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Tuesday 4 April 2017
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
Contact Person: Rob Sneed (803) 929-3000
Columbia, South Carolina------With summer approaching, parents and camps alike are making plans for terrific, fun opportunities for young campers to learn new skills and grow in their confidence and abilities. The United States Attorney’s Office has taken the opportunity to increase the understanding of camp organizers and parents about the law that pertains to camps which ensures that all children are welcome, especially those with disabilities. To help ensure that children with disabilities are allowed the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the District of South Carolina reminding them of their responsibilities and obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer camps – whether in a tent or a gym - present tremendous growth opportunities for our children. Camp is not only fun, but the camp experience offers the camper the opportunity to try new things, develop some independence, and gain self-confidence in the process,” said U.S. Attorney Drake. “All of our kids should have access to summer camps and in fact the law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Team at (803) 929-3000 or https://www.justice.gov/usao-sc/civil-rights.
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usao_sc_ada_camp_letter_flyer.pdfSouth Paris Woman Pleads Guilty to Firearms 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 Stephanie Knightly, 50, of South Paris, Maine pleaded guilty today in U.S. District Court to transferring a firearm to a felon.
According to court records, on August 16, 2014, Knightly purchased a pistol in Scarborough, Maine. The private sale was arranged by Steven Piirainen, a person she knew to be a felon. Piirainen accompanied her to the sale and gave her cash to purchase the pistol. After the sale, Piirainen took the firearm. The next day, after stealing a truck, Piirainen engaged in a shootout with the Maine State Police in South Paris, was shot, and died. Prior to the shootout, Piirainen told Knightly that he knew his probation officer was going to arrest him soon and that he was “never going back” to prison.
Knightly faces up to 10 years in prison and a $250,000 fine. She will be sentenced after completion of a pre-sentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police; the Lewiston Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
South Carolina Man Arrested for Attempting to Join ISISRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, SC –Zakaryia Abdin, 18, of Ladson, South Carolina, was indicted by the Federal Grand Jury sitting in Columbia, South Carolina. He was arrested by the FBI's Joint Terrorism Task Force on Thursday evening, March 30, 2017. He made his initial appearance in the United States District Court the following day. Abdin was indicted for attempting to provide a material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terroirist orgnanization. The charge is based on Abdin’s alleged attempt to travel overseas to join the terrorist organization. Special Agents of the FBI’s Joint Terrorism Task Force (JTTF) took Abdin into custody at the Charleston International Airport before he boarded an outbound flight.
United States Attorney Beth Drake for the District of South Carolina and Acting Assistant Attorney General for National Security Mary B. McCord made the announcement.
Charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Arraignment is scheduled to be held this Wednesday (April 5) at 1:30pm at the United States Courthouse in Charleston, South Carolina, located at 85 Broad Street.
This investigation is being handled by the FBI-JTTF. Assistant U.S. Attorney Sean Kittrell of the District of South Carolina and Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section are prosecuting the case.
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South Bay Heroin Trafficker Sentenced to Ten Years in PrisonRead the Press Release
SAN JOSE – Ramon Daniel Quezada was sentenced today to 120 months in prison for his role in a conspiracy to possess heroin and possession with intent to distribute heroin, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge, following the entry of Quezada’s guilty plea to the charges on November 15, 2016.
According to his plea agreement, Quezada, 26, of San Jose, admitted that in April and May of 2016, he lived with two individuals with whom he sold methamphetamine and heroin. He acknowledged distributing methamphetamine, collecting money from the sale of the drugs, and using his cellular telephone to communicate with potential buyers and arrange the sales of the drugs. Quezada also admitted that on May 27, 2016, he was present at his home, in possession of a firearm, when law enforcement agents conducted a search of his residence and found approximately 1,745 grams of methamphetamine and over 1000 grams of heroin.
On July 7, 2016, a federal grand jury indicted Quezada and his co-conspirators for their respective roles in the conspiracy. For his part, Quezada was charged with one count of conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846; two counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1); one count of conspiracy to possess with intent to distribute heroin, in violation of 21 U.S.C. 846; and one count of possession with intent to distribute heroin, in violation of 21 U.S.C. § 841(a). Pursuant to his guilty plea, Quezada pleaded guilty to the heroin charges and the methamphetamine charges were dismissed.
In addition to the prison term, Judge Freeman ordered Quezada to serve a five-year period of supervised release and ordered him to forfeit a handgun and assorted magazines and ammunition. Quezada is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the DEA.
Six Home Healthcare Workers and Patients Charged with Billing Medicaid while Working other Jobs, Going on a Cruise, and GamblingRead the Press Release
St. Louis, MO – Six area home health care workers and patients were charged with making false statements to Medicaid regarding home healthcare services that were neither received nor provided. All of the Indictments involve allegations that the defendants made false statements in Medicaid timesheets that certain patients and workers provided or received personal care services (e.g. grooming, cleaning, feeding, and medication assistance) in the home setting during certain dates and times when, in reality, the patients or workers were actually somewhere else.
Regina Brown, 58, and James Smith, 75, both of St. Louis, Missouri, were charged by Indictment with three felony counts making false statements to Medicaid that Brown received Medicaid-funded home health care from Smith at Brown’s home. In reality, Brown was actually vacationing in New Orleans and on a cruise ship during the dates indicated on their Medicaid timesheets.
Benita Bell, 46, and Tammara Bell, 28, of St. Louis, Missouri, were charged with making four false statements to Medicaid that Benita Bell was receiving Medicaid-funded home health care during timeframes when Benita Bell was actually gambling at local casino or working as a caregiver providing others with health care and personal care services.
Finally, Nova Paden, 50, and Demagio Smith, 27, both of St. Louis, Missouri, were charged by Indictment with making five felony counts of making false statements to Medicaid. The Indictment alleges that both Paden and Smith were working at other jobs during timeframes when they were falsely claiming to be receiving or providing Medicaid-funded home health care at Paden’s home. The Indictment also alleges that Smith was in New Jersey and California during some of the days that he and Paden claimed to be receiving or providing home health care.
Finally, Paden’s Indictment further alleges that Paden previously filed for disability payments from the Social Security Administration but failed to report income from her jobs, and therefore stole money from the Government that she was not entitled to receive. Five of the six defendants recently appeared in federal court for their initial appearances.
"Home health care is not only a more convenient alternative to skilled nursing facilities, it also saves tax dollars because it is less expensive," said William Woods, Special Agent in Charge, FBI St. Louis Division. "People who abuse and cheat the system siphon money away from those who truly need the services."
Steve Hanson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-Kansas City Region, stated, “Our office, along with our law enforcement partners, will continue to pursue those individuals who seek to defraud our programs and deprive our beneficiaries of the services they so need to ensure a good quality of life.”
Each false statement charge carries a maximum penalty of five years in prison and/or fines up to $250,000. The theft of government property charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
These cases were investigated by the Federal Bureau of Investigation, the Offices of Inspector General for the U.S. Department of Health and Human Services and the Social Security Administration, and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
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Sex Offender from Roswell Sentenced to 200 Years for Conviction on Production of Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced that Jim Walter Qualls Jr., 30, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 200 years of imprisonment for his conviction on production of child pornography charges. Qualls’ sentence was enhanced based on his prior state court conviction for enticement of a minor.
“This previously convicted child sex offender sexually exploited a three-year-old child, who was in his care, for the purpose of producing child pornography. As a result of the sentence imposed today, he will never again exploit another child,” said Acting U.S. Attorney James D. Tierney. “This sentence should send a forceful message that law enforcement in New Mexico is committed to the protection of our children and will vigorously investigate and prosecute predators who exploit and abuse them.”
“Today’s sentence ensures that this predator will never have access to the most innocent among us – our children,” said Waldemar Rodriguez, Special Agent in Charge of HSI El Paso. “This lengthy sentence is appropriate for a person who has proven his propensity to target children, and will ensure the defendant never harms a child again or sees the outside of a jail cell.”
Qualls was arrested on child pornography charges on July 31, 2014, based on a criminal complaint charging him with possession, receipt and distribution of child pornography, and enticement of a minor to engage in sexually explicit conduct for the purpose of producing child pornography. According to the criminal complaint, Qualls committed the crimes between Oct. 2013 and Feb. 2014, in Chaves County, N.M.
Court records reflect that HSI agents from Las Cruces, N.M., executed a search warrant at Qualls’ residence after investigation identified the residence as one associated with an IP Address that was being used to upload child pornography to the internet. During the search, HSI agents confiscated Qualls’ cell phone, which contained visual depictions of minors engaged in sexual activity.
Qualls was indicted on Oct. 16, 2014, and was charged with four counts of enticing a minor to engage in sexually explicit conduct for the purpose of producing child pornography. On May 7, 2015, Qualls pled guilty to the indictment without the benefit of a plea agreement.
