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Friday 7 April 2017
Fugitive Sought in $1.5 Million Quincy Real Estate Scheme Arrested in FloridaRead the Press Release
BOSTON – A man accused of a fraudulent $1.5 million real estate investment scheme in Quincy, Mass., and who had been a fugitive for 20 years in connection with an unrelated New York grand theft and larceny indictment, was arrested today in Delray Beach, Fla., on federal charges in connection with the Quincy scheme.
Scott J. Wolas, 67, who, according to court documents, also used the names Eugene J. Grathwohl, Allen L. Hengst, Drew Prescott, Frank Amolsch, Endicott Asquith, and Cameron Sturge, was charged by criminal complaint with wire fraud and aggravated identity theft in connection with the proposed development of the former Beachcomber Bar property and the adjoining lot in Quincy. He appeared in the U.S. District Court in the Southern District of Florida (West Palm Beach Division) at 10:00 a.m. on Friday, April 7, 2017, for his initial appearance. Wolas is expected to return to Massachusetts at a later date to appear in federal court in Boston.
According to court documents, from at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune, Inc. and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property located at 797 Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.5 million from at least 19 investors and promised each of them a significant return on their investments. He allegedly promised to pay out at least 125% of the profits related to the single-family home construction.
Wolas was scheduled to close on the Beachcomber property on Sept. 15, 2016. A week before, however, he left Quincy and ceased all contact with his then-girlfriend, his co-workers, and his investors. Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real Eugene Grathwohl resides in Florida and is a friend of Wolas’ ex-wife.
The court documents also indicate that the bank account into which Wolas deposited investor funds has been drained, and that Wolas used the money mostly for his personal expenses unrelated to development of the real estate projects.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Aggravated identity theft carries a minimum term of two years’ imprisonment, which must be served consecutively to any term for the wire fraud, one year of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Weinreb’s Economic Crimes Unit is prosecuting the case.
Four Members of Baltimore Drug Distribution Conspiracy Plead GuiltyRead the Press Release
Baltimore, Maryland – Four Baltimore men, all members of a Baltimore drug trafficking conspiracy pleaded guilty this week to conspiring to distribute crack cocaine. Tarik Brooks, age 41, pleaded guilty today; Jermaine Epps, age 42, pleaded guilty on April 4, 2017, and Terry Downs, age 24, and Theodore Smith, age 41, pleaded guilty on April 3, 2017.
After their guilty pleas, U.S. District Judge James K. Bredar sentenced Epps and Downs to 108 months in prison, and 60 months in prison, respectively, each followed by four years of supervised release. Brooks was sentenced to 151 months in prison, followed by five years of supervised release.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to their plea agreements, the defendants were part of a drug distribution conspiracy that operated an open-air drug market near the 600 block of Glenwood Avenue in the Woodbourne-McCabe neighborhood in Baltimore. Members of the conspiracy distributed the organization’s signature orange-top vials of crack cocaine in that location, as well as other locations in Baltimore. Members of the conspiracy purchased powder cocaine, which they converted to crack cocaine. Some members of the conspiracy also sold large quantities of heroin. The conspirators used residences in and around North Baltimore as stash houses to cut, package and store these narcotics. Some members of the conspiracy routinely carried firearms and committed acts of violence in furtherance of the organization’s activities.
Epps and Downs were street lieutenants of the organization’s open-air drug market, and oversaw the sale of crack cocaine to customers. Smith was in charge of overseeing and managing the distribution of crack cocaine at the street shop, collecting proceeds from sales, making sure the organization had a sufficient supply of cocaine, and cooking powder cocaine into crack. On April 28, 2016, Downs was overheard by law enforcement requesting more “shirts” from a co-defendant, which is code for packages of orange-top vials of crack cocaine. Downs and the co-defendant were then recorded by law enforcement meeting outside a nearby stash house where they exchanged a bag containing crack cocaine. On June 1, 2016, an undercover officer approached Epps to purchase 12 vials of crack cocaine. Epps arranged for the undercover officer to purchase the crack cocaine from a lower level street hitter, who Epps supervised.
Brooks was in charge of packaging orange-top vials of crack cocaine for the organization, which were then distributed to street lieutenants who oversaw the street shop and open-air drug market. Law enforcement intercepted text messages in which Brooks discussed the number of vials of crack cocaine that were ready to be distributed. In addition, law enforcement intercepted text messages Smith exchanged with another conspirator discussing purchasing cocaine for the organization for $38,000 per kilogram.
On June 16, 2016, law enforcement seized over 1,100 orange-top vials of crack cocaine from a stash house on Craig Avenue that was used by the organization. On September 1, 2016 law enforcement seized narcotics from another stash house on Reese Street, including 130 grams of raw heroin, 15 grams of crack cocaine, 36 grams of diluted heroin, and 20 orange-top vials of crack cocaine. That same day, law enforcement seized 230 grams of heroin from a bar operated by Smith and used by the organization to conduct drug trafficking operations. Also on September 1, 2016, law enforcement seized a loaded .40 caliber handgun from Epps’ residence that was purchased by, and registered to, Epps’ girlfriend.
Co-defendant Asante Leroy Marshall, age 23, of Baltimore, previously pleaded guilty and was sentenced to 50 months in prison.
Judge Bredar has scheduled sentencing for Smith on August 15, 2017 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Former U.S. Postmaster Sentenced to Prison for Role in Cocaine ConspiracyRead the Press Release
PITTSBURGH - A former United States postmaster and resident of Glassport, Pennsylvania, has been sentenced in federal court to four years imprisonment and five years supervised release on his conviction of conspiracy to distribute kilograms of cocaine, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur Schwab imposed the sentence on Joseph Borrelli, age 49, of Glassport, Pennsylvania.
According to information presented to the court, between 2011 and 2015, Dante Lozano of Brownsville, Texas shipped dozens of cocaine packages, totaling approximately 8 kilograms (about 18 pounds), via the U.S. Postal Service to Jeffrey Turner and April Racan, who were living in the Elizabeth/McKeesport, Pennsylvania area. Borrelli, who was Postmaster in West Newton, Pennsylvania at the time, aided the conspiracy by advising Turner how to minimize the chances of their drug packages being detected by law enforcement.
The addresses of vacant homes were provided to Turner by Borrelli, and Turner then emailed these to Lozano, so that the packages could bear valid addresses. Borrelli also opened an untraceable post office box for Turner, and intercepted drug packages when they arrived at the post office, delivering them to Turner. These packages were usually intercepted by Borrelli before they went out for delivery by the mail carrier.
Prior to imposing sentence, Judge Schwab stated that Borrelli abused his position of trust as postmaster to aid the drug conspiracy.
Eight individuals were named in this indictment. Three others were previously sentenced, and four defendants – including Lozano, Turner, and Racan – will be sentenced in April and June.
Assistant United States Attorney Gregory J. Nescott prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the United States Postal Service in Pittsburgh, the Drug Enforcement Administration in Brownsville, Texas, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Borrelli.
Former Recruiters charged with False Invoicing SchemeRead the Press Release
ATLANTA –Dereck Cyrus and Chuck Sandford have been arraigned on conspiracy and mail fraud charges for running a false invoicing scheme that caused the restaurant chain Panda Express to send them over a million dollars in fraudulent payments.
“These defendants allegedly used a false invoicing scheme to line their own pockets,” said U. S. Attorney John Horn. “Businesses should carefully vet vendors that they do business with to make sure they do not fall victim to these schemes.”
“Corporate based fraud schemes do have victims and those victims feel its impact. The federal grand jury indictment and resulting arrests in this matter clearly illustrates the FBI’s commitment toward providing an avenue of relief to companies being targeted by these types of fraud schemes,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Cyrus and Sandford both owned companies that provided recruitment services to corporations. Cyrus’s company was named “Diversified Recruiters,” and Sandford’s recruitment company was named “Chuck Sandford Consultants” (CSC). Cyrus also worked as an in-house recruiter for Panda Express in 2012 and early 2013.
Beginning in about January 2013, Cyrus and Sandford allegedly submitted fraudulent Diversified Recruiters and CSC invoices to the Panda Express accounts payable department that falsely claimed that they had found qualified job candidates for positions at Panda Express restaurants throughout the United States. In actuality, the vast majority of the job candidates were either fictitious or had never been recruited by Cyrus or Sandford. Based upon these misrepresentations, the accounts payable department issued payments to Diversified Recruiters and CSC, which Cyrus and Sandford used for their own personal benefit.
After Cyrus stopped working for Panda Express in March 2013, he allegedly continued to send fraudulent Diversified Recruiters and CSC invoices to the accounts payable department, falsely claiming he was still a company employee. Sandford also allegedly paid Cyrus a kickback after the accounts payable department issued payments for the fraudulent CSC invoices. All told, Cyrus and Sandford allegedly netted well over one million dollars during the course of this scheme.
Dereck Cyrus, 52, of Lithonia, Georgia, Chuck Sandford, 74, of Marietta, Georgia, were arraigned before U.S. Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Employees of Louisville-Based Engineering and Construction Company Sentenced to Prison Terms for Defrauding the Company and the Social Security AdministrationRead the Press Release
Fraud totaled around $2 million over a 13-year period
LOUISVILLE, Ky. – Two former employees of a Louisville, Kentucky, based engineering and construction company were sentenced to prison terms this week, in United States District Court, by Chief Judge Joseph H. McKinley Jr., for their roles in a conspiracy to steal government funds and a scheme to defraud the company of approximately $2 million announced United States Attorney John E. Kuhn, Jr.
Frank Burks, Jr., 66, and Pamela Duvall, 60, both from New Albany, Indiana, were each sentenced to 36 months in prison, without the possibility of parole, and ordered to pay restitution to be determined at a later date, by Chief Judge McKinley, on April 3, 2017.
According to information presented in court, Burks and Duvall, while employed at RAM Engineering & Construction, Inc., schemed with one and other beginning in around 2001, to steal money from RAM to fund outside business ventures and personal gambling habits.
During the nearly 13-year period of criminal activity, Duvall was employed as a bookkeeper and Burks was employed as an operations manager for the privately owned company. One way they embezzled money from RAM was through general account checks. Duvall was responsible for issuing checks from the general account. As part of the scheme, Duvall issued checks, convinced one of the RAM owners to sign the checks under false pretenses, then made the checks payable to herself, Burks, or another person or entity whose endorsement Duvall or Burks would forge. Also, Burks and Duvall worked together to enable Burks to use his RAM corporate credit card to pay for Burks’ personal expenses.
