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12 May 2017
Preston County man guilty of unlawful possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – A Bruceton Mills, West Virginia man was convicted today of possessing a firearm illegally, Acting United States Attorney Betsy Steinfeld Jividen announced.
Michael Dee Cline, age 59, pled guilty to one count of “Felon in Possession of a Firearm.” Cline, who was previously convicted of a felony in Tennessee, admitted to having a .45 caliber pistol in March 2016.
Cline faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wetzel County Sheriff’s Office investigated.
U.S. Magistrate Judge James E. Seibert presided.
Penacook Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD, N.H.– Acting United States Attorney John J. Farley announced today that Bryan Franklin (41), formerly of Penacook, New Hampshire, pleaded guilty to possession of fentanyl and methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements in the court proceeding, on September 24, 2016, the Tilton, New Hampshire Police Department conducted a traffic stop of a vehicle operated by Franklin that was found to contain multiple needles, cut plastic baggies, and other items associated with drug use. A subsequent search of another vehicle owned by Franklin resulted in the seizure of a lock box that contained approximately $15,958 cash, approximately 750 grams of fentanyl, assorted prescription pills, a quantity of methamphetamine, a thumb drive, and two digital scales. Additionally, a backpack in the vehicle contained a tin box that contained an additional quantity of fentanyl, a drug ledger, and a loaded semi-automatic handgun that had been reported to law enforcement as stolen.
Franklin is scheduled to be sentenced on August 23, 2017. Franklin faces a possible maximum sentence of twenty years on the drug trafficking charge and a mandatory minimum five year sentence for the firearm, which must be served consecutively to any term of imprisonment imposed for the drug charge.
“The aggressive investigation and prosecution of individuals engaged in fentanyl trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state and federal level,” said Acting U.S. Attorney Farley. “As New Hampshire continues to face an unprecedented number of overdose deaths directly caused by opioid use, we will continue to work tirelessly to prosecute those who are responsible for distributing these dangerous drugs in our state. Most drug deaths in New Hampshire are associated with fentanyl use. The quick-thinking law enforcement officers who seized this large quantity of fentanyl and prevented it from being distributed may have saved several lives.”
“Opioid abuse is at epidemic levels in New Hampshire,” said Special Agent in Charge Michael J. Ferguson. “Fentanyl is causing overdose deaths across the Granite State in record numbers, and DEA is committed to aggressively pursuing anyone who distributes this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tilton Police Department. The case is being prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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O'Fallon Man Sentenced to Federal Prison for Child Pornography OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Hamza L. Nijmeh, 32, of O’Fallon, IL, was sentenced today by United States District Court Judge David R. Herndon to 12 years imprisonment for one count of distribution of child pornography and one count of receipt of child pornography. The sentences will run concurrently with each other. Judge Herndon also sentenced Nijmeh to ten years of supervised release to follow the imprisonment and $6,500 in restitution to three identified victims of the child pornography images.
According to court documents, in August 2015, law enforcement officials in Albuquerque, New Mexico received a CyberTipline report from the National Center for Missing and Exploited Children about a New Mexico suspect who was trading child pornography online. An investigation by New Mexico authorities revealed that the suspect was trading child pornography with approximately 50 other individuals across the United States via group chats in a cellular phone messaging app.
A subsequent investigation by agents with the Fairview Heights division of the FBI identified one of those 50 individuals as Nijmeh. The FBI investigation revealed that on August 14, 2015, Nijmeh received an image of child pornography and on August 15, Nijmeh distributed an image of child pornography. Both the distribution and receipt were conducted from Nijmeh’s cell phone. A forensic search of Nijmeh’s phone found 483 image files and 281 videos containing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s
Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and
local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and
to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit
www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the FBI’s Fairview Heights division and prosecuted by
Assistant United States Attorney Christopher Hoell.
North Carolina Owner of Tax Preparation Business Sentenced to More than Ten Years in Prison for Conspiracy to Defraud the IRSRead the Press Release
A North Carolina man, who owned a tax preparation business in Rockingham, North Carolina, was sentenced to serve 11 years in prison today for conspiring to defraud the Internal Revenue Service (IRS) and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, from at least January 2012 through April 2016, Herbert Lee Martin of Rockingham, North Carolina, owned and operated a tax preparation business known as “Herb’s Helping Hands,” where he prepared and filed federal income tax returns that fraudulently claimed refunds for clients. Martin also taught others how to prepare false returns and supervised their preparation of these returns. Martin and his co-conspirators reported fictitious or inflated income and dependency exemptions to generate false or inflated Earned Income Tax Credits, false business income and losses, and false deductions. On occasion, Martin and his co-conspirators purchased, and sometimes stole, personal identifying information of individuals, including minor children, and listed these individuals as false dependents on returns to generate larger fraudulent refunds for their clients. Martin would on occasion, direct some of the clients’ refunds into his own bank account or a bank account he controlled.
“Herbert Martin used his business – Herbs Helping Hands – to literally help himself to false and fraudulent deductions and tax credits, which he then sprinkled on his clients’ returns even though he knew they were not eligible to claim them,” said Acting Deputy Assistant Attorney General Goldberg. “The bogus returns his business created caused more than $10.6 million in losses for the U.S. Treasury. Martin’s 11-year sentence is a stern warning to those engaged in preparing fraudulent tax returns that they will be identified and held fully accountable for their criminal conduct.”
“Martin constructed an elaborate scheme to defraud the federal government that resulted in the loss of millions of dollars in tax revenue,” said Acting U.S. Attorney Hairston. “With the sentence that was imposed today, Martin has been brought to justice for his crimes.”
“Today’s substantial sentence for Herbert Martin for preparing and filing false tax returns is a triumph for all honest return preparers,” said Chief Richard Weber of IRS Criminal Investigations (CI). “The only “Helping Hands’ Herb offered were to himself and his co-conspirators by stealing from U.S. Treasury and the wallets of decent taxpayers. Let this be a reminder to others seeking to enrich themselves illegally—IRS CI Special Agents and their law enforcement partners will find you; we will uncover your fraudulent schemes.”
In addition to the term of prison imposed, Martin was ordered to serve three years of supervised release and to pay $10,605,420 in restitution to the IRS.
On May 9, Martin’s niece, Jessica Shanice Taylor, was sentenced to serve 24 months in prison for aggravated identity theft, which she committed as part of Martin’s scheme. She also was ordered to pay $36,569 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS–CI, who conducted the investigation, and Trial Attorney Kathryn A. Kimball of the Tax Division and Assistant U.S. Attorney Clifton Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Owner of Tax Preparation Business Sentenced to More Than Ten Years in Prison for Conspiracy to Defraud the IRSRead the Press Release
WASHINGTON — A North Carolina man, who owned a tax preparation business in Rockingham, North Carolina, was sentenced to serve 11 years in prison today for conspiring to defraud the Internal Revenue Service (IRS) and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, from at least January 2012 through April 2016, Herbert Lee Martin of Rockingham, North Carolina, owned and operated a tax preparation business known as “Herb’s Helping Hands,” where he prepared and filed federal income tax returns that fraudulently claimed refunds for clients. Martin also taught others how to prepare false returns and supervised their preparation of these returns. Martin and his co-conspirators reported fictitious or inflated income and dependency exemptions to generate false or inflated Earned Income Tax Credits, false business income and losses, and false deductions. On occasion, Martin and his co-conspirators purchased, and sometimes stole, personal identifying information of individuals, including minor children, and listed these individuals as false dependents on returns to generate larger fraudulent refunds for their clients. Martin would on occasion, direct some of the clients’ refunds into his own bank account or a bank account he controlled.
“Herbert Martin used his business – Herbs Helping Hands – to literally help himself to false and fraudulent deductions and tax credits, which he then sprinkled on his clients’ returns even though he knew they were not eligible to claim them,” said Acting Deputy Assistant Attorney General Goldberg. “The bogus returns his business created caused more than $10.6 million in losses for the U.S. Treasury. Martin’s 11-year sentence is a stern warning to those engaged in preparing fraudulent tax returns that they will be identified and held fully accountable for their criminal conduct.”
“Martin constructed an elaborate scheme to defraud the federal government that resulted in the loss of millions of dollars in tax revenue,” said Acting U.S. Attorney Hairston. “With the sentence that was imposed today, Martin has been brought to justice for his crimes.”
“Today’s substantial sentence for Herbert Martin for preparing and filing false tax returns is a triumph for all honest return preparers,” said Chief Richard Weber of IRS Criminal Investigations (CI). “The only “Helping Hands’ Herb offered were to himself and his co-conspirators by stealing from U.S. Treasury and the wallets of decent taxpayers. Let this be a reminder to others seeking to enrich themselves illegally—IRS CI Special Agents and their law enforcement partners will find you; we will uncover your fraudulent schemes.”
In addition to the term of prison imposed, Martin was ordered to serve three years of supervised release and to pay $10,605,420 in restitution to the IRS.On May 9, Martin’s niece, Jessica Shanice Taylor, was sentenced to serve 24 months in prison for aggravated identity theft, which she committed as part of Martin’s scheme. She also was ordered to pay $36,569 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS–CI, who conducted the investigation, and Trial Attorney Kathryn A. Kimball of the Tax Division and Assistant U.S. Attorney Clifton Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New York Woman Sentenced to 2 Years in Federal Prison for Stealing More Than $700K from EmployerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROSEMARIE COLLAZO, 52, of Yonkers, N.Y., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for stealing more than $700,000 from her employer.
According to court documents and statements made in court, COLLAZO was employed by Abbey National Treasury Services, PLC, in Stamford. As part of her job, COLLAZO assisted in arranging for payments to vendors and others. COLLAZO collected invoices as they came into the company and presented the collected invoices to her supervisor to approve payment. Her supervisor then reviewed the items and signed off on the payments. COLLAZO then entered the payment information into the company’s accounts payable program, which generated payment checks. Next, COLLAZO created packets that included the invoice, an authorization form and the payment check related to the specific invoice. After the packets had been reviewed and the appropriate signatures obtained from her supervisors, COLLAZO mailed the checks to vendors.
Between 2010 and 2016, COLLAZO prepared approximately 150 fraudulent duplicate invoice packages and submitted an equivalent number of checks for authorizing signatures for payments that she knew had already been processed and paid. She then deposited the checks into her personal bank account.
In addition, on at least three other occasions, COLLAZO misappropriated a vendor refund check that had been sent the company, and endorsed the check for deposit into her personal bank account.
In total, COLLAZO stole $772,242 during the course of this scheme.
Judge Underhill ordered COLLAZO to pay full restitution.
On January 20, 2017, COLLAZO pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
New York Man Sentenced to 2½ Years for Heroin and Crack DistributionRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Charles Flores, 27, of Bronx, New York was sentenced yesterday in U.S. District Court by Judge Jon D. Levy to 2½ years in prison and three years of supervised release for possession with intent to distribute heroin and cocaine base, commonly known as “crack”. Flores pled guilty on January 9, 2017.
Court records reveal that on March 21, 2016, federal agents responding to a tip went to a hotel in Brunswick, Maine and observed Flores engage in what appeared to be a drug deal. A search of Flores and his hotel room resulted in the seizure of heroin, crack and $6,900.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine State Police and the Lewiston Police Department, and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOPPA JACKSON (“JACKSON”), age 35, of New Orleans, pled guilty yesterday to conspiring to distribute and possess with intent to distribute 500 grams or more of powder cocaine.
