney Sandra R. Brown. “Hundreds of victims lost millions of dollars after D'Antonio’s employees told a series of lies that misrepresented nearly every aspect of the business. Today’s lengthy sentence will ensure that he will not have the opportunity to defraud unsuspecting victims for many years.”
“This defendant – a repeat telemarketing fraudster - took advantage of vulnerable homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “His two fake law firms promised homeowners assistance saving their homes and modifying their mortgages. The sad reality is both firms were nothing more than telemarketing scams.”
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications for homeowners. For example, the telemarketers falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their cases. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by D’Antonio, a convicted felon who was prohibited from engaging in telemarketing.
“Mr. D’Antonio preyed upon victims who were already experiencing difficult circumstances and robbed them of their remaining financial resources,” said Deirdre L. Fike, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Homeowners seeking financial assistance should thoroughly investigate businesses before investing their money in advance of receiving services.”
D’Antonio’s was charged along with two co-defendants – Charles Wayne Farris and Ronald Rodis – both of whom pleaded guilty last year to conspiring to commit mail and wire fraud. Farris and Rodis are scheduled to be sentenced by Judge Carter on May 1.
This case was investigated by the Federal Bureau of Investigation, which received the assistance of IRS Criminal Investigation.
“Mr. D’Antonio masterminded a scheme that stole nearly $9 million from homeowners across the country who were already on the verge of losing their homes,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “Taxpayers deserve our vigilance in the investigation and prosecution of individuals who profit from such unscrupulous acts.”
The case is being prosecuted by Assistant U.S. Attorney Joseph T. McNally of the Santa Ana Branch Office and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.
North Port Man Sentenced in Check Cashing Bank Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Michael Wesley (49, North Port) to 27 months in federal prison for his role in a bank fraud scheme. The Court also ordered him to pay restitution to the banks involved. Wesley pleaded guilty on December 12, 2016.
According to court documents, Wesley was engaged in a fraud scheme in which he would obtain checks that had been stolen from United States Postal Service mailboxes. He would then use the personal information printed on those stolen checks to cash, at the victim’s own bank, worthless checks made payable to the victim but that had been written on closed accounts from other banking institutions. In this manner, Wesley frequently obtained cash from federally insured financial institutions.
This case was investigated by the United States Postal Inspection Service, with assistance from the Sheriff’s Offices in Manatee, Hillsborough, Seminole, and Lee Counties, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Newark Drug Dealer Man Sentenced in Erie to 15 Years in PrisonRead the Press Release
ERIE, Pa. - A former resident of Newark, New Jersey, has been sentenced in federal court to 180 months in jail and 10 years supervised release on his conviction of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Zavia L. Johnson, 48. The sentence was ordered to be served consecutively to a 14 year sentence Johnson is currently serving.
According to information presented to the court, on November 2, 2012, Johnson, who was from Newark, New Jersey, was traveling South on Interstate 79 after leaving Rochester, New York, and was pulled over by a Trooper with the Pennsylvania State Police after a traffic violation was observed. A certified drug detection canine alerted to the presence of drugs in the vehicle, and a search warrant was executed. During the search of the vehicle, law enforcement officers discovered 175 wrapped “bricks” containing 8,700 stamp bags, or dosage units, of heroin. In addition, $7,000.00 in cash was located in a duffle bag in the trunk of the vehicle.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
New York State Man Sentenced for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Erie, Pa. – 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, Acting United States Attorney Soo C. Song announced today.
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.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Gbadegeshi.
Nashville Man Charged with Federal Firearm Offense After Firing at Metro Police OfficersRead the Press Release
Antonio L. Bender,19, of Nashville, Tenn., has been charged with being an unlawful user of a controlled substance in possession of firearms, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. These charges follow an incident on March 27, 2017, where Bender shot at two Metropolitan Nashville police officers who were investigating the sound of gunfire in the area of the J.C. Napier and Tony Sudekum public housing developments.
“Let me be perfectly clear – the U.S. Attorney’s Office has a zero-tolerance policy when violence is directed at our law enforcement officers,” said Acting U.S. Attorney Jack Smith. “When such violence is directed at law enforcement officers the U.S. Attorney’s Office will give full priority to determining whether federal laws have been violated and if so, will seek to prosecute the offender.”
According to the criminal complaint, on March 27, 2017, two uniformed Metro Nashville police officers were patrolling on Charles E. Davis Blvd., in the area of the J.C. Napier and Tony Sudekum public housing developments when they heard gunfire. Both officers exited their patrol car to investigate further and heard additional gunshots as they walked toward the building at 168 Charles E. Davis Blvd. The officers then encountered two suspects, one of which, later identified as Bender, pointed two guns equipped with laser lights at the officers and fired one shot. Bender then fled and after a short foot chase, he was taken into custody by the officers and two loaded, semi-automatic pistols were recovered.
Subsequent investigation by agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives determined that Bender was a regular user of marijuana and cocaine and he is a member of the Rollin 60s gang.
If convicted, Bender faces up to 10 years in prison.
This case was investigated by the Metropolitan Nashville Police Department and the ATF. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Mongomery Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
Montgomery, Alabama – Lamont Raynell Thompson (34), of Montgomery, Alabama pled guilty earlier today to a federal charge of possession with intent to distribute heroin, announced A. Clark Morris, Acting United States Attorney for the Middle District of Alabama.
According to court documents, Thompson possessed and distributed heroin in the Montgomery area. His indictment alleges that Thompson distributed heroin on four separate occasions in 2014. Then, on December 2, 2014, law enforcement recovered more heroin from his residence. Today, Thompson admitted to possession with intent to distribute the heroin recovered from his residence.
Thompson is currently facing a maximum sentence of 20 years in prison for this offense. His sentencing hearing will be scheduled in the next few months.
“The U.S. Attorney’s Office is committed to taking these poisonous substances off of our streets. The heroin and opioid crisis is a clear danger to our children, parents, family, friends and community. All too often, these drugs are laced with other lethal substances that can lead to serious injury and death. We will continue to vigorously prosecute the pushers of these poisons in hopes of making our community safer and free from these dangerous drugs,” stated Acting U.S. Attorney Morris. “We are working with our law enforcement partners to ensure the safety of our citizens.”
This case was investigated by the Drug Enforcement Administration and the Montgomery Police Department. The case is being prosecuted by Assistant United States Attorney Verne Speirs.
Mississippi Tax Return Preparer Pleads Guilty to Obstructing the IRS and Filing False ReturnsRead the Press Release
WASHINGTON – A Gulfport, Mississippi tax return preparer pleaded guilty today to obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents filed with the court and information presented at the plea hearing, Doris Kelley, 65, of Gulfport, Mississippi, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley made hundreds of thousands of dollars from her scheme and caused a tax loss of more than $495,000.
The sentencing hearing is scheduled for July 7. Kelley faces a statutory maximum sentence of three years in prison on both counts. She also faces a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mississippi Tax Return Preparer Pleads Guilty to Obstructing the IRS and Filing False ReturnsRead the Press Release
A Gulfport, Mississippi tax return preparer pleaded guilty today to obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents filed with the court and information presented at the plea hearing, Doris Kelley, 65, of Gulfport, Mississippi, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley made hundreds of thousands of dollars from her scheme and caused a tax loss of more than $495,000.
The sentencing hearing is scheduled for July 7. Kelley faces a statutory maximum sentence of three years in prison on both counts. She also faces a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mechanicsville Man Sentenced to Prison for Tax EvasionRead the Press Release
RICHMOND, Va. – A former executive of Nutronix Revolution, Inc., a multi-level vitamin and supplement marketing company, was sentenced today to 30 months in prison and ordered to pay $963,357.86 for income tax evasion.
Blair S. Bremner, 50, of Mechanicsville, pleaded guilty on Nov. 7, 2016. According to court documents, Bremner, who holds a business degree from Virginia Polytechnic Institute and State University, has a history of not filing his income tax returns. For example, between 2006 and 2014, despite earning a substantial income while working as Vice President of Marketing for Nutronix Revolution, Bremner did not file tax returns with the IRS, refusing to file his returns or pay income taxes due totaling $963,357.86. Additionally, Bremner refused to file his returns or pay income taxes despite his father having been convicted and sentenced to 18 months in federal prison for the same type of criminal activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Kimberly Lappin, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney S. David Schiller 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-81.
Maryland Man Charged with Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Maryland man was charged in federal court today with enticing a minor to engage in illicit sexual activity following an Amber Alert issued over the weekend.
William Lee Dela Cruz, 22, of Maryland, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Dela Cruz, who had an initial court appearance this afternoon, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, an Amber Alert was issued for the 12-year-old victim, identified in court documents as “Jane Doe,” on Sunday, April 9, 2017. Members of the public contacted law enforcement in response to the Amber Alert and she was recovered in Wentzville, Mo., the same day. Dela Cruz was arrested by Wentzville police officers.
Jane Doe told investigators she had been involved in an online relationship with Dela Cruz since November 2016 (when she was 11 years old). They communicated through telephone, Skype, Facebook Messenger and Discord (an application that provides free voice and text options, especially for communications between individuals involved in the gaming culture). Jane Doe stated she met Dela Cruz online through the computer game Onigiri, a multi-player fantasy online role-playing game.
On Saturday, April 6, 2017, Dela Cruz and his brother (who has not been charged) drove from Maryland to Missouri to pick up Jane Doe with the intent of driving her back to Maryland, according to the affidavit.