In addition to their theft from RAM, Burks and Duvall conspired to ensure that Burks could earn income without it affecting his Social Security income by reporting a portion of his income from RAM as non-taxable. As such, Burks was overpaid by the Social Security Administration in the amount of $11,340.
On December 5, 2016, both Burks and Duvall pleaded guilty to conspiracy for theft of government funds, as well as charges of wire fraud and use of a forged security.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Former Credit Union Employee IndictedRead the Press Release
GALVESTON, Texas – Authorities have arrested the former manager of Electrical Workers 527 Federal Credit Union on charges of bank fraud, theft and misapplication, and making false statements in the books and records of a financial institution, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned a sealed indictment against Susan Margaret Garza, 60, of Galveston, on March 23, 2017, which was unsealed today upon her arrest. She made her initial appearance today before U.S. Magistrate Judge John Froeschner. She is set for an arraignment hearing April 13, 2017.
The indictment alleges that from 2008 through May 23, 2013, Garza made unauthorized withdrawals from members’ accounts while employed at the credit union. She also allegedly made false entries in the books and records to conceal her unauthorized withdrawals, fraudulently issued checks on the credit union’s bank account and made unauthorized loans in the names of credit union members all for the use and benefit of the herself and others.
Each count of bank fraud, theft and misapplication, and false entry carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.
The indictment also contains a notice of criminal forfeiture and seeks forfeiture of $466,675.32.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former CUNY School of Professional Services Budget Director Charged with Embezzlement and FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Catherine Leahy Scott, New York State Inspector General, and Brian M. Hickey, the Special Agent-in-Charge of the Northeast Regional Office of the U.S. Department of Education Office of Inspector General (“ED-OIG”), announced today that CARMINE MARINO, the former budget and finance director of City University of New York’s School of Professional Services (“CUNY SPS”) was arrested this morning and charged in Manhattan federal court with embezzling funds from CUNY SPS. MARINO voluntarily surrendered to federal authorities this morning and will be presented this afternoon in Manhattan federal court.
Acting U.S. Attorney Joon H. Kim said: “As alleged, the former budget and finance director at CUNY SPS abused his position of trust, taking money that belonged to New York City college students for his own benefit. I want to thank our partners at the New York State Inspector General and Department of Education Office of Inspector General for their work to root out corruption at federally assisted New York schools.”
New York State Inspector General Catherine Leahy Scott said: “This arrest involving federal fraud and embezzlement charges against a former top university official underscores CUNY’s lack of supervision and appropriate controls, which unfortunately has been a consistent theme in my investigation of the CUNY system. I thank Acting U.S. Attorney Kim for prosecuting the case, and I will continue to work with current CUNY leadership and use all of the resources of my office to restore the trust among the student and taxpayers at large and to protect the integrity of the institution.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “Today’s charges allege that Mr. Marino knowingly and willfully abused his positions of trust for personal gain. That is completely unacceptable. OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:
CARMINE MARNIO was in charge of finance and fiscal operations at CUNY SPS between 2007 and 2012, first as its Manager of Fiscal Operations, and then as its Director of Fiscal and Business Operations. In those roles, he controlled and oversaw CUNY SPS’s finances and bank accounts. In two separate but similar schemes, MARINO used his power over CUNY SPS’s finances to set up unauthorized bank accounts in CUNY SPS’s name, and to fund those accounts with money from CUNY SPS’s tuition account, among others. MARINO then used those unauthorized accounts, which only he knew about, to embezzle tens of thousands of dollars for his personal use.
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MARINO, 43, of Los Angeles, California, is charged with one count of embezzlement and misappropriation from a program receiving federal funds, which carries a maximum penalty of 10 years in prison, and two counts of bank fraud, each of which carries a maximum penalty of 30 years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the investigative work of the New York State Inspector General’s Office, ED-OIG, and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York, and noted that the investigation is continuing.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitutes only allegations, and every fact described should be treated as an allegation.
Florida Woman Arrested on Charges of Forging Prescriptions While Working in the Pharmacy at Fort Rucker, AlabamaRead the Press Release
Montgomery, Ala. – Holly Jean Cox, 43, of Citrus Springs, Florida, was arrested in Florida on Wednesday after being indicted on seven counts of obtaining controlled substances by fraud or deception, announced Acting United States Attorney A. Clark Morris.
According to court documents, Cox worked as a pharmacy technician at the Lyster Army Health Clinic at Fort Rucker, Alabama. The allegations indicate that Cox accessed the post’s computer system and entered fraudulent prescriptions for controlled substances. Cox then filled those fraudulent prescriptions herself and pocketed the pills she obtained. The indictment alleges that Cox did this on at least seven different occasions between December 29, 2015 and March 4, 2016. She obtained primarily oxycodone and hydrocodone.
If convicted, Cox faces a maximum prison sentence of four years on each count.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt
This case was investigated by the Drug Enforcement Administration and the United States Army – Criminal Investigation Command. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Federal Charges Filed Against Maryland State Senator for Accepting Payments in Exchange for Official ActionsRead the Press Release
Baltimore, Maryland – A federal criminal complaint was filed today charging Maryland State Senator Nathaniel Thomas Oaks, age 70, of Baltimore, Maryland, with honest services wire fraud for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. Oaks’ initial appearance is scheduled today at 4:00 p.m. before U.S. Magistrate Judge Mark J. Coulson in U.S. District Court in Baltimore, Maryland.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
The affidavit alleges that on September 21, 2015, a cooperating individual (the Cooperator) introduced Oaks to an FBI confidential human source (the CHS) who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore through a minority-owned business (the Company). The Company is a real business that is operated by a different cooperating defendant who is assisting the FBI with the investigation. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by the Cooperator and the CHS. During the meeting, Oaks offered to assist the CHS with business development in Maryland.
During the months following the September 21, 2015 meeting between the CHS and Oaks, the CHS consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to the CHS in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that the CHS told Oaks that he was interested in developing in the City. Oaks told the CHS that he wanted to help with the HUD project.
According to the affidavit, on March 16, 2016, the CHS discussed paying Oaks for his assistance. The affidavit alleges that, in the Spring and Summer of 2016, Oaks knowingly sent two letters on his official Maryland House of Delegates letterhead supporting the Project. The letters allegedly contained false statements about Oaks’ relationship to the CHS and Oaks’ involvement and knowledge of the Project. The CHS paid Oaks $10,300 for his assistance.
Further, the affidavit alleges that September 22, 2016, the CHS made another $5,000 cash payment to Oaks in exchange for Oaks filing a bond bill with the Maryland Department of Legislative Services (DLS) requesting $250,000 for the Project, which Oaks filed later that same day. On November 21, 2016, the CHS received a forwarded email from Oaks that had been sent to Oaks by a DLS employee, attaching a draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by the CHS was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
If convicted, Oaks faces a maximum sentence of 20 years in prison for honest services wire fraud.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
El Paso Man Sentenced for Federal Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Johnathon Jacob Rios, 48, of El Paso, Texas, was sentenced today in federal court in Albuquerque, N.M., to 33 months in prison followed by three years of supervised release for his heroin trafficking conviction.
Rios was arrested in June 2016, and was charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 788.10 grams of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in a bundle that was concealed under Rios’ clothes.
Rios was subsequently indicted on July 12, 2016, and charged with possession of heroin with intent to distribute on June 17, 2016, in Bernalillo County, N.M.
On Dec. 1, 2016, Rios pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Rios admitted transporting 788.1 grams of heroin from Phoenix, Ariz., to Albuquerque on a Greyhound bus by concealing the heroin under his clothes.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Presiliano Torrez prosecuted this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
East St. Louis Man Sentenced for Two Federal Firearm OffensesRead the Press Release
D’Shawn Turner, 32, of East St. Louis, was sentenced to 60 months of imprisonment on federal firearm charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On December 21, 2016, Turner pled guilty to two criminal counts, namely being a felon in possession of a firearm and possession of a firearm with an obliterated serial number. Turner was sentenced to 60 months on each count to run concurrently. At his change of plea hearing in December, Turner admitted that he had possessed two firearms in Centreville, Illinois on March 19, 2016. Turner also admitted that he had a prior felony conviction, and that one of the firearms he possessed had an obliterated serial number. Turner has been continuously confined on the federal charges since his arrest on June 15, 2016.
The investigation which resulted in Turner’s arrest and conviction was conducted by the Centreville Illinois Police Department and by the Federal Bureau of Alcohol and Firearms (BATF). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Dallas Man Who Fired Numerous Shots at Federal Officers Pleads GuiltyRead the Press Release
DALLAS — Edgar Solorzano, 24, of Dallas, Texas, appeared this morning before U.S. District Judge Sam A. Lindsay and pleaded guilty to several felony offenses including assault on a federal officer, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Solorzano pleaded guilty to one count of possession with intent to distribute a controlled substance, two counts of assault on a federal officer and one count of using, carrying, brandishing and discharging a firearm during in relation to a crime of violence. The possession count carries a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine. The assault on a federal officer counts each carry a maximum penalty of up to 20 years and a $250,000 fine. The firearm count related to a crime of violence carries a penalty of not less than 10 years and not more than life in federal prison and a $250,000 fine. Sentencing is set for August 7, 2017.
Co-defendant Victor Solorzano, 32, also of Dallas, is scheduled to begin trial April 10, 2017.
According to documents filed in the case, on November 19, 2015, Victor and Edgar Solorzano, cousins who lived across the street from each other, fired numerous gunshots at two federal officers with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with high-powered, semi-automatic firearms, and riddled their pickup truck with bullets as the officers fled.
Officers went to install a court-ordered tracking device on Victor Solorzano’s vehicle at his residence on Wilbur Street in Dallas, Texas. Victor was under federal investigation by HSI for trafficking methamphetamine at the time. Immediately after installing the tracking device on Victor’s vehicle, Victor, armed with a pistol, confronted the officer in the street and began firing at the officer. The officer got inside the passenger’s side of a pickup as Victor and Edgar began firing numerous gunshots at the two federal officers, who did not return fire. Victor and Edgar continued firing at the federal officers as they sped away. The officer who installed the court-ordered tracking device sustained four nonfatal bullet wounds and the pickup driven by the other officer sustained numerous bullet strikes, all from the back.
After the shooting, Edgar hid the pistol in the attic of his residence and the pistol used by Victor in a neighbor’s backyard. The police searched Edgar’s residence and found the pistol hidden in the attic. The police also found in Edgar’s bedroom more than eight grams of methamphetamine, drug-distribution paraphernalia, and a variety of firearms and ammunition. The pistol used by Victor was found in the neighbor’s backyard.