According to court documents, JACKSON, along with codefendants CRAIG JAMES, LAZANDY DANIELS, AND LEON JACKSON, JR., conspired to distribute cocaine in the New Orleans area. In 2015, JAMES, who is from Houston, traveled to New Orleans multiple times per month in order to deliver multi-kilogram quantities of powder cocaine to his local customers, including JACKSON, DANIELS, and LEON JACKSON, JR. JACKSON, DANIELS, and LEON JACKSON, JR. then sold the cocaine to users and other drug dealers in the New Orleans area.
Because JACKSON has a prior felony drug conviction, he faces a mandatory minimum sentence of 10 years imprisonment, a maximum life sentence, a possible fine of $8,000,000, and a period of supervised release of 8 years. U.S. District Judge Jane Triche Milazzo will sentence JACKSON on August 10, 2017. JAMES AND LEON JACKSON, JR. previously pled guilty and are scheduled to be sentenced on June 8, 2017. DANIELS has a trial date of June 12, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA) and the New Orleans Police Department (NOPD) in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter are in charge of the prosecution
Nanticoke Man Indicted for Export Violations and Unlawful Possession of AmmunitionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mark Komoroski, age 54, of Nanticoke, Pennsylvania, was indicted on May 10, 2017, for violating federal export laws and unlawfully possessing ammunition as a previously convicted felon. The indictment was unsealed on May 11, 2017, following Komoroski’s arrest and initial appearance before United States Magistrate Judge Karoline Mehalchick.
According to United States Attorney Bruce D. Brandler, the indictment alleges that in February and March of 2016, Komoroski attempted to export two riflescopes to an individual in Russia without first obtaining the export licenses required by federal law. The indictment also alleges that Komoroski, a previously convicted felon, possessed over 25,000 rounds of ammunition.
This case was investigated by the Department of Homeland Security and the Department of Commerce. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment for the export offenses, 10 years of imprisonment for the ammunition offense, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Minnesota Man Indicted for Threatening Communications and StalkingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Piedmont, South Dakota, man has been indicted by a federal grand jury for Threatening Communications, Stalking, and Repeated Telephone Calls.
Larry Wenthold, age 38, was indicted on February 22, 2017. Wenthold appeared before U.S. Magistrate Judge Daneta Wollmann on May 10, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Wenthold, who was living in Minnesota at the time, sending repeated texts and telephone calls to a female and her mother and sister in South Dakota. These communications threatened their lives and put them in fear of death or serious bodily injury.
The charges are merely accusations and Wenthold is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. U.S. Attorney Eric Kelderman is prosecuting the case.
Wenthold was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not yet been set.
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Miami-Dade Resident Sentenced to 25 Years in Prison for Committing Six Armed RobberiesRead the Press Release
A Miami-Dade resident was sentenced to 25 years in federal prison for committing six armed robberies throughout Miami-Dade County.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Juan Perez, Director, Miami-Dade Police Department (MDPD); Daniel Oates, Chief, Miami Beach Police Department (MBPD); Rene Landa, Chief, South Miami Police Department; Edward Hudak Jr., Chief, Coral Gables Police Department; Samuel Ceballos, Jr., Chief, Pinecrest Police Department; and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Zeddrick Smith, 46, previously pled guilty to the armed robberies. Yesterday, U.S. Chief District Judge K. Michael Moore sentenced Smith to 25 years in prison, followed by five years of supervised release.
According to the court record, Smith committed six armed robberies. On November 24, 2016, November 27, 2016, November 29, 2016, December 6, 2016, December 8, 2016, and December 11, 2016, Smith robbed various victims at gunpoint at restaurants and food stores in South Florida. Pursuant to the investigation, officers recovered the loaded firearm Smith used in the robberies from Smith’s vehicle. At the time of the robberies, Smith was a convicted felon who was prohibited from possessing a firearm and ammunition.
Mr. Greenberg commends the investigative efforts of ATF, MDPD, Miami Beach Police Department, South Miami Police Department, Coral Gables Police Department, Pinecrest Police Department, and MPD in relation to this case. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medford Man Receives Federal Prison Sentence for Threatening Former President ObamaRead the Press Release
MEDFORD, Ore. – On May 12, 2017, United States District Court Judge Michael J. McShane sentenced John Martin Roos, 62, of Medford, to 63 months in federal prison after he pleaded guilty to possessing an unregistered explosive device and posting Internet threats to kill then-President of the United States Barack Obama and FBI agents. After his release from prison, Roos will be on supervised release for three years.
“Threats of violence directed at public officials and law enforcement are a serious matter” said Billy J. Williams, United States Attorney for the District of Oregon. “Violent social media posts are every bit as serious as those made in other venues. We will continue to vigorously investigate and prosecute similar crimes.”
Roos admitted in court to using racially inflammatory language in a Twitter post in which he threatened to kill former President Obama, former First Lady Michelle Obama and their children. In a Facebook post, Roos threatened to “snipe” FBI agents “with hunting rifles.”
Roos was arrested last April while parking his truck outside a Veterans Administration (VA) facility in White City, Oregon. The arresting agent found a loaded semi-automatic pistol underneath the driver side floor mat. A search of Roos’ apartment uncovered more firearms and several pipe bombs.
Roos told investigators that he was motivated to threaten FBI agents after the fatal shooting of Lavoy Finicum in January 2016 during the highly-publicized occupation of the Malheur National Wildlife Refuge near Burns, Oregon. Roos has remained in custody since his arrest in April 2016.
This case was investigated by the FBI, United States Secret Service, VA Police Service, Oregon State Police, Southern Oregon High Tech Crimes Task Force and Medford Police Department and prosecuted by William “Bud” Fitzgerald, Assistant United States Attorney for the District of Oregon.
Maryland Woman Indicted on Murder-For-Hire ChargeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Susan Anderson, age 56, of Elkton, Maryland, on charges related to a murder-for-hire. The indictment was returned on May 11, 2017.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, Anderson allegedly paid someone to commit a murder.
Anderson faces a maximum sentence of 10 years in prison for the use of interstate commerce facilities in the commission of murder-for-hire; and 20 years for solicitation to commit a crime of violence.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David D. Metcalf, who is prosecuting the case.
Man Sentenced to 10 Years for Attempting to Have Sex with ChildrenRead the Press Release
ALEXANDRIA, Va. – A local graduate student was sentenced today to 10 years in prison for attempting to have sex with two children, ages 5 and 7.
Julio Perez-Torres, 26, of Rome, New York, pleaded guilty on January 13 to attempted coercion and enticement of a minor to engage in criminal sexual activity. According to the statement of facts filed with the plea agreement, in early February 2016, Perez-Torres, a master’s degree candidate at American University, posted an online advertisement expressing interest in sex with children. When an undercover Fairfax County police officer replied portraying himself as the father of two children, ages 5 and 7, Perez-Torres discussed performing graphic sexual acts on the children. On Feb. 18, 2016, after weeks of corresponding with the undercover officer via sexually explicit emails, text messages and telephone calls, Perez-Torres traveled to meet the undercover officer with the intent to engage in sexual acts with the children. Perez-Torres was arrested at that time.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney James E. Burke IV prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-287.
Man Sentenced for Exploiting Children to Produce Child PornographyRead the Press Release
ALEXANDRIA, Va. – An Ohio man was sentenced today to 15 years in prison for exploiting at least six minor boys to produce sexually explicit photographs and videos.
Vincenzo Leonardi, 27, of Lakewood, pleaded guilty on February 13, to the sexual exploitation of a minor. According to court documents, from at least May 2012 to February 2016, Leonardi posed as a pre-adolescent minor girl named “Taylor Capps” on Facebook, Instagram, Kik, and other social media services, for the purpose of contacting minor boys over the Internet to engage in sexually explicit communications and conduct. As part of his scheme, Leonardi sent pictures of a minor girl and other naked females to his victims. One victim, located in Loudoun County, Virginia, was 9 years old when he was contacted by Leonardi. For that victim and at least five others located throughout the country, Leonardi successfully coerced and enticed them to record themselves engaged in sexually explicit behavior and to transmit those photographs and videos to Leonardi. As part of his plea agreement, Leonardi admitted that he attempted to similarly exploit at least a dozen other minor boys he contacted online, all of whom were between the ages of 9 and 12 years old. Leonardi also admitted that his personal laptop computer, which was seized during the execution of a search warrant in December 2015, contained over two dozen sexually explicit videos and over 100 sexually explicit images of children.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu prosecuted the case. The U.S. Attorney’s Offices for the Northern District of Ohio and the District of Maryland significantly aided in the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-247.
Man Pleads Guilty to Armed Robbery of Riegelwood Federal Credit UnionRead the Press Release
GREENVILLE –United States Attorney John Stuart Bruce announced that today in federal court before United States Magistrate Judge Kimberly A. Swank, BORENZO CORTEZ PATRICK pled guilty to Armed Bank Robbery and to Brandishing a Firearm in Furtherance of a Crime of Violence.
During the defendant’s guilty plea hearing, the Government summarized the evidence supporting the defendant’s guilty plea. The evidence established that on December 22, 2016, at approximately 8:16 a.m., PATRICK robbed the Riegelwood Federal Credit Union (RFCU), located at 2065 Andrew Jackson Highway, Leland, NC, at gunpoint. During the robbery, PATRICK conducted a violent armed takeover of the credit union, and was carrying an AK-47 style assault rifle. Though it was later determined that the rifle was unloaded during the robbery, PATRICK pointed the rifle at several bank employees and customers, forcing the employees to lay face down on the ground and racking the rifle bolt several times.
At sentencing, on the charge of Armed Bank Robbery, the defendant faces not more than 25 years in prison and up to $250,000 in fines. On the charge of Brandishing a Firearm in Furtherance of a Crime of Violence, the defendant faces a minimum term of 7 years in prison and up to life in prison and a fine of up to $250,000.
The Federal Bureau of Investigation, Leland Police Department, Brunswick County Sherriff’s Office, and Columbus County Sherriff’s Office conducted the investigation of this case. Assistant United States Attorney Daniel P. Bubar is prosecuting this case on behalf of the government.
Louisburg Man Pleads Guilty to Serveral Firearm OffensesRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that today in federal court, DAVID EARL GILL, JR., 26, of Louisburg, North Carolina, pled guilty to carjacking and using, carrying, and brandishing a firearm during and in relation to a crime of violence and possessing and brandishing a firearm in furtherance of a crime of violence. Additionally GILL plead guilty to possession of a stolen firearm in the Northern District of Georgia.
According to the Indictment and information in the public records, on July 31, 2015, GILL and his codefendant Kyara Nicole Jones, forced entry into a residence in Louisburg, North Carolina. GILL was armed with a sawed off shotgun and forced the homeowner into a closet and barricaded the door with furniture and took the homeowner’s vehicle. Jones previously pled guilty for her role on January 12, 2017,
On August 5, 2015, GILL pawned a shotgun that was reported stolen from Rockingham County at a store in McDonough, Georgia. The next day, law enforcement officers in McIntosh arrested GILL when they located him driving the stolen vehicle from Louisburg, North Carolina.
A sentencing hearing will be set at a later date. GILL faces a maximum sentence of life imprisonment followed by 5 years of supervised release.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Franklin County Sheriff’s Office, and the McIntosh Georgia Sheriff’s Office. Assistant U.S. Attorney Jane Jackson prosecuted the case for the Eastern District of North Carolina and Assistant U.S. Attorney Bret Hobson prosecuted the case for the Northern District of Georgia.