During the drive back to Maryland, the affidavit says, an argument between the brothers occurred. As a result, Dela Cruz’s brother dropped them off at a service station and drove away. Dela Cruz and Jane Doe attempted to obtain a room at the Hampton Inn in Wentzville but did not have sufficient funds for a room. Instead, they slept on a couch in the lobby of the hotel.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI, the Blue Springs, Mo., Police Department and the Wentzville, Mo., Police Department.
Last of 22 Defendants Sentenced in Federal and State Operation Targeting Violent Crime in Cann Park (Savannah) NeighborhoodRead the Press Release
CORRECTION: In our original press release, the sentences listed for Defendants Grant and Benton were in error. As noted below, Defendant Benton pled guilty to drug conspiracy and was sentenced to 5 months in prison and 3 years of supervised release; Defendant Grant pled guilty to use of a communication facility and was sentenced to 27 months in prison and 1 year of supervised release.
SAVANNAH, GA – Roy Mobley, aka “Grind,” 37, of Savannah, Georgia, was sentenced today by Senior United States District Court Judge William T. Moore, Jr. to 33 months in federal prison, followed by 3 years of supervised release. Mobley was the last of 22 defendants convicted as part of a joint federal and state operation targeting violent crime and gang activities in the Cann Park (Savannah) neighborhood.
Cann Park is a small neighborhood near downtown Savannah located next to historic Beach High School. In 2015 and 2016, a small number of gang-affiliated individuals regularly trafficked in drugs and guns in Cann Park, spreading crime throughout the neighborhood. In a joint ATF and Savannah-Chatham Metropolitan Police Department (SCMPD) operation, individuals in Cann Park that were trafficking guns and drugs were identified and targeted as part of a 6-month undercover investigation. The criminal activities charged in the federal indictments all occurred in the Cann Park neighborhood. Many of the defendants were members of the Cann Park Goons and the Fast Lane Gang, self-proclaimed gangs operating in Cann Park. As part of the investigation, agents seized 17 firearms and significant amounts of heroin, powder cocaine, crack cocaine, marijuana and MDMA.
Violent crime rates have sharply fallen in Cann Park since the March 2016 arrests and prosecutions. Since March 2016, violent crime in Cann Park has dropped 40%; aggravated assaults with a gun have dropped 75%; and “shots fired” calls dropped 50%.
Acting U.S. Attorney Jim Durham said, “A small number of people are committing most of the violent crimes in Savannah. The Cann Park Operation is just one example of how we can work together to remove from our neighborhoods those trafficking in drugs, guns and fear. The U. S. Attorney’s Office and our federal partners will continue to partner with SCMPD and the DA’s Office as we take back our great city.”
Tim Graden, ATF Resident Agent in Charge, Savannah Field Office stated, “To a citizen who lives in fear, the worst gang in America is one committing crimes in their neighborhood, the one selling drugs on their block and the one whose illegal use of firearms endangers their lives. When agencies work together to proactively prosecute these criminals, we make neighborhoods a safer place.”
The Savannah residents convicted and sentenced as part of the Cann Park Operation include:
Marquiel Bell, aka “Quelly,” aka “Julio,” 19: pled guilty to possession of a stolen firearm and sentenced to 7 months in prison and 3 years supervised release;
Roemain R. Bennett, aka “Ratt,” 33: pled guilty to drug and firearms offenses and sentenced to 208 months in prison and 5 years supervised release;
Jesse Benton, 27: pled guilty to drug conspiracy and sentenced to 5 months in prison and 3 years of supervised release;
Mario Grant, 33: pled guilty to use of a communication facility and sentenced to 27 months in prison and 1 year of supervised release;
Benjamin Gordon, 43: pled guilty to drug trafficking and sentenced to 102 months in prison and 3 years supervised release;
Jamal Hilton, aka “Jamel Hilton,” aka “Jamaal Hilton,” aka “Mel,” aka “Tommy Henderson II,” 31: pled guilty to drug trafficking and sentenced to 5 months in prison and 3 years supervised release;
Jeremy James, 34: pled guilty to possession of ammunition by a convicted felon and sentenced to 77 months in prison and 3 years supervised release;
Kristopher Kemp, 30: pled guilty to possession of a firearm by a drug user and sentenced to 24 months in prison and 3 years supervised release;
Nicholas Kemp, 28: pled guilty to possession of firearm by a convicted felon and sentenced to 46 months in prison and 3 years supervised release;
Stephen Kemp, 25: pled guilty to possession of a firearm by a drug user and sentenced to 30 months in prison and 3 years supervised release;
Jacqueline Mavity, 44: was placed on pre-trial diversion;
Roy Mobley, aka “Grind,” 37: pled guilty to drug trafficking and sentenced to 33 months in prison and 3 years supervised release;
Albert Morisette, 31: pled guilty to drug distribution and sentenced to 6 months in prison and 3 years supervised release;
Alekseyer X. Mungin, 37: pled guilty to drug and firearms offenses and sentenced to 84 months in prison and 3 years supervised release;
Rashaun Padgett, aka “Ray Ray,” 31: who pled guilty to drug trafficking and sentenced to 21 months in prison and 3 years supervised release;
Michael Porter, 36: pled guilty to drug distribution and sentenced to 11 months in prison and 3 years supervised release;
Marvin Roberts, aka “Steady,” 29: pled guilty to drug trafficking and sentenced to 31 months in prison and 3 years supervised release;
Tony Small, 20: pled guilty to drug trafficking and sentenced to 6 months in prison and 3 years supervised release;
Kareem Savage, aka “Rashaad Roberts,” 27: pled guilty to drug trafficking and sentenced to 5 years of probation;
Jamaine Wallace, 35: pled guilty to cocaine trafficking and sentenced to 78 months in prison and 3 years supervised release;
Simmeon Whitfield, aka “Yon,” 26: pled guilty to drug trafficking and sentenced to 24 months in prison and 3 years supervised release;
Xavier Whitfield, aka “Kenny,” 30: pled guilty to drug trafficking and sentenced to 14 months in prison and 3 years supervised release; and
Travis Young, 35: pled guilty to cocaine trafficking and sentenced to 151 months in prison and 3 years supervised release.
There is no parole in the federal system. Once the defendants are released from prison, they will serve a term of supervised release, under the direct supervision of the United States Probation Office.
The Cann Park Operation was investigated by ATF and SCMPD, with assistance from the U. S. Marshals Service, the Chatham-Savannah Counter Narcotics Team (CNT) and the Chatham County Sheriff’s Office. Assistant United States Attorneys Greg Gilluly, Charlie Bourne and Jennifer Kirkland prosecuted the cases on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 201-2522.
Las Cruces Residents Plead Guilty to Federal Counterfeiting ChargesRead the Press Release
ALBUQUERQUE – Andrew Barnett, 36, and Summer Provencio, 36, both of Las Cruces, N.M., pled guilty today in federal court to conspiring to create and pass counterfeit U.S. currency.
Barnett and Provencio, together with co-defendants Victoria Perez, 41, and Patrick Fernandez, 33, both of Las Cruces, were charged in a 183-count indictment filed on Feb. 15, 2017. Count 1 of the indictment charged the four defendants with conspiring to create fraudulent U.S. currency from April 2016 through Sept. 2016. Counts 2 to 57 charged Barnett alone with manufacturing counterfeit currency in various denominations from April 2016 through Sept. 2016. Counts 58 to 116 charged Barnett and Perez with manufacturing counterfeit currency in $20 denominations on May 8, 2016. Counts 117 to 124 charged Barnett and Provencio with using counterfeit currency to make purchases on April 18, 2016; and Counts 125 to 183 charged Barnett, Perez and Fernandez with using counterfeit currency to make purchases on May 8, 2016. According to the indictment, the defendants committed these offenses in Dona Ana County, N.M.
During today’s proceedings, Barnett pled guilty to Count 1 of the indictment charging him with conspiracy. In entering the guilty plea, Barnett admitted that from April 2016 through Sept. 2016, he conspired with his co-defendants to manufacture and use counterfeit U.S. currency. According to his plea agreement, on April 18, 2016, Barnett created eight counterfeit five-dollar bills by scanning a real five-dollar bill and printing copies on a home printer. Barnett gave the counterfeit bills to Provencio, who used the bills to pay for hair and nail products at a Las Cruces beauty supply store. On May 8, 2016, Barnett created about 125 counterfeit $20 bills by printing copies on a home printer; this counterfeit currency was used to make purchases at a Las Cruces auto salvage business.
Provencio also pled guilty today to the conspiracy count of the indictment, and admitted that on April 18, 2016, she used eight counterfeit five-dollar bills created by Barnett on a home printer to make a purchase at a Las Cruces beauty supply store.
At sentencing, Barnett and Provencio each face a maximum penalty of five years in federal prison. Sentencing hearings have yet to be scheduled.
Perez and Fernandez have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Las Cruces Police Department. Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
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.
Kakeland Barnes, 37, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an Aug. 31, 2016, federal indictment.
Barnes admitted that she participated in a conspiracy to assist African nationals in circumventing immigration laws by arranging fraudulent marriages. Co-defendants Delmar Dixon, 49, 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 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, Barnes 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 Warns Dishonest Return Preparers Face Criminal Prosecution and Civil InjunctionRead the Press Release
The Department of Justice warns that unscrupulous return preparers who prepare false tax returns will face civil and criminal enforcement. In the last year, the Department of Justice’s Tax Division filed dozens of civil actions throughout the United States seeking court orders to shut down dishonest return preparers who allegedly prepared false tax returns and in collaboration with U.S. Attorney’s Offices prosecuted dozens of returns preparers who prepared false tax returns.