The case was investigated by the Dallas Police Department, the Department of Homeland Security, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Gary Tromblay, John Kull, and Rachael Jones are in charge of the prosecution.
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Council Bluffs Man Sentenced to 135 Months in Prison for Methamphetamine DistributionRead the Press Release
COUNCIL BLUFFS, IA - On April 6, 2017, Ramon Cisneros Aguilera, a 33-year-old Mexican citizen living in Council Bluffs, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 135 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Aguilera will be required to serve a three-year term of supervised release following his release from prison.
On November 29, 2016, Aguilera pleaded guilty to the distribution charge and admitted he possessed over one kilogram of methamphetamine with the intent to distribute in the Southern District of Iowa in August of 2016. The charge was the result of a law enforcement investigation of drug trafficking that occurred in both Sioux City and Council Bluffs, Iowa.
This investigation was conducted by the Southwest Iowa Narcotics Enforcement Task Force, the Sioux City Police Department, the Council Bluffs Police Department, the Omaha Police Department, the Pottawattamie County Sheriff’s Office, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Conway Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that William Bergeron 26, of Conway, New Hampshire, pleaded guilty in federal court on Thursday, April 6, 2017, to possessing fentanyl with the intent to distribute.
According to court documents and statements made at the plea hearing, on June 13, 2016, Conway Police Officers arrested Bergeron at his residence on an outstanding warrant. During the arrest, the officers found approximately 15 grams of fentanyl in Bergeron’s pockets.
Bergeron is scheduled for sentencing on July 25, 2017.
This matter was investigated by the Conway Police Department and is being prosecuted by Assistant United States Attorney Shane Kelbley.
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Contractor Charged with False Statements and Aggravated Identity TheftRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, was indicted today by a federal grand jury for one count of making false statements and one count of aggravated identity theft.
According to the Indictment, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. On or about May 5, 2012, SPEARS, was placed on a restricted status with the HMGP that prohibited him from getting any advanced payments on new elevation contracts because he was significantly out of compliance with a number of his pending elevation projects.
On or about July 20, 2012, in an effort to be removed from his restricted status with HMGP, SPEARS falsely represented to the program that one of the funding recipients, T.B., had requested that his elevation be delayed when, in truth and in fact, T.B. had not requested a delay. On or about August 5, 2012, SPEARS, then used T.B.’s name and signature in his false representation to the program that T.B. wanted the elevation delayed.
If convicted of making a false statement, SPEARS faces a maximum term of imprisonment of not more than 5 years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. convicted of aggravated identity theft, Spears faces a mandatory two year term of imprisonment to run consecutive to any sentence he receives for the false statement, a $250,000 fine, one year of supervised release following any term of imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security-OIG, and the Federal Bureau of Investigation for investigating this matter. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Computer Engineer Arrested for Theft of Proprietary Trading Code from His EmployerRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ZHENGQUAN ZHANG, a/k/a “Zheng Quan Zhang,” a/k/a “Jim Z. Zhang,” was charged with theft of trade secrets for his alleged theft of proprietary computer code concerning algorithmic trading models and trading platforms from his employer, a global financial services firm headquartered in New York, New York, that engages in the trading of publicly traded securities and other financial products (“Firm-1”). ZHANG was arrested this morning in Santa Clara, California, and was presented this afternoon in federal court in San Jose, California.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Zhengquan Zhang went to great lengths to surreptitiously steal confidential computer code from his employer. Zhang allegedly installed code designed to steal his employer’s proprietary information and illegally accessed colleagues’ computer systems to further his theft. The theft charged here can happen to even the most sophisticated companies, but this arrest was made possible by the exemplary cooperation between the FBI and the victim company, which came forward promptly and alerted law enforcement of this alleged crime.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Proprietary computer code may not be a tangible asset that people can observe, but it is indeed one of the most critical assets that companies possess. Significant investments are made to develop code, safeguard it and use it to generate revenue. As we allege, Zhang misused his access to an employer’s computer system and proceeded to download and remove over three million files of data and computer code. The FBI is committed to enforcing laws that protect U.S. companies from the theft of trade secrets.”
According to the allegations contained in the Complaint unsealed today[1]:
Firm-1 uses proprietary algorithmic trading models to help it predict market movements and make trading decisions. In addition, Firm-1 uses proprietary trading platforms to create orders, automatically submit those orders to an exchange or market center, and execute orders. These trading models and trading platforms contribute substantially to Firm-1’s market share and profits, and their economic value depends, in part, on remaining undisclosed. Firm-1 accordingly has put in place substantial measures designed to protect the computer source code underlying its trading models and trading platforms (the “Source Code”), including the use of encryption keys to encrypt and decrypt portions of the Source Code, limits on employee access to the Source Code, and restrictions on employee use of file sharing websites and portable storage devices.
Beginning in March 2010, ZHANG was employed in technical roles within Firm-1 for which he was granted access to certain parts of Firm-1’s computer system. From December 2016 through March 2017, ZHANG took various steps to steal the Source Code. For example, ZHANG installed on Firm-1’s system computer code designed to look for encryption keys to gain access to portions of the Source Code. ZHANG also installed computer code designed to send data from Firm-1’s system to an external third-party software development site, which ZHANG accessed thousands of times from Firm-1’s system. ZHANG used an area of Firm-1’s computer system to store over 3 million files of data, including unencrypted portions of the Source Code, before sending it to the external site.
In addition, in late March 2017, ZHANG accessed parts of Firm-1’s computer system that he was not authorized to access. For example, ZHANG remotely accessed the computer desktops of certain quantitative analysts employed by Firm-1. ZHANG subsequently admitted to a supervisor that he did so without authorization, using software that he had modified in order to capture individuals’ usernames and passwords.
* * *
ZHANG, 31, of Santa Clara, California, is charged with one count of theft of trade secrets, which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI. He also thanked the San Jose office of the FBI as well as the Santa Clara and Palo Alto Police Departments for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi and Won S. Shin are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Complaint Filed Charging Utah County Man with Distribution of HeroinRead the Press Release
SALT LAKE CITY – A complaint filed in federal court Thursday afternoon charges Edward Lee Poorman, age 22, of Vineyard, UT, with one count of distribution of heroin. Poorman, who has been in state custody on unrelated charges, is scheduled for an initial appearance on the drug charge Monday at 10:30 a.m. before U.S. Magistrate Judge Paul M. Warner.
According to an affidavit filed with the complaint and signed by a special agent with Homeland Security Investigations, Provo City police officers responded to a Provo residence on July 6, 2016, following a call that a female at the residence was not breathing. Upon arrival, officers observed emergency medical personnel performing life saving techniques. Despite these efforts the victim, referred to as BW in the complaint, was pronounced dead a short time later.
A neighbor told officers that she had been walking by when she observed the victim’s son outside. She described him as looking lost and afraid. She stopped to see if she could help. He told her that his mother was in the house and he could not get her to wake up. He wanted some help. She immediately went to another neighbor’s home to seek help and was able to locate someone who knew BW and her family. This neighbor ran into the home to try to render aid. When she observed the BW’s condition, she called 911 and with the help of the 911 dispatcher, started CPR. Provo City Fire and Rescue arrived a short time later and took over the life saving techniques.
The medical examiner’s report later revealed that BW died as a result of the combined effects of methamphetamine and heroin-derived morphine. According to the complaint, toxicology results showed about twice as much morphine in BW’s system as meth. Provo detectives conducted a search of the residence and found two used syringes and a small amount of as black tar substance that field-tested positive for heroin, in a small syringe cap above the medicine cabinet. Detectives also located as cell phone in BW’s bedroom. They also observed that BW had a small puncture mark on her left hand consistent with recent narcotics injections.
According to the complaint, officers obtained a search warrant to search the cell phone and later obtained search warrants to search the Facebook accounts of BW and Poorman. Agents discovered BW had used a Facebook messenger application and that it contained messages from a multiple-day conversation between Poorman and BW. The conversations, recounted in the complaint filed in court, show the pair coordinating timing and directions to purchase drugs in the days leading up to BW’s death.
In an interview at the Utah County jail in February, Poorman admitted that he helped BW secure heroin on the evening of July 5, 2016, so that she would share some with him. According to the complaint, after they had secured heroin from his source, he injected himself and then BW dropped him off at a convenience store. Poorman claims this is the last time he saw BW.
The potential penalty for distribution of heroin is 20 years in prison and a fine of $1 million.
Complaints are not findings of guilt. Individuals charged in a complaint are presumed innocent unless or until proven guilty in court.
Citizen of Mexico Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RODULFO ROBLERO LOPEZ, also known as Jorge Perez, Jorge Roblero and Artemio Hernandez, 37, a citizen of Mexico, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 12 months of imprisonment, followed by three years of supervised release, for illegally reentering the United States after being deported.
According to court documents and statements made in court, ROBLERO LOPEZ illegally entered the U.S. when he was approximately 19 years old. Between November 2000 and August 2008, he was arrested multiple times in Florida and Massachusetts.
On September 24, 2003, ROBLERO LOPEZ was convicted in Palm Beach, Florida, of misdemeanor aggravated battery and sentenced to approximately three months of time already served. On January 13, 2006, he was convicted in Springfield, Massachusetts, of operating a motor vehicle under the influence. On November 21, 2007, he was convicted in Springfield of assault and battery, a charge that stemmed from a domestic violence incident. On August 27, 2008, he was convicted in Springfield of breaking and entering and related offenses, and was sentenced to one year of incarceration.
While incarcerated in Massachusetts, U.S. Immigration and Customs Enforcement was made aware of ROBLERO LOPEZ’s presence in the U.S. He was deported to Mexico on September 28, 2008.
On September 26, 2009, ROBLERO LOPEZ was arrested in Springfield after a domestic violence incident and was subsequently charged with disorderly conduct, breach of peace while armed, and assault with a dangerous weapon. He was deported to Mexico on December 18, 2009.
On May 3, 2010, ROBLERO LOPEZ was arrested in Springfield after a domestic violence incident and was subsequently charged with assault and battery on a knowingly pregnant female, and carrying a dangerous weapon. He was sentenced to six months of incarceration. On July 30, 2010, he was deported to Mexico.
On June 16, 2016, Connecticut State Police arrested ROBLERO LOPEZ for operating a vehicle under the influence.
ROBLERO LOPEZ was taken into federal custody on September 23, 2016. On December 19, 2016, he pleaded guilty to reentry of a removed alien.