Lima man sentenced to 15 years in prison for having nearly 38,000 images of the sexual exploitation of childrenRead the Press Release
A Lima man was sentenced to 15 years in prison for receiving and distributing material involving the sexual exploitation of children, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Richard Hack, 28, had nearly 38,000 images of child pornography, including 477 videos. He distributed the child pornography to others between 2011 and 2015 and solicited live sex shows involving children, according to court documents.
Hack was also ordered to pay $66,400 in restitution.
This case was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI.
Lauderdale County Man Sentenced to 120 Months in PrisonRead the Press Release
Jackson, Miss – Marvin Naylor, 46, from Daleville, Mississippi, was sentenced on May 11, 2017, by U.S. District Judge Henry T. Wingate, to 120 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm, Acting U.S. Attorney Harold Brittain announced today. Naylor was also ordered to pay a $1500.00 fine.
Naylor pled guilty on January 9, 2017 to possessing three firearms at a time in which he was already a convicted felon. In November, 2015, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Mississippi Bureau of Narcotics and the Lauderdale County Sheriff’s Department, executed an arrest and search warrant on Naylor’s home. During the search and arrest, law enforcement officers were able to locate three firearms, two of which were stolen, along with several rounds of ammunition. Naylor was arrested and admitted to possessing the firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Mississippi Bureau of Narcotics and the Lauderdale County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.
Las Vegas Man Sentenced to 13 Years in Prison for Three Armed Commercial RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced to 156 months in prison for robbing three businesses and for brandishing a firearm during the robberies, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Oscar Hernandez-Lopez, 24, pleaded guilty to one count of conspiracy to interfere with commerce by robbery, one count of brandishing a firearm during a crime of violence and three counts of interfering with commerce by robbery. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Hernandez-Lopez to five years of supervised release and to pay a criminal money judgment in the amount of $1,500.
According to the plea agreement, from Dec. 19, 2014 to about Jan. 7, 2015, Hernandez-Lopez conspired with others to rob various stores in Las Vegas. On Dec. 21, 2014, he entered a Speedee mart, produced a firearm and demanded money from an employee and a customer. On Jan. 5, 2015, he entered a Boost Mobile Store, produced a firearm and demanded money. On Jan. 7, 2015, Hernandez-Lopez, dressed in a black hoodie, a black ski mask, and gloves, ran inside a Metro PCS store, jumped over the counter, pointed a handgun at an employee and said, “give me all the money.” Shortly after the Metro PCS robbery, Las Vegas Metropolitan Police Department officers stopped the vehicle Hernandez was driving and observed in plain view clothing that was consistent with those worn during the robberies. A search warrant was executed on the vehicle. During that time, Hernandez-Lopez admitted to participating in various robberies of local stores.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorney Alexandra Michael.
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Kyle Man Found Guilty of Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that Darrell Janis, age 57, of Kyle, South Dakota, was found guilty of two counts of Abusive Sexual Contact as a result of a federal trial in Rapid City, South Dakota.
The charges carry a maximum penalty of 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each count.
The charges relate to Janis using force to have sexual contact with a child, who was between the ages of 12 and 16, on December 11, 2015, at Kyle.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A sentencing date will be set. Janis was remanded to the custody of the U.S. Marshals Service pending sentencing.
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Keene Man Sentenced to Seven Years in Federal Prison for Conspiring to Distribute in Excess of One Kilogram of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE –Acting United States Attorney John J. Farley announced today that Ryan Williams, age 31, formerly of Keene, New Hampshire was sentenced to serve seven years in federal prison for conspiracy to distribute over a kilogram of heroin.
After a lengthy investigation, law enforcement officers determined that over the course of several years, Williams conspired to distribute over nine kilograms of heroin to numerous individuals in the Keene, New Hampshire area and that Williams obtained the heroin from co-conspirators in Lawrence, Massachusetts. On March 29, 2015, when law enforcement arrested Williams during a traffic stop, he had over half a kilogram of heroin in his possession. Subsequently, while on pretrial release on state charges, Williams was arrested on July 21, 2015 after he failed to appear for a court proceeding. Law enforcement officers located Williams at a residence in Keene where police seized a digital scale, cash, and 5.5 grams of fentanyl.
Williams was indicted in federal court on August 6, 2015. He pleaded guilty to the charge on August 3, 2016.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the opioid crisis in New Hampshire by continuing to identify and target drug traffickers who are responsible for the distribution of large quantities of heroin and fentanyl in New Hampshire. We will continue to work each day to identify and prosecute drug traffickers who seek to profit from selling these drugs that are killing our citizens and damaging the fabric of our communities,” Acting U.S. Attorney Farley said.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The investigation was conducted by the: (1) United States Attorney’s Office; (2) Immigration and Customs Enforcement, Homeland Security Investigations; (3) New Hampshire Attorney General’s Drug Task Force; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; and (6) Massachusetts State Police. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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International Competition Network Adopts Recommended Practices on Merger Notification and Review and New Work on a Framework for Analyzing Exclusionary Unilateral ConductRead the Press Release
At its annual meeting, the International Competition Network (ICN) adopted new recommended practices for merger review, addressing notification thresholds, remedies, and efficiencies; a framework for analyzing unilateral conduct; guiding principles for market studies; and a report on setting cartel fines, the Department of Justice announced today.
The ICN held its 16th annual conference, hosted by the Portuguese Competition Authority, on May 10-12, 2017. More than 500 delegates from over 80 jurisdictions participated, including competition experts from international organizations and the legal, business, academic, and consumer communities. Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Acting FTC Chairman Maureen Ohlhausen led the U.S. delegation. The conference showcased the achievements of the ICN working groups on unilateral conduct, mergers, competition advocacy, agency effectiveness and cartels. The conference also discussed current competition issues and the future direction of the network.
“The ICN plays a central role in promoting collaboration among antitrust authorities from around the world,” said Acting Assistant Attorney General Finch. “The Antitrust Division is committed to participating fully in efforts by ICN to promote international convergence in antitrust enforcement. The annual conference is an excellent opportunity to explore with our international colleagues ways in which we can pursue our shared enforcement goals.”
Acting Assistant Attorney General Finch spoke on a panel discussing cartel leniency and challenges for the future. The panel was part of the Cartel Working Group’s continuing focus on legal framework issues and enforcement techniques. The Cartel Working Group also presented an updated report on how cartel fines are determined, highlighting common themes and methodologies across jurisdictions.
The Department of Justice co-chairs the Unilateral Conduct Working Group, which concluded a two-year project to produce a workbook chapter on the Analytical Framework for Evaluating Unilateral Conduct. The project explores the issues an agency faces in formulating its unilateral conduct enforcement policies, specifically focusing on two major questions in unilateral conduct enforcement: what is dominance and what makes conduct exclusionary.
The Agency Effectiveness Working Group made two additions to its Agency Practice Manual that addressed effective operations of a competition agency: a report on competition agencies’ use of social media and a report on agency staff training. The Social Media Report describes competition agencies’ external social media communication usage, strategies, and lessons learned, while the Staff Training Report focuses on training tools used by member agencies. It also presented three new video training modules as part of its on-line interactive educational center for competition authorities from around the world.
“Through their participation in the conference, the world’s competition agencies demonstrate a shared commitment to strive toward convergence on sound competition analysis and fair process in antitrust investigations,” said FTC Acting Chairman Ohlhausen. “The ICN serves as an important forum to further advance international coordination and cooperation of antitrust enforcement based on sound economics, procedural fairness, transparency and non-discriminatory treatment of parties.”
Acting Chairman Ohlhausen helped lead the conference’s discussion of the analysis of non-price effects in merger analysis. The panel explored the potential effects of mergers on non-price dimensions such as quality, innovation, product variety, and service. The FTC co-chairs the ICN’s Merger Working Group, which promotes convergence toward best practices in merger review process and analysis and seeks to reduce the public and private costs of multijurisdictional merger reviews.
This year, the Merger Working Group presented four new Recommended Practices on 1) the types of transactions subject to merger review, 2) merger notification thresholds, 3) merger remedies, and 4) the analysis of merger efficiencies. These recommendations join two sets of Merger Recommended Practices that address a range of notification, review, and analysis issues. Recommended Practices are the ICN’s most prominent and influential work product, used by agencies around the world to benchmark their own practices and inspire convergence.
The Advocacy Working Group provides guidance and facilitates experience sharing to improve the effectiveness of ICN members’ competition advocacy. This year, the group created new Market Studies Guiding Principles, a compilation of effective practices for agencies to consider when undertaking studies to understand the state of competition in specific sectors. It also expanded its “Explaining the Benefits of Competition” resources to include tips, messages, and case studies on communicating with the public.
Created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world, the ICN, founded by 15 members including the Department of Justice’s Antitrust Division and the FTC, has grown to 135 member agencies from 122 jurisdictions, supported by a wide network of non-government advisors from around the world.
Individual Indicted for Communicating False Distress to the Coast GuardRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that George Ferrell was indicted for communicating a false distress to the Coast Guard. The indictment is related to conduct that occurred in March of this year causing the Coast Guard to initiate a search.
The Coast Guard takes reports of maritime distress very seriously, and will launch small boats, cutters, helicopters, and fixed-wing aircraft at a moment’s notice when any person is in harm’s way. However, when they receive reports that are deliberate hoaxes or jokes, watch standers find it anything but funny.
Capt. Joseph Snowden, commander of Sector Mobile, says that throughout the United States the Coast Guard receives false reports every day. “The Coast Guard responds to all reports of distress with urgency,” said Snowden. “A hoax report takes time away from both Command Center search and rescue planners, as well as the crews of the cutters, boats, and aircraft that respond. It’s unfortunate that some citizens find wasted time and money funny.”
There are hefty penalties that can befall a person who is found guilty of making a false distress call, including up to six years in prison, $250,000 criminal fine, and a $5,000 civil fine. This is all in addition to reimbursements that must be made to the Coast Guard for costs of their Search-and-Rescue response.
Acting United States Attorney Steve Butler takes these cases very seriously and will assist the United States Coast Guard in vigorously prosecuting all individuals who waste the time and assets of the Coast Guard with false distress reports. The main concern is that these cases take Coast Guard personnel and assets away from actual search and rescue missions.
Special Agent Juan Joy, a Coast Guard Investigative Service (CGIS) agent out of Mobile, Alabama, stated, “CGIS is committed to protecting the service men and women who are put in danger from these hoax reports, as well as protecting the tax payer’s money used by the USCG to save people’s lives and their property.”
Hoax distress calls are not just a matter of wasted time and money. The Coast Guard prides itself on effective and safe operations in dangerous situations; however, hoax calls put these men and women in unnecessary risk during responses. In addition, those truly in peril may find themselves waiting for rescue, as the search and rescue crews are responding to a report that proves to be a hoax.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until and unless he or she is proven guilty at trial.
Husband and Wife Charged with Conspiracy to Defraud the IRS and Filing False Claims with the IRSRead the Press Release
Weguel Legentus, 40, and Chantale Baptiste, 32, both formerly of Coral Springs, are charged in a thirteen count indictment with conspiracy to defraud the Internal Revenue Service (IRS) with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. The defendants had their initial appearances today before United States Magistrate Judge Barry L. Garber.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dana Watson, Chief, Margate Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, made the announcement.