“Return preparer fraud is a significant drain on the U.S. Treasury, and the Justice Department is committed to working with the Internal Revenue Service (IRS) to bring enforcement actions against unscrupulous return preparers who prepare fraudulent tax returns,” said Acting Assistant Attorney General David A. Hubbert. “The Tax Division will use all available enforcement tools to hold dishonest return preparers accountable and protect the U.S. Treasury from further damage.”
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. Indeed, 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. The following is a list of several of those scams with examples of recent enforcement actions taken by the Justice Department.
Falsifying Income to Claim the Earned Income Tax Credit (EITC)
Dishonest return preparers fabricate income on customers’ returns to support a claim for the EITC, which is a credit for working people with low to moderate income and eligibility depends on a variety of factors such as income. For example, in tax year 2016, taxpayers with income between $13,900 and $18,200 were eligible for the maximum EITC. One of the ways to falsely claim the EITC is to fabricate income. For example:
- In Texas, a federal court sentenced a return preparer to 22 months in prison for filing false returns that included fraudulent business income, losses, credits and deductions and sought refunds to which his clients were not entitled;
- In Michigan, the Justice Department filed suit to enjoin a Detroit-area return preparer from preparing tax returns, in part, because she allegedly reported fictitious wages on a customer’s return in order to inflate a claim for the EITC; and
- In Kansas, a return preparer was sentenced to 27 months in prison for filing false returns that included fictitious business income on his clients’ returns in order to qualify them for the EITC.
Falsely Padding Deductions, Such as Charitable Contributions or Business Expenses
Unscrupulous returns preparers report false deductions on customers’ returns in order to reduce the amount of tax a customer owes, often resulting in a higher, but fraudulent, refund. For example:
- In New York, a federal court sentenced a return preparer who fabricated charitable contributions and unreimbursed employee expenses on his customers’ returns to 18 months in prison;
- In North Carolina, a federal court sentenced a return preparer to 18 months in prison for preparing false tax returns that included false unreimbursed employee business expenses; and
- In Florida, a federal court enjoined a West Palm Beach-area return preparer whom the government alleged had claimed false or inflated charitable contributions and office expenses for his customers.
Excessive Claims for Business Credits, such as the Fuel Tax Credit
The Fuel Tax Credit is a business credit generally limited to use of certain types of fuel for off-highway business use. A frivolous claim for the Fuel Tax Credit is typically one for a taxpayer who has not used these types of fuel for off-highway business use. For example:
- In Louisiana, the Justice Department filed suit to enjoin a New Orleans-area return preparer from preparing returns, in part, because she allegedly claimed false Fuel Tax Credits on her customers’ returns; and
- In New York, a federal court sentenced a return preparer to 36 months in prison for preparing false tax returns that included fictitious claims for fuel tax credits for her customer.
Falsely Inflating Refund Claims with False Claims for Education Credits
Education credits are available for certain higher education related expenses. Dishonest preparers claim education credits for customers who have not attended a qualifying educational institution. For example:
- In Mississippi, a federal court enjoined a return preparer that the government alleged made fraudulent claims for educations credits; and
- In California, a return preparer pleaded guilty to preparing false tax returns and admitted that she prepared returns that claimed false education credits.
Return Preparer Fraud
In addition to the tax scams, listed above, unscrupulous return preparers may be prosecuted or enjoined for other types of return preparer fraud. For example:
- In Idaho, a return preparer pleaded guilty to filing false returns without his clients’ knowledge. He included false medical and education expenses to inflate their refunds and then diverted part of the refund into a bank account he controlled;
- In Illinois, a federal court enjoined a return preparer from preparing returns that the government alleged had claimed false filing statuses and dependents for her customers; and
- In Florida, a federal court enjoined the owner of a return preparation business that had at one time stores in Alabama, Florida, Georgia, and North Carolina. The federal court found that the owner and his preparers engaged in a series of widespread fraudulent schemes and ordered the owner to pay the United States more than $950,000 in fees he received from preparing tax returns.
The IRS is reminding taxpayers that there is information available on the IRS’s website regarding the 2017 individual income tax return filing season. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal return preparers. In addition to tips on choosing a return preparer, the IRS warned taxpayers and tax professionals to be aware of scammers impersonating as the IRS. Earlier this year, the IRS alerted the public and tax professionals to some common scams to be aware of and ways to report suspicious activity.
In the past decade, the Tax Division has obtained convictions and injunctions against hundreds of unscrupulous return preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Announces Actions to Dismantle Kelihos BotnetRead the Press Release
The Justice Department today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the AnchorageDivision made the announcement.
“The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks. The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco. “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Department of Justice is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”
“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Bryan Schroder for the District of Alaska. “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation. We are lucky that we have talented FBI agents and federal prosecutors with the skillsets to help protect Americans from this pervasive cybercrime.”
“On April 8, 2017, we started the extraordinary task of blocking malicious domains associated with the Khelios botnet to prohibit further infections,” said FBI Special Agent in Charge Ritzman. “This case demonstrates the FBI’s commitment to finding and eradicating cyber threats no matter where they are in the world.”
Kelihos malware targeted computers running the Microsoft Windows operating system. Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system. According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010. The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic. Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums. The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds. Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.
As with other botnets, Kelihos is designed to operate automatically and undetected on victims’ computers, with the malicious code secretly sending requests for instructions to the botnet operator. In order to liberate the victim computers from the botnet, the United States obtained civil and criminal court orders in the District of Alaska. These orders authorized measures to neutralize the Kelihos botnet by (1) establishing substitute servers that receive the automated requests for instructions so that infected computers no longer communicate with the criminal operator and (2) blocking any commands sent from the criminal operator attempting to regain control of the infected computers.In seeking authorization to disrupt and dismantle the Kelihos botnet, law enforcement obtained a warrant pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. A copy of this warrant along with the other court orders are produced below. The warrant obtained by the government authorizes law enforcement to redirect Kelihos-infected computers to a substitute server and to record the Internet Protocol addresses of those computers as they connect to the server. This will enable the government to provide the IP addresses of Kelihos victims to those who can assist with removing the Kelihos malware including internet service providers.
The efforts to disrupt and dismantle the Kelihos botnet were led by the FBI’s Anchorage Office and New Haven Office; Senior Counsel Ethan Arenson and Harold Chun, and Trial Attorney Frank Lin of the Computer Crime and Intellectual Property Section; and Assistant U.S. Attorneys Yvonne Lamoureux and Adam Alexander of the District of Alaska. Critical assistance was also provided by foreign partners, and invaluable technical assistance was provided by Crowd Strike and The Shadow server Foundation in executing this operation.
The details contained in the civil complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The Government has and will continue to share samples of the Kelihos malware with the internet security community so that antivirus vendors can update their programs to detect and remove Kelihos. A number of free and paid antivirus programs are already capable of detecting and removing Kelihos, including the Microsoft Safety Scanner, a free product.
The documents filed by the Government as well as the court orders entered in this case are available online at the following web address: www.justice.gov/opa/documents-and-resources-related-us-v-peter-yuryevich-levashov
Justice Department Announces Actions to Dismantle Kelihos BotnetRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the Anchorage Division made the announcement.
"The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks. The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco. “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Department of Justice is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”
“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Schroder. “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation. We are lucky that we have talented FBI agents and federal prosecutors here in Alaska with the skillsets to help protect Alaskans from this insidious electronic disease.”
“On April 8, 2017, we started the extraordinary task of blocking malicious domains associated with the Kelihos botnet to prohibit further infections,” said FBI Special Agent in Charge Ritzman. “This case demonstrates the FBI’s commitment to finding and eradicating cyber threats no matter where they are in the world.”
Kelihos malware targeted computers running the Microsoft Windows operating system. Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system. According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010. The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic. Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums. The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds. Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.
As with other botnets, Kelihos is designed to operate automatically and undetected on victims’ computers, with the malicious code secretly sending requests for instructions to the botnet operator. In order to liberate the victim computers from the botnet, the United States obtained civil and criminal court orders in the District of Alaska. These orders authorized measures to neutralize the Kelihos botnet by (1) establishing substitute servers that receive the automated requests for instructions so that infected computers no longer communicate with the criminal operator and (2) blocking any commands sent from the criminal operator attempting to regain control of the infected computers.
In seeking authorization to disrupt and dismantle the Kelihos botnet, law enforcement obtained a warrant pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. A copy of this warrant along with the other court orders are produced below. The warrant obtained by the government authorizes law enforcement to redirect Kelihos-infected computers to a substitute server and to record the ternet Protocol addresses of those computers as they connect to the server. This will enable the government to provide the IP addresses of Kelihos victims to those who can assist with removing the Kelihos malware including internet service providers.
The efforts to disrupt and dismantle the Kelihos botnet were led by the FBI’s Anchorage Office and New Haven Office; Senior Counsel Ethan Arenson and Harold Chun, and Trial Attorney Frank Lin of the Computer Crime and Intellectual Property Section; and Assistant U.S. Attorneys Yvonne Lamoureux and Adam Alexander of the District of Alaska. Critical assistance was also provided by foreign partners, and invaluable technical assistance was provided by CrowdStrike and The Shadowserver Foundation in executing this operation.
The details contained in the civil complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The Government has and will continue to share samples of the Kelihos malware with the internet security community so that antivirus vendors can update their programs to detect and remove Kelihos. A number of free and paid antivirus programs are already capable of detecting and removing Kelihos, including the Microsoft Safety Scanner, a free product.