Acting U.S. Attorney James D. Tierney commended HSI and the Roswell Police Department for their work in the investigation, and thanked Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office who prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
San Antonio Businessman Sentenced to Federal Prison for Defrauding Personal Injury Clients, Tax Evasion and Hiding Assets from U.S. Bankruptcy TrusteeRead the Press Release
In San Antonio this morning, 47-year-old San Antonio businessman Elpidio Gongora (aka “Pete Gongora”) was sentenced to four years in federal prison for a scheme to defraud personal injury clients; evading payment of more than $1.6 million in taxes; and, attempting to hide assets valued at $429,000 from the Bankruptcy Trustee. That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; William Cotter, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge; and, Judy A. Robbins, U.S. Trustee for the Southern and Western Districts of Texas.
In addition to the prison term, United States District Judge Fred Biery ordered that Gongora pay $3,490,000 restitution. Judge Biery also ordered that Gongora be placed on supervised release for a period of three years after completing his prison term.
On July 28, 2016, Gongora pleaded guilty to one count of conspiracy to commit mail fraud, one count of bankruptcy fraud, and one count of tax evasion. According to court documents, from 2009 through 2014, Gongora, aided and abetted by his co-defendants--Rosa Ramirez, Juan Rodriguez, and Ronald Higgins--operated the law offices of several personal injury attorneys, including the Law Office of Ronald Higgins in the city of San Antonio and elsewhere in Texas, Arkansas and New Mexico.
By pleading guilty, Gongora admitted that he stole money from the personal injury clients by failing to pay monies owed to clients under settlement agreements or to pay obligations for medical treatment and physical therapy after committing to do so. To carry out this scheme, Gongora collected the proceeds of fraudulently endorsed personal injury settlement checks and would hide from the attorneys his failure to pay clients settlement proceeds to which they were entitled.
In 2013, Gongora and his wife filed for Chapter 7 Bankruptcy in the Western District of Texas. By pleading guilty, Gongora admitted to his failure to disclose to the Bankruptcy Trustee that he owned personal assets that included a 33-foot Chris Craft cabin cruiser; a 29-foot 2005 Seaswirl boat; a 2005 Ford F-150 truck; real property located on Elm Valley in San Antonio; and, a residence located in Aransas Pass, TX.
By pleading guilty, Gongora also admitted that he willfully attempted to evade paying over $1.6 million in taxes, penalties and interest owed to the Internal Revenue Service for calendar years 2003 through 2005 and 2007 through 2013.
Ramirez, Rodriguez, and Higgins have all pleaded guilty to one count of conspiracy to commit mail fraud. This morning, Judge Biery sentenced Higgins to five years probation and ordered him to pay $1,490,000 restitution jointly and severally with Gongora. Sentencing for Ramirez and Rodriguez is scheduled for June 13, 2017.
Agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Trustee’s Office conducted this investigation. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
Rochester Man Sentenced for Murder and Three Others Defendants Sentenced on Cocaine and Heroin ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that four defendants, Tyshawn Simmons, 34, Franklin Brock, Jr., 23, Franklin Brock, Sr., 43, and Tina McDonald, 44, all of Rochester, NY, were sentenced by U.S. District Judge Charles J. Siragusa in connection with a long-term, violent drug distribution ring in the City of Rochester.
Defendant Simmons was sentenced to 330 months in prison for the murder of Ryan Adams. Franklin Brock, Jr., who was convicted of conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 10 years in prison. Brock’s father, Franklin Sr., who was convicted of possession with intent to distribute and distribution of crack cocaine, was sentenced to five years’ probation. Tina McDonald, a girlfriend of Tyshawn Simmons, was convicted of conspiracy to distribute heroin and sentenced to 18 months in prison.
Assistant U.S. Attorney Everardo A. Rodriguez, who handled the case, stated that Simmons murdered Ryan Adams because he believed that Adams had cooperated with law enforcement or intended to do so. Simmons shot Adams six times on Halloween night in 2012, while Adams sat in the driver’s seat of his car on Lincoln Street in Rochester. Adams managed to get out of the car and walk approximately 400 feet looking for help before collapsing.
Franklin Brock, Jr. conspired with Simmons and others to sell drugs. Brock, Jr. admitted to possessing guns during the conspiracy. Franklin Brock, Sr. helped his son sell crack cocaine during the term of the conspiracy.
Tina McDonald conspired with Simmons and others to distribute heroin. Among other things, she stored heroin in her residence where she lived with her children, and brought the heroin out of her residence to give to Simmons and others in the conspiracy for distribution to customers. McDonald also allowed other co-conspirators to store a gun in her residence. That gun was used by co-conspirator Marquis McMillian to shoot someone that he and Simmons suspected of having cooperated with police. After the shooting, McMillian hid the gun in McDonald’s house. Thereafter, another member of the conspiracy came to pick up the gun and, at Simmons’ direction, McDonald showed him where the gun was hidden in her house. McMillian was previously sentenced to 25 years for his role in the conspiracy.
Today’s sentencings are the culmination of an investigation headed by the Rochester Police Department, under the direction of Chief Michael Ciminelli, with assistance from the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent- in-Charge, New York Field Division.
Philadelphia Man Charged with Conspiracy to Defraud the United StatesRead the Press Release
Peterly Netus, 25, of Philadelphia, PA, was charged today by Indictment with one count of conspiracy to defraud the United States through claims, three counts of false claims against the United States, and with aiding and abetting, announced Acting United States Attorney Louis D. Lappen. According to the Indictment, Netus conspired with others to use stolen or improperly-obtained personal identifying information of others for the purpose of obtaining payment of false, fictitious, and fraudulent tax refunds.
If convicted the defendant faces a maximum possible sentence of 25 years’ imprisonment, three years’ supervised release, a $1,000,000 fine, and a $400 special assessment.
The case was investigated jointly by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oklahoma City Man to Serve 30 Months in Prison for Buying over $41,000 of Postage Stamps with Bogus ChecksRead the Press Release
Oklahoma City, Oklahoma Yesterday, ROBERT JORDAN CHILES, 32, of Oklahoma City, was sentenced by United States District Judge Stephen P. Friot to serve 30 months in federal prison for buying over $41,000 of postage stamps with checks backed by insufficient funds, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Chiles was charged by Information and pled guilty on October 19, 2016. Chiles admitted that in February and March 2016, he purchased $41,013.79 in United States postage stamps from various post offices in Oklahoma City. He admitted that he used checks drawn on bank accounts at USAA Federal Savings Bank, MidFirst Bank, and First United Bank and that he knew there were insufficient funds in those bank accounts to support the checks he wrote.
Chiles was ordered to pay restitution of $21,431.79 to the United States Post Office, $6,800.00 to MidFirst Bank, and $484.48 to First United Bank. Chiles was also ordered to forfeit 40,000 postage stamps that were found in his possession.
This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Ohio Man Pleads Guilty and is Sentenced to Time Served for Failure to Present at a Border CrossingRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Rocky Allen Resides, 27, of Xenia, Ohio, pleaded guilty and was sentenced today to time-served in U.S. District Court by Magistrate Judge John C. Nivison for unlawfully entering the United States without presenting himself at a border crossing point.
According to court records, on April 2, 2017, U.S. Border Patrol agents encountered Resides walking on U.S. Route 1 in Calais, Maine near the Canadian border. The investigation revealed that Resides illegally entered Canada in July 2016 and did not return to the United States on April 2, 2017 through a border crossing point.
The investigation was conducted by the U.S. Border Patrol.
New York City Man Sentenced to 21 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 3, 2017, Johnathan Goodwin, 22, of Brooklyn, New York, was sentenced to 21 months in federal prison after his guilty plea to charges that he conspired to distribute heroin. U.S. District Court Judge William K. Sessions III also ordered that Goodwin serve three years of supervised release after his prison term.
According to court records, in June of 2016, Goodwin was bringing quantities of heroin and cocaine base from New York City to Vermont via bus in order to distribute those drugs. On June 28, 2016, agents from the Drug Enforcement Agency (DEA) arrested Goodwin and his co-defendant, Annette Dupree, as they exited a bus from New York City in Burlington. From the pair, DEA seized approximately six ounces of heroin and one ounce of cocaine base. Goodwin has been in federal custody since.
For his crime, Goodwin faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Goodwin receive a prison term between 41 and 51 months. The government argued for a sentence within this range. The defense advocated for a more lenient sentence. In determining that a 21-month sentence was appropriate, Judge Sessions considered the severity of the offense, as well as Goodwin’s difficult childhood and relatively minor criminal record, among other factors.
Acting United States Attorney Eugenia Cowles commended the efforts of DEA and the Burlington Police Department for their work in this investigation. Acting United States Attorney Cowles noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Goodwin is represented by Assistant Federal Public Defender David McColgin.
Muhammad Jaffer Ali Sentenced to 16 Years in Federal Prison for Heading up Synthetic Marijuana Distribution RingRead the Press Release
In San Antonio, 54-year-old Muhammad Jaffer Ali was sentenced to 16 years in federal prison followed by three years of supervised release for his leadership role in a synthetic marijuana distribution scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.