According to court documents, Baptiste was the President, and her husband Legentus was the Registered Agent, of CMB Financial Group, Inc., a Florida corporation, located in Broward County. From at least as early as 2013 through 2016, Baptiste and Legentus prepared and filed false and fraudulent federal income tax returns on behalf of their clients. They did so by attaching false and fraudulent IRS Form 8962 that claimed that their clients were entitled to a Premium Tax Credit, and false and fraudulent IRS Schedule C Profit (Loss) from business activity that claimed gross receipts and sales or expenses. Baptiste and Legentus would provide their clients with a copy of their prepared federal income tax return and represent that the information contained in the copy would be filed with the IRS on their clients’ behalf. Baptiste and Legentus would then alter their clients’ federal income tax returns without their clients’ knowledge and inflate the refund amount requested. Baptiste and Legentus would then file the false and fraudulent federal income tax returns with the inflated refund amount with the IRS. The IRS would then disburse the falsely and fraudulently obtained tax refunds to bank accounts controlled by Baptiste and Legentus. Baptiste and Legentus would retain for their own use and benefit the amount of the inflated tax refund along with their fees.
Baptiste and Legentus filed false and fraudulent claims with the IRS on behalf of their clients fraudulently claiming tax refunds ranging from approximately $2,000 to $12,000.
In addition to filing false claims with the IRS on behalf of their clients, Baptiste is charged with filing false claims with the IRS in connection with her own and Legentus’ federal income tax return for 2012. Legentus is also charged with filing a false claim with the IRS in connection with Baptiste’s federal income tax return for 2013, which requested a refund of approximately $44,000.
If convicted, the defendants face up to ten years in prison.
Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, the Broward Sheriff’s Office, and the Florida Office of Financial Regulation. Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department and the Greenacres Police Department. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
An indictment is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hull Iowa Woman Sentenced to More Than Four Years’ in Prison for Mail Fraud and Filing a False Tax ReturnRead the Press Release
A woman who devised a scheme to defraud and obtain money through the United States Mail under false pretenses and filed a fraudulent tax return was sentenced May 11, 2017, to more than four years in federal prison.
Ranae Harriet Van Roekel, age 49 from Hull, Iowa, received the prison term after a July 29, 2016, guilty plea to one count of mail fraud and one count of filing a false tax return. Van Roekel’s scheme involved selling non-existent tickets and accommodations to various sporting events, including the Super Bowl, over a four year time frame. After her plea of guilty and while pending sentencing, Van Roekel engaged in another scheme to defraud by selling non-existent gift bags.
During her sentencing hearing, District Judge Mark W. Bennett said that Van Roekel’s scheme had “wreaked havoc on many people’s lives.” Glenn Lange, one of the victims of defendant’s crimes, described how he had purchased Super Bowl tickets from Defendant at a fund-raiser for a cancer patient. Lange said that the tickets were intended for the cancer patient, but the tickets were never delivered. Judge Bennett noted the aggravating nature of the fraud occurring at a fund raiser for a cancer victim. Judge Bennett also described how Van Roekel’s scheme had defrauded friends and family members and that defendant had never apologized for her actions. Judge Bennett characterized Van Roekel’s lack of apology to her friends and neighbors as “inexcusable” to the court.
Van Roekel was sentenced to 51 months’ imprisonment. A special assessment of $200 was imposed, and she was ordered to make $467,966.99 in restitution to the victims. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Van Roekel was released on the bond previously set and is to surrender to the United States Marshal on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Forde Fairchild and Jamie Bowers and investigated by the United States Postal Service and the Internal Revenue Service.Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4059.
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Head of Camden Nonprofit, Cherry Hill Therapist, Both Admit Defrauding MedicaidRead the Press Release
CAMDEN, N.J. – The executive director of a nonprofit provider of mental health services to Camden’s poorest residents and a former therapist who worked at the facility have admitted their respective roles in defrauding New Jersey Medicaid, Acting U.S. Attorney William E. Fitzpatrick announced today.
On May 11, 2017, Cesar Tavera, 53, of Cherry Hill, the executive director of Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with conspiracy to commit health care fraud and with embezzling from a health care benefit program. Andres Ayala, 62, of Cherry Hill, New Jersey, pleaded guilty today before Judge Hillman to an information charging him with conspiracy to commit health care fraud.
According to documents filed in these cases and statements made in court:
Most of Nueva Vida’s patients are on Medicaid, and Tavera controlled Nueva Vida’s billings to New Jersey Medicaid. He also supervised the people at Nueva Vida who treated Medicaid patients. New Jersey Medicaid rules require that people giving mental health therapy to Medicaid recipients must either be licensed or have a master’s degree in mental health. Tavera had several unlicensed, unqualified individuals treat Medicaid recipients and then billed Medicaid as if qualified therapists had treated the patients. Tavera himself treated Medicaid patients even though he was not qualified.
Under Tavera’s direction, Nueva Vida used several other fraudulent practices to obtain money from Medicaid. Nueva Vida billed Medicaid for therapy that never happened and billed group therapy as if each participant received individual therapy. If a mother received therapy without her child, Nueva Vida would bill Medicaid for a session with the mother and a separate session with the child. Nueva Vida billed Medicaid for short sessions as if they lasted for 45 minutes. To cover up his crimes, Tavera created false records to pass Medicaid audits.
He regularly embezzled money from the Nueva Vida bank account in addition to his salary and spent the money on himself and his family. He used the Nueva Vida bank account to pay for dental care, meals, travel in the United States and abroad, and the expenses of his daughter’s music career. Tavera paid no-show employees with cash and payroll checks from Nueva Vida’s bank account. He repeatedly withdrew cash at the Sugar House Casino in Philadelphia and used the money to gamble at the casino. Tavera embezzled more than $1.5 million from Nueva Vida.
Ayala worked for many years as a therapist at Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community. Ayala conspired with Tavera to submit false billings to New Jersey Medicaid. If patients did not show up for their appointments, Ayala would have Nueva Vida bill Medicaid, and he was paid for the phantom session. If a mother came for therapy, Ayala would bill for a therapy session with the child. If he saw a Medicaid patient for 10 to 15 minutes, he would bill Medicaid for 45 minutes of therapy. Ayala was responsible for $200,000 in losses to Medicaid.
The counts of health care fraud and embezzlement each carry a maximum penalty of 10 years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense. Sentencing for both defendants is scheduled for Aug. 18, 2017.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, for the investigation leading to the guilty pleas. He also thanked the Medicaid Fraud Division of the N.J. Office of the State Comptroller.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.
The U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Defense counsel:
Tavera: Michael Miller Esq., Haddon Heights, New Jersey
Ayala: Hope C. Lefeber Esq., Philadelphia
Greene County Man Charged with Weapons OffensesRead the Press Release
DES MOINES, IA - On May 12, 2017, Tyson James Ruth, 36, of Jefferson, Iowa, appeared in federal court on an indictment charging Ruth with three counts of being an unlawful user of controlled substances in possession of a firearm and two counts of possession of a sawed-off shotgun, announced United States Attorney Kevin E. VanderSchel. According to the indictment, in December of 2016, he illegally possessed two sawed-off shotguns and three additional guns including a revolver, pistol, and a Mini-14 semi-automatic rifle. Ruth made his initial appearance before United States Chief Magistrate Judge Helen C. Adams, who ordered that Ruth remain detained pending trial of this matter.
Ruth’s trial is presently set for July 3, 2017, before United States Judge John A. Jarvey, at the Des Moines Federal Courthouse. Each count is subject to a maximum term of imprisonment of ten years and a maximum $250,000 fine.
The public is reminded that an indictment is merely an accusation, and that Ruth is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Carroll Police Department, Jefferson Police Department, and the Alcohol, Tobacco, Firearms and Explosives (ATF) conducted this investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Grants Pass Felon Dealing in Firearms and Narcotics Sentenced to 15 Years in Federal PrisonRead the Press Release
MEDFORD, Ore. – On May 12, 2017, United States District Court Judge Michael J. McShane sentenced Michael Lee Souza, 40, of Grants Pass, Oregon, to 15 years in federal prison for being a felon in possession of a firearm. Upon his release from prison, Souza will be on supervised release for three years.
According to court documents, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Souza was selling methamphetamine and possessed a large number of firearms. On October 15, 2014, a confidential informant working with ATF purchased methamphetamine from Souza. During the transaction, Souza also offered to sell the informant a Glock .45-caliber pistol with accessories.
Later that day, the informant returned to Souza’s Grants Pass residence to purchase the firearm, a nylon holster and two 12-round magazines, one of which was preloaded. Souza talked openly with the informant about collecting guns and recent gun sales. The informant also listened as Souza told a different drug customer that he expected to have more drugs within a couple of hours. Grants Pass Department of Public Safety officers arrested Souza during a traffic stop the following day. During the stop, Souza attempted to conceal a switchblade knife while sitting atop two bags of methamphetamine.
Souza has 13 prior felony convictions and was on probation for delivery of methamphetamine at the time he committed the current firearm offense. His earliest felony conviction occurred in 2003. Souza been on probation or post-prison supervision almost continuously since 2003 except during periods of incarceration. He has seven prior drug offenses including three drug trafficking crimes of manufacturing and delivery of methamphetamine, three prior theft convictions and one conviction for hindering prosecution. He also has two prior convictions involving firearms including a prior felon in possession of a firearm conviction. Souza also has gang affiliation documented by law enforcement.
The case was investigated by ATF, Oregon State Police and the Grants Pass Department of Public Safety and was prosecuted by Judith Harper and Byron Chatfield, Assistant United States Attorneys for the District of Oregon.
Graduate Student Sentenced for Attempting to Entice MinorsRead the Press Release
A Rome, New York, man was sentenced today to 120 months in prison for attempted coercion and enticement of a minor to engage in unlawful sexual activity.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department made the announcement.
Julio Perez-Torres, 26, was sentenced today by U.S. District Judge Liam O’Grady of the Eastern District of Virginia who also ordered him to serve 20 years of supervised release. Perez-Torres previously pleaded guilty on Jan. 13, 2017.
According to admissions made in connection with his plea agreement, in early February 2016, Perez-Torres, a master’s degree candidate at American University, posted an online advertisement expressing interest in sex with children. When an undercover Fairfax County police officer replied to the ad, portraying himself as the father of two children, ages five and seven, Perez-Torres discussed performing graphic sexual acts on the children. On Feb. 18, 2016, after weeks of corresponding with the undercover officer via emails, text messages and telephone calls containing sexually explicit content, Perez-Torres traveled across state lines to meet the undercover officer with the intent to engage in sexual acts with the children. Perez-Torres was arrested at that time.
Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kellen Dwyer of the Eastern District of Virginia prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Four Southern Illinois Residents Charged with Methamphetamine OffensesRead the Press Release
On May 2, 2017, four southern Illinois residents were charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Starlet J. Howie, a/k/a "Star Oettle," and "Star Miller," 47, of Cutler, Mandy L. Hagen, 29, of Lenzburg, Jeremy S. Copple, 31, of St. Libory, and Daniel M. Dortch, 26, of Chester, were charged in a one-count second superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between 2015 and April 2017, in Perry, Randolph, Monroe, and St. Clair Counties. On May 8, 2017, Howie and Hagen made their initial appearances in federal court. They were ordered held without bond pending a May 15, 2017, detention hearing. Copple and Dortch are scheduled to make their initial appearances in federal court on May 15, 2017.