The documents filed by the Government as well as the court orders entered in this case are available online at the following web address:
- Complaint
- Motion for TRO & Order to Show Cause
- Memorandum of Law in Support of TRO
- Declaration in Support of TRO
- TRO & Order to Show Cause
- Search Warrant
- Search Warrant Application & Affidavit
- PRTT Order
- PRTT Application
Joint Federal & State Press Conference to Announce Results of Prosecutions Targeting Violence & Gang Activity in Cann ParkRead the Press Release
SAVANNAH, GA – Acting U.S. Attorney Jim Durham, ATF RAC Tim Graden, District Attorney Meg Heap, SCMPD Chief Joseph Lumpkin, CNT Deputy Commander Terry Shoop and other federal and state law enforcement officials will hold a news conference today to discuss the results of joint federal and state law enforcement actions targeting violent crime and gang activity in the Cann Park neighborhood (Savannah). Acting U.S. Attorney Durham, District Attorney Heap and SCMPD Chief Lumpkin will provide brief remarks, to be followed by an opportunity for media questions.
Event:
News conferenceDate/Time:
April 10, 2017 at 1:30 p.m.Location:
U.S. Attorney’s Office22 Barnard Street, Suite 300
Savannah, GA 31401Participants:
Acting U.S. Attorney Jim Durham
ATF RAC Tim Graden
District Attorney Meg Heap
SCMPD Chief Joseph LumpkinCNT Deputy Commander Terry Shoop
Miscellaneous:
Press and law enforcement personnel should arrive at least 20 minutes early so they may be escorted to the U.S. Attorney’s Office 6th floor conference room.Investigations by IRS Lead to Cases Against Tax Return PreparersRead the Press Release
LOS ANGELES –The United States Attorney’s Office and IRS Criminal Investigation today announced a 10-year prison sentence against one defendant and the filing of three criminal cases against four individuals who were involved in the preparation of fraudulent income tax returns.
While the vast majority of tax professionals provide honest and high-quality services, there are some dishonest return preparers who operate each filing season and perpetrate refund fraud, identity theft and other scams that hurt taxpayers. IRS Criminal Investigation and federal prosecutors work closely to shut down tax fraud schemes and prosecute the criminals behind them.
“The majority of tax return preparers are focused on helping taxpayers comply with their obligations to file timely and honest tax returns. The IRS relies upon these professionals to file truthful and accurate returns to deter tax fraud,” said Acting United States Attorney Sandra R. Brown. “Dishonest tax return preparers who defy the tax laws, whether for their own personal financial gain or to fraudulently obtain money for their clients, will be shut down permanently and face federal prosecution, which can result in significant prison sentences.”
“With the April 18th tax deadline looming, those who might consider preparing false tax returns should be aware of the extremely negative consequences of doing so,” stated Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation. “The IRS enforces the nation’s tax laws, but also takes particular interest in return preparers who unjustly enrich either themselves or their clients by preparing false claims for refunds. Be assured that the IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable.”
Oxnard Return Preparer Sentenced to 10 Years in Federal Prison in Scheme that Filed Nearly 13,000 Returns that Sought over $56 Million in Refunds
An Oxnard-based tax return preparer was sentenced this morning to 120 months in federal prison for his participation in a conspiracy to prepare and file approximately 12,825 fraudulent income tax returns that claimed more than $56 million in refunds.
Rodrigo Pablo “Paul” Lozano, also known as “El Profe,” 61, was sentenced by United States District Judge Philip S. Gutierrez.
Before the Internal Revenue Service was able to identify and stop the scheme, it had already paid out more than $23 million in refunds to Lozano and his co-conspirators. During today’s sentencing, Judge Gutierrez ordered Lozano to pay restitution of $23,094,300 to the IRS.
Lozano owned and operated an income tax preparation business – Lozano & Associates - Ayuda (“help” in Spanish) – where he hired, trained and supervised primarily Latino females in their late teens or early 20s to prepare clients’ federal income tax returns. Lozano operated his business by renting space from businesses that catered to Latino clients, such as a meat market on Hueneme Road in Oxnard. Lozano, a naturalized United States citizen from Mexico, went by the name “El Profe,” as he was a teacher before he began preparing tax returns.
Following a two-week jury trial last July, Lozano was found guilty of one count of conspiracy to defraud the United States. According to the evidence presented at trial, members of the conspiracy obtained Individual Tax Identification Numbers (ITINs), which are issued in lieu of a social security number to undocumented workers in the United States to allow them to file tax returns. The evidence demonstrated that co-conspirators provided Lozano with fake identification documents, such as Mexican Consular Identification Cards – also known as Matrícula cards – and birth certificates, which Lozano used to obtain ITINs in the names shown on the fake identification documents.
Using fake wage and tax statements (Forms W-2) and fictitious dependents, Lozano used the ITINs to file income tax returns that claimed the Additional Child Tax Credit, an IRS refund program designed to assist lower-income taxpayers with children. The fraudulent tax returns typically sought $3,000 to $4,000 in refunds. Lozano submitted nearly 13,000 false tax returns in an 18-month period in 2011 and 2012 while his employees were telling him that the identity and W-2 documents looked suspicious and the IRS was sending hundreds of warning notices stating that the tax returns and W-2s were invalid. Despite the repeated warnings, Lozano continued to direct his employees to file the fraudulent tax returns.
Lozano split the tax refunds with his co-conspirators. At times, he had employees count out tens of thousands of dollars in cash in a bathroom located next to his office space.
The case against Lozano was prosecuted by Assistant United States Attorney Byron J. McLain of the Major Frauds Section.
Owner of West Covina Tax Preparation Business and Associate Face Conspiracy and Other Federal Charges for Filing Hundreds of Allegedly Fraudulent Returns
The former owner of a West Covina tax preparation business has been arrested on charges that he and a co-conspirator used stolen identities to file 341 fraudulent federal and state tax returns that caused tax authorities to issue approximately $741,099 in tax refunds.
Ashrf Mohammed Aly, 42, the former owner and operator of Speedy Tax Service in West Covina, was arrested on April 3 by special agents with IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Aly and a second defendant in the case – Arthur Bakunts, 39 – were named in a 13-count indictment returned on March 14 by a federal grand jury. The indictment charges Aly and Bakunts with conspiracy, wire fraud, unlawful possession of another person’s identification, and aggravated identity theft. Bakunts was arrested in February pursuant to a criminal complaint initially filed in this case.
According to court documents, Aly and Bakunts obtained stolen identities and filed fraudulent federal and state income tax returns in the names of the identity theft victims. The fraudulent tax returns were filed electronically from locations in Mexico and Chula Vista, and the refunds were diverted to Aly and Bakunts.
Bakunts had multiple identity profiles, tax refund checks, and other trappings of identity fraud in his car when he was stopped at a sobriety checkpoint in Glendale on May 24, 2014, according to court documents.
Aly and Bakunts each have entered not guilty pleas to the charges in the indictment. Both men are in custody without bond pending trial. United States District Judge Dale S. Fischer has scheduled trials on May 9 for Bakunts and May 30 for Aly.
If convicted of the charges in the indictment, each defendant would face a maximum sentence of 145 years, plus consecutive two-year sentences for each of four counts of aggravated identity theft.
The case is being prosecuted by Assistant United States Attorney Ranee A. Katzenstein.
Carson Resident Indicted for Tax Return Preparer Fraud
Minon Miller, 52, of Carson, was indicted last week on charges that she prepared and filed fraudulent federal income tax returns for both her clients and herself. Miller will be summonsed to appear for an arraignment in United States District Court.
A federal grand jury returned a 41-count indictment last Thursday that charges Miller with 37 counts of aiding and assisting in the preparation of fraudulent income tax returns, two counts of subscribing to fraudulent tax returns that she filed on her own behalf, and two counts of failing to file an individual tax return.
The indictment alleges that, from 2011 through 2016, Miller prepared and filed 37 tax returns on behalf of her clients that falsely claimed itemized deductions, business income and expenses, education credits and residential energy credits.
The indictment also alleges that Miller filed two personal tax returns that under- reported her actual income. Miller’s 2010 and 2011 tax returns claimed gross receipts, respectively, of $12,155 and $26,200, when Miller knew she received substantially more than the figures on the tax returns, according to the indictment.
In addition, Miller failed to file her 2012 and 2013 individual income tax returns.
If she is convicted, Miller would face a statutory maximum sentence of three years in federal prison for each of the 41 counts in the indictment.
<The case against Miller is being prosecuted by Assistant United States Attorney Paul Rochmes of the Tax Division.
Long Beach Resident Indicted for Tax Fraud
A Long Beach man has been named by a federal grand jury in a 10-count superseding indictment that alleges he prepared and filed fraudulent federal income tax returns for both his clients and himself.
Lewis Jefferson Jr., 60, was charged last Wednesday and will be ordered to appear for an arraignment in United States District Court.
The superseding indictment charges Jefferson with eight counts of aiding and assisting in the preparation of fraudulent income tax returns and two counts of subscribing to fraudulent tax returns that he filed on his own behalf.
The superseding indictment replaces a eight-count indictment filed in January.
The superseding indictment alleges that over the course of 2011, Jefferson prepared and filed eight tax returns on behalf of seven clients that claimed false itemized deductions. The taxpayers were not entitled to claim the deductions – which ranged from $4,272 to $38,493 – on their tax returns.
The indictment also alleges that Jefferson filed two personal tax returns that under-reported his actual income. The 2010 and 2011 tax returns claimed gross receipts of $207,545 and $242,590, respectively, and Jefferson knew he received substantially more gross receipts than stated on the returns, according to the indictment.
If he is convicted of the 10 counts in the indictment, Jefferson will face a statutory maximum penalty of 30 years in federal prison.
The case against Jefferson is being prosecuted by Assistant United States Attorneys Charles Parker and James C. Hughes of the Tax Division.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
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.