Senior United States District Judge Royce C. Lamberth handed down the prison term during a hearing late yesterday afternoon. On June 27, 2013, federal authorities arrested Jaffer without incident. He has remained in federal custody since.
On December 12, 2016, Jaffer pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues. By pleading guilty, Jaffer admitted that from March 2013 to June 2013, he and others comprised the San Antonio-based Jaffer Drug Trafficking Organization (Jaffer DTO) that was responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, and Dallas as well as Tulsa, Oklahoma City, and Kansas City. During the course of the enterprise, the Jaffer DTO manufactured, caused to be manufactured, attempted to manufacture, distributed and possessed with intent to distribute over 40,000 pounds (or 18,500 kilograms) of synthetic cannabinoids.
“The drugs the defendant was peddling are much more dangerous than the name ‘synthetic marijuana’ suggests,” stated U.S. Attorney Richard L. Durbin, Jr. “These drugs are highly addictive and can cause death, seizures, organ failure, coma, and hallucinations. They are packaged with clever names like ‘Kush’ and ‘Scooby Snax,’ to make them attractive to kids and to appear harmless to unknowing parents. When their use is not deadly, it can be devastating, causing lasting damage to young brains. The defendant’s conduct was serious and has been punished accordingly.”
This prosecution resulted from the efforts of the Federal Bureau of Investigation and Drug Enforcement Administration together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, San Antonio Police Department, the Texas Department of Public Safety, and the Live Oak Police Department. Assistant United States Attorneys Mark Roomberg and Jay Hulings are prosecuting this case.
Montezuma Man Sentenced to Three Hundred and Sixty (360) Months Imprisonment for Sale of Firearm and Crack CocaineRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Carlton M. Butler, age 36, of Montezuma, Georgia was sentenced to serve 30 years (360 months) in federal prison for distribution of crack cocaine and using or carrying a firearm during and in relation to his drug trafficking crime. The sentence was handed down by United States District Court Judge Marc T. Treadwell in Macon, Georgia on March 31, 2017.
Through his plea, Mr. Butler admitted to selling a 9mm semiautomatic pistol and a quantity of crack cocaine to a confidential informant on May 28, 2014. At the time of the sale, Mr. Butler was a convicted felon on parole in two separate, state drug trafficking cases and was therefore prohibited from possessing any firearm. At the time of his plea, Mr. Butler also admitted that prior to his federal case, he had three previous convictions for drug trafficking crimes in the state of Georgia.
“Carlton Butler is the exact type of armed career drug dealer that our federal statutes are designed to put out of business. As with all federal sentences, there is no parole available to him as he does his thirty (30) years of “hard time” in a United States Penitentiary. At least for the next three decades, the citizens and children of the Middle District of Georgia will be safe from Mr. Butler and the poisons he sells,” said United States Attorney Peterman.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, through lead agent Brian Queener, the Georgia Bureau of Investigation, through lead agent Shannon McCook, and additional assistance from the Montezuma Police Department. Assistant United States Attorney Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Mexico City Man Sentenced to Federal Prison for Importation of Cocaine and HeroinRead the Press Release
In Del Rio today, a federal judge sentenced 42-year-old Guillermo Rodriguez-Sanchez to 151 months in federal prison for importation of cocaine and heroin, announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.
On October 19, 2016, jurors convicted Rodriguez-Sanchez of one count of importation of cocaine and one count of importation of heroin. According to evidence presented during trial, on March 16, 2016, Rodriguez-Sanchez, a Mexican citizen and resident of Mexico City, attempted to enter the United States of America through the Eagle Pass Port of Entry Number One. CBP officers subsequently discovered four bricks of cocaine and one brick of heroin hidden inside of a secret compartment that was built into the air intake manifold of the 2007 Toyota Tundra the defendant was driving. The total weight of the cocaine was approximately four kilograms; the heroin, approximately 1.4 kilograms. Testimony at trial established that the value of the narcotics was approximately $200,000. At the time of his arrest, Rodriguez-Sanchez denied knowledge of the drugs.
Homeland Security Investigations (HSI), United States Customs and Border Protection (CBP) and Drug Enforcement Administration (DEA) conducted this investigation. Assistant United States Attorneys Goran Krnaich and Justin Chung prosecuted this case on behalf of the Government.
Mexican Truck Driver and a Laredo Woman Convicted of Trafficking DrugsRead the Press Release
LAREDO, Texas – A Nuevo Laredo man and a Laredo woman have entered guilty pleas for their roles in a conspiracy to traffic drugs via the World Trade Bridge, announced Acting U.S. Attorney Abe Martinez.
Daniel Rodirugez Reyna, 45, entered his plea to conspiracy to posses with the intent to distribute heroin and methamphetamine. Vanessa Bernal, 33, pleaded guilty for her participation as a co-conspirator in the methamphetamine conspiracy.
The investigation began in 2014 when authorities learned of a possible drug transaction with a commercial truck driver expected to be crossing drugs via the World Trade Bridge in Laredo. Upon conducting surveillance, they observed Reyna meet with a confidential source at a warehouse in Laredo as he placed a white plastic bag inside the source’s front passenger window. After he departed the area, authorities were able to obtain the bag, which contained three bundles wrapped in clear cellophane wrap and black electrical tape. Laboratory analysis confirmed the three bundles all contained heroin with a net weight of 2.85 kilograms.
On March 25, 2015, agents conducted surveillance of the same white semi-truck Reyna was driving after it crossed in to the United States from Mexico via the World Trade Bridge. Law enforcement followed Reyna as he drove the a warehouse on El Gato Road in Laredo. Shortly thereafter, a red Dodge Journey arrived. Bernal was later identified as the driver. Reyna then exited his vehicle, carrying a plastic shopping bag and placed it in the back seat of Bernal’s vehicle.
After they departed, authorities conducted a traffic stop and found the plastic bag. Inside, they discovered four bundles wrapped in brown tape which all contained crystal methamphetamine with a net weight of 3.9 kilograms.
U.S. District Judge Marina Garcia Marmolejo accepted the pleas today and set sentencing for July 31, 2017. At that time, both face a minimum 10 years and up to life for the conspiracy to possess with intent to distribute methamphetamine. Reyna faces the same penalty for the heroin conspiracy. Bernal was permitted to remain on bond pending that hearing, while Reyna will remain in custody.
The Drug Enforcement Administration conducted the investigation with the assistance of task force members of the Webb County District Attorney’s Office and the Laredo Police Department. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Mexican Citizen Sentenced for Illegal ReentryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Maria Agustin, 43, a native and citizen of Mexico, most recently of Elba, NY, who pleaded guilty to reentry after deportation subsequent to an aggravated felony conviction, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo.
Special Assistant U.S. Attorney Brian J. Counihan, who handled the case, stated that in 2009, the defendant was convicted in California of Forcible Rape and Assault with a Deadly Weapon and sentenced to five years in prison. After serving his prison sentence, Agustin was removed from the United States to Mexico by U.S. Immigration and Customs Enforcement. As a result of that conviction, the defendant was permanently barred from returning to the United States.
In December of 2015, Agustin was found working in the United States. The defendant was doing so without having permission to reenter the United States and without employment authorization. In addition, Agustin was required to register as a sex offender in California and had not registered as a sex offender in New York State.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Thomas P. Brophy, Acting Buffalo Field Office Director, and the Genesee County Sheriff’s Office, under the direction of Sheriff William Sheron, Jr.
Mercedes Man Gets Hefty Sentence for Transporting CocaineRead the Press Release
McALLEN, Texas – A 37-year-old Mercedes resident has been ordered to federal prison for possessing with the intent to distribute approximately 84 kilograms of cocaine, announced Acting U.S. Attorney Abe Martinez. Martin Perez pleaded guilty March 31, 2016.
Today, Senior U.S. District Judge Janice Graham Jack ordered Perez to serve a total of 262 months in prison to be immediately followed by 10 years of supervised release. In handing down the sentence, Judge Jack noted his previous conviction of possessing with the intent to distribute marijuana in 2005 and his prior aggravated assault conviction.
On Feb. 1, 2016, Perez was driving a tractor-trailer in Kleberg County when he was stopped for a traffic violation. A search of the trailer he was hauling resulted in the discovery of approximately 84 kilograms of cocaine hidden in a compartment in the bed of the trailer.
Perez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and Kleberg County Sheriff’s Office investigated the case. Assistant U.S. Attorney Joseph Leonard prosecuted the case.
Members of DeCavalcante Crime Family Sentenced to Prison Terms for Distributing CocaineRead the Press Release
NEWARK, N.J. – Two associates of the DeCavalcante organized crime family of La Cosa Nostra were sentenced today to prison terms for their roles in distributing more than 500 grams of cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Rosario Pali, 33, of Linden, New Jersey, was sentenced to 76 months in prison and Nicholas DeGidio, 39, of Union, New Jersey, was sentenced to 17 months in prison. Both had previously pleaded guilty before U.S. District Judge William H. Walls, separate informations charging them with one count each of conspiracy to distribute more than 500 grams of cocaine. Judge Walls imposed the sentences today in Newark federal court.According to documents filed in this case and statements made in court:
DeGidio and Pali were arrested and charged by complaint in March 2015, along with eight other members of the DeCavalcante crime family. Both admitted selling cocaine in conjunction with other family associates.