The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office,
St. Clair County Sheriff’s Office Drug Tactical Unit, Metropolitan Enforcement Group of Southern Illinois, Chester Police Department, Coulterville Police Department, Belleville Police Department, Lenzburg Police Department, Perry County (Missouri) Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Former Wedding Photographer Pleads Guilty to Pornography Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former wedding photographer in Raymore, Mo., pleaded guilty in federal court today to a fraud scheme to dupe women into having sex – which he recorded – under the guise they were rehearsing for a pornography movie.
Mario Ambrose Antoine, 34, of Raymore, pleaded guilty before U.S. District Judge Beth Phillips to one count of wire fraud.
By pleading guilty today, Antoine admitted that he defrauded numerous victims in a scheme that lasted form Aug. 28, 2011, until Oct. 11, 2016. Antoine, posing in various roles as a company owner, recruiter, talent manager, photographer and videographer for multiple fictitious companies and private modeling websites (such as “Playboy Worldwide,” and “Playboy Asia”), induced women to engage in sexual and pornographic activity with him. Antoine promised the women, who signed contracts and modeling release forms, they would be paid thousands of dollars by these fictitious entities for their auditioning and modeling activity.
Victims of the wire fraud scheme were promised payments cumulatively totaling at least $550,000 and as much as $1.5 million. Antoine admitted that his fraud scheme affected 10 or more victims, and resulted in a substantial financial hardship to one or more of these victims.
In order to demonstrate the authenticity of the enterprise and assure prospective victims, Antoine prepared forged and fraudulent payment checks (purportedly issued to other “models”), IRS tax forms and Department of Homeland Security employment forms. He registered the domain name playboy-asia.com and created the e-mail account [email protected], which he used to communicate with victims.
Under the terms of today’s plea agreement, Antoine will be sentenced to 10 years in federal prison without parole and must pay restitution to his victims, pending the court’s acceptance of the plea agreement at Antoine’s sentencing hearing on Sept. 13, 2017.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and David A. Barnes. It was investigated by the FBI, the Raymore, Mo., Police Department and the Office of the Missouri Attorney General.
Former Vice President of Maryland Bank Sentenced to 3 Years in Federal Prison for Scheme to Steal over $1.8 Million from Bank CustomersRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Melissa Strohman, age 54, of Nottingham, Maryland today to three years in prison, followed by three years of supervised release, for six-year scheme to steal over $1.8 million from bank customers at the bank where she worked as the Senior Vice President and Bank Secrecy Act Officer. Judge Bennett also ordered Strohman to pay restitution in the amount of $1,611,108.73.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Patti Tarasca, Special Agent in Charge, New York Region, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from April 2010 through July 2016, Strohman as the Senior Vice President at a federal savings bank in Maryland, which had branches in Pikesville and Highlandtown, was responsible for managing the bank’s savings department, including overseeing deposits and Individual Retirement Accounts for every customer. In addition, as the bank’s Bank Secrecy Officer, Strohman was responsible for filing Currency Transaction Reports and Suspicious Activity Reports for any transactions that were deemed to be suspicious or potentially illegal.
Strohman admitted that she used her position of trust at the bank to cause more than 200 unauthorized transfers and withdrawals of funds from six customers’ bank accounts to pay for mortgages, credit card bills and property tax bills associated with Strohman and her family members. Three of the six victim customers were at least 80 years old, and for two of the accounts the customers were deceased.
For example, Strohman used her supervisory override function on the bank’s electronic banking system to facilitate unauthorized transfers between the victim customers’ accounts to accounts associated with Strohman; forged the signature of one victim customer in order to complete an unauthorized transaction from that person’s bank account to an American Express account associated with Strohman; and caused unauthorized transfers of funds between the victim customers’ accounts to replace the monies Strohman stole and to conceal those thefts.
Acting United States Attorney Stephen M. Schenning commended FDIC Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Evan Shea, who prosecuted the case.
Former MLB Player Doug DeCinces and an Associate Found Guilty of Insider Trading Offenses for Using Non-Public Info to Trade StocksRead the Press Release
SANTA ANA, California – A federal jury today convicted former professional baseball player Douglas DeCinces of insider trading charges for using non-public information to purchase stock in an Orange County company in transactions that netted him $1.3 million in profits.
A second man who illegally took the insider information from DeCinces – David Parker – was also found guilty today of violating federal securities laws.
The guilty verdicts follow a trial that lasted nearly two months in United States District Court.
As a result of the guilty verdicts, DeCinces, 66, of Laguna Beach, and Parker, 65, of Provo, Utah, respectively face statutory maximum penalties of 220 years and 60 years in federal prison.
United States District Judge Andrew J. Guilford will schedule a status conference in the coming weeks to discuss future proceedings in the case, including sentencing hearings.
At trial, prosecutors argued that DeCinces obtained the insider information from James V. Mazzo, 60, a neighbor of DeCinces in Laguna Beach, who was the CEO of the Santa Ana-based Advanced Medical Optics, Inc. Mazzo is accused of telling DeCinces that his company was going to be acquired by Abbott Laboratories. The jury that convicted DeCinces and Parker was unable to reach a unanimous verdict on the charges against Mazzo, and Judge Guilford declared mistrial on these charges.
Mazzo allegedly provided DeCinces with confidential information in advance of Abbott’s January 2009 acquisition of Advanced Medical Optics (NYSE: EYE). DeCinces and his associates, including Parker, used the non-public information to purchase shares of EYE, which increased from approximately $8 to $22 as a result of the acquisition.
The evidence presented at trial showed that DeCinces liquidated his diverse stock portfolio of investments at Merrill Lynch – suffering approximately $80,000 in losses – to obtain approximately $160,000 that he used to purchase EYE stock. DeCinces ultimately purchased a total of 90,700 shares of EYE stock, which he sold soon after Abbott’s tender offer for the company was publicly announced, and realized approximately $1.3 million in profits.
DeCinces gave information on the acquisition of EYE to Parker. After purchasing EYE shares and selling them following the acquisition, Parker realized illegal profits of nearly $350,000.
The jury found DeCinces guilty of 14 counts of insider trading. The jury was unable to reach a unanimous verdict on 18 additional counts of insider trading. Judge Guilford declared a mistrial on the unresolved charges.
Parker was convicted of three counts of insider trading.
As a result of the mistrial, Mazzo still faces 13 counts of insider trading, and another 13 counts of insider trading in the context of a tender offer.
The investigation in this case was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Securities and Exchange Commission provided assistance during the investigation.
This case is being prosecuted by Assistant United States Attorney Stephen Cazares of the Major Frauds Section, as well as Assistant United States Attorneys Jennifer L. Waier, Ivy A. Wang and Lawrence E. Kole of the Santa Ana Branch Office.
Former Long Island Doctor and Health Minister of Guyana Sentenced to 50 Months in Prison for Illegally Selling Oxycodone PrescriptionsRead the Press Release
Noel Blackman, who practiced as a medical doctor and was the former Health Minister of Guyana and Executive Member of the World Health Organization, was sentenced to 50 months’ imprisonment and three years of supervised release today for illegally distributing oxycodone, a highly addictive prescription painkiller. Additionally, United States District Judge Joanna Seybert ordered Blackman to forfeit $536,200 in illegal proceeds. The sentence followed the defendant’s guilty plea on August 24, 2016.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
Between 2015-2016, Blackman prescribed more than 365,000 30-milligram oxycodone pills from “pain management” clinics that he worked out of in Elmhurst, Queens, Franklin Square, Long Island and Cypress Hills, Brooklyn. During his guilty plea allocution before Judge Seybert last August, Blackman admitted that, in exchange for $300 cash payments, he wrote oxycodone prescriptions for 1,920 30 milligram oxycodone pills to persons whom he knew had no legitimate medical need for that highly-addictive drug. As described in court papers, that amount of oxycodone was worth up to $57,600 on the street.
According to court filings, on February 7, 2016, HSI agents removed Blackman from a plane at John F. Kennedy International Airport en route to Guyana and arrested him in connection with the illegal distribution of oxycodone. At the time of his arrest, more than $30,000 was found concealed in Blackman’s luggage. Following his arrest, Blackman admitted that he believed that some of his patients were addicted to oxycodone.
Blackman has forefeited his medical license and will no longer be allowed to practice medicine in the United States.
“Today’s sentence should send a clear message to other doctors and medical professionals that when they abandon their oaths and act as drug dealers, we will prosecute them to the fullest extent of the law,” stated Acting United States Attorney Rohde. “Blackman violated his professional oath to put his patients’ legitimate medical needs first, and instead chose to line his pockets with the proceeds of sales from oxycodone, which has ravaged communities in New York City and on Long Island. Together with our law enforcement partners, we will continue to vigorously prosecute illegal prescription drug distribution.” Ms. Rohde thanked the DEA’s Long Island Tactical Diversion Squad, comprised of agents and officers from the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service, for its participation and assistance in the investigation.
“Prescribing ‘oxys’ in exchange for cash is no different than a street dealer’s hand to hand drug transaction; both are illegal and fuel drug misuse in our communities. Today's sentencing is a result of law enforcement’s collaborative work,” stated DEA Special Agent-in-Charge Hunt.
“Blackman prescribed highly addictive pills to people who had no legitimate need. To add to his crime, he knowingly handed out prescriptions for oxycodone to individuals he knew were already addicted,” stated HSI Special Agent-in-Charge Melendez. “Blackman’s actions make him no different than the street-corner drug pusher. Today’s sentencing should stand as a reminder to others that we will continue our joint law enforcement efforts to ensure that crooked doctors like Blackman can no longer put pen to pad and cause more harm.”
The government’s case is being handled by the Office’s Long Island Criminal and Civil Divisions. Assistant United States Attorneys Bradley T. King and Madeline O’Connor are in charge of the prosecution.
The Defendant:
NOEL BLACKMAN
Age: 69
Valley Stream, New YorkE.D.N.Y. Docket No. 16-CR-89 (JS)
Former L.A. County Sheriff Lee Baca Sentence to 3 Years in Federal Prison for Leading Scheme to Obstruct Investigation into JailsRead the Press Release
LOS ANGELES – Former Los Angeles County Sheriff Lee Baca, who was convicted of overseeing a scheme designed to obstruct a federal investigation into corruption and civil rights abuses at county jail facilities, was sentenced today to 36 months in federal prison.
Baca, 74, who also was found guilty of lying to federal investigators, was sentenced this morning by United States District Judge Percy Anderson.
Judge Anderson, who presided over a series of trials that led to the conviction of 10 former members of the Sheriff’s Department involved in the scheme to obstruct justice, said Baca “knew what he was doing was wrong, and he had no problem using his office to further his own agenda.”
Judge Anderson ordered Baca to begin serving his sentence by July 25. In addition to the prison term, the judge ordered Baca to pay a $7,500 fine.
“Blind obedience to a corrupt culture has serious consequences,” Judge Anderson said.
Today’s sentencing follows a trial that ended in March when a federal jury convicted Baca on three felony counts: conspiracy to obstruct justice, obstruction of justice and making false statement to federal investigators. The evidence presented at trial showed that Baca was the top figure in the conspiracy, which also involved his right-hand man and deputies who implemented orders from the Sheriff.
“Rather than fulfill his sworn duty to uphold the law and protect the public, Lee Baca made a decision to protect what he viewed as his empire, and then he took actions in an effort to simply protect himself,” said Acting United States United States Attorney Sandra R. Brown. “He wore the badge, but ultimately, he failed the department and the public’s trust. Today’s sentence demonstrates that no one is above the law – not even the leader of the largest municipal police agency in the nation.”