Gulf Breeze Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Thomas E. Matassa, 24, of Gulf Breeze, pled guilty today to receipt of child pornography. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2016, a detective interviewed Matassa, who admitted to downloading child pornography online. A forensic examination of Matassa’s laptop revealed approximately 200 images of child pornography and more than 30,000 chat messages with underage males to exchange videos and images of child sexual acts. The defendant is detained, pending sentencing.
Matassa faces a maximum of 20 years and a minimum of 5 years in prison. The sentencing hearing is scheduled for June 29 at 1:00 p.m. at the United States Courthouse in Pensacola.
The case is being investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Georgia Bureau of Investigation, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
Gary’s Steals and Deals Owner Sentenced to 15 More Months in Prison for Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Portage, Pa. has been sentenced in federal court in Johnstown to 15 months in prison, consecutive to a sentence he is presently serving on a case prosecuted in the Middle District of Pennsylvania, and three years’ supervised release, on his conviction of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Gary E. Vaughn, 43, of Portage, Pa.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, PA, that dealt in new and used merchandise. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customer” coming into the store, or was received by the employees as proceeds of this conduct.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Vaughn.
Garden Grove Man Who Traveled to Canada to Have Sex with Girl He Met Online Sentenced to over 7 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A Garden Grove man who convinced a 13-year-old girl he met online to send him explicit videos – and then traveled to Canada to have sex with the victim – was ordered this afternoon to serve 87 months in federal prison.
Paul Binh Do, 30, was sentenced by United States District Judge David O. Carter.
Once he completes the prison term, Do will be on supervised release for the rest of his life.
Do pleaded guilty in May 2016 to one count of traveling with the intent to engage in illicit sexual conduct and one count of receipt of child pornography.
According to documents filed in United States District Court, Do began an online relationship with the then-13-year-old girl in September 2013, and soon thereafter they began exchanging naked videos of themselves engaging in sexual conduct.
In May 2014, Do traveled to Canada from Orange County to celebrate the victim’s 14th birthday and have sex with her, but he was stopped by Canadian law enforcement as he attempted to enter into the country.
When he was stopped by Canadian authorities, Do possessed digital devices that contained naked videos of the victim. Following his arrest in Canada, Do obstructed justice when he contacted the victim and asked her to tell law enforcement that she had lied to Do about her age when, in fact, she had been completely truthful about being 13.
In a sentencing memorandum filed with the court, prosecutors noted that evidence gathered from Do’s digital devices “showed that defendant was having conversations of a sexual nature with five other individuals that had indicated that they were minor girls.”
In August 2016, after he pleaded guilty, Do’s bond was revoked and he was remanded into custody after he visited eight different Orange County parks on 12 different occasions in violation of the terms of his release. At the time, Do claimed that he was playing Pokemon Go when he went to the parks in July 2016.
The investigation into Do was conducted by the Orange County Child Exploitation Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The Task Force received substantial assistance from HSI’s attaché office in Vancouver, the Calgary Police Service, Canada Border Services Agency, and the Royal Canadian Mounted Police’s Southern Alberta Internet Child Exploitation Unit.
The case against Do was prosecuted by Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office.
Franklin, Pennsylvania Man Sentenced to 7+ Years in Prison for Illegally Possessing Gun, HeroinRead the Press Release
ERIE, Pa. - A former resident of Franklin, Pennsylvania, has been sentenced in federal court to 92 months in jail on his conviction of violating federal drug and firearm laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Raheem Hasan Carney, 40.
According to information presented to the court, Carney possessed with intent to distribute more than an ounce heroin at a residence in Erie, Pennsylvania. In addition, Carney unlawfully possessed a stolen .40 caliber Glock pistol, a .12 gauge shotgun, and ammunition while being prohibited from firearm possession because he is a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Carney.
Franklin Man Convicted of Producing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that late on Friday (April 7, 2017), a federal jury found Brad Smith, age 33, of Franklin, New Hampshire, guilty of six counts of producing child pornography after a three-day trial.
Evidence presented at trial showed that in January of 2016, law enforcement officers in Lafayette, Louisiana received a tip that an email address associated with the defendant was distributing child pornography. Officers traced the email address to a farm in Breaux Bridge, Louisiana, where the defendant was living at the time. With the defendant’s consent, officers conducted an analysis of a hard drive owned by the defendant and uncovered a series of videos apparently created by the defendant. The investigation determined that the defendant had filmed himself engaging in multiple sexual acts with a three-and-half-year-old child in Loudon, New Hampshire. The defendant saved the videos to a hard drive and took them with him to Louisiana.
Acting United States Attorney Farley commended the jury’s verdict, saying “The evidence in this trial demonstrated that the defendant committed horrific acts upon a defenseless young child. Even more terribly, he filmed these acts in order to create child pornography. The United States Attorney’s Office and our law enforcement partners will work tirelessly to prosecute individuals who steal the innocence of young victims. I commend the performance of the law enforcement officers and prosecutors whose work secured this conviction. I hope that the jury’s verdict provides some comfort to the victim and the victim’s family.”
Sentencing is scheduled for July 18, 2017.
The investigation in this case was led by Homeland Security Investigations in Lafayette, Louisiana and Manchester, New Hampshire, the Louisiana State Police, and the Concord, New Hampshire Police Department with the assistance of the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorneys Seth Aframe and Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Prison Guard Sentenced for Taking Bribes from InmatesRead the Press Release
KANSAS CITY, KAN. - A former federal prison guard was sentenced Monday to three years in federal prison for taking bribes to smuggle tobacco to inmates, U.S. Attorney Tom Beall said.
Marc Buckner, 47, Kansas City, Kan., pleaded guilty to one count of a public official accepting bribes. In his plea, he admitted the crimes occurred while he worked as a guard at Leavenworth Penitentiary. Buckner said he was paid each time he smuggled tobacco into the prison. He hid tobacco and rolling papers in two handmade insoles in his shoes.
Inmates paid Buckner $750 for each can of Bugler brand tobacco and rolling papers he smuggled. He said he smuggled tobacco once or twice a month for years.
Beall commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former Pit Boss, Two Blackjack Dealers, and a Player Indicted for Cheating Conspiracy at Dakota Sioux CasinoRead the Press Release
United States Attorney Randolph J. Seiler announced that four individuals have been indicted by a federal grand jury for Conspiracy and Theft by Employees of a Gaming Establishment on Indian Land.
Lito Banbilla Bolocon, age 44, and Fern Freya Gill, age 52, appeared before U.S. Magistrate Judge William D. Gerdes on March 30, 2017, and pled not guilty to the Superseding Indictment. Jeremy Kris Brown, age 43, appeared before Magistrate Judge Gerdes on February 23, 2017, and pled not guilty to the Indictment. Jordan Anthony Rondell, age 29, appeared before Magistrate Judge Gerdes on April 4, 2017, and pled not guilty to the Superseding Indictment.
The maximum term of imprisonment upon conviction is up to 5 years for Conspiracy and up to 20 years for Theft by an Employee of a Gaming Establishment on Indian Land. Each offense also carries a $250,000 fine, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Dakota Sioux Casino (“DSC”) is a gaming establishment located approximately five miles north of Watertown, in Codington County, South Dakota. The DSC is also located on the Lake Traverse Indian Reservation and is operated by the Sisseton Wahpeton Oyate Sioux Tribe.
According to the Superseding Indictment, Bolocon worked at the DSC as a pit boss, and Brown and Gill worked as blackjack dealers. Rondell was a customer of the DSC whom frequently played blackjack.
As alleged, in December 2015 and through January 1, 2016, Bolocon, Brown, Gill, and Rondell conspired to enrich themselves by unlawfully obtaining gaming chips and money from the DSC. Specifically, in December 2015, Defendants devised a plan to cheat the DSC of monies derived during the gambling operations taking place on New Year’s Eve 2015 and into January 1, 2016. The agreement was for Rondell to unlawfully make a large sum of money from illegitimate winnings paid by Brown and Gill, and Rondell would then pay-off the other defendants for their participation. Rondell cashed-out approximately $10,000 from the DSC after playing at Brown’s and Gill’s respective blackjack tables, which were supervised by Bolocon.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Oyate Sioux Tribe’s Gaming Commission. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bolocon, Gill, and Brown were released pending trial. Rondell was detained. A trial date has been set for June 6, 2017 for Bolocon, Gill, and Brown. A trial date for Rondell has not been set.
Former Orcas Island Bookkeeper Pleads Guilty to Wire Fraud for Embezzling from EmployerRead the Press Release
A former resident of Eastsound, Orcas Island, Washington pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with her scheme to steal from her employers, announced U.S. Attorney Annette L. Hayes. SARAH ELIZABETH COFFELT, 42, who now resides in Seattle, worked for a retired couple and their business and non-profit entities as a bookkeeper from 2003 until she was terminated for theft in 2016. COFFELT admits in her plea agreement that she stole more than $755,000 from the couple’s accounts by transferring money from their accounts to her own, by forging checks and by using business credit cards for her family’s personal expenses. U.S. District Judge Thomas S. Zilly scheduled sentencing for July 13, 2017.
According to the facts admitted in the plea agreement, in 2003 COFFELT was hired to handle bookkeeping duties for the couple and various entities they owned including Apogee Flight Incorporated, L.L.C. (Apogee) which owned aircraft and hangars, and the non-profit Heritage Flight Museum (HFM). COFFELT’S duties included handling the payroll for the house, Apogee and HFM employees as well as the bills for Apogee, HFM and other entities. Even as she worked as a bookkeeper, COFFELT and her husband owned Moon Glow Arts and Crafts, a store in Eastsound. COFFELT admits that she used money from her employers’ accounts to pay the expenses of the business, as well as other expenses such as trips for her family, her mortgage, her taxes and more than $30,000 in fuel charges.