In addition to the prison term, Judge Walls sentenced DeGidio to two years of supervised release and Pali to three years of supervised release.Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, with the investigation leading to today’s sentencings.
The government is represented by Senior Litigation Counsel V. Grady O’Malley Sr. and Assistant U.S. Attorney James Donnelly.
Defense counsel:
DeGidio: Ted Romankow Esq., Springfield, New Jersey
Pali: Christopher L. Patella Esq., Bayonne, New JerseyMaryland woman convicted for distributing heroinRead the Press Release
UPDATE
The defendant in this case, Sykebia Stewart, withrew her plea on April 16, 2018 before Chief U.S. District Judge Gina M. Groh.
MARTINSBURG, WEST VIRGINIA – Sykebia Stewart, of Dundalk, Maryland, was convicted today in federal court for aiding in the distribution of heroin, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Stewart, age 23, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin.” Stewart admitted to distributing heroin in Berkeley County on May 30, 2016.
Stewart faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Robert W. Trumble presided.
Marianna Man Sentenced to 100 Months in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jimmy Dale King, aka OG Zeek Woods, age 42, of Marianna, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Possession With Intent to Distribute a Mixture or Substance that Contained Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in September of 2016, agents with the Drug Enforcement Administration (DEA) in conjunction with the Springdale Police Department received information that Jimmy Dale King was in Springdale distributing methamphetamine. Agents learned that King was from out of town and staying in a local hotel and obtained a description of the vehicle he was driving. On September 15, law enforcement used a confidential source to arrange for a controlled purchase of methamphetamine from King. Agents set up surveillance and observed as King arrived at the predetermined meeting location. Because King was on parole, there was a valid search waiver on file. After searching and arresting him, officers found approximately one ounce of methamphetamine and $327 cash on his person. Further searching his hotel room, officers located and seized a digital scale, $860 cash and two additional bags of methamphetamine. The suspected substance was sent to the Arkansas State Crime Lab for testing.
King was named in a federal indictment in October of 2016 and pleaded guilty to the charge in December of 2016.
The Drug Enforcement Administration and the Springdale Police Department investigated this case. Assistant United States Attorney Kimberly Davis Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Man Sentenced to 27 Years in Prison for Production of Child PornographyRead the Press Release
Stephen A. Turner, 36, was sentenced today in the United States District Court for the Southern District of Illinois to 27 years in federal prison for production of child pornography, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Turner will also be subject to 15 years of supervised release following the term of imprisonment and will be required to register as a sex offender. The Court also ordered Turner to pay a $100 special assessment.
Turner had utilized the chat function within the Marvel "Contest of Champions" game application to befriend an 11-year-old minor. He continued to cultivate a relationship by texting her and ultimately induced her to photograph her genitals and send him the photographs. The minor’s mother discovered the text messages and illicit photographs and immediately reported the crime to police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The investigation was conducted by the Collier County, Florida Sheriff’s Office, the Wood River Police Department, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Laura V. Reppert.
Man Sentenced to 5 Years in Prison and 15 Years of Supervised Release for Possession of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Jay A. García-Gregory sentenced 21-year-old Carlos Rafael Ocasio-Febres, to serve a term of imprisonment of five years followed by 15 years of supervised release. On June 16, 2016, Ocasio-Febres pled guilty to one count of possession of child pornography involving prepubescent minors, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In September 2015, the defendant knowingly possessed child pornography material depicting prepubescent minors engaging in sexually explicit conduct. After executing a search warrant, and seizing his electronic devices, HSI agents discovered over 400 videos and, at least 72 images, of child pornography. The defendant had downloaded and shared child pornography images and videos using his laptop and cellphones.
“The public has to understand that possession of child pornography is a very serious offense that victimizes and re-victimizes children every time and image is viewed, downloaded or shared,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The US Attorney’s Office is fully committed to identifying and prosecuting anyone who searches for, downloads or possesses such contraband images or videos.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Special Assistant U.S. Attorney Cristina Caraballo-Colón.
Man Admits Robbing the University of Maryland Inn and Conference CenterRead the Press Release
Greenbelt, Maryland – Jamal Ulysses Green, age 24, of no fixed address, pleaded guilty today to a commercial robbery and to using, brandishing and discharging a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief David B. Mitchell of the University of Maryland Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on September 6, 2016, Green and a co-conspirator robbed the University of Maryland University College Inn and Conference Center (UMUC). Green, who was armed and was not wearing a mask, approached a security guard and advised the guard that he was making a delivery to UMUC. The guard followed Green to the loading dock, where Green grabbed the security guard. The security guard fought back. During the altercation Green fired his gun, but did not strike the guard.
Shortly after that, Green’s co-conspirator, wearing a mask and brandishing a handgun, entered the security office of UMUC demanding money and ordering the occupants to the ground. During this time, the security guard involved in the physical altercation with Green on the loading dock returned to the Security Office. As the security guard returned to the Security Office, the co-conspirator appeared in the doorway and fired his gun at the security guard, striking the security guard in the upper left arm, with the bullet going through his/her arm, and lodging next to the security guard’s spine. The injury to the security guard required emergency medical attention. A few seconds later, Green entered the security office. Green and his co-conspirator took three safes from the security office, and fled the area.
Prince George’s County Police Department’s (PGPD) K-9 Unit and Air One helicopter unit responded to 911 emergency calls, and performed a search for the two suspects. Several hours later, a K-9 unit tracked to a wood line directly across the street from the UMUC loading dock. PGPD K-9 found Green in the woods adjacent to the wood line, hiding in overgrown shrubs and trees. Green matched the physical description of the unmasked person seen in the UMUC security video, and was wearing clothing similar in color as one of the suspects who committed the robbery.
Two of the safes taken from the UMUC Security Office were located in the immediate vicinity of where Green was hiding. A third, larger safe, that Green was seen on video carrying out of the security office, was found near the loading dock area concealed amongst trees, next to a.40 caliber semi-automatic pistol. The pistol had a magazine in it, and was loaded with seven rounds of .40 caliber ammunition. The caliber of the firearm was the same as the shell casing found by the loading dock where the security guard was involved in the physical altercation with Green. A forensic analysis of the magazine recovered from the firearm revealed a fingerprint that matches Green’s fingerprint.
Green was arrested and subsequently charged in Prince George’s County District Court with several criminal offenses. Green was detained, at the Prince George’s County Correctional Center (PGCCC). By PGCCC policy, any calls made to or from inmates are recorded. Prior to any conversation, the inmate and the person calling the inmate are advised that the conversation is being recorded. On September 7, 2016, Green made a recorded call to an unidentified male during which he admitted that he fired his gun, but did not hit anybody.
Green faces a maximum sentence of 20 years in prison for the robbery, and a mandatory 10 years and up to life in prison, consecutive to any other sentence imposed, for using, brandishing and discharging a firearm during a crime of violence. U.S. District Judge George J. Hazel has scheduled sentencing for July 12, 2017 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, University of Maryland Police Department, Prince George’s County Police Department, and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who prosecuted the case.
Lynwood Woman Sentenced to 51 Months ImprisonmentRead the Press Release
HAMMOND-Acting United States Attorney Clifford D. Johnson announced that Angela Young, 45, of Lynwood, Illinois was sentenced before District Court Judge Joseph S. Van Bokkelen for one count of conspiracy to commit identity fraud, two counts of aggravated identity theft, one count of knowingly disclosing HIPPA information and one count of unlawful use of social security numbers.
Young was sentenced to 51 months imprisonment, 2 years of supervised release and ordered to pay $64,791.74 in restitution.
According to documents in this case, between June 2007 and continuing through October 2009, Young was employed at a medical facility located in Illinois and was authorized to have access to a patient’s individually identifiable health information and other personal identifying information (PHI/PII). As an employee of the medical facility, Young had access to the names, dates of birth, social security account numbers (SSNs), drivers’ licenses, health insurance cards, credit cards, checking accounts, and billing statements of the patients and their representatives, i.e. individuals who made payments on behalf of the patients at the medical facility. She used her position to take various patients (PHI/PII) without the knowledge, authority, or permission of the patients and their representatives or the medical facility. She then disclosed the PHI/PII to her co-defendant who used the information to open credit card accounts in the names of the patients and their representatives without their knowledge.
This case was investigated by the United States Postal Inspection Service and was handled by Assistant U.S. Attorney Toi Houston.
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Local Businesswoman Pleads Guilty in $70 Million Ponzi SchemeRead the Press Release
DAYTON – Connie Apostelos, also known as Connie Coleman, 51, formerly of Springboro, Ohio, pleaded guilty in U.S. District Court today to charges related to a $70 million Ponzi scheme that defrauded nearly 500 victims. Specifically, she pleaded guilty to one count of money laundering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced the plea entered into today before U.S. District Judge Thomas M. Rose.