ROBLERO LOPEZ faces additional immigration proceedings after he serves his federal sentence.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Burlington Woman Sentenced to 8 Months in Prison for Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 6, 2017, Laura Berard, 55, of Burlington, Vermont was sentenced to 8 months in federal prison after her guilty plea to charges that she conspired to distribute heroin and cocaine base. Chief U.S. District Court Judge Christina Reiss also ordered that Berard serve three years of supervised release after her prison term.
According to court records, in late 2015 and early 2016, Berard permitted a heroin and cocaine dealer from the New York City area to use her apartment as a base from which to deal drugs. Berard’s apartment on North Champlain Street in Burlington was adjacent to the Sustainability Academy at Lawrence Barnes, a public elementary school. On June 2, 2016, a federal grand jury in the District of Vermont returned a five-count indictment charging Berard and her co-defendant, John Williams, aka “Ace,” with conspiring to distribute heroin and cocaine base and distributing those substances within 1000 feet of a school. Berard pled guilty to the conspiracy charges on December 29, 2016. Williams’ case is pending trial.
For her crime, Berard faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Berard receive a prison term between 8 and 14 months. In determining that an 8-month sentence was appropriate, Judge Reiss considered, among other factors, Berard’s poor health, the severity of the offense, Berard’s violations of pretrial conditions of release, and her lengthy criminal record, which includes a federal conviction in the District of Vermont in 2000 for distributing heroin.
Acting United States Attorney Eugenia Cowles emphasized that the indictment against Berard’s co-defendant is an accusation only and that he remains innocent unless and until he is proven guilty. Acting United States Attorney Cowles commended the Burlington Police Department, HSI, and DEA for their work in this investigation. She noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
Assistant U.S. Attorney Timothy C. Doherty, Jr handled this prosecution. Assistant Federal Public Defender Steven Barth represents Berard.
Bay Area Building Contractors Charged with Fraud and Bribery in Connection with Federal and State Construction ContractsRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted eight defendants with charges ranging from soliciting and accepting bribes in connection with State of California construction contracts, to conspiracy to defraud the United States in connection with a federal construction contract, and making false statements to federal investigators, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge of the San Francisco Division John F. Bennett, and the Department of Energy Office of Inspector General.
The eight defendants are charged as follows:
- Eric Worthen, 45, of Pleasant Hill, former Assistant Deputy Secretary for Administrative Affairs, California Department of Veterans Affairs, is charged with:
- Conspiracy to Receive A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 371; and
- Two counts of Receiving A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B).
- Taj Armon Reid, also known as Taj Reid, 46, of Oakland, is charged with:
- Conspiracy to Receive A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 371;
- Two counts of Receiving A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B); and
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Derf Butler, 53, of Vallejo, President of Butler Enterprise Group, LLC in San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371; and
- Making a False Statement, in violation of Title 18, United States Code, Section 1001(a)(2).
- Anton Kalafati, 33, of San Francisco, President of B Side Inc. in San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371; and
- Two counts of Making a False Statement, in violation of Title 18, United States Code, Section 1001(a)(2).
- Clifton Burch, 49, of San Lorenzo, President of Empire Engineering and Construction, Inc. in Oakland and San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Peter McKean, 48, of San Mateo, Vice President of Townsend Management, Inc. in San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Len Turner, 56, of San Leandro, Chief Financial Officer of Turner Group Construction in Oakland, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Lance Turner, 57, of Oakland, Chief Operating Officer of Turner Group Construction in Oakland, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
The indictment was filed late yesterday along with a Notice of Related Case. The documents describe three schemes that are related to each other and to previous cases filed by the U.S. Attorney’s Office.
The first scheme charged in the indictment involves Worthen’s employment in the Homes Division of the California Department of Veterans Affairs, also known as CalVet. According to the indictment, in 2013, defendants Worthen and Reid conspired to offer a specific developer an inside advantage on two CalVet construction projects. The first construction project, for residential facilities, involved a veterans’ home in Ventura, Calif. In exchange for $10,000 cash, Worthen and Reid allegedly offered to use Worthen’s position at CalVet to circumvent the normal bidding process for the project and award the construction project to the developer. The second construction project involved a kitchen remodel at the veterans’ home in West Los Angeles. For this project, Worthen allegedly took inside information from the CalVet office so that Worthen and Reid could provide the information to the developer in exchange for $2,000 cash. For both construction projects, the “developer” to whom Worthen and Reid were providing an inside track on the CalVet contracts was, in actuality, a source working under the direction of the FBI. The source was posing as a developer willing to pay bribes in order to obtain contracts with public agencies.
In the second scheme, defendants Reid, Len Turner, and Lance Turner are alleged to have conspired to engage in an illegal contract-bidding scheme in connection with a contract to renovate a Department of Energy-owned building at Lawrence Berkeley National Laboratory (Lawrence Berkeley Lab), in Berkeley. Acting undercover, the same FBI source described above represented to the defendants that he had been promised a contract by a DOE contracting officer, but the officer needed several higher bids in order to justify awarding the contract to the source. The source made these representations as part of the joint investigation by the FBI and DOE OIG. The indictment alleges that Reid and the Turners colluded to assist the source by having Turner Group Construction submit a bid in an amount higher than the bid being submitted by the source. The indictment alleges that Reid and the Turners participated in this scheme in order to defeat the DOE’s lawful process for awarding contracts through a fair, honest, and competitive process. According to the indictment, the defendants were motivated by either a financial reward or the promise of construction work from the developer that would materialize after the developer was awarded the contract.
In the third scheme charged in the indictment, defendants Derf Butler, Anton Kalafati, Clifton Burch, and Peter McKean are alleged to have engaged in a similar conspiracy in connection with the same DOE construction contract at Lawrence Berkeley Lab. According to the indictment, these defendants agreed to take steps to ensure that the same “developer” won the contract. The indictment alleges that the defendants colluded to submit bids for the Lab building renovation from B Side Construction, Empire Engineering and Construction, and Townsend Management. Each company was to submit bids in amounts dictated by the developer and for the purpose of ensuring that the developer’s bid was the lowest bid on the contract. Again, the indictment alleges that the defendants engaged in this conspiracy in order to gain financial reward or construction work from the developer.
The indictment also alleges false statement offenses against defendants Butler and Kalafati. Specifically, the indictment charges that when interviewed by agents of the FBI and DOE Office of Inspector General, defendants Butler and Kalafati made material false statements to the investigators.
The investigation that led to the charges in the indictment arose out of the FBI’s 2012-2014 public corruption investigation of San Francisco political consultant Keith Jackson and then-State Senator Leland Yee, and the related organized crime investigation of Raymond “Shrimp Boy” Chow. The FBI source who was posing as the developer and acting undercover in connection with the CalVet and DOE contracts described above was also involved in the investigation of Jackson and Yee. In furtherance of the same type of corrupt activities for which he was convicted in 2015, Jackson introduced the source to defendants Worthen, Reid, and Butler.
The defendants are scheduled to make their initial appearances before United States Magistrate Judge Joseph C. Spero in San Francisco on April 17, 2017.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum statutory sentences as follows:
- Each violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1001(a)(2) carries a maximum penalty of five years imprisonment, a three-year term of supervised release, a $250,000 fine, and a $100 special assessment.
- Each violation of Title 18, United States Code, Section 666(a)(1)(B) carries a maximum penalty of ten years imprisonment, a three-year term of supervised release, a $250,000 fine, and $100 special assessment.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Susan Badger, William Frentzen, and David Countryman are prosecuting the case with the assistance of Rosario Calderon and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and United States Department of Energy, Office of Inspector General. Additional assistance was provided by the California Department of Veteran’s Affairs.
- Eric Worthen, 45, of Pleasant Hill, former Assistant Deputy Secretary for Administrative Affairs, California Department of Veterans Affairs, is charged with:
Attorney Charged with Defrauding ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that THOMAS M. MURTHA, 61, of Newtown, has been charged by a federal criminal complaint with wire fraud related to his alleged theft of more than $900,000 from victims.
MURTHA was arrested on April 5, 2017, in Michigan. He appeared before U.S. Magistrate Judge Patricia T. Morris in Bay City, Michigan, and was released on a $10,000 bond.
As alleged in the criminal complaint, MURTHA operated a law practice under the name Maher & Murtha LLC in Bridgeport. Beginning in approximately August 2015, MURTHA defrauded five victims of a total of more than $900,000. As part of the scheme, MURTHA made materially false statements to induce one victim to invest more than $600,000, purportedly for real estate investments. He also was retained to handle real estate transactions on behalf of other victims and, instead of remitting funds to the appropriate parties, converted the funds to his own use.
The complaint further alleges, in December 2015, MURTHA told the victim of his real estate investment scheme that he needed an additional $100,000 to purchase a $1.5 million commercial property in Bethel, and that a buyer would purchase the property in four to six months to convert it to condominiums. After the victim wired the money, MURTHA used the funds in connection with the purchase, in his own name, of a $725,000 house in Birmingham, Michigan.
In September 2016, MURTHA resigned from the bar after three grievance complaints were filed against him.
The charge of wire fraud carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Huang, with the assistance of the U.S. Attorney’s Office for the Eastern District of Michigan.
Albuquerque Woman Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Bernadette Aurora Tapia, 49, of Albuquerque, N.M., was sentenced today in federal court to 21 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
Bernadette Aurora Tapia (Tapia) and her co-defendants Gaspar Leal, 47, Brandon Candelaria, 22 and Candace Tapia, 22, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Tapia and her co-defendants were charged by indictment on July 12, 2016, with conspiracy and distribution of methamphetamine on June 8, 2016, in Bernalillo County. On Dec. 13, 2016, Tapia pled guilty to conspiracy and admitted that on June 8, 2016, she agreed with others to distribute methamphetamine to another person.
To date, 40 of the 104 defendants have entered guilty pleas and 13 have been sentenced. The remaining defendants including Leal, Candelaria and Candace Tapia, have entered not guilty pleas. 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 Albuquerque office of ATF. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – Abel Lopez, 31, of Albuquerque, N.M., pled guilty this morning in federal court to bank robbery charges. His plea agreement includes a recommendation that Lopez be sentenced within the range of 27 to 33 months in federal prison followed by a term of supervised release to be determined by the court.
Lopez and co-defendants William Colbert, 38, and Joleen Sedillo, 42, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery offenses. According to the criminal complaint, Sedillo, Lopez and Colbert robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Sedillo, Lopez and Colbert were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
During this morning’s proceedings, Lopez pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Lopez admitted accompanying his co-defendants to the Bank of the West branches they planned to rob. Lopez further admitted that on July 14, 2016, he entered a Bank of the West branch to check for security, then communicated an “all clear” to a co-defendant so that the co-defendant could rob the bank.