COFFELT was able to hide her embezzlement by having the couple’s bank and business credit card statements sent to her home so that she was the only person reviewing them. She used a company credit card that was supposed to be for moderate unusual fuel charges by a maintenance worker to charge more than $30,000 for her family’s expenses and allowed the maintenance worker to charge a similar amount.
COFFELT has agreed to pay $755,378 in restitution. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. This is the maximum penalty allowed by law. The actual sentence imposed in any case will reflect the specific facts of the crime, including the impact on any victims and the defendant.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Susan Roe.
Five RGV Residents Charged with Medicare Fraud and Illegal KickbacksRead the Press Release
McALLEN, Texas – Five local residents have been charged following an operation conducted by the Rio Grande Valley (RGV) health care fraud task force targeting Medicare fraud and the payment of illegal kickbacks, announced Acting U.S. Attorney Abe Martinez.
Brenda de la Cruz, 39, and Francisco Rangel, 59, both of Mission; Sonia Garcia, 51, of McAllen; Aurora de la Garza, 54, of Harlingen; and Luis Manuel Garza, 39, of Brownsville, are all charged in separate, but similar criminal informations.
According to the charging documents, each of the five individuals engaged in conspiracies to refer Medicare beneficiaries to a home health agency in exchange for illegal kickback payments. In many instances, the referred Medicare beneficiaries allegedly did not need or qualify for home health services, resulting in the submission of fraudulent claims to Medicare, according to the charges.
Conspiracy to commit health care fraud, carries a maximum punishment of 10 years in federal prison and up to a $250,000 maximum fine. Conspiracy to make or receive illegal kickbacks carries a possible five-year prison term and a maximum $25,000 fine, upon conviction.
The FBI, U.S. Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission-Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the cases.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Executive Office for Immigration Review Swears in 14 Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of 14 new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held April 7, 2017, at EOIR headquarters in Falls Church, Va.
After a thorough application process, former Attorney General Loretta E. Lynch appointed Justin F. Adams, Edward M. Barcus, Paula J. Donnolo, Lauren T. Farber, Paul M. Habich, Cara O. Knapp, Maria Lurye, Anthony E. Maingot, Sarah B. Mazzie, Matthew E. Morrissey, An Mai Nguyen, Sean D. Santen, Stuart A. Siegel, and Gwendylan E. Tregerman to their new positions.
“We are happy to welcome these 14 appointees to our growing immigration judge corps,” said Keller. “These new immigration judges will enhance the agency’s ability to process detained cases, our highest priority, while also strengthening the agency’s capacity to address its broader pending caseload.”
Biographical information follows.
Justin F. Adams, Immigration Judge, San Antonio Immigration Court
Former Attorney General Loretta E. Lynch appointed Justin F. Adams to begin hearing cases in April 2017. Judge Adams earned a Bachelor of Science degree in 1999 from the U.S. Air Force Academy and a Juris Doctor in 2004 from Suffolk University Law School. He served as deputy chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security from February 2011 to March 2017, and as an assistant chief counsel from 2007 to 2011. From 2004 through 2007, he was an attorney for the U.S. Air Force. Judge Adams is a member of the State Bar of Texas.
Edward M. Barcus, Immigration Judge, Imperial Immigration Court
Former Attorney General Loretta E. Lynch appointed Edward M. Barcus to begin hearing cases in April 2017. Judge Barcus earned a Bachelor of Arts degree in 1984 from Austin College and a Juris Doctor in 1988 from the University of Texas School of Law. He has been the interim executive director of Iron Gate in Tulsa, Okla., since November 2016. From 2015 through 2016, he was a conflict consultant for Concord Consultants Inc. From 2012 through 2015, he was a district judge for the Tulsa County District Court. From 2003 to 2012, he was a special judge for the State of Oklahoma, serving as Vice Chief Judge of the Family Division, Tulsa County District Court, from 2010 to 2012. From 2000 through 2003, he served as the first Family Court Referee for Tulsa County. Judge Barcus is a member of the Oklahoma Bar.
Paula J. Donnolo, Immigration Judge, New York City Immigration Court
Former Attorney General Loretta E. Lynch appointed Paula J. Donnolo to begin hearing cases in April 2017. Judge Donnolo earned a Bachelor of Arts degree in 1968 from St. John’s University and a Juris Doctor in 1980 from New York Law School. From 2001 to January 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in New York, N.Y. From 1991 through 2001, she served as general corporate counsel for ATC Real Estate Development Corporation. From 1981 to 1983, she was a litigation attorney at the Teamster Local 237 Legal Services Plan. Judge Donnolo is a member of the New York State Bar.
Lauren T. Farber, Immigration Judge, Varick Street Immigration Court
Former Attorney General Loretta E. Lynch appointed Lauren T. Farber to begin hearing cases in April 2017. Judge Farber earned a Bachelor of Arts degree in 1999 from Washington University in St. Louis and a Juris Doctor in 2003 from the American University Washington College of Law. From 2010 through 2017, she served as a senior attorney for the Office of the Chief Counsel (OCC), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS) in New York, N.Y. From 2003 to 2010, she served as an assistant chief counsel for OCC, ICE, DHS. Judge Farber is a member of the New York and New Jersey State Bars.
Paul M. Habich, Immigration Judge, Imperial Immigration Court
Former Attorney General Loretta E. Lynch appointed Paul M. Habich to begin hearing cases in April 2017. Judge Habich earned a Bachelor of Arts degree in 2004 from The University of Wisconsin–Madison and a Juris Doctor in 2008 from the Arizona State University Sandra Day O’Connor College of Law. From June 2009 to March 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2008 to 2009, he was an associate attorney with the law firm Lathrop & Clark LLP, in Madison, Wis. From 1996 through 2000, he served in the U.S. Marine Corps. Judge Habich is a member of the State Bar of Wisconsin.
Cara O. Knapp, Immigration Judge, Florence Immigration Court
Former Attorney General Loretta E. Lynch appointed Cara O. Knapp to begin hearing cases in April 2017. Judge Knapp earned a Bachelor of Arts degree in 1997 from the University of Arizona and a Juris Doctor in 2001 from the Arizona State University Sandra Day O’Connor College of Law. From September 2002 through March 2017, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2001 to 2002, she clerked for Arizona Supreme Court Justice Michael D. Ryan. Judge Knapp is a member of the State Bar of Arizona.
Maria Lurye, Immigration Judge, New York City Immigration Court
Former Attorney General Loretta E. Lynch appointed Maria Lurye to begin hearing cases in April 2017. Judge Lurye earned a Bachelor of Science degree in 2001 from Rutgers University–New Brunswick and a Juris Doctor in 2007 from the Rutgers School of Law–Newark. From 2008 to January 2017, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in New York, N.Y. She was previously an associate attorney with the Kuba Law Firm in New York City. Judge Lurye is a member of the New Jersey and New York State Bars.
Anthony E. Maingot, Immigration Judge, Miami Immigration Court
Former Attorney General Loretta E. Lynch appointed Anthony E. Maingot to begin hearing cases in April 2017. Judge Maingot earned a Bachelor of Arts degree in 1981 from the University of Texas at Austin and a Juris Doctor in 1991 from The University of Miami School of Law. From September 2008 through March 2017, he served as an assistant U.S. Attorney for the District of Arizona, Tucson, Department of Justice. From 1997 to January 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in Miami, Fla. From 1991 through 1997, he served as an assistant public defender in the Miami-Dade County Public Defender’s Office. Judge Maingot is a member of the Florida Bar.
Sarah B. Mazzie, Immigration Judge, Miami Krome Immigration Court
Former Attorney General Loretta E. Lynch appointed Sarah B. Mazzie to begin hearing cases in April 2017. Judge Mazzie earned a Bachelor of Science degree in 2002 from The University of Wisconsin–Madison and a Juris Doctor in 2006 from the DePaul University College of Law. From 2014 to March 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Fort Snelling, Minn., and from 2011 to 2014 in Lumpkin, Ga. Judge Mazzie practiced law in Madison, Wis., as a partner in her own firm Gennerman, Mazzie-Briscoe Law Group from 2008 through 2011, and as an associate attorney with Sipsma, Hahn & Brophy from 2007 to 2008. From 2006 through 2007, she served as an immigration attorney for the Wisconsin Coalition Against Domestic Violence. Judge Mazzie is a member of the State Bar of Wisconsin.
Matthew E. Morrissey, Immigration Judge, Omaha Immigration Court
Former Attorney General Loretta E. Lynch appointed Matthew E. Morrissey to begin hearing cases in April 2017. Judge Morrissey earned a Bachelor of Arts degree in 2001 from Saint Louis University and a Juris Doctor in 2004 from the Creighton University School of Law. From 2008 to March 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Omaha, Neb. From January 2004 to 2008, he was an associate attorney with Chandra Law Office. Judge Morrissey is a member of the Nebraska State Bar and the Missouri Bar.
An Mai Nguyen, Immigration Judge, Los Angeles Immigration Court
Former Attorney General Loretta E. Lynch appointed An Mai Nguyen to begin hearing cases in April 2017. Judge Nguyen earned a Bachelor of Arts degree in 1996 from the University of Southern California and a Juris Doctor in 2000 from Southwestern Law School. From March 2007 to March 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Las Vegas, Nev. During this post, she served as special assistant U.S. attorney for the District of Nevada from 2009 to 2011. From 2000 through 2003, she served as an assistant district counsel for the former Immigration and Naturalization Service, Department of Justice, in Los Angeles, entering on duty through the Attorney General’s Honors Program. Judge Nguyen is a member of the State Bar of California.