“As Sheriff, Mr. Baca should have held himself accountable. He should have corrected the actions of others, rather than shift blame and obstruct a federal investigation,” said Deirdre Fike, the Assistant Director in Charge of the Los Angeles Field Office. “I’m proud of the team of agents and prosecutors who persevered throughout this lengthy and challenging investigation, and grateful to the victims and witnesses who came forward.”
The obstruction scheme began in August 2011 after LASD officials discovered a cell phone in an inmate’s cell at the Men’s Central Jail, linked the phone to the FBI’s Civil Rights Squad and learned that the inmate was an FBI informant. The cell phone had been smuggled into the jail by a corrupt deputy who took bribes. The FBI had developed the informant as part of an investigation into the county jail system, which for years had been the subject of allegations of inmate abuse and subsequent cover-ups. The evidence presented at trial showed that the sheriff wanted to avoid federal scrutiny of his troubled jails.
As part of the scheme to obstruct justice, Baca ordered a criminal investigation of the FBI agents conducting the investigation, and he directed his underlings to conceal the informant from federal investigators. Over the course of approximately six weeks, members of the conspiracy then took a series of steps that successfully hid the informant from federal authorities, engaged in witness tampering in an effort to prevent information from being shared with federal authorities, and threatened to arrest the lead FBI agent on the case. When Baca watched a recording of his deputies confronting the FBI agent, he reacted by stating “it was the best laugh he had in some time,” prosecutors noted in their sentencing memorandum filed with the court.
While Baca put his right-hand man, then-Undersheriff Paul Tanaka, in charge of the scheme, Baca participated in dozens of meetings and phone calls with members of the conspiracy and directed his deputies to approach the FBI agent. Baca participated in the scheme after being warned by a top deputy that the actions would amount to obstruction of justice.
The case against Baca is the result of an investigation by the Federal Bureau of Investigation and is one in a series of cases resulting from the investigation into county jail facilities in downtown Los Angeles that has resulted in 21 convictions.
Baca was the tenth member of the Los Angeles Sheriff’s Department convicted in the obstruction scheme. Former Undersheriff Paul Tanaka, who was also found guilty by a federal jury, was sentenced last year to five years in federal prison. At today’s sentencing hearing, Judge Anderson said Baca would have received a sentence as long as Tanaka’s, except for his medical condition and the former sheriff’s lengthy history of public service.
Eleven other former deputies have been convicted of federal charges, mostly related to unprovoked beatings of inmates and subsequent cover-ups.
The investigation of this case was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Brandon Fox, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorney Lizabeth A. Rhodes, Chief of the General Crimes Section; and Assistant United States Attorney Eddie A. Jauregui of the Major Frauds Section.
Former IRS Revenue Officer Sentenced to Six Months’ Imprisonment for Tax Fraud SchemeRead the Press Release
Earlier today, James C. Brewer, a former Revenue Officer of the Internal Revenue Service (IRS) who was assigned to the Edison, New Jersey IRS office before his arrest, was sentenced to six months’ imprisonment and ordered to pay $73,548.00 in restitution. Brewer pled guilty on September 19, 2016 to filing or preparing false tax returns, wire fraud and mail fraud, all in connection with a scheme to falsify tax returns he filed on behalf of himself and others and enrich himself with inflated refunds from those returns. Brewer also pled guilty to committing perjury in United States Tax Court in 2012 in a successful effort to obtain a tax credit for himself to which he was not entitled.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office; Rodney A. Davis, Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), Washington Field Division.
“James Brewer engaged in a tax fraud and identity theft scheme in which he cheated the very tax system he was entrusted to uphold,” stated Acting United States Attorney Rohde. “Today’s sentence reminds government employees they will be held to the level of integrity expected of them, and assures honest taxpayers that no one who commits fraud is above the law.” Ms. Rohde expressed her grateful appreciation to the United States Attorney’s Office for the District of New Jersey, the United States Attorney’s Office for the District of Nevada, the IRS-CI, Las Vegas Field Office and the Treasury Inspector General for TIGTA, Denver Field Division for their assistance in this case.
According to court filings and statements made during the guilty plea, as part of a scheme to fraudulently reduce his taxable income and increase his tax refunds, for four tax years Brewer failed to report any income he received in connection with his unauthorized tax preparation business, which he operated in violation of IRS rules; underreported the gross receipts he earned from an Internet retail business, which he also operated in violation of IRS rules; and claimed false dependents, all on federal tax returns he prepared and filed on his own behalf.
As part of his unauthorized tax preparation business, Brewer also engaged in a multi-year scheme in which he prepared and filed false tax returns for others. Brewer listed false dependents and false deductions on these returns, among other materially false information, in order to fraudulently cause his clients to receive a refund to which they were otherwise not entitled or fraudulently inflate their refunds. In doing so, Brewer listed the names and social security numbers of various individuals on those tax returns as dependents without those individuals’ authorization, including those of two minor children. As part of this scheme, Brewer also diverted a portion of those clients’ refunds to himself, in some cases without his clients’ authorization or knowledge.
Finally, in an effort to fraudulently obtain for himself a tax credit for first time homebuyers, Brewer lied under oath about his residency when he testified in a matter in the United States Tax Court.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Marisa Seifan and Moira Kim Penza are in charge of the prosecution.
The Defendant:
JAMES C. BREWER
Age: 40
Staten Island, New York
E.D.N.Y. Docket No. 15 CR 209 (PKC)
Former Hedge Fund Manager Pleads Guilty to $9 Million Investment FraudRead the Press Release
ALEXANDRIA, Va. – A Leesburg man pleaded guilty today to wire fraud in connection with his misuse of clients funds, some of which were invested through a purported hedge fund called Crescent Ridge Capital Partners.
According to the statement of facts filed with the plea agreement, Tamer Moumen, 39, defrauded over 50 clients between 2012 and 2017. Moumen falsely told investors that he was a successful trader who consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners. Moumen encouraged dozens of clients, including many who were nearing retirement age, to liquidate their other investments and retirement accounts, and invest with him. Moumen did not tell investors that he actually had no experience managing a hedge fund, had a history of losing money in the securities market, and was relying on investor money to support his lifestyle and pay personal expenses. For example, Moumen used investor money to help finance the purchase of a $1 million personal residence in Leesburg, Virginia, a new Tesla, and to repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment, but would conceal those facts by providing statements that showed the investment as steadily growing.
According to the statement of facts filed with the plea agreement, beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. Moumen had sole control of the donated funds, some of which he transferred into accounts in his name, where the money was commingled with investor funds. Moumen used money in these accounts to pay personal expenses.
Moumen faces a maximum penalty of 20 years in prison when sentenced on July 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-77.
Former Government Contractor Pleads Guilty to ID Theft SchemeRead the Press Release
ALEXANDRIA, Va. – A former government contractor pleaded guilty today to stealing the identities of numerous co-workers to make purchases at online retailers such as Amazon, Express, and Victoria’s Secret.
According to the statement of facts filed with the plea agreement, Lakeisha Bradshaw, 28, of Temple Hills, Maryland, was a government contractor employed by Veteran Solutions, Inc., and was assigned to the Defense Threat Reduction Agency at Fort Belvoir. Beginning in July 2016, Bradshaw stole credit card numbers from several co-workers, including one whom she shared a cubicle with, and used them to purchase retail items for herself. In addition to the fraudulent online purchases, Bradshaw also stole personally identifiable information from a co-worker and attempted to open a line of credit. In total, Bradshaw attempted to steal at least $6,000 during the scheme.
Bradshaw faces a maximum penalty of 10 years in prison when sentenced on September 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffery Thorpe, Special Agent in Charge, Defense Criminal Investigative Service, Cyber Field Office; and Robert Craig, Special Agent in Charge, Defense Criminal Investigative Service, Mid-Atlantic Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney Kathryn D. Sparks is prosecuting the case. Former Special Assistant U.S. Attorney Kevin Schneider previously prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-99.
Former Des Moines, Washington Resident Sentenced to 27 Years in Prison for Production and Possession of Child PornographyRead the Press Release
A former Des Moines, Washington man was sentenced today in U.S. District court in Seattle to 27 years in prison and lifetime of supervised release for producing and possessing images of child pornography, announced U.S. Attorney Annette L. Hayes. ROBERT D. THORSON, 58, was convicted following a four-day trial in February 2017. THORSON was arrested May 30, 2016, after his girlfriend called Des Moines police after finding sexually explicit images of minors on THORSON’s phone. At sentencing Chief U.S. District Judge Ricardo S. Martinez said, “This is one of the most egregious cases this Court has handled. . . Mr. Thorson repaid the kindness shown to him [by two families] by sexually abusing and exploiting the children.”
“This defendant sought relationships with women so that he could molest their children, said U.S. Attorney Annette L. Hayes. “He insinuated himself into the lives of the families he preyed on and when his crimes were discovered, he threatened them from prison to try to get the charges against him dropped. There is no question that the public – and especially our kids – are safer as a result of the lengthy sentence imposed in his case.”
According to records in the case and testimony at trial, THORSON’s girlfriend examined his phone looking for evidence he was seeing other women. Instead she found images of THORSON molesting young girls who resided in her home. The woman called Des Moines Police and THORSON was arrested. When investigators examined THORSON’s electronic devices they found images showing THORSON disturbing the clothing and bedding of sleeping children so he could make sexually explicit photos. THORSON’s clothing, tattoos and body parts appear in some of the images. THORSON’s electronic devices also contained images from a hidden camera installed in a bathroom at the home that captured minor children using the bathroom and the shower. The electronic evidence presented at trial revealed THORSON preyed on a second family when he briefly stayed in their home in 2015.
In addition to the images of child molestation that he produced, THORSON also had images of other children being raped and molested that he collected from the internet. THORSON’s electronic devices had 22 videos and 40 images of children being raped by adults. One two-hour video THORSON had on his electronic devices shows the rape of a 4 year old child by an adult male.
While THORSON was in custody he sent letters to his former girlfriend threatening her and demanding she change her statements to police.
“Not only did Thorson violate innocent children as they slept for his own sexual gratification, he used threats and coercion in an attempt to cover up these heinous acts,” said Brad Bench, special agent in charge of HSI Seattle. “In partnership with local law enforcement, investigators successfully presented the evidence needed for a jury to bring justice to this predator.”
The case was investigated by the Des Moines Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs and Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is Senior Deputy Prosecuting Attorney specially designated to prosecute child exploitation cases in federal court.
Former Deputy Jailer at Kentucky River Regional Jail Convicted of Federal Charges Related to the Death of a DetaineeRead the Press Release
A jury has convicted a former deputy jailer in eastern Kentucky for his role in violently assaulting a pre-trial detainee and willfully failing to provide necessary medical attention that led to his death.
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Carlton S. Shier, IV, for the Eastern District of Kentucky, Special Agent in Charge Amy Hess of the Federal Bureau of Investigation, and Commissioner Richard W. Sanders of the Kentucky State Police jointly made the announcement.
William Curtis Howell was convicted of using excessive force against the detainee, resulting in bodily injury, and of deliberately ignoring the detainee’s serious medical needs, also resulting in bodily injury. The jury returned the verdict after 90 minutes of deliberation, following four days of trial.