On April 5, 2017, Colbert pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Colbert admitted accompanying Sedillo and Lopez to the Bank of the West branches they planned to rob. Colbert further admitted that on July 14, 2016, he entered a Bank of the West branch while disguised with the intent to commit a robbery but left without obtaining any money. Under the terms of his plea agreement, Colbert will be sentenced within the range of 41 to 51 months in federal prison followed by a term of supervised release to be determined by the court.
On March 28, 2017, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Sedillo admitted driving Lopez and Colbert to the Bank of the West branches they planned to rob. Sedillo further admitted that on July 14, 2016, she drove her co-defendants away from a branch of Bank of the West branch that Colbert attempted to rob. She also admitted concealing the clothing Colbert wore during the attempted robbery. Under the terms of her plea agreement, Sedillo will be sentenced within the range of 27 to 33 months in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Albuquerque Businessman Sentenced to Prison for Federal Tax Evasion ConvictionRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation announced the sentencing of the former president and owner of Sneakerz, Inc., a corporation that operated “Sneakerz Sports Bar” in Albuquerque, N.M., on a federal tax evasion charge. James E. Coleman, Jr., 59, was sentenced this afternoon in federal court to 18 month of imprisonment to be followed by three years of supervised release. Coleman was also ordered to pay $1,045,939 in restitution to the IRS.
Coleman was charged in Nov. 2014, in a four-count indictment with tax evasion and subscribing false tax returns charges. Counts 1 and 2 charged Coleman with evading a total of $166,320 in federal corporate taxes in calendar years 2008 and 2009 by filing false tax returns that underrepresented his corporation’s taxable income. Count 1 charged Coleman with evading $90,661 in federal taxes by falsely claiming that his corporation had $621,064 in taxable income in calendar year 2008 despite knowing that the corporation had $886,128 in taxable income for that year. Count 2 charged him with evading $75,659 in federal taxes by falsely claiming that his corporation had $731,581 in taxable income in calendar year 2009 despite knowing that the corporation had $932,235 in taxable income for that year. Counts 3 and 4 charged Coleman with filing individual tax returns for calendar years 2008 and 2009 that falsely reported that Coleman received no dividend income and no business income during those two calendar years.
On June 23, 2016, Coleman pled guilty to Count 1 of the indictment and admitted evading a total of $1,045,939 in federal corporate and personal taxes between calendar years 2002 and 2009. In his plea agreement, Coleman acknowledged underrepresenting Sneakerz’s gross receipts to the IRS with the intention of evading his corporate tax liability. He also admitted falsely underrepresenting the income he derived from Sneakerz on his personal tax returns.
The Albuquerque office of IRS Criminal Investigation investigated the case, which was prosecuted by Assistant U.S. Attorney Jeremy Peña.
Accounts Payable Supervisor Who Embezzled Millions of Dollars Sentenced to PrisonRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951 or Assistant U.S. Attorney Aaron Arnzen (619)546-8384
NEWS RELEASE SUMMARY – April 7, 2017
SAN DIEGO – Former Accounts Payable Supervisor Edward Abellana was sentenced today in federal court to two years in prison for abusing his position of trust at Argen Corporation, a San Diego-based metals company, in order to steal millions of dollars which he used to fund a lavish lifestyle.
U.S. District Court Judge Janis L. Sammartino also ordered Abellana to repay approximately $1,952,202 to Argen and pay approximately $661,000 to the Internal Revenue Service for unpaid taxes on the money he embezzled from Argen.
According to his plea agreement, Abellana worked as the Accounts Payable Supervisor from December 2011 until October 2015. While overseeing the metals company’s credit card accounts, Abellana used his access (between June 2012 and October 2015) to embezzle approximately $1.9 million which he used for a variety of purchases, including renting private jets; paying for luxury vacations to Hawaii, Las Vegas, and Disneyland, and paying for a trip to the Super Bowl and other sporting events.
For example, Abellana admitted he charged more than $70,000 to charter a private jet to take him, his family and friends to Hawaii.
Abellana also used his position to defraud Argen by issuing unauthorized checks against the company’s checking account to pay for personal expenses. In total, Abellana admitted that he issued more than $162,000 in fraudulent checks.
As further provided in his plea agreement, Abellana was able to carry out the embezzlement by virtue of his access to the full range of financial records and accounts. On most occasions, Abellana would simply use the company’s credit cards to make personal purchases. In order to conceal his fraud, he intercepted the credit card statements and used computer software to alter the statements. Thereafter, he falsified the company’s books and records by falsely characterizing his personal purchases as legitimate business expenses.
In addition to his embezzlement scheme, Abellana filed false tax returns. He failed to report the money he embezzled on his tax returns for tax years 2012 through 2015. Abellana admitted that he owes the Internal Revenue Service more than $661,000 in federal income taxes.
“Edward Abellana took advantage of his trusted position at the company in order to wire millions of dollars for his own personal benefit,” said Acting U.S. Attorney Alana W. Robinson. “When a trusted employee uses federal wires to feed his own greed, he will be vigorously investigated and prosecuted for his crimes – not only for stealing the money, but also for failing to report the income and pay taxes.”
“For several years Edward Abellana abused his fiduciary responsibility as an Accounts Payable Supervisor,” said Eric S. Birnbaum, Special Agent in Charge of the FBI’s San Diego Division. “In doing so, he took advantage of his position of trust and defrauded his employer in order to live his lavish lifestyle. The FBI and other law enforcement agencies rely heavily on the trust and cooperation of members of the business industry and citizens to assist us in performing our mission. Through this cooperative effort, we are able to identify and hold those individuals accountable for criminal acts driven by their personal greed.”
“Individuals thinking about participating in embezzlement schemes should stop in their tracks and simply look at the consequences of taking the next step,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “As Mr. Abellana learned today, those consequences include going to prison, being branded a convicted felon and paying back all the taxes owed plus steep penalties and interest on the unreported income.”
At the conclusion of today’s hearing, Abellana was ordered to self-surrender on June 2, 2017.
DEFENDANT Criminal Case No. 17CR0125-JLS
Edward K. Abellana Age: 40
SUMMARY OF CHARGES:
Count 1 – Wire Fraud (18 U.S.C. § 1343)
Maximum Penalties: maximum sentence of 20 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years
Count 2 – Making a False Tax Return (26 U.S.C. § 7206(1))
Maximum Penalties: maximum sentence of 3 years in prison; maximum fine of $250,000; maximum term of supervised release of 1 year
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service – Criminal Investigations
Thursday 6 April 2017
Youngsville man pleads guilty to receiving sexually explicit image from a minorRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Youngsville pleaded guilty Wednesday to receiving sexually explicit material from a minor and then asking her travel to Louisiana.
Gary Joseph Vincent, 25, of Youngsville, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of receiving child pornography. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Vincent admitted that he received a sexually explicit image via the internet of a minor female who lived in another state on December 17, 2015. Vincent also asked the minor to travel to Louisiana, but law enforcement agents intercepted the minor before she could make the trip.
Vincent faces five to 20 years in prison, five years to life of supervised release and a $250,000 fine.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security, Louisiana State Police and Chatham Police Department in Illinois conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Dominic Rossetti are prosecuting the case.
Wyoming County man pleads guilty to possessing child pornographyRead the Press Release
BECKLEY, W.Va. - A Wyoming County man faces up to 20 years in federal prison after pleading guilty yesterday to a child pornography crime, announced United States Attorney Carol Casto. Eddie Dwaine Justice, Jr., 30, of Hanover, entered his guilty plea to possession of child pornography.
Justice admitted that in July 2016, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer found in his residence. The investigation also revealed that Justice was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“This case should send a clear message – we will use every tool available to prosecute those who wish to do harm to children,” stated United States Attorney Casto. “There are significant consequences for child pornography crimes and we will continue working with our law enforcement partners to protect our communities and to hold those who victimize children accountable.”
The sentencing is scheduled for August 2, 2017.
The FBI conducted the investigation. Assistant United States Attorney Eric Bacaj is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Woman Arrested for Receiving Firearms in the MailRead the Press Release
St. Thomas, USVI – Shelica Baxter, 26, of St. Thomas, made her initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged with receiving firearms through the mail, Acting United States Attorney Joycelyn Hewlett announced. Miller released Baxter on a $10,000 unsecured bond and set Baxter’s preliminary hearing for April 12, 2017.
According to the complaint, on April 5, 2017, agents of Homeland Security Investigations (HSI) arrested Baxter in the area of the Sugar Estate Post Office in St. Thomas after she received a package from her post office box containing two firearms.
Under federal law, if convicted of receiving firearms, Baxter faces a maximum sentence of five years in prison and a $250,000 fine. This case is being investigated by HSI, and is being prosecuted by Assistant United States Attorney Everard E. Potter.
Acting United States Attorney Hewlett reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Williamson County Man Pleads Guilty to Cocaine OffenseRead the Press Release
On April 6, 2017, Leon S. Johnson, 41, of Herrin, pled guilty to a one-count indictment charging possession with intent to distribute more than 500 grams of cocaine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges that the offense occurred on November 4, 2016, in Williamson County. Evidence at his change of plea hearing established that, in October and November 2016, Johnson sold cocaine and crack cocaine to a confidential source working for law enforcement. On November 4, 2016, agents executed search warrants at Johnson’s Herrin residence and at a Herrin storage locker rented by Johnson. During the searches, agents recovered over two kilogram of cocaine, four kilograms of marihuana, 40 grams of crack cocaine, and over $21,000.00. Johnson is being held without bond pending his July 13, 2017, sentencing date.
The cocaine 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 Southern Illinois Enforcement Group, Herrin Police Department, Williamson County Sheriff’s Office, and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
U.S. Postal Service Worker Sentenced for Importing Anabolic SteroidsRead the Press Release
BOSTON - An employee of the United States Postal Service (USPS) was sentenced today on one count of importing a controlled substance.
John A. Psehoyas, 54, of Methuen, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to six months in prison, to be followed by two years of supervised release and 200 hours of community service to be completed during supervised release. On Jan. 4, 2017, Psehoyas pleaded guilty to importation of a controlled substance.
Psehoyas was a customer service supervisor at the Lynnfield, Mass. Post Office. From August 2014 to March 2016, Psehoyas purchased anabolic steroids, a controlled substance, from online sources and had them shipped to him from China, Poland, Turkey and Romania. The parcels were addressed to multiple addressees at various locations to avoid suspicion. Psehoyas retrieved the parcels by tracking them with a USPS tracking system.