Apostelos and her husband, William Apostelos, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. They received $70 million in investment funds in total.
Connie Apostelos operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were operated through improper use of investor funds to William Apostelos’ companies.
William Apostelos also operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, the couple was spending $35,000 per month on Connie’s horse racing company and $400 per month on Victoria’s Secret lingerie.
When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
The government has seized two racehorses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.
Money laundering in this case is punishable by up to 10 years in prison. Sentencing has been scheduled for August 2.
William Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan. As part of his plea agreement, the parties involved have recommended to the court a sentence of 180 months in prison. That sentencing recommendation will be considered by the Judge at a sentencing hearing on June 30.
Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court on January 19 to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme.
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case.
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Justice Department Seeks to Shut Down Chicago Area Tax Return PreparerRead the Press Release
Gregory T. Goss, of Dolton, Illinois, reported false information on federal income tax returns he prepared for his customers, according to a new lawsuit filed by the U.S. Department of Justice today. In the complaint, the government alleges that Goss prepared false tax returns individually and doing business as G & V Tax and Insurance (G & V Tax), a tax preparation firm located at 625 E. 170th Street in South Holland, Illinois. The government’s complaint, filed in federal court in Chicago, Illinois, asks the court to bar Goss and G & V Tax from preparing federal tax returns for others.
According to the complaint, Goss and G & V Tax prepare fraudulent federal tax returns for their customers by fabricating itemized deductions and falsifying self-reported income. Goss and G & V Tax falsified self-employment income and itemized deductions to inflate claims for the Earned Income Credit (EIC) on their customers’ tax returns, according to the complaint. The EIC is a benefit for working people with low to moderate income. The EIC is a refundable credit meaning that it not only can reduce the amount of tax an eligible individual owes, dollar for dollar, but if some credit remains, it can result in a cash refund.
According to the complaint, the suit is a culmination of a lengthy Internal Revenue Service (IRS) investigation into Goss and G & V Tax. The complaint alleges that the IRS audited 237 tax returns prepared by Goss and determined that 147 — or 60 percent — of those returns either understated his customers’ respective tax liabilities or overstated their refunds, including claims for the EIC. These 147 tax returns prepared by Goss underreported $323,547 in taxes, the complaint alleges. The suit alleges that Goss’s misconduct damages the public fisc, undermines public confidence in the U.S. tax system, and harms his customers, who now may owe taxes, interest, and penalties.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Johnstown Man Charged with Filing a False Income Tax ReturnRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of filing a false U.S. Individual Income Tax Return, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Anthony A. Masciantonio.
According to the indictment presented to the court, on or about April 15, 2011, Masciantonio, on his U.S. Individual Income Tax Return, Form 1040, stated his taxable income for calendar year 2010 was $206,575, when he then and there well knew and believed his taxable income for calendar year 2010 was $297,147.63. Likewise, on or about April 15, 2012, on his U.S. Individual Income Tax Return, Form 1040, Masciantonio stated his taxable income for calendar year 2011 was $397,099, when he then and there well knew and believed his taxable income for calendar year 2011 was $470,350.02.
The law provides for a maximum total sentence of 6 years in prison and a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Immigration Attorney Charged in Manhattan Federal Court with Visa Fraud and Aggravated Identity TheftRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York and Terence S. Opiola, the Special Agent-in-Charge of the Newark Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today the arrest of CHARLES JASON LORE for visa fraud, aggravated identity theft, and mail fraud. LORE was arrested this morning and presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Charles Lore, an immigration attorney, is alleged to have submitted fraudulent forms for over 150 clients, claiming a rare exception intended for individuals with extraordinary achievements in film and television. When approached by law enforcement about the unusually high number of exceptions he sought, Lore allegedly stole the identity of another attorney and filed almost 200 additional petitions for the same exception under the unsuspecting attorney’s name.”
HSI Special Agent-in-Charge Terence S. Opiola said: “Attorneys allegedly misrepresenting their role should be put on notice that their actions will be uncovered. I commend our special agents on a job well done.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
Beginning in April 2011 through January 2015, LORE participated in a scheme to submit fraudulent I-129 Forms in connection with applications for temporary nonimmigrant worker visas, known as O-1 visas. Specifically, LORE submitted over 150 fraudulent “no-objection letters” from trade associations that represent actors, musicians, and artists in support of scores of O-1 visa petitions. United States Citizenship and Immigration Services relies on these letters in determining whether the applicant possesses the extraordinary ability, or has demonstrated the requisite achievement necessary to obtain an O-1 visa. In addition, after he was approached by law enforcement agents concerning an apparently fraudulent letter, LORE stole the identity of an unsuspecting lawyer, and submitted nearly 200 additional visa petitions in this victim’s name.
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LORE, of Denville, New Jersey, is charged with one count of visa fraud, one count of aggravated identity theft, and one count of mail fraud. Mail fraud carries a maximum sentence of 20 years in prison; visa fraud carries a maximum sentence of 10 years in prison; and aggravated identity theft carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of HSI. He also praised the U.S. Citizenship and Immigration Services, Office of Fraud Detection and National Security, and the Department of State's Diplomatic Security Service for their assistance. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael D. Longyear 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 herein, constitute only allegations, and every fact described should be treated as an allegation.
Honolulu Massage Parlor Owner Found Guilty of Bribery of Federal AgentRead the Press Release
HONOLULU – A federal jury yesterday found Biyu Situ, 48, owner of Mayflower and Blue Angel Massage Parlors, guilty of two counts of bribery of a public official. The verdict followed a two and a half day trial. Situ faces a maximum term of imprisonment of 15 years for each count when she is sentenced on July 24, 2017, by Senior District Judge Susan Oki Mollway.
Elliot Enoki, Acting United States Attorney, said that according to information produced in court, on June 12, 2015, during a federal undercover investigation, Situ, the operator of the Blue Angel, a massage parlor front for prostitution activity, offered a special agent with Homeland Security Investigations $5,000 for protection of Blue Angel, consisting of advance notice of law enforcement inspections and raids. Other information produced during the trial showed that Situ also offered the special agent $5,000 to obtain United States citizenship without taking any citizenship test, and that Situ had previously operated the Mayflower Massage Parlor, another front for prostitution, which was shut down due to frequent police and immigration inspections.
The investigation resulting in the prosecution was led by Homeland Security Investigations. The prosecution was handled by Assistant U.S. Attorneys Morgan Early and Larry Butrick.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Honduran man pleaded guilty yesterday in U.S. District Court in Boston to being a previously deported alien present in the United States.
Rumeni D. Romero, 32, a Honduran citizen, pleaded guilty to a one-count indictment of being a previously deported alien present in the United States. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for July 11, 2017.
In January 2017, Romero was encountered by agents in Chelsea and determined to be illegally present in the United States. During an interview, Romero admitted to being an alien who had multiple prior deportations and that he had not received permission to reenter the United States.
According to court documents, between 2006 and 2013, Romero was deported four times. In 2004, he was determined to be illegally present in the United States and was placed into removal proceedings. On Feb. 23, 2006, he was deported to Honduras. In January 2010, while serving a sentence at the Suffolk County House of Corrections, Romero was again determined to be illegally present in the United States. Following the completion of his sentence, Romero was placed into removal proceedings, and on April 5, 2010, he was deported to Honduras. Later that same year, in December 2010, Romero was encountered by agents in Texas, determined to be illegally present in the U.S. and charged with illegal reentry. He pleaded guilty and was again deported in June 2011 following the completion of his sentence. In December 2012, Romero was arrested in Somerville, Mass., and deported for the fourth time on Dec. 12, 2013.
The charging statute 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. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit.
Harrison County man indicted for possessing child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Siglinger, of Gypsy, West Virginia, was indicted by a grand jury sitting in Wheeling today for possession and distribution of child pornography, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Siglinger, age 42, was indicted on one count of “Distribution of Child Pornography” and one count of “Possession of Child Pornography.” Siglinger is accused of distributing and receiving child pornography and having in his possession child pornography depicting a prepubescent minor and a minor under the age of 12. The crimes are alleged to have occurred in December 2015 and May 2016 in Harrison County.
Siglinger faces up to twenty years and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Gresham Medical Practice Manager Sentenced to Prison for False Billing and Tax FraudRead the Press Release
PORTLAND, Ore. – On Tuesday, April 4, 2017, United States District Court Judge Robert E. Jones sentenced Anthony C. Neal to one year and one day in federal prison followed by three years of supervised release. Neal pleaded guilty in July 2016 to engaging in a seven-year health care fraud scheme and conspiring to defraud the Internal Revenue Service (IRS). Neal was also ordered to pay $1,702,567 in restitution to Medicare, Care Oregon and several private health insurance companies and $817,378 to the IRS.