According to the evidence presented at trial, on July 9, 2013, at the Kentucky River Regional Jail in Hazard, Kentucky, Howell and another supervisory deputy jailer, Damon Wayne Hickman, violently beat Larry Trent, 54, a pretrial detainee, and left him in his cell, seriously injured and bleeding from an open head wound. Trent ultimately died from injuries sustained during the beating. Trent was in custody for a DUI charge. Supervisory Deputy Jailer Hickman, who was initially charged along with defendant Howell, pleaded guilty prior to trial and testified against Howell.
According to evidence, the assault started when Howell and Hickman opened the door to Trent’s cell to remove a sleeping-mat, and Trent ran out of the cell. Howell tased Trent and after Trent was brought to the floor, Hickman, without justification, violently kicked Trent in the ribs. While deputies carried Trent back to his cell, Trent took the taser from the deputy jailers. Witnesses testified that after deputies retrieved the taser from Trent and while Trent was restrained on the floor by deputy jailers, Howell and Hickman, without justification, punched, kicked, and stomped on Trent. Witnesses further testified that, before closing the cell door, Howell stepped into Trent’s cell and kicked Trent in the head while Trent was on the floor and posing no threat. Further testimony was presented that, after the assault, Trent’s blood was in the detox hallway, booking area and on the deputies involved.
Testimony further revealed that Trent was lying motionless in his cell, with blood all over his face. However, Howell and Hickman willfully failed to provide medical attention, because they did not want to get in trouble. Approximately four hours after the beating, another employee at the jail noticed Trent’s lifeless body and emergency personnel were called. Trent was pronounced dead at a local hospital that afternoon.
According to autopsy results presented at trial, Trent died of a fracture to his pelvis that caused hemorrhaging and from blunt force trauma to his head, torso and extremities.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Howell was responsible for the custody, care, safety and control of the inmates at the jail.
Hickman pleaded guilty last year for his role in the beating. Another assault took place at the same jail in 2012. In April of this year, Kevin Asher, the deputy jailer involved in that assault, was convicted of deprivation of civil rights under color of law, and obstruction of justice resulting in bodily injury.
Sentencing for Howell is scheduled for Aug. 16, 2017, in London, Kentucky. Excessive use of force resulting in bodily injury carries a maximum penalty of 10 years imprisonment, and deliberate indifference resulting in bodily injury carries a maximum penalty of 10 years imprisonment. The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutory penalties before imposing sentence.
The investigation was conducted by the Kentucky State Police and the FBI. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office for the Eastern District of Kentucky and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Former Deputy Jailer at Kentucky River Regional Jail Convicted of Federal Charges Related to the Death of A DetaineeRead the Press Release
LONDON, Ky. – A jury has convicted a former deputy jailer in eastern Kentucky for his role in violently assaulting a pre-trial detainee and willfully failing to provide necessary medical attention that led to his death.
On Thursday evening, William Curtis Howell, 60, was convicted of using excessive force against the detainee, resulting in bodily injury, and of deliberately ignoring the detainee’s serious medical needs, also resulting in bodily injury. The jury returned the verdict after 90 minutes of deliberation, following four days of trial.
According to the evidence presented at trial, on July 9, 2013, at the Kentucky River Regional Jail in Hazard, Ky., Howell and another supervisory deputy jailer, Damon Wayne Hickman, violently beat Larry Trent, 54, a pretrial detainee, and left him in his cell, seriously injured and bleeding from an open head wound. Trent ultimately died from injuries sustained during the beating. Trent was in custody for a DUI charge. Supervisory Deputy Jailer Hickman, who was initially charged along with defendant Howell, pleaded guilty prior to trial and testified against Howell.
According to evidence, the assault started when Howell and Hickman opened the door to Trent’s cell to remove a sleeping-mat, and Trent ran out of the cell. Howell tased Trent; and after Trent was brought to the floor, Hickman, without justification, violently kicked Trent in the ribs. While deputies carried Trent back to his cell, Trent took the Taser from the deputy jailers. Witnesses testified that after deputies retrieved the Taser from Trent and while deputy jailers restrained Trent on the floor, Howell and Hickman, without justification, punched, kicked, and stomped on Trent. Witnesses further testified that, before closing the cell door, Howell stepped into Trent’s cell and kicked Trent in the head while Trent was on the floor and posing no threat. Further testimony was presented that, after the assault, Trent’s blood was in the detox hallway, booking area and on the deputies involved.
Testimony further revealed that Trent was lying motionless in his cell with blood all over his face. However, Howell and Hickman willfully failed to provide medical attention, because they did not want to get in trouble. Approximately four hours after the beating, another employee at the jail noticed Trent’s lifeless body and emergency personnel were called. Trent was pronounced dead at a local hospital that afternoon.
According to autopsy results presented at trial, Trent died of a fracture to his pelvis that caused hemorrhaging and from blunt force trauma to his head, torso and extremities.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Howell was responsible for the custody, care, safety and control of the inmates at the jail.
Another assault took place at the same jail in 2012. In April of this year, Kevin Asher, the deputy jailer involved in that assault, was convicted of deprivation of civil rights under color of law, and obstruction of justice resulting in bodily injury.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Thomas E. Wheeler, II, Acting Assistant Attorney General for the Civil Rights Division; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Richard W. Sanders, Kentucky State Police Commissioner jointly made the announcement.
The investigation was conducted by the Kentucky State Police and the FBI. Assistant U.S. Attorney Hydee Hawkins, of the United States Attorney’s Office, and Trial Attorney Sanjay Patel, of the Civil Rights Division, prosecuted this case on behalf of the federal government.
Sentencing for Howell is scheduled for August 16, 2017, in London, Ky. Excessive use of force resulting in bodily injury carries a maximum penalty of 10 years imprisonment; deliberate indifference resulting in bodily injury carries a maximum penalty of 10 years imprisonment. The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutory penalties before imposing sentence.
Former CEO of Community Action of Minneapolis Sentenced to 48 Months in Prison for Conspiracy, Fraud and Theft of Public FundsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of WILLIAM JAMES DAVIS, 66, for stealing more than $380,000 from Community Action of Minneapolis. DAVIS, who pleaded guilty on June 16, 2016, to all 16 counts of the indictment, was sentenced today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
“William Davis abused his position of trust to steal hundreds of thousands of dollars that were intended to help the most needy people in Minneapolis,” said Acting U.S. Attorney Gregory Brooker. “The sentence imposed today appropriately recognizes this defendant’s crimes.”
“The sentence handed down to day underscores the seriousness of the defendant’s crimes in using his leadership position to divert taxpayer funds for his personal use and that of his family and friends.” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “The FBI together with our law enforcement partners remain committed to ferreting out these types of crimes and bringing those responsible to justice.”
According to the defendant’s guilty plea and documents filed in court, for 24 years DAVIS served as CEO of Community Action of Minneapolis (“CAM”), a non-profit organization with a mission to help people who were living in poverty in the City of Minneapolis. CAM’s primary funding sources included federal grants administered by the Minnesota Department of Commerce and Minnesota Department of Human Services. CAM also received funding from CenterPoint Energy and Xcel Energy in exchange for providing certain conservation and weatherization services to qualifying homeowners.
According to the defendant’s guilty plea and documents filed in court, between March 2007 and October 2014, DAVIS diverted CAM funds for his own personal use and the use of his family and friends, including a no-show job for his son, JORDAN DAVIS, who was convicted on June 28, 2016, for his role in the fraud scheme. DAVIS used CAM funds for personal expenses, including airline tickets, hotel stays, rental cars and a Caribbean cruise.
According to the defendant’s guilty plea and documents filed in court, DAVIS concealed his theft from CAM’s Board of Directors by charging the majority of his CAM-paid personal expenses to a slush fund on CAM’s books that was not subject to the same oversight as CAM’s state and federal grant proceeds. DAVIS could therefore instruct CAM’s fiscal staff to charge personal expenses to this slush fund with less risk of detection.
In October 2013, the Minnesota Department of Human Services (DHS) began an audit intended to determine whether CAM was using the federal and state grant funds that it received through DHS in accordance with the applicable contracts. DHS personnel sought documents and information about the purposes of various CAM expenditures. On June 3, 2014, DAVIS sent correspondence to the Commissioner of DHS containing false material representations about his personal travel. On October 13, 2014, DAVIS was suspended from his position as CEO without pay. In total, DAVIS stole more than $387,063.67 from the agency.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of Health and Human Services Office of the Inspector General, Internal Revenue Service – Criminal Investigation and the United States Department of Energy Office of the Inspector General.
This case was prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Amber M. Brennan.
Defendant Information:
WILLIAM JAMES DAVIS, 66
Brooklyn Park, Minn.
Convicted:
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Conspiracy to commit theft concerning programs receiving federal funds, 1 count
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Mail fraud, 10 counts
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Wire fraud, 1 count
- Theft concerning programs receiving federal funds, 4 counts
Sentenced:
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48 months in prison
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Two years of supervised release
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$387,063.67 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Former Bridgeport Resident Sentenced to Prison for Trafficking EcstasyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COLLIN FLETCHER, 52, last residing in Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 20 months of imprisonment for distributing ecstasy.
According to court documents and statements made in court, FLETCHER conspired with Phillip Stewart and others to sell ecstasy to customers in Connecticut, New York and elsewhere. On October 27, 2016, and again on November 1, 2016, investigators made two controlled purchases of ecstasy from FLETCHER.
FLETCHER and Stewart were arrested on November 18, 2016, after they attempted to sell approximately 10,000 capsules of ecstasy to an undercover officer. The capsules had a combined weight of approximately 923 grams of MDA.
MDA (Methylenedioxyamphetamine) is an analogue of MDMA (Methylenedioxymethamphetamine), and they are both commonly known as “ecstasy.”
After FLETCHER was arrested, investigators searched his home and seized approximately one kilogram of marijuana from a hallway closet.
On February 14, 2017, FLETCHER pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, MDA and MDMA.
FLETCHER, a citizen of Jamaica, has been detained since his arrest. He faces immigration proceedings when he completes his prison term.
FLETCHER has a prior felony drug conviction, which resulted in his deportation from the United States in 2003. He illegally reentered the country in 2004.
Stewart, a Jamaican national residing in Queens, N.Y., pleaded guilty on March 29, 2017. He awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi Perry.
Former Administrative Law Judge Pleads Guilty for Role in $550 Million Social Security Disability Fraud SchemeRead the Press Release
A former administrative law judge for the Social Security Administration (SSA) pleaded guilty in federal court today for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the SSA for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service-Criminal Investigation (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
David Black Daugherty, 81, of Myrtle Beach, South Carolina, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to an information charging him with two counts of receiving illegal gratuities. Sentencing is set for Aug. 25, 2017.
Daugherty was an administrative law judge at the Social Security hearing office in Huntington, West Virginia (Huntington Hearing Office) for more than 20 years, where his primary responsibility was to adjudicate disability claims on behalf of the SSA. According to admissions made as part of his guilty plea, from November 2004 to April 2011, Daugherty accepted more than $609,000 in cash payments, total, in more than approximately 3,100 cases from Social Security disability lawyer, Eric Christopher Conn, of Pikeville, Kentucky, for awarding disability benefits to claimants represented by Conn. Furthermore, in an effort to conceal the source of these cash payments, Daugherty divided cash deposits into various bank branches and accounts, he admitted.
Daugherty admitted that he sought out Conn’s cases pending with the Huntington Hearing Office, contacted Conn and told him what type of medical evidence to submit in support of disability findings and then awarded benefits to claimants represented by Conn without holding hearings. As a result, Conn ultimately received at least $7.1 million in representative fees from the SSA, and Daugherty further obligated the SSA to pay more than $550 million in lifetime benefits to claimants, according to the plea.