Acting United States Attorney William D. Weinreb and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Boston Field Office, made the announcement today. Eugenia M. Carris of Weinreb’s Public Corruption Unit prosecuted the case.
Two Treasure Valley Methamphetamine Dealers Sentenced to Federal PrisonRead the Press Release
BOISE – Terry Dudley, 45, of Weiser, Idaho and Jacque Sue Garner, 56, of Nampa, Idaho were sentenced yesterday for distributing methamphetamine, Acting U.S. Attorney Rafael Gonzalez announced. Both Dudley and Garner pleaded guilty to one count of distributing methamphetamine. Dudley was sentenced to 130 months in prison and three years of supervised release. Garner was sentenced to 57 months in prison and five years of supervised release. Senior U.S. District Judge Edward J. Lodge also ordered Dudley to forfeit $7,100 in cash proceeds and ordered Garner to forfeit $3,000 in cash proceeds.
On January 24, 2017, Dudley pleaded guilty to distributing methamphetamine and admitted that he sold an ounce of methamphetamine to an undercover officer on April 13, 2015 and four ounces of methamphetamine to an undercover officer on April 15, 2015.
On January 12, 2017, Garner pleaded guilty to distributing methamphetamine and admitted that she sold a total of 144.1 grams of pure methamphetamine during three undercover deals in August and September of 2015.
These cases are the result of an investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF) and the Boise Police Department. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Two Indictments Returned for Burglary of a Federal Firearms LicenseeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced today the return of a single-count Indictment charging ANTWON SEYMORE, age 19, of Ponchatoula, with the April 8, 2016 burglary of The Tickfaw Auction Company, owned by a federal firearms licensee. This burglary resulted in the theft of 25 handguns.
If convicted, SEYMORE faces a maximum 10 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
The Grand Jury also handed down a three-count Indictment, charging DEMARCO JONES, age 22, of Tickfaw, and WILLIE WALKER, age 21, of Hammond, for the January 31, 2017 burglary of the same Tickfaw Auction Company. This burglary resulted in the theft of 57 firearms, including assault rifles and handguns. If convicted, JONES and WALKER each face a maximum 5 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
Additionally in Count 2, JONES is charged with possession of firearms as a convicted felon. JONES has a conviction for simple burglary in the 21st Judicial District Court for the Parish of Tangipahoa. For this conviction, JONES was sentenced to five years probation. If convicted, JONES faces a maximum 10 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
In Court 3, WALKER is charged with receiving three weapons that he should have known were stolen during the burglary. If convicted, WALKER faces a maximum of 10 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Bureau of Alcohol Tobacco Firearms and Explosives in investigating these cases, along with the Hammond Police Department and Tangipahoa Parish Sheriff’s Office. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Toledo man charged with stealing $182,000 from Department of Veterans AffairsRead the Press Release
A Toledo man was indicted for allegedly stealing $182,000, said David A. Sierleja, Acting United States Attorney for the Northern District of Ohio.
Gilbert W. Young, 70, was indicted on one count of theft of government money. Young, between 1995 and 2016, allegedly converted for his own use $182,724 from the U.S. Department of Veterans Affairs to which he was not entitled, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Department of Veterans Affairs Inspector General, in Cleveland. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Central Valley Residents Appear in Court for Federal Passport OffensesRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert and David Zebley, Special Agent in Charge, U.S. State Department Diplomatic Security Service, announced today the recent prosecution of five separate passport fraud offenses. According to court documents, the defendants possessed United States passports for themselves or for others that were produced without lawful authority. Three of those defendants appeared in court today before U.S. Magistrate Stanley Boone in Fresno.
Docket # 1:17-cr-017
Rafael Antonio Guilarte Rojas, 39, of Bakersfield, was arraigned today. He is charged with possessing an identification document with intent to defraud the United States. He is alleged to have possessed a California driver’s license in a false name when Diplomatic Security Special Agents encountered him on January 5, 2017, while investigating the passport application he submitted in the same false name.
Docket # 1:17-cr-016
Luis Alberto Hecht Rojas, 33, of Bakersfield, was also arraigned today. He is charged with possessing an identification document with intent to defraud the United States. He is alleged to have possessed a California driver’s license in a false name when Diplomatic Security Special Agents encountered him on January 5, 2017, while investigating the passport application he submitted in the same false name.
Docket # 1:17-cr-046
Maria Cruz Lopez, 42, of Bakersfield, pleaded guilty today to possessing a false United States identification document. She possessed a United States passport issued to her in her identity, but with another person’s photograph on it on August 13, 2012. United States Magistrate Judge Stanley A. Boone sentenced Lopez to two years of probation, a $1,500 fine, and 60 hours of community service.
Docket # 1:16-cr-161
Luis Garcia Jauregui, 53, of Bakersfield, is charged with possessing a false United States identification document. He is alleged to have possessed a United States passport issued to him in a false name when Diplomatic Security Special Agents encountered him on November 19, 2015, while investigating the passport application he submitted in the same false name. On February 24, 2017, a warrant was issued for his arrest.
Docket # 1:16-cr-160
On February 2, 2017, Carolina Garcia Velazquez, 41, of Fresno, was convicted of possessing a false United States identification document. She possessed a United States passport that had been issued to her in a false name when Diplomatic Security Special Agents encountered her during the course of her false passport investigation. U.S. Magistrate Judge Stanley Boone sentenced her to two years of probation, a $2,000 fine, and 100 hours of community service.
The defendants still facing charges face a maximum statutory penalty of one year in prison and a maximum statutory fine of $100,000 if convicted. 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.
These cases are the product of an investigation by the Diplomatic Security Service. Assistant U.S. Attorney Megan S. Richards is prosecuting the cases.
Third Defendant Convicted in Connection with Gun Store BurglariesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that the third charged defendant has been convicted of engaging in a scheme to burglarize gun stores. O’NEAL THOMPSON, age 21, of Baton Rouge, Louisiana, pled guilty yesterday before U.S. District Judge Shelly D. Dick to conspiring to steal firearms, possess and sell stolen firearms, and receive and possess unregistered machine guns and silencers. He also pled guilty to stealing firearms from federally licensed firearms dealers. He will be sentenced at a later date.
During his guilty plea hearing, THOMPSON admitted to conspiring with CHARLES K. EVANS and GENO EUGENE LYONS to steal firearms from Hebert Guns in Prairieville, and Meaux Guns in Baton Rouge. THOMPSON admitted that in July of 2015, he, EVANS, and LYONS unsuccessfully attempted to steal firearms from Hebert Guns, then drove to Meaux Guns, where they forcibly entered and stole approximately forty‐three (43) firearms, including pistols, rifles, machineguns, and silencers. All three then split up the firearms in order to sell them. THOMPSON subsequently sold his share of the firearms. EVANS and LYONS have previously pled guilty for their involvement in the attempted burglary of Hebert Guns, the burglary of Meaux Guns, and the burglary of Bowie Outfitters in Baton Rouge in June of 2015.
Acting U.S. Attorney Amundson stated: “Prosecuting offenders who violate the federal gun laws is a top priority for this office and the U.S. Department of Justice generally. Stolen guns and armed felons fuel the violent crime plaguing our communities and threaten our safety and security. I applaud the united efforts of the various federal, state, and local law enforcement agencies and the prosecutors in this important matter.”
This investigation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with substantial assistance from the Baton Rouge Police Department, the East Baton Rouge Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Peter Smyczek.
Synergy Services Honored for Work on Behalf of Child VictimsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, presented the annual Crystal Kipper & Ali Kemp Memorial Award today to Synergy Services in recognition of the organization’s valued contribution to preventing and responding to the exploitation of children.
“Synergy Services is a staunch advocate and compassionate caregiver for children and families in crisis,” said Larson. “Synergy is a strong ally in our work to combat human trafficking and child exploitation. I’m pleased to recognize Synergy’s contribution as a valuable partner in responding to the needs of our most vulnerable victims.”
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme – “Strength. Resilience. Justice.” – reflects a vision for the future in which all victims are strengthened by the response they receive, organizations are resilient in response to challenges, and communities are able to seek collective justice and healing.
Executive Director Robin Winner received the award on behalf of Synergy Services. This is the 14th year for the award to be presented in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Roger Kemp, Ali Kemp’s father, and Anna Rea, Crystal Kipper’s mother, participated in today’s presentation.
Synergy Services, Inc. began in 1970 as Synergy House, the only shelter for runaway and homeless youth in western Missouri. Synergy now provides a full continuum of nationally accredited care to assist children and families with immediate respite from violence, and services which empower clients to find and choose good options for future safety and success. In addition to their work to treat the effects of violence, Synergy provides supportive services to families in crisis in an effort to prevent violence. They also focus on community education in an effort to build a safer society. Their programs include crisis hotlines, emergency shelter, transitional housing, therapeutic services, advocacy, mentoring and violence prevention programs throughout the greater Kansas City area. They provide these services regardless of ability to pay.
Synergy’s new Children’s Center in the Northland celebrated its grand opening last fall. Synergy now has more beds available to serve children from birth to 17 years old. Their hope is to no longer have to turn children away because of limited beds and resources. The Children’s Center is not a foster care agency, but an emergency placement shelter designed to provide stabilization to children in crisis (such as homelessness, domestic violence, incarceration, or unexpected hospitalization).
National Crime Victims’ Rights Week
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in recognition of a valued contribution to preventing and responding to the exploitation of children.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim Assistance Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim Assistance personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim Assistance Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at https://www.ovc.ncjrs.gov/ncvrw.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
St. Louis Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
St. Louis, MO – Kenneth Edwards, St. Louis, admitted to a wire fraud scheme involving identity theft and counterfeit checks this morning. Edwards pled guilty to three counts of wire fraud associated with checks presented at the Maplewood Wal-Mart and Sam’s Club in December 2015.
According to his plea agreement, Edwards and others unknown stole identifiers of an area individual and used that information to create checks he used to purchase high end electronics. Judge Ronnie White, who accepted Edwards’ guilty plea, set a sentencing date of July 5, 2017.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 or both. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Springfield Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Scott Goodwin-Bey, 49, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 10 years in federal prison without parole, the statutory maximum sentence for the offense.
On Oct. 4, 2016, Goodwin-Bey was found guilty of being a felon in possession of a firearm and ammunition. U.S. District Judge M. Douglas Harpool issued the verdict on Oct. 4, 2016, following a one-day bench trial on Aug. 23, 2016.