Court documents show that the defendant and his deceased father, Dr. Dean Neal, operated 20/20 Eye Care, an ophthalmology practice in Gresham, Oregon. The defendant ran the practice’s day-to-day business operations, including its public and private health insurance billings. From 2007 through November 2013, the defendant and Dr. Neal routinely subjected many of their patients to medically unnecessary diagnostic tests and fraudulently billed insurance plans for these services. In addition, the defendant and his father fraudulently submitted bills for higher-cost tests when patients were actually receiving lower-cost tests. The two then fraudulently double-billed various insurance plans.
The defendant and Dr. Neal also defrauded the IRS of $817,378 in income taxes from 2009 through 2014 by engaging in a complicated scheme to conceal business revenue and personal income using a straw company. The defendant and his father transferred most of 20/20 Eye Care’s revenue to the straw company and used it to pay for nearly $3 million in personal expenses, willfully failing to report any of this revenue to the IRS. These personal expenses included the partial construction of a multi-million dollar home for the defendant and his wife. The defendant and his father’s failure to file tax returns for 20/20 Eye Care or their straw company resulted in their concealing of nearly $8 million in business revenue from the IRS.
"Health insurance fraud drives up the cost of medical care for honest, hardworking Americans and illegally enriches those who take advantage of a system designed to help people address their personal medical needs," said Billy J. Williams, United States Attorney for the District of Oregon. "This is why the United States Attorney’s Office, the FBI, and the Department of Health and Human Services Office of Inspector General make it a priority to investigate and prosecute these cases. Moreover, all business owners have a legal obligation to pay their fair share of taxes," continued U.S. Attorney Williams. "We will continue to partner with the IRS to identify and prosecute those who do not."
"This time of year, when most Americans are fulfilling their lawful obligation to timely file an accurate tax return, cases like Anthony Neal’s serve as a vivid reminder of the potential consequences of allowing greed to silence duty" said Darrell Walton, Special Agent in Charge of IRS Criminal Investigation. "IRS Special Agents stand at the ready to enforce the law and make sure there is a level playing field for everyone."
This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General, IRS Criminal Investigations and the Oregon Department of Justice Medicaid Fraud Unit, and prosecuted by Seth D. Uram and Donna Brecker Maddux, Assistant United States Attorneys for the District of Oregon.
Georgia Doctor Sentenced to Federal Prison in Pill Mill CaseRead the Press Release
BRUNSWICK, GA – Paul Spencer Ruble, 64, a doctor from Thomson, Georgia, was sentenced yesterday to serve 5 years in federal prison by Chief U.S. District Court Judge Lisa Godbey Wood. Ruble pleaded guilty to a charge of conspiracy to unlawfully dispense controlled substances and launder money on August 22, 2016.
According to information presented during his guilty plea and sentencing hearings, from November 2011 to April 2013, Ruble and other conspirators operated Apex Health & Wellness, a phony pain management clinic in Brunswick, Georgia. Ruble wrote prescriptions for oxycodone, hydrocodone and other drugs without a medical purpose to drug-seeking customers, who typically paid cash for the prescriptions. During the 17 months the phony clinic was in operation, there were more than 10,000 patient visits, an average of 30 drug-seeking customers each day. Apex Health & Wellness was shuttered on April 24, 2013 after a federal search warrant was executed at the premises. The unlawful business was very profitable until being shut down. During its operation, deposits into an Apex Health & Wellness bank account totaled over $2 million, including cash deposits of over $1.7 million. Ruble was paid just under $500,000 for his services at Apex. The owner of the pill-mill clinic, Marc Frazier, 46, of Satellite, Beach, Florida, pleaded guilty to a similar conspiracy charge in July 2015 and was sentenced by Chief Judge Wood to serve 44 months in prison.
The convictions in this matter resulted from a joint investigation by the DEA, GBI, Glynn-Brunswick Narcotics Enforcement Team (GBNET), IRS-CID, and the United States Marshals Service. The investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program, the keystone drug enforcement program of the Department of Justice.
Acting United States Attorney James D. Durham said, “Mr. Ruble was another drug dealer that just happened to wear a white coat. The sad truth is that the owners and operators of sham pill-mill clinics prosper while the patients and members of the community suffer. Those who attempt to profit from pill mills masquerading as pain management clinics in the Southern District of Georgia can expect to find themselves next in a federal prison.”
Assistant United States Attorneys Greg Gilluly, Marcela Mateo and Karl Knoche prosecuted the case for the United States. For additional information, please contact the U.S. Attorney’s Office at (912) 201-2522.
Fraticelli Trucking Company Inc. Guilty of Illegally Transporting Radioactive MaterialRead the Press Release
SAN JUAN, P.R. – On April 4, 2017, Fraticelli Trucking Company Inc. entered a guilty plea to one count of illegally transporting certain highly radioactive material in violation of Title 49, United States Code, Sections 5105(d), 5124(a) and (c), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The guilty plea was entered pursuant to a Plea Agreement reached with the United States. The United States Department of Transportation Office of Inspector General handled the investigation.
The criminal violation, included in an Information filed today with the United States District Court for the District of Puerto Rico, pertains to Fraticelli Trucking Company Inc.’s willful transportation of Cobalt 60, a Class 7 radioactive material, on March 7, 2014, between San Juan and Vega Alta, Puerto Rico via commercial highway without conducting the required pre-trip inspection for such material.
As a part of the Plea Agreement, Fraticelli Trucking Company Inc., a domestic for-profit corporation, stipulated that it contracted to transport a Highway Route Controlled Quantity (HRCQ) of the Class 7 radioactive material (Cobalt 60), within Puerto Rico. Further, at all relevant times, Fraticelli Trucking Company Inc. was aware of the requirement to obtain pre-trip inspections for the delivery and transportation of Cobalt 60 pursuant to Title 49, Code of Federal Regulations, Section 385.415(b)(1).
Specifically, Eduardo Fraticelli Alvarado, acting as an employee and authorized agent of Fraticelli Trucking Company Inc., completed, signed, and submitted US DOT, FMCSA, Combined Motor Carrier Identification Report and HAZMAT Permit Application Form MCS 150B to the Federal Motor Carrier Safety Administration (FMSCA) in or about August 2011, September 2013, and August, 2015. On each date, he certified knowledge of the Federal Motor Carrier Safety Regulations and Federal Hazardous Materials Regulations.
Despite knowledge of the required inspections for radioactive material, Fraticelli Trucking Company Inc. willfully transported Cobalt 60 without conducting the pre-trip inspection on four separate dates: December 7, 2011, July 11, 2012, February 19, 2013, and March 7, 2014.
No hazardous materials were released and no deaths nor bodily injuries were suffered.
“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of workers and the surrounding communities,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”
“As evidenced by the guilty plea entered into today by Fraticelli Trucking Company related to transporting radioactive materials illegally on public highways, maintaining the safety and integrity of our public highways remains a top priority for both the Office of Inspector General and the Department of Transportation,” said Marlies T. González, U.S. Department of Transportation Office of Inspector General Regional Special Agent-in-Charge. “Working with our Federal Motor Carrier Safety Administration and prosecutorial colleagues, we will continue to enforce the hazardous materials laws against those who would seek to compromise the integrity of DOT's HAZMAT safety program.”
As a result of the guilty plea, Fraticelli Trucking Company Inc. may be sentenced to a term of one (1) to five (5) years of probation, a fine not to exceed five hundred thousand dollars ($500,000.00), and/or a term of supervised release of not more than three (3) years. The sentencing hearing has not yet been scheduled by the presiding judge, U.S. District Judge Francisco A. Besosa. Assistant United States Attorney Seth Erbe is in charge of the prosecution of the case.
Former Westbrook Tax Collector Sentenced to Six Months for EmbezzlementRead the Press Release
Contact: Richard W. Murphy
Acting United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Ann Marie Williams, 52, of Falmouth, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby, to six months in prison and three years of supervised release for embezzling funds from the City of Westbrook while employed as the City’s Tax Collector. Williams was also ordered to pay $118,000 in restitution. She pleaded guilty on September 19, 2016.
According to court records, from July 2015 through April 2016, while employed as the Tax Collector for Westbrook, Williams embezzled a portion of cash tax payments made by residents. She concealed her thefts by altering records reflecting the amount of cash tax payments that had actually been received by the City.
The investigation was conducted by the Federal Bureau of Investigation.
Former Running Store Employee Pleads Guilty to $275,000 TheftRead the Press Release
KANSAS CITY, KAN. - An Olathe man pleaded guilty Tuesday to stealing more than $275,000 in merchandise while he was working for a store that catered to runners, U.S. Attorney Tom Beall said.
Craig W. Sullivan, 41, Olathe, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred while he worked for Garry Gribble’s Running Sports, which has five locations in the Kansas City area. Sullivan oversaw merchandise arriving at the main store in Overland Park. He was responsible for distributing merchandise to the other locations.
In his plea, Sullivan admitted he stole merchandise – primarily Garmin GPS devices – and sold them to a buyer in California via Craigslist. The buyer used PayPal to send Sullivan 51 payments totaling $275,780.