Sean D. Santen, Immigration Judge, Boston Immigration Court
Attorney General Loretta E. Lynch appointed Sean D. Santen to begin hearing cases in April 2017. Judge Santen earned a Bachelor of Arts degree in 2001 from the University of Illinois at Urbana–Champaign, a Master of Arts in 2003 from American University and a Juris Doctor in 2006 from the Indiana University Maurer School of Law. From September 2008 to March 2017, he served as an assistant regional counsel at the Office of General Counsel, Social Security Administration, in Boston, Mass. From 2006 through 2008, he served as a Judicial Law Clerk and Attorney Advisor for the San Antonio Immigration Court, Executive Office for Immigration Review, Department of Justice, entering on duty through the Attorney General’s Honors Program. Judge Santen is a member of the Massachusetts Bar.
Stuart A. Siegel, Immigration Judge, Miami Immigration Court
Former Attorney General Loretta E. Lynch appointed Stuart A. Siegel to begin hearing cases in April 2017. Judge Siegel earned a Bachelor of Arts degree in 1984 from the University of Michigan and a Juris Doctor in 1987 from the Touro College Jacob D. Fuchsberg Law Center. From December 1997 to March 2017, he served as an Assistant Chief Counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in Pompano Beach, Fla. From 1994 to 1997 he was an associate attorney with Adorno & Zeder, PA, in West Palm Beach, Fla. From 1992 to 1994 he served as an administrative law judge for the New York City Department of Transportation. Prior to that role, he was a solo practitioner at the law offices of Stuart A. Siegel, Esq. Judge Siegel also served as assistant district attorney for Nassau County, N.Y., from 1987 to 1992. He was commissioned into the U.S. Army Reserves, Judge Advocate General in September 1994, and continues to serve. Judge Siegel is a member of the Florida Bar and the New York State Bar.
Gwendylan E. Tregerman, Immigration Judge, Atlanta Immigration Court
Former Attorney General Loretta E. Lynch appointed Gwendylan E. Tregerman to begin hearing cases in April 2017. Judge Tregerman earned a Bachelor of Arts degree from Stony Brook University in 1992 and a Juris Doctor in 1996 from the Boston University School of Law. From August 2002 to March 2017, she worked for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Boston, Mass., serving as deputy chief counsel from 2013 to 2017, senior attorney from 2007 to 2013, and assistant chief counsel from 2002 to 2007. Prior to these roles, she was a staff attorney for the U.S. Court of Appeals for the Eleventh Circuit in Atlanta, Ga., from 1997 to 2000, and served as acting supervisory staff attorney from 2000 to 2001. Judge Tregerman is a member of the New York State Bar, the Massachusetts Bar, and the State Bar of Georgia.
Elkhart, Indiana Man Pleads Guilty to Transporting Cocaine from Texas to Pennsylvania and OhioRead the Press Release
ERIE, Pa. - A former resident of Elkhart, Indiana, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
Ancelmo Ayala, 42, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Ayala engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The cocaine that was coming from Texas was being transported to Erie and Ohio for further distribution. According to information disclosed to the court, Ayala was one of the conspirators who transported the drug trafficking organization’s cocaine to Erie in a vehicle equipped with hidden compartments.
Judge Cercone scheduled sentencing for August 14, 2017 at 12:45 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police conducted the investigation that led to the prosecution of Ayala.
Elk Grove Man Charged with Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Alexander Jordan Miller, 21, of Elk Grove, was arrested on Friday, charged with production of child pornography and possession of child pornography, U.S. Attorney Phillip A. Talbert announced. Miller is scheduled to be arraigned today before U.S. Magistrate Judge Edmund F. Brennan.
A six-count indictment, unsealed after his arrest, was returned by a federal grand jury on April 6, 2017. According to court documents, between March 2015 and September 2015, Miller obtained nude images of children between the ages of 11 and 15 years old, then threatened to distribute those images if the victims did not produce and provide him with sexually explicit videos. In addition, Miller also possessed other images of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
If convicted, each count of child pornography production carries a minimum statutory penalty of 15 years in prison and a maximum penalty of 30 years in prison. If convicted of the possession of child pornography charge, Miller faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Colorado Man Sentenced to 13 Years in Federal Prison for Enticing Minor to Engage in Sexual ActivityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 7, 2017, NATHANIEL SMITH, 30, of Aurora, Colorado, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 156 months of imprisonment, followed by 15 years of supervised release, for enticing a minor to engage in sexual activity.
According to court documents and statements made in court, in January 2016, SMITH used his cell phone and internet-based messaging and video chatting services, including Kik and Skype, to entice a 13-year-old female to engage in sexual activity. On January 25, 2016, SMITH was arrested in New London after he traveled from Colorado to meet the girl.
SMITH has been detained since his arrest. On December 13, 2016, he pleaded guilty to one count of enticement of a minor to engage in sexual activity.
This matter was investigated by the Federal Bureau of Investigation, New London Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Charlestown Woman Pleads Guilty to Social Security, Medicaid, and Food Stamp FraudRead the Press Release
CONCORD, N.H. – Ruth Chandler a/k/a Ruth Patterson, 55, of Charlestown, pleaded guilty in federal court on Friday to one count of Social Security Fraud and two counts of Making False Statements, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, Chandler began receiving Social Security disability benefits as of April 2008. She also received Medicaid benefits and Food Stamps, also known as SNAP benefits, beginning in September 2008. Eligibility for each of these benefits programs is based, in part, on the applicant having limited income and resources. In assessing a married individual’s eligibility for Social Security disability benefits, Medicaid, and Food Stamps, the income of the applicant’s spouse is considered.
Chandler married in May 2008, but she failed to disclose her marriage to Social Security as required. Instead, she reported that she was divorced and not currently married. When Social Security officials discovered a bank account held jointly by Chandler (in her married name of Patterson) and her husband in September 2014 as part of an eligibility redetermination, Chandler falsely stated that the bank listed her name incorrectly on the account. Similarly, in connection with her claims for Medicaid and Food Stamps, Chandler did not inform the New Hampshire Department of Health and Human Services that she was married, but rather, stated that she lived with her “friend,” to whom she paid rent and contributed to the utility expenses. She submitted statements to the New Hampshire Department of Health and Human Services outlining the payments she made to her “friend,” on which she forged her husband’s signature. Chandler’s husband’s income would have rendered her ineligible to receive any Supplemental Security Income benefits, Medicaid, and Food Stamps in most months, and severely reduced her benefits in other months. As a result of concealing her marriage from the Social Security Administration and from the New Hampshire Department of Health and Human Services, the government estimates that Chandler fraudulently received approximately $51,000 in disability benefits, $40,753.01 in Medicaid, and $11,001 in Food Stamps.
Chandler is scheduled to be sentenced on July 25, 2017.
The case was investigated by the Social Security Administration’s Office of the Inspector General and the New Hampshire Department of Health and Human Services’ Special Investigations Unit. The case is being prosecuted by Special Assistant United States Attorney Karen Burzycki.
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California Twice Convicted Felon Sentenced to Prison for Operating Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
An Orange County, California man was sentenced today in U.S. District Court in Santa Ana, California to serve 109 months in prison including the last 12 months in a halfway house for his role as the owner and operator of a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm, the Justice Department announced.
Bryan D’Antonio, 50, of Brea, California, pleaded guilty to conspiracy to commit mail and wire fraud on Aug. 9, 2016. In addition to the term of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered D’Antonio to pay $3,826,977.95 in restitution.
D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme with Ronald Rodis, Charles Wayne Farris, and others to induce homeowners to pay between $3,500 and $5,500 for the services of Rodis Law Group (RLG) and its successor entity, America’s Law Group (ALG). RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stating that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys, and that collected these payments from distressed homeowners, without providing anything of value to the overwhelming majority of them. During much of the scheme, Ronald Rodis was the only attorney at RLG.
“This defendant – a repeat telemarketing fraudster - took advantage of vulnerable homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “His two fake law firms promised homeowners assistance saving their homes and modifying their mortgages. The sad reality is both firms were nothing more than telemarketing scams.”
“While still under court supervision after serving a prison term in another telemarketing case, D’Antonio oversaw what was essentially a boiler room operation that preyed upon struggling homeowners,” said Acting U.S. Attorney Sandra R. Brown. “Hundreds of victims lost millions of dollars after D’Antonio’s employees told a series of lies that misrepresented nearly every aspect of the business. Today’s lengthy sentence will ensure that he will not have the opportunity to defraud unsuspecting victims for many years.”
D’Antonio was previously convicted of mail and wire fraud and sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide. D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. In violation of D’Antonio’s permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation in which employees routinely misrepresented the services RLG and ALG would provide.
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications for homeowners. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by Bryan D’Antonio, a convicted felon who was prohibited from engaging in telemarketing.
In connection with his guilty plea, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
“Mr. D’Antonio preyed upon victims who were already experiencing difficult circumstances and robbed them of their remaining financial resources,” said Assistant Director in Charge Deirdre L. Fike of the FBI’s Los Angeles Field Office. “Homeowners seeking financial assistance should thoroughly investigate businesses before investing their money in advance of receiving services.”
D’Antonio’s co-defendants, Charles Wayne Farris and Ronald Rodis, both previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Farris and Rodis are scheduled to be sentenced on May 1.
This case was investigated by the FBI and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
California Man Admits Possessing with Intent to Distribute 29 Kilograms of MethamphetamineRead the Press Release
TRENTON, N.J. – A South Gate, California, man today admitted his intent to distribute over 29 kilograms of methamphetamine that was hidden in a tractor trailer he was driving, Acting U.S. Attorney William E. Fitzpatrick announced.