According to the court’s findings of fact, Goodwin-Bey entered the Star Mart on W. Chestnut Expressway on Nov. 30, 2014, carrying a loaded Ruger 9mm pistol. Goodwin-Bey placed the gun on the counter and the store clerk took the firearm and handed it to the store manager. Both the clerk and the manager recognized Goodwin-Bey from earlier interactions because he had behaved in a strange manner. The clerk escorted Goodwin-Bey outside the store and Goodwin-Bey left in a white Lincoln. The store manager dialed 911 and requested that officers come to the Star Mart because of concern over Goodwin-Bey’s actions.
When an officer arrived, the store manager turned over the firearm. Another officer stopped Goodwin-Bey, who was driving the Lincoln, and he was arrested. Officers found loose 9mm ammunition on the floor of his vehicle and in the parking lot in front of the store in the vicinity of where the vehicle had been parked.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Goodwin-Bey has two prior felony convictions for carrying a concealed weapon and prior felony convictions for being a felon in possession of a firearm, possession of crack cocaine, resisting arrest and conspiracy to distribute crack cocaine.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Springfield Man Indicted for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today on charges related to a conspiracy to distribute methamphetamine in Greene County, Mo., and for illegally possessing firearms.
Bradley Blas, 24, of Springfield, was charged in an eight-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Blas participated in a conspiracy to distribute 500 grams or more of methamphetamine in Greene County from Aug. 31, 2016, to March 16, 2017. The indictment also charges Blas with one count of possessing a firearm in furtherance of the drug-trafficking conspiracy and in furtherance of the possession of methamphetamine with the intent to distribute on March 16, 2017. Blas allegedly possessed a Ruger .380-caliber semi-automatic pistol.
In addition to the conspiracy, Blas is charged with drug-trafficking and firearms offenses that occurred on three separate occasions.
Blas is also charged with one count of possessing 50 grams or more of meth to distribute and one count of being a felon in possession of firearms on Aug. 31, 2016. Blas allegedly possessed a Taurus 9mm semi-automatic pistol, a Glock .380-caliber semi-automatic pistol, a Heritage Manufacturing .22-caliber revolver and an FIE .25-caliber semi-automatic pistol.
Blas is also charged with one count of possessing 500 grams or more of meth to distribute and one count of being a felon in possession of firearms on March 15, 2017. Blas allegedly possessed a Ruger .223-caliber semi-automatic rifle, a DPMS .223-caliber semi-automatic rifle and a Springfield Armory .45-caliber semi-automatic pistol.
Blas is also charged with one count of possessing 50 grams or more of meth to distribute and one count of being a felon in possession of a firearm on March 16, 2017. Blas allegedly possessed a Ruger .380-caliber semi-automatic pistol.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Blas has two prior felony convictions for assault and prior felony convictions for distributing a controlled substance and stealing a motor vehicle.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Springfield, Mo., Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Combined Ozarks Multi-Jurisdictional Enforcement Team, and the Greene County, Mo., Sheriff’s Department.
Springfield Man Indicted for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury for his role in a conspiracy to distribute at least a kilogram of heroin in Greene County, Mo.
Craig S. Shade, 49, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
The indictment alleges that Shade participated in a conspiracy to distribute one kilogram or more of heroin in Greene County from July 11, 2014, to July 6, 2016.
In addition to the conspiracy, Shade is charged with one count of distributing heroin on June 22, 2016, and one count of possession with intent to distribute heroin on July 6, 2016.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, COMET (the Combined Ozarks Multi-jurisdiction Enforcement Team) and the Greene County, Mo., Sheriff’s Office.
Southern Illinois and Missouri Residents Charged with Methamphetamine OffensesRead the Press Release
On April 4, 2017, three southern Illinois and one Missouri resident were charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Garrick E.R. Recker, a/k/a "Curtis Lowe," 26, of Lenzburg, Paige M. Gleghorn, 26, of Sparta, Jeremy J. Humphries, 31, a/k/a "Hump," and "Slick," of Tilden, and Derek L. Sumpter, 29, a/k/a "Doucher," of Cape Girardeau, were charged in a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges the offense occurred between 2015 and February 2017, in Perry, Randolph, Monroe, and St. Clair Counties. On April 6, 2017, Gleghorn made her initial appearance in federal court. She was ordered held without bond pending a May 15, 2017, jury trial. Recker, Sumpter, and Humphries had previously appeared in federal court and were also ordered held without bond pending trial.
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 4 years of supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office, Perry County, Missouri Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
South Laredo Crack Dealers Sentenced to Lengthy Terms of ImprisonmentRead the Press Release
LAREDO, Texas – The reputed leader of the Melendez Drug Trafficking Organization from South Laredo has been ordered to federal prison for life, announced Acting U.S. Attorney Abe Martinez.
A federal jury convicted Adan Melendez aka “12,” 40, in June 2015 on 20 counts related to drug trafficking to include drug conspiracy and possession with intent to distribute cocaine, crack and marijuana; using minors in drug operations; drug distribution; conspiracy to commit money laundering; maintaining a drug premises; possession with intent to distribute marijuana; and possession a firearm in relation to a drug trafficking offense.
Today, U.S. District Judge Diana Saldaña sentenced Melendez to life in prison.
Melendez’s two sons - Adan Melendez Jr. aka “Vivi,” 22, and Andres Melendez aka “Chon,” 21, both of Laredo - were also sentenced today. Melendez Jr. received a sentence of 147 months for the drug conspiracy, while his younger brother was ordered to serve 188 months in prison for both the conspiracy and for possession with intent to distribute cocaine.
A total of 18 defendants have now been sentenced as part of Operation “Revocation.” The 15 others received terms up to 210 months in prison. Ten additional defendants convicted in the case are still pending sentencing.
Melendez and his two sons ran an organization that distributed cocaine, crack and marijuana in South Laredo from at least 2012 until they were arrested in the summer of 2014. Testimony during trial revealed that Melendez profited approximately $1,200 per day from his operations and spent tens of thousands on luxury cars for himself and his sons.
At the hearing today, Judge Saldaña stated that she could find no redeeming value in Melendez’s background or lifestyle. Assistant U.S. Attorney (AUSA) José Angel Moreno likened the drug dealers to vampires, quoting from a Fifth Circuit case describing drug dealers:
“This observation of the en banc Court is patently correct, and we so hold. Except in rare cases, the murder’s red hand falls on one victim only, however grim the blow; but the foul hand of the drug dealer blights life after life and, like the vampire of fable, creates others in its owner’s own image–others who create others still, across our land and down our generations, sparing not even the unborn.”
The Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and Texas Department of Public Safety conducted the Organized Crime Drug Enforcement Task Force investigation. AUSAs Moreno and Jorge Vela are prosecuting the case.
Seven Tax Return Preparers Charged, Repeat Offender Sent to PrisonRead the Press Release
HOUSTON - With the deadline for filing income tax returns rapidly approaching, Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI) have jointly announced seven newly-charged tax return preparers as well as a significant sentencing and delivered a warning to those who are thinking about breaking the law by committing tax crimes.
“Federal law requires everyone to pay their fair share of taxes,” said Martinez. “False tax returns are an attempt to cheat the system, the U.S. Treasury and ultimately the American people. Return preparers have an obligation to seek only the refunds their clients are entitled to and charge a reasonable fee in doing so. Those who abuse their filing privileges will be investigated, caught and prosecuted to the fullest extent of the law. All taxpayers should also exercise caution in selecting preparers on whom they rely in seeking an appropriate refund. If a preparer promises financial dividends that are too good to be true, it may well be and could require a much greater repayment than the excess received.”
“Society places tax practitioners in a position of trust. Their customers provide them with some of their most sensitive personal information. When that trust is violated and the information is abused for fraudulent purposes, it causes significant harm not only to the individuals who are directly victimized but to the entire community,” said Goss. “IRS-CI special agents are working tirelessly to protect taxpayers from fraud and investigate potential unscrupulous tax return preparers.”
One such notable recent case involved a local tax return preparer who was ordered to federal prison for a second time for preparing false tax returns and obstructing the IRS in its enforcement of federal income tax laws.
Cedric Keith Oliphant, who was previously charged with and convicted of preparing dozens of false 2006-08 client tax returns, was released on bond in that case under a condition that he have no involvement in the preparation of tax returns other than his own. However, while awaiting sentencing, Oliphant resumed preparing fraudulent tax returns, attempting to hide his activity by putting the business and bank accounts in other people’s names.
He was sentenced 33 months on the earlier case and released from prison Aug. 26, 2016. A week later, he was taken into custody on the second case and ordered into custody. He later pleaded guilty to those charges and is now serving another 28-month federal prison sentence. He was further ordered to pay more than $725,000 in restitution for both cases. The Financial Litigation Unit of the United States Attorney’s Office has already seized $205,000 in cash, three cars worth $32,600 and Oliphant’s personal residence in Huntsville as partial satisfaction of his restitution obligation.In addition to this significant sentencing, the U.S. Attorney’s Office has recently filed cases against seven other tax return preparers for aiding and assisting in the preparation and electronic filing of materially false U.S. Individual Income Tax Returns.
Yesterday, authorities arrested Ryan Damont Akers following the return of an indictment charging 15 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today. The U.S. Individual Income Tax Returns listed in the indictment cover years 2012 through 2014. The false items variously claimed on the returns include, among others, false amounts of gifts to charity by cash or check, false unreimbursed employee expenses, false losses from sole proprietorships and false Schedule D net long term capital losses, according to the indictment.
Also arrested yesterday was Dale Bradford Harding, charged with 15 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others as well as one count of willfully filing a false income tax return for himself. Those tax returns cover years 2010 through 2014, with false items variously claimed on the returns including, among others, false amounts of gifts to charity by cash or check, false unreimbursed employee expenses, false losses from sole proprietorships, false Schedule E losses from partnerships or S corporations and false Schedule D net long term capital losses. He is expected to make an initial appearance in federal court in the near future.
Another recent filing includes the case against Yomi Michael John, doing business in Houston as Postal Tax Services. He is charged by criminal information alleging that during calendar years 2010 through 2013, he aided and assisted in the preparation and electronic filing of dozens of materially false 2009 through 2012 U.S. Individual Income Tax Returns for unsuspecting clients. John allegedly included materially false income, expenses, deductions and credits in these tax returns in order to generated at least $214,413 in excessive refunds. John kept a portion of the fraudulent refunds as preparation fees, according to the charges. He is expected to make his initial appearance in federal court on April 12, 2017.