Sentencing is set for July 10. Sullivan faces up to 20 years in federal prison and a fine up to $250,000. Beall commended the U.S. Postal Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former New York City Human Resources Administration Employee Sentenced in Manhattan Federal Court to More Than Seven Years in Prison for Fraud and Cocaine TraffickingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that PETRONILA PERALTA, a/k/a “Petra,” a former employee with the New York City Human Resources Administration (“HRA”), was sentenced in Manhattan federal court to 90 months in prison for defrauding a public assistance program that she had administered during the time when she worked for HRA, resulting in the theft of more than $600,000 in public funds, and for trafficking more than 100 kilograms of cocaine following her separation from HRA. Sentence was imposed by U.S. District Judge Gregory H. Woods.
Acting U.S. Attorney Joon H. Kim stated: “Petronila Peralta not only trafficked in large quantities of cocaine, but also abused her position of trust by enriching herself and her co-conspirators at the expense of some of New York City’s neediest citizens. For her serious crimes, she has now been sentenced to over seven years in federal prison.”
According to the Complaint, Indictment, plea agreement, and other information in the public record:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among others, administering the federally funded Supplemental Nutrition Assistance Program (more commonly known as “food stamps”), administering the federally funded Temporary Aid to Needy Families Program, and providing rental assistance to low-income families and individuals.
Between 2005 and August 2014, PERALTA worked at HRA. Although PERALTA was supposed to provide economic support and employment-related services to persons in need, between approximately 2009 and 2011, PERALTA abused her position by fraudulently issuing certain public assistance benefits not to the individuals who were entitled to them, but rather to her co-conspirators. The scheme led by PERALTA resulted in the loss of more than approximately $600,000 in public funds. In addition, following her separation from HRA, between approximately January 2013 and March 2015, PERALTA received, and helped others to receive, through the mail more than 100 kilograms of cocaine meant for re-distribution. In handing down the sentence, Judge Woods called PERALTA the “lynchpin” of both the HRA fraud and the narcotics conspiracy.
* * *
In addition to the prison sentence, PERALTA, 53, of Bronx, New York, was ordered to pay $600,000 in restitution and $675,000 in forfeiture.
Acting U.S. Attorney Kim praised the work of the New York City Department of Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service.
The case is being prosecuted by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Daniel C. Richenthal and Shawn G. Crowley are in charge of the prosecution.
Former Certified Public Accountant Pleads Guilty to ConspiracyRead the Press Release
Jackson, Miss. – Kayla Paul Lindsey, 48, of Rankin County, Mississippi, entered a guilty plea today in U.S. District Court to conspiracy to make false statements to defraud the Federal Home Loan Bank of Dallas, announced Acting U.S. Attorney Harold Brittain.
Lindsey is a former Certified Public Accountant who has been practicing in the Jackson area. Her co-conspirator, Marlene Solomon Williams, also of Rankin County, previously entered a guilty plea to the conspiracy charge and is awaiting sentencing.
The investigation in this case revealed that Lindsey and Williams administered a grant from the Federal Home Loan Bank of Dallas that was intended to provide home repairs for low- to moderate-income households. In pleading guilty, Lindsey and Williams admitted they hired contractors to perform repairs under the grant, and instructed the contractors to inflate their invoices by 20%, which was kicked back to Lindsey and Williams. The fraudulently inflated invoices were submitted to the Federal Home Loan Bank of Dallas through its local member institution, Trustmark Bank. Lindsey and Williams were paid over $186,000 in kickbacks generated by the fraudulent invoices during the course of the conspiracy.
"Today’s guilty plea is evidence that those who choose to participate in fraudulent schemes in an effort to steal from grant programs intended to help homeowners will be brought to justice," said Special Agent in Charge Timothy Mowery with the Federal Housing Finance Agency Office of Inspector General. "The FHFA OIG, together with our law enforcement partners, will vigorously investigate allegations of fraud and will ensure that those who engage in such acts will be held accountable."
Lindsey will be sentenced by U.S. District Judge Tom S. Lee on June 29, 2017, and she faces a maximum penalty of five years in prison and a $250,000 fine. Both defendants will be required to repay all of the illegal proceeds as mandatory restitution in this case.
The case is being prosecuted by Assistant United States Attorney Dave Fulcher. It was investigated by the Federal Housing Finance Agency Office of the Inspector General, the Federal Bureau of Investigation, USDA Office of Inspector General, and the Mississippi Attorney General’s Office.
Former Bergen County, New Jersey, Man Admits Role in $5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. - A former resident of Alpine, New Jersey, today admitted defrauding investors out of more than $5 million, Acting U.S. Attorney William E. Fitzpatrick announced.
James Trolice, 63, of Fairfield, Connecticut, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a two-count information charging him with securities fraud and transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Trolice was the president and owner of Trolice Consulting Services LLC and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products. Trolice and Lee Vaccaro, 45, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.
Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency.
Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million.
The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 20, 2017.
Vaccaro previously pleaded guilty to his role in the scheme and was sentenced Feb. 17, 2017 to 78 months in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa and the New Jersey Bureau of Securities, under the direction of Acting Chief Amy G. Kopleton, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this scheme, you are encouraged to contact the FBI at 973-792-3000.
Today’s plea is due to efforts by the Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: K. Anthony Thomas Esq., Newark
Florida Salesman Indicted for Evading Taxes on More than $1.5 Million in IncomeRead the Press Release
A Fort Lauderdale, Florida resident was indicted today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, between 2002 and 2015, Thomas Daly earned more than $1.5 million in income working as a salesman for several companies. The indictment alleges that Daly has not filed a federal tax return since 2002, with the exception of the 2007 tax year. In August 2009, the Internal Revenue Service (IRS) notified Daly that it intended to levy his wages to collect his unpaid tax liabilities for 2002 through 2006. Allegedly, in an effort to evade the collection of his back taxes, Daly incorporated South Florida Home Marketing Inc. (SFHM) to serve as his nominee and alter ego. Daly allegedly entered into an agreement with his employer to receive his wages in the name of SFHM. The indictment charges that as a result, the IRS’s levy was unsuccessful. Daly also allegedly directed others to make payments to him in the name of SFHM and used the income deposited into SFHM’s bank account to pay personal expenses, including apartment rent, a boat, international travel, entertainment, his girlfriend’s cosmetic surgery and jewelry.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Daly faces a statutory maximum sentence of five years in prison for each tax evasion count. Daly also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Female Drug Smuggler Sent to Federal PrisonRead the Press Release
LAREDO, Texas – A 32-year-old resident of Guadalajara Jalisco, Mexico, has been ordered to prison following her conviction of conspiracy to import cocaine, announced Acting U.S. Attorney Abe Martinez. Susana Carolina Enriquez-Mendez pleaded guilty Dec. 6, 2016.
Late this afternoon, U.S. District Judge Marina Garcia Marmolejo sentenced Enriquez-Mendez to 37 months in federal prison. Not a U.S. citizen, she is expected to face deportation proceedings following completion of her prison term.
On Sept. 24, 2016, Enriquez-Mendez approached the Lincoln Juarez Bridge in Laredo as a passenger in a Mexican taxi cab. After a thorough inspection, agents discovered 4.38 kilograms of cocaine hidden in the inner lining of her suitcase and placed her under arrest.
She has been in custody since her arrest where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigrations and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Federal Inmate Charged with Possessing SuboxoneRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, Acting United States Attorney Soo C. Song announced today.
The indictment named John D. Barnett, Jr., 41.
According to the indictment presented to the court, on December 24, 2016, Barnett possessed a quantity of Suboxone.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Barnett.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Detroit man sentenced to 14 years in federal prison for heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – A Detroit man who led a conspiracy to distribute heroin in Boone County was sentenced today to 14 years in federal prison, announced United States Attorney Carol Casto. Daymeon Damar Johnson, 31, previously pleaded guilty to conspiracy to distribute heroin.
Johnson came to Boone County from Detroit in 2013 and began selling oxycodone from the residence he shared with codefendant Joyce Ann Zornes on Harper Lane in Seth. At some point prior to May 2015, Johnson and Zornes began selling heroin supplied by sources in Detroit. Johnson sold to mid-level dealers and users in Boone County, and occasionally traded drugs for firearms. In July 2015, members of the U.S. Route 119 Drug and Violent Crime Task Force began making purchases of heroin from local dealers being supplied by Johnson. On March 22, 2016, Zornes was stopped in Jackson County while transporting heroin from Michigan. Two days later, in an effort to obtain bond money for Zornes, Johnson recruited Gregory Runion to sell an SKS assault rifle. Runion sold the rifle to an informant working for the Task Force.
On August 1 and 2, 2016, Task Force officers used an informant to buy heroin directly from Johnson and Zornes at their residence. Officers executed search warrants at the residence and seized more than 40 grams of heroin, ecstasy tablets, cash, and distribution paraphernalia. Both Johnson and Zornes were arrested and remain in custody.