Tomas Lopez Beltran, 45, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of possession with intent to distribute more than 500 grams or more of methamphetamine.
According to documents filed in this case and statements in the court:
On Oct. 28, 2016, law enforcement lawfully searched a tractor trailer driven by Beltran and recovered approximately 29 kilograms of methamphetamine and $73,500 in cash from a concealed compartment located inside the cab of the trailer. Beltran admitted today that he intended to distribute the methamphetamine and cash to an individual in Georgia.
The count of possession with intent to distribute more than 500 grams or more of methamphetamine carries a minimum potential penalty of 10 years in prison and a maximum potential penalty of life in prison. Sentencing will be scheduled at a later date.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, 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 Criminal Division in Newark.
Defense counsel: David Holman, Esq., Assistant Federal Public Defender, Newark
Bronx Man Sentenced to 15 Years in Prison for Discharging Firearm and Drug Trafficking in Barre, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Maxwell Suero, 25, of Bronx, New York, was sentenced today for discharging a firearm in furtherance of a drug trafficking offense and conspiring to distribute more than 28 grams of cocaine base. District Judge William K. Sessions sentenced Suero to a 60-month term of incarceration for conspiracy to distribute more than 28 grams of cocaine base, and a consecutive 120-month term of incarceration for discharging a firearm in furtherance of a drug trafficking offense, resulting in a total sentence of 180 months.
According to Court records, in the summer of 2014, Suero was importing cocaine base to Barre, Vermont for distribution from the residence of co-defendant Melissa Garr. Suero provided cocaine base to Garr in exchange for allowing Suero and his associates to distribute drugs from her residence. Suero also recruited his co-defendant, Khari Long, to travel from New York to Vermont for the sole purpose of dealing cocaine base to Vermonters.
On September 22, 2014, Suero and Long entered Garr’s residence in Barre with the intent of confronting Garr and two other drug dealers who had begun dealing controlled substances from Garr’s residence. Suero and Long were both armed with firearms when they entered Garr’s residence through a basement door. The confrontation resulted in a shoot-out between Suero and one of the newly arrived drug dealers. Suero sustained a gunshot wound to his hand, while the other man sustained a gunshot wound to his left shoulder. Suero and Long retreated back through the basement, and upon exiting the residence, Suero left a smear of his blood on the basement doorknob.
After a brief hiatus, Suero returned to Garr’s residence, and again began distributing cocaine base. On February 6, 2015, Barre City Police Officers, Vermont State Police Troopers, and United States Marshal Deputies executed an arrest warrant for Suero at Garr’s residence. While attempting to hide, Suero threw a loaded .45 caliber revolver, and dropped 6.5 grams of cocaine base. Suero was eventually located in a basement crawl space. Approximately 150 grams of powder cocaine were located in the ceiling tiles of one of Garr’s bedrooms.
As part of his plea agreement, Suero admitted to conspiring to distribute more than 2.8 kilograms of cocaine base from 2011 to February 2015, to discharging a firearm during the September 22, 2014 confrontation at Garr’s residence, and to acting as a lookout in an armed robbery of a restaurant in the Bronx on December 21, 2012.
Acting United States Attorney Eugenia A. P. Cowles commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Barre City Police Department; the Vermont State Police; and the United States Marshals Service in the arrest and prosecution of Suero.
Suero was represented by Chandler Matson, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.
Bradenton Man Indicted for Distributing Fentanyl That Resulted in DeathRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging David Earl Johnson (36, Bradenton) with distribution of fentanyl resulting in death and distribution of fentanyl. If convicted on the first charge, he faces a mandatory minimum of 20 years, up to life, in federal prison. If convicted of the second offense, he faces a maximum sentence of 20 years’ imprisonment. The indictment also notifies Johnson that the United States intends to forfeit assets alleged to be traceable to the proceeds of the offenses.
According to the indictment, Johnson distributed fentanyl on two occasions on January 11, 2017, the first of which resulted in the death of “K.H.”
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Manatee County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Bakersfield Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
BAKERSFIELD, Calif. — U.S. District Judge Dale A. Drozd sentenced a Bakersfield man to 15 years in prison today for federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Acting Assistant Attorney General of the Civil Rights Division, Thomas Wheeler, and U.S. Attorney Phillip A. Talbert announced.
Justin Cole Whittington, 25, was convicted in December 2016 of interfering with a person’s housing rights because of his race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
Judge Drozd also ordered Whittington to pay $2,000 in restitution to the victim and called the defendant’s actions: “Reprehensible conduct that’s had a significant impact on [the victim’s family] — outrageous, repugnant criminal conduct. He obstructed justice, he lied, he did everything he could to escape responsibility.”
According to court documents, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a car drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention to the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store.
According to evidence presented at trial, the victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the car. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the car identified by the victim.
Whittington was also found guilty of making false statements to an FBI agent when he falsely claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.
According to court documents and evidence presented at trial, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
“Hate violence has no place in our society. It harms individuals and entire communities by threatening their sense of security and freedom,” said Acting Assistant Attorney General Wheeler. “In this case, Whittington fired a shotgun at the victim, terrorizing him and his family, because of his Latino ethnicity. The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter the color of their skin, their country of origin, or how they worship, can live their lives freely and without fear.”
U.S. Attorney Talbert stated: “The sentence handed down today reflects the seriousness of hate crimes such as this, which cause not only the victims but entire communities to feel vulnerable and unsafe. Our district is one that is rich in diversity, and my office is committed to investigating and prosecuting those who violate community members’ civil rights through acts of hate and intimidation.”
“The FBI works closely with our law enforcement partners to ensure thorough investigation of allegations of hate crimes in the communities we serve and protect,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Whittington’s threats and intimidation of his neighbors were despicable acts and not reflective of the America we all want to live in.”
Kern County Sheriff Donny Youngblood stated: “The Kern County Sheriff's Office will continue to work with our federal partners in investigating all hate crimes. I realize that these type of crimes reverberate through a community and cause fear to our community members. Violation of people’s civil rights impact all of us and will not be tolerated.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney prosecuted the case with the assistance of Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.
Bakersfield Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
U.S. District Judge Dale A. Drozd sentenced a Bakersfield man to 15 years in prison for federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and U.S. Attorney Phillip A. Talbert of the Eastern District of California announced.
Justin Cole Whittington, 25, was convicted in December 2016 of interfering with a person’s housing rights because of race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
“Hate violence has no place in our society. It harms individuals and entire communities by threatening their sense of security and freedom,” said Acting Assistant Attorney General Wheeler. “In this case, Whittington fired a shotgun at the victim, terrorizing him and his family, because of his Latino ethnicity. The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter the color of their skin, their country of origin, or how they worship, can live their lives freely and without fear.”
“The sentence handed down today reflects the seriousness of hate crimes such as this, which cause not only the victims but entire communities to feel vulnerable and unsafe,” said U.S. Attorney Talbert. “Our district is one that is rich in diversity, and my office is committed to investigating and prosecuting those who violate community members’ civil rights through acts of hate and intimidation.”
“The FBI works closely with our law enforcement partners to ensure thorough investigation of allegations of hate crimes in the communities we serve and protect,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Whittington’s threats and intimidation of his neighbors were despicable acts and not reflective of the America we all want to live in.”
“The Kern County Sheriff's Office will continue to work with our federal partners in investigating all hate crimes,” said Kern County Sheriff Donny Youngblood. ”I realize that these type of crimes reverberate through a community and cause fear to our community members. Violation of people’s civil rights impact all of us and will not be tolerated.’
According to evidence presented in court, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a car drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention to the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store. The victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the car. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the car identified by the victim. Subsequently, Whittington made false statements to an FBI agent when questioned about the sawed-off shotgun.
Following these crimes, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney of the Eastern District of California and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section prosecuted the case.
Attorney General Jeff Sessions Announces New Initiatives to Advance Forensic Science and Help Counter the Rise in Violent CrimeRead the Press Release
As part of the Department’s efforts under the Task Force on Crime Reduction and Public Safety (Task Force), Attorney General Jeff Sessions today announced a series of actions the Department will take to advance forensic science and help combat the rise in violent crime.
These actions are being undertaken on the expiration of the National Commission on Forensic Science (NCFS) and will increase the capacity of forensic science providers, improve the reliability of forensic analysis, and permit reporting of forensic results with greater specificity. The Task Force’s Subcommittee on Forensics will spearhead the development of that strategic plan.
“The availability of prompt and accurate forensic science analysis to our law enforcement officers and prosecutors is critical to integrity in law enforcement, reducing violent crime and increasing public safety,” said Attorney General Sessions. “As we decide how to move forward, we bear in mind that the Department is just one piece of the larger criminal justice system and that the vast majority of forensic science is practiced by state and local forensic laboratories and is used by state and local prosecutors. We applaud the professionalism of the National Commission on Forensic Science and look forward to building on the contributions it has made in this crucial field.”
The following three actions were announced today:
1. In the coming weeks, the Department will appoint a Senior Forensic Advisor to interface with forensic science stakeholders and advise Department leadership;
2. The Department will conduct a needs assessment of forensic science laboratories that examines workload, backlog, personnel and equipment needs of public crime laboratories and the needs of academic and non-traditional forensic science practitioners, and issue a report to Congress; and
3. The Department will publish a notice in the Federal Register seeking public comment on how the Department should move forward to strengthen the foundations of forensic science and improve the operations and capacity of forensic laboratories. The notice will remain open until June 9, 2017.
The Attorney General will continue to receive and act upon recommendations from the Task Force as they become available.