In another separate but similar case, Crystal T. Kemp is charged with 16 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. The 16 false income tax returns that Kemp prepared for others cover tax years 2012 through 2015 with false claims on the returns including false losses from sole proprietorships, false education credits, false earned income credits and false child tax credits, according to the charges. She also allegedly filed two false income tax returns for herself for tax years 2013 and 2014. The indictment alleges these tax returns falsely claimed a much lower income than Kemp actually received from her business, CQ Tax Preparation.
Chester Swanson is yet another return preparer, charged with 21 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. The 21 U.S. Individual Income Tax Returns listed in the indictment cover years 2012 through 2015. The false items allegedly included on those return include false amounts of medical expenses, false amounts of gifts to charity, false unreimbursed employee expenses, false losses from sole proprietorships, false education credits and false deductions for tuition and fees. He is set for trial Aug. 14, 2017.
Finally, Derwin Blackshear and Terranjala “Denise” Wilder Smith operated a return preparer business known as Level One Tax Service in Houston. They were indicted earlier this year on charges they prepared and filed false tax returns reporting false wages and withholding taxes for clients for tax years 2011 through 2014. A total of 25 individual returns were charged in the indictment which resulted in fraudulent refunds totaling more than $250,000. Blackshear and Wilder allegedly received a portion of the fraudulent refunds as fees for preparing and filing the fraudulent tax returns. They are set for trial Sept. 11, 2017.
Each count of aiding and assisting in the preparation of false income tax returns is up to three years in federal prison and a possible $250,000.
IRS-CI conducted all of the investigations in these matters. Assistant U.S. Attorneys Jimmy Sledge, Charles J. Escher and Justin Martin are prosecuting the cases.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Sentencings for April 3 - April 5, 2017Read the Press Release
Richard Lee Wickham, 46, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 5, 2017, for conspiracy to distribute at least 1.5 kilograms of methamphetamine. Wickham was arrested in Casper, Wyoming. He received 235 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $1,000.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Dylan Tyler Carpenter, 24, formerly of Gillette, Wyoming, was sentenced by Chief Federal District Court Nancy D. Freudenthal on April 4, 2017, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for using and carrying firearms during and in relation to a drug trafficking crime. Carpenter was arrested in Gillette, Wyoming. He received 140 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Chad Thomas Johnson, 35, of Newcastle, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 4, 2017, for production of child pornography. Johnson received 204 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and a $1,700.00 fine. Restitution will be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Dustin Allyn Lee, 37, of Carpio, North Dakota, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2017, for possession with intent to distribute more than 50 grams of methamphetamine. Lee received 57 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Charles Patrick Jeffery, 39, of Kinnear, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2017, for possession of child pornography. Jeffery was arrested in Lander, Wyoming. He received 40 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and $3,000.00 in restitution. This case was investigated by the Federal Bureau of Investigation.
Roberto Jimenez Beltran, 50, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 3, 2017, for conspiracy to distribute methamphetamine. Beltran was arrested in Torrington, Wyoming. He received 37 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $200.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Scarborough Man Sentenced to 33 Months on Firearm ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Primo Tosi a/k/a “Brian”, 31, of Scarborough, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 33 months in prison and three years of supervised release for possession of a firearm by a person subject to a protection order. Tosi pleaded guilty to the charge on October 31, 2016.
Court records reveal that in May 2016, officers of the Scarborough Police Department responded to a call from Tosi’s former girlfriend who reported being threatened with a firearm by him. While later executing a search warrant, officers seized a 12 gauge shotgun and ammunition in Tosi’s bedroom and an antique rifle. Tosi was prohibited from possessing firearms as a result of a protection from abuse order issued by the Maine District Court in Bridgton in January 2016.
In imposing the sentence, Judge Hornby departed upward one year from the advisory sentencing guideline range because of Tosi’s prior criminal history that included four convictions for misdemeanor crimes involving domestic violence against three different women and due to his risk of recidivism.
The investigation was conducted by the Scarborough Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Romanian Business Owner Sentenced to 13 Years in Prison for Bribery of a Public OfficialRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Dumitru Martin, 55, of Romania, today to 13 years in prison for conspiracy to commit bribery and bribery of a public official, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Martin owned and operated a Romanian company called Polaris M. Holdings. Co-defendants Anamaria Cruceru, 49; Constantin Schiller, 63; and Marcelle Banaga, 41, all of Romania, were employees of Polaris. Between June 2014 and December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a high-level United States Air Force (USAF) contracting officer in an effort to win multiple multimillion-dollar contracts for Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of any contract awarded. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Kogalniceanu Air Base in Romania. The contract was valued at over $10 million. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal various bribe payments totaling just over $1 million. Thereafter, as part of the conspiracy, the defendants caused Polaris to wire $100,000 from Romania to a bank account in the United States as the initial bribe payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement, and there was no contract to be awarded to Polaris.
U.S. Attorney Talbert said: “The Eastern District of California has many military and other government facilities that obligate taxpayer money in the course of negotiating high-dollar contracts. The sentence imposed today acknowledges the importance of rooting out corruption and protecting the integrity of the contracting process. My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Judge Nunley said at sentencing that, “bribery is not a victimless crime.” He went on to note that bribery creates a “pay-to-play environment” in which people feel “they can’t participate if they do it the right way.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
Banaga, Schiller and Cruceru pleaded guilty to conspiracy to commit bribery. They are scheduled to be sentenced by Judge Nunley on May 11, 2017. They each face a maximum statutory penalty of five years in prison. The actual sentences, however, will 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.
Roanoke Man Pleads Guilty to Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man faces up to 30 years in federal prison after pleading guilty this morning in the United States District Court for the Western District of Virginia in Roanoke to federal drug and gun charges, Acting United States Attorney Rick A. Mountcastle announced.
De’Shae Antonio Webb, 27, of Roanoke, pled guilty today to one count of distribution of cocaine and one count of possession of a firearm by a previously convicted felon.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Andrew Bassford, Webb sold cocaine to a police informant and was observed to be in possession of a firearm during the drug transaction.
The Roanoke City Police Department, the Roanoke HIDTA and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of the case. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Retired Fulton County Jailer Guilty of Receiving Kickbacks Tied to 3.3 Million Construction Project on Fulton County Detention CenterRead the Press Release
Ricky Parnell admitted to receiving kickbacks totaling at least $175,000 from contractors
PADUCAH, Ky. – Retired Fulton County Jailer Ricky Parnell pleaded guilty today in United States District Court before Senior Judge Thomas B. Russell, to his role in a conspiracy to defraud Fulton County, Kentucky, citizens through kickbacks and inflated costs associated with the $3.3 million 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr.
“Public corruption simply cannot be tolerated,” stated United States Attorney John Kuhn. “Corrupt public officials erode the fairness and integrity of our public institutions, and they undermine the public’s trust in our government. I hope this conviction will reassure the public that the Department of Justice will hold elected officials to the highest standards of honesty and integrity.”
Parnell, 59, of Hickman, Kentucky, pleaded guilty to Honest Services Fraud and multiple counts of Wire Fraud for using his official position to enrich himself by soliciting and accepting gifts and payments from defendant contractors, in exchange for influencing the Fulton County Fiscal Court to award the defendants contracts on the project.
Parnell admitted to directing Ronald D. Armstrong, 60, of Dresden, Tennessee; Jimmy Boyd, 56, of South Fulton, Tennessee; Michael Homra, 79, of Fulton, Kentucky; and Daniel C. Larcom, 42, of Union City, Tennessee, to intentionally overcharge Fulton County for services and supplies provided as part of jail projects. Parnell presented the inflated invoices and contracts to the Fulton County treasurer for payment to the defendants and their respective companies. In turn, the defendant contractors would use the excess proceeds to pay kickbacks, in the form of both cash and checks, to Parnell. Parnell received at least $175,000 in money and other things of value.
In addition, defendants Armstrong, Boyd, Homra, and Larcom took steps to cover up their activities and dealings with Parnell, including using cash to provide Parnell with kickbacks, structuring withdrawals from banks to use for these kickbacks, and creating false and inflated invoices for services and materials in order to satisfy the cash kickbacks demanded by Parnell.
Contract defendants Larcom, Armstrong and Boyd have pleaded guilty in United States District Court to charges including Honest Service Wire Fraud and Wire Fraud for their individual roles in this conspiracy.
The charged activity took place between April 2015 and August 2016. Parnell served as the Fulton County Jailer from 1990 until late last year and remains free on bond. A sentencing date is scheduled in Paducah, before Senior Judge Russell, on July 3rd.
If convicted at trial, Parnell could be sentenced to no more than 20 years in prison per count, pay a $250,000 fine for each count, and be sentenced to serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Restaurant Owners Charged in Tax Fraud SchemeRead the Press Release
BOSTON – Three restaurant owners were charged yesterday in a superseding indictment with tax fraud in connection with the operation of three Boston-area restaurants.
Hazrat Khan, 57, of Middletown, NY; Khurshed Iqbal, 57; and Rahman Zeb, 60, all Pakistani nationals, were charged in an 18-count superseding indictment with conspiracy and willful failure to pay over taxes. Khan and Iqbal were initially indicted in April 2016. Khan remains on pretrial release; Iqbal and Zeb’s whereabouts are unknown.
According to court documents, the defendants defrauded the government and avoided paying payroll and income taxes owed by two Crown Fried Chicken restaurants located in Boston and Chelsea and the New York Fried Chicken restaurant in Mattapan. Khan and Iqbal allegedly took steps to conceal their ownership interests in two of the stores and another conspirator, acting at their direction, provided the tax preparers for those stores with false information about the restaurants’ payroll and income, causing the tax preparers to file false tax returns. The indictment alleges a similar scheme at the Mattapan store, where Khan and Zeb conspired to provide tax preparers with false payroll and income information, resulting in the filing of false tax returns for that store as well.
Federal law requires employers to withhold payroll taxes and then pay them over to the IRS. To avoid paying taxes, Khan, Iqbal and Zeb are alleged to have falsely reported the number of employees—some of whom were undocumented workers—and wages paid to the IRS. They are also alleged to have paid employees under the table and filed income-tax returns that falsely described their sales, total income, compensation of officers, salaries and wages, and taxable income.
The charge of conspiracy provides for a sentence of no greater than five years in prison, a maximum of three years of supervised release, a fine of $250,000 and restitution. The charge of willful failure to pay over taxes provides for a sentence of no greater than five years in prison, a maximum of three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Charged with Child PornographyRead the Press Release
Kyle Hobbs, 24 of Philadelphia, PA was charged today by Information with possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a $250,000 fine, forfeiture, restitution, at least 5 years of supervised release up to a lifetime of supervised release, and special assessments of $100 and, if not indigent, an additional $5,000.
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.