This long-term investigation of heroin trafficking in Boone County has led to several convictions and prison sentences. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Gregory Scott Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm. Joyce Ann Zornes, of Seth, previously pleaded guilty to aiding and abetting the distribution of heroin and faces up to 20 years in federal prison when she is sentenced on April 27, 2017. Darrell Woodside, of Detroit, previously pleaded guilty to using a telephone to facilitate heroin trafficking and faces up to four years in federal prison when he is sentenced on June 22, 2017.
The U.S. Route 119 Drug and Violent Crime Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence and is presiding over these cases.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Deming Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Andres Aguirre, 36, of Deming, N.M., was sentenced today in federal court in Las Cruces, N.M., to 110 months in prison for violating the federal firearms laws. Aguirre will be on supervised release for three years after completing his prison sentence.
Aguirre was arrested in April 2013, on a criminal complaint charging him with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number. According to the complaint, on March 5, 2013, Las Cruces Police Department (LCPD) officers encountered Aguirre inside a Walmart in Las Cruces, where Aguirre was attempting to purchase ammunition. At the time, Aguirre was also in possession of a firearm with an obliterated serial number and ammunition.
Aguirre was subsequently indicted on the same charges on July 17, 2013. Aguirre was prohibited from possessing firearms or ammunition because of his prior felony convictions for retaliation against a federal official, escape of a prisoner from a correctional institution, and being a felon in possession of a firearm.
On Nov. 6, 2013, Aguirre pled guilty to the indictment and admitted that on March 5, 2013, in Doña Ana County, N.M., he possessed a pistol with an obliterated serial number.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the LCPD. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted this case under 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 work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Carlos Deonta Brown, Jr., 30, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to four years and 10 months in federal prison without parole.
On June 30, 2016, Brown pleaded guilty to being a felon in possession of a firearm.
The investigation began when a 911 caller reported at approximately 2:08 a.m. on Feb. 21, 2016, that she had seen Brown with a firearm after they had an argument at the Sidelines Sports Bar in Columbia. The caller showed officers photographs she had taken of Brown and the firearm. While an officer was meeting with her, Brown drove past her residence. He was stopped and arrested in possession of a loaded Smith & Wesson .38-caliber revolver.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has an extensive criminal history, which includes felony convictions for resisting arrest and domestic assault. Court documents describe Brown – who also has multiple misdemeanor convictions for domestic assault – as a violent and serial abuser of women.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Columbia Man Pleads Guilty to Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man who was involved in a shooting at a local gas station has pleaded guilty in federal court to illegally possessing a firearm.
Turbo Lindsey Midgyett, 31, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, April 3,2017, to being a felon in possession of a firearm.
According to the plea agreement, Columbia police officers responded to a gas station in the 1400 block of Rangeline on March 6, 2016, where shots had reportedly been fired. Officers located two cars with damage from gunfire and found three 9mm casings. Video from the gas station showed a man pulling out a firearm, which appeared to misfire, then showed Midgyett racking a handgun and firing in the direction of the first shooter.
Officers went to Midgyett’s residence and spoke with his girlfriend, who told officers that Midgyett is allowed to use her gun and vehicle, and that the gun was usually in the glove box. Officers looked in the glove box and found a loaded Taurus 9mm handgun, which had three rounds missing. The brand of ammunition in the firearm was the same as the three rounds found at the shooting scene. Midgyett was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Midgyett has three prior felony convictions for robbery.
Under federal statutes, Midgyett is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Chicago-Area Return Preparer Barred from Preparing Federal Tax ReturnsRead the Press Release
Today, a federal judge barred Irving Brown Sr., a retired Chicago Fire Department captain, from preparing federal tax returns for others, the Justice Department announced. After a two-day bench trial in February, the court found that Brown Sr. of Chicago, Illinois, prepared and filed fraudulent tax returns for his customers, including Chicago Fire Department firefighters.
The court found that Brown, Sr. operated a seasonal tax return preparation business out of his Chicago home called Irving Brown, Sr. Tax Services and prepared more than 1,600 federal tax returns from 2011 to 2015 either himself or with the assistance of others. The court’s ruling noted that the Internal Revenue Service (IRS) audited 94 returns prepared by Brown Sr. and found that all but two required an adjustment by the IRS. Based upon these audits, the total tax deficiency was more than $700,000, and the IRS projects that the tax loss is well in excess of $1 million, according to the court’s findings.
The court determined that Brown engaged in a variety of ways to underreport his customers’ tax liabilities, such as fabricating the existence of small businesses with high expenses and inflating itemized deductions in order to offset earned income on his customers’ tax returns. The court also determined that Brown Sr. routinely fabricated itemized deductions such as charitable contributions and unreimbursed employee expenses. For example, on one of his customer’s returns, Brown Sr. reported more than $3,000 in parking expenses as unreimbursed employee expenses when the customer did not drive to work or park any car at work. The court noted that this customer did not even have a car for that particular year.
In addition to underreporting his customers’ tax liabilities, the court determined that Brown actively attempted to impede and obstruct the IRS’s investigation into his preparation activities. For example, the court found that Brown offered to pay $3,000 towards a customer’s tax liability if the customer agreed not to turn Brown in or sign an affidavit implicating him. The court also determined that Brown provided customers with false receipts and blank work orders, which appeared to be written in the same handwriting, and instructed those customers to present those documents to the IRS in support of the fraudulent items reported on their returns.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division thanked the revenue agent of the IRS–Small Business/Self-Employed Division, who conducted the investigation and Trial Attorneys Jordan A. Konig and Mary A. Stallings of the Tax Division, who litigated this case.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Charlotte Resident Sentenced in Connection with Business Email Compromise Scheme, Access Device Fraud, and Check FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in Federal court, United States District Judge Terrence W. Boyle sentenced OBINNA IZUCHI ONWUZURIKE, 27, of Charlotte, North Carolina to 65 months of imprisonment and $154,928 in restitution.
ONWUZURIKE was named in a Criminal Information filed on August 30, 2016 which charged him with conspiracy to commit money laundering and access device fraud and aggravated identity theft. On September 26, 2016, pursuant to a waiver of indictment, ONWUZURIKE pled guilty to the charges.
According to the charging instrument, statements made in court, and other public information, ONWUZURIKE conspired with others to engage in acts of money laundering, access device fraud, and check fraud. Among other things, ONWUZURIKE was involved in the laundering of fraud proceeds generated by “business email compromise” (BEC) schemes through one or more domestic bank accounts. BEC schemes are sophisticated scams targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The scam is carried out by compromising legitimate business email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.
ONWUZURIKE also engaged in access device fraud involving the theft of credit card information for the purpose of making unauthorized charges against victim accounts. Additionally, as part of the conspiracy, ONWUZURIKE committed check fraud. In one instance, ONWUZURIKE deposited a $60,000 counterfeit check into the bank account of a sham company opened with victim information. The check itself purported to be drawn on another victim’s home equity line of credit.
Investigation of this case was conducted by the Federal Bureau of Investigation, Cyber Division. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Charlotte Man Convicted of Murder and Robbery Following Two-Week TrialRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted Damarcus Donte Ivey, 35, of Charlotte, of Hobbs Act robbery and committing murder while using and possessing a firearm during and in furtherance of the robbery, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the two-week trial, which ended yesterday afternoon.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to court documents, evidence presented at trial and witness testimony:
On September 10, 2009, Ivey and Kevin Bishop robbed Club Nikki’s, located at 3001 Little Rock Road, in Charlotte. Over the course of the robbery, Ivey and Bishop pointed guns at the club’s patrons and staff, ordered them on the floor, and took personal items from the patrons and cash from the club. Trial evidence showed Ivey take items from the male victim before he fired a shot that killed him. Ivey and Bishop then fled the scene in a Ford F-150. Six minutes after the initial 9-1-1 call, a CMPD officer observed Ivey and Bishop exiting I-85 onto Beatties Ford Road. A chase ensued that ended in a vehicle crash and Ivey and Bishop attempted to flee from CMPD officers on foot. Both men were apprehended by CMPD officers within minutes and were found in possession of proceeds from the robbery. Inside the Ford F-150, officers located the wallet of one of the club’s patron and $355 in cash scattered about the floorboard.
Ivey is currently in federal custody. The Hobbs Act robbery charge carries a maximum prison term of 20 years, and a $250,000 fine. The murder while using a firearm in furtherance of a crime of violence charge carries a mandatory penalty of life in prison. A sentencing date for Ivey has not been set. Kevin Bishop was convicted on state charges in 2014 and was given a 16-20-year sentence for his role in the robbery.
In making today’s announcement, U.S. Attorney Rose said, “I want to thank the Mecklenburg County District Attorney’s Office for their coordination and partnership with my Office in the successful prosecution of this case.”
U.S. Attorney Rose also commended CMPD, the FBI, and the ATF for their investigation of the case.
Assistant U.S. Attorneys Craig Randall and William Bozin, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.