Daugherty was indicted on April 1, 2016, along with Conn and Alfred Bradley Adkins, a clinical psychologist of Pikeville. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. Conn pleaded guilty to the fraud scheme earlier this year. As to Adkins, who is awaiting trial, the indictment is merely an allegation as all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Florida Resident Pleads Guilty to Conspiracy and Tax Offenses Stemming from Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAMIAN DELGADO, also known as “Michael Neumann,” 44, of Orlando, Florida, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiracy and tax offenses stemming from his role in a securities fraud scheme.
According to court documents and statements made in court, between approximately 2009 and July 2016, DELGADO conspired with others, including Christian Meissenn and William Lieberman, to defraud investors through a stock “pump and dump” scheme. DELGADO and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. They included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); Dolat Ventures, Inc. (stock symbol “DOLV”), and Fox Petroleum, Inc. (stock symbol “FXPT”).
DELGADO used pseudonyms in his communications with investors in order to conceal his prior felony convictions and his permanent bar by the Securities and Exchange Commission from participating in any offering of penny stocks. His numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated. Certain of DELGADO’s co-conspirators then sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DELGADO received approximately 25 percent of all money that he induced individuals to invest. His personal gain from the scheme totaled $346,652.18. DELGADO disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, to bank accounts in the name of DELGADO’s wife, his stepdaughter and various shell entities he and his wife controlled. DELGADO’s failure to pay taxes on this income resulted in a loss of $54,080 to Internal Revenue Service.
DELGADO pleaded guilty to one count of conspiracy to commit mail and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced on August 30, 2017.
At sentencing, DELGADO will be ordered to pay restitution to his victims, as well as back taxes, interest and penalties to the Internal Revenue Service.
On November 8, 2016, Meissenn, also known as “Christian Nigohossian,” of Suffield, Conn., pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.
On May 10, 2017, Lieberman, of Boca Raton, Fla., pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.
On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Five Members of Violent Detroit Street Gang Charged with Racketeering, Narcotics and Firearms OffensesRead the Press Release
Detroit, MI - The collaboration of local, state, and federal law enforcement under the Detroit One program has led to the indictment of five members of a northwest Detroit street gang, Young and Skantless or YNS, on various racketeering offenses in a federal superseding indictment unsealed today. The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan; Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division; and Police Chief James E. Craig of Detroit made the announcement.
The indictment charges five YNS members with a variety of crimes including a murder, robberies that turned into murders, shootings, a home invasion, arson and narcotics distribution. Specifically:
• Corey Toney, 36, of Detroit, is charged with RICO conspiracy and possession with intent to distribute a controlled substance;
• Edward Tavorn, 30, of Detroit, is charged with RICO conspiracy and felon in possession of a firearm;
• Andre Chattam, 27, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence causing death;
• Kevin Pearson, 25, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence causing death; and
• Sontez Wells, 23, of Detroit, is charged with murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death.
According to the indictment, the defendants were members and associates of YNS, a criminal organization that operates in northwest Detroit, specifically the Brightmoor neighborhood. The indictment alleges that YNS purposefully developed a reputation for ruthless violence in order to facilitate the successful commission of crimes by YNS members and associates. The further indictment alleges that the gang has become known as the most dangerous group in Brightmoor and one of the most dangerous in the city of Detroit by engaging in various violent acts including: seeking to intimidate, injure and kill rival drug dealers to eliminate competition; attempting to instill fear in the community in order to discourage cooperation with police and witnesses from reporting YNS-related crime; and posting numerous intimidating photographs and videos to social media.
Through collaborative effort, law enforcement has been able to identify some of the most violent members of this gang and charge them in both state and federal court. Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of indictments or informations over the last four years involving violent street gangs in the city of Detroit, including:
- 18 members of the Seven Mile Blood street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 14 members of the Rollin’ 60s Crips street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 13 members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 14 members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Four Vice Lord members in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery;
- Nine Vice Lords members for racketeering charges stemming from the shooting of four individuals at their family residence on Detroit’s northwest side;
- Three members of the Band Crew street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band Crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 10 members of the RTM street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Four members of the Band Gang street gang charged under the state of Michigan gang felony statute for conspiracy to commit murder and assaults with intent to commit murder and 11 members/associates of Bang Gang in federal court for access device fraud, aggravated identity theft, firearms, and obstruction of justice;
- Three members of the A1Killers street gang for federal narcotics offenses;
- 11 members of the 6Mile Chedda Grove street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- 24 individuals on drug conspiracy charges for their use of sixteen different houses in the east side Ravendale neighborhood of Detroit, many of them abandoned homes, for distributing heroin, cocaine, and crack cocaine between 2013 – 2015; and
- 14 individuals on criminal enterprise, drug distribution, or weapons offense for drug distribution in the west side Warrendale neighborhood of Detroit.
These charges are just some more of the tangible and significant results of this joint effort. Most significantly, Detroit has seen a reduction in the overall violent crime rate every year since the Detroit One collaboration began in 2013.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections,
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.
Five Members of Violent Detroit Street Gang Charged with Racketeering, Narcotics and Firearms OffensesRead the Press Release
Five members of a northwest Detroit street gang, Young and Skantless or YNS, have been indicted on various racketeering offenses in a federal superseding indictment unsealed today. The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan; Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division; and Police Chief James E. Craig of Detroit made the announcement.
The indictment charges five YNS members with a variety of crimes including a murder, robberies that turned into murders, shootings, a home invasion, arson and narcotics distribution. Specifically:
- Corey Toney, 36, of Detroit, is charged with RICO conspiracy and possession with intent to distribute a controlled substance;
- Edward Tavorn, 30, of Detroit, is charged with RICO conspiracy and felon in possession of a firearm;
- Andre Chattam, 27, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death;
- Kevin Pearson, 25, of Detroit, is charged with RICO conspiracy, murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death; and
- Sontez Wells, 23, of Detroit, is charged with murder in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence causing death.
According to the facts alleged in the indictment, the defendants were members and associates of YNS, a criminal organization that operates in northwest Detroit, specifically the Brightmoor neighborhood. The indictment alleges that YNS purposefully developed a reputation for ruthless violence in order to facilitate the successful commission of crimes by YNS members and associates. The indictment further alleges that the gang has become known as the most dangerous group in Brightmoor and one of the most dangerous in the city of Detroit by engaging in various violent acts including: seeking to intimidate, injure and kill rival drug dealers to eliminate competition; attempting to instill fear in the community in order to discourage cooperation with police and witnesses from reporting YNS-related crime; and posting numerous intimidating photographs and videos to social media.
By working collaboratively under the Detroit One program, local, state and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. Detroit has seen a reduction in the overall violent crime rate every year since the Detroit One collaboration began in 2013.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), consisting of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.
YNS Superseding IndictmentFederal Jury Convicts Alien Smuggler for Assaulting a U.S. Border Patrol Agent with Rock to FaceRead the Press Release
Assistant U. S. Attorneys Timothy Coughlin (619) 546-6768 and Carlos Arguello (619) 546-6684
NEWS RELEASE SUMMARY – May 12, 2017
SAN DIEGO – Martel Valencia-Cortez, a Mexican national and prolific alien smuggler, was convicted by a federal jury today of assaulting a federal officer by hurling a softball-sized rock at a U.S. Border Patrol agent’s face.
The jury deliberated for about eight hours following a four-day trial that included testimony from the agent and some of the immigrants who were smuggled by the defendant. Valencia was convicted of all counts, including one count of assault on a federal officer with a deadly weapon and three counts of bringing in an alien for financial gain. Sentencing is set for August 28, 2017 at 9 a.m. before U.S. District Judge Marilyn Huff.
On November 15, 2015, less than two months after his deportation to Mexico following the completion of a 33-month sentence for a prior alien smuggling conviction, Valencia re-entered the United States guiding a group of 15 undocumented immigrants. When the trip through the mountains in rough terrain and inclement weather was interrupted by agents, Valencia threw a softball-sized rock from a distance of approximately 30 feet that hit an agent on the side of the face. Valencia evaded apprehension when he ran back into Mexico afterwards. Agents arrested Valencia when Mexican authorities escorted him to the San Ysidro Port of Entry on Friday, March 11, 2016.
According to court records and testimony at trial, the agent who was assaulted said he had never been hit that hard in his life, and he felt an overwhelming pain that caused him to feel dazed and disoriented, as if he was going to pass out. The rock hit the agent so hard that he thought his teeth were knocked-out or his jaw was broken.
“The conditions are treacherous in some sections of the border, and our courageous agents put their lives on the line every day to protect our country,” said Acting U.S. Attorney Alana W. Robinson. “This verdict tells us that the safety of our agents is of paramount importance and attacks on our agents will come at a high price.”
“We are grateful for the resolve and collaboration that our law enforcement partners have demonstrated over the past several months, resulting in Valencia’s arrest, his prosecution and conviction. We look forward to a just sentencing that will keep him off our streets for a significant period of time, and will keep our communities safe from this violent criminal,” said San Diego Sector Chief Patrol Agent Richard A. Barlow.
DEFENDANTS Case Number 16-CR-0730
Martel Valencia-Cortez Age: 39 Colima, Mexico
SUMMARY OF CHARGES
Count 1: Assault on a Federal Officer, in violation 18 U.S.C. 111 (a)(b)
Maximum Penalty 20 years in prison
Count 2-4: Bringing in Aliens for Financial Gain, in violation of 8 U.S.C. 1324 (a)(2)(b)(ii)
Mandatory Minimum of 5 years in prison, maximum 15 years
AGENCY
U.S. Customs and Border Protection
U.S. Border Patrol
Federal Court Shuts Down New Orleans-Area Tax Return PreparerRead the Press Release
A federal court in New Orleans, Louisiana has permanently barred Tiga Bryant from preparing federal tax returns for others, the Justice Department announced today. In its complaint, the government alleged that Tiga Bryant of New Orleans, Louisiana, sometimes doing business as “Denson’s Fast Tax Services,” fraudulently reduced her customers’ tax liabilities by improperly claiming bogus deductions and fuel tax credits. Bryant agreed to the civil injunction order entered against her, which requires her to turn over to the United States a list of all persons for whom she prepared federal tax returns since 2014. The court also authorized the United States to monitor Bryant’s compliance with the terms of the injunction.
The government’s complaint alleged that Bryant claimed false employee business expense deductions that improperly reduced her customer’s taxable income. In more than one example, the complaint alleged that Bryant claimed a customer incurred employee business expenses totaling slightly less than half the wages the customer earned in that particular year. According to the complaint, Bryant even claimed that one of her customers had incurred employee business expenses totaling more than the wages the employee earned in that year. In each of these instances, the customers did not actually incur the expenses Bryant reported on the return, according to the complaint.
In addition to claiming fraudulent deductions for her customers, Bryant also claimed bogus fuel tax credits, according to the complaint. Fraud involving the fuel tax credit is one of the IRS’s Dirty Dozen Tax Scams for 2017. The fuel tax credit is generally limited to off-highway business use, and consequently, not available to most taxpayers. For example, Bryant reported on one of her customer’s returns that the customer used 2500 gallons of gasoline for off-highway business use when the customer only used her vehicle for driving between home, work, school, and child responsibilities, according to the complaint.
According to the complaint, the Internal Revenue Service (IRS) audited 197 returns prepared by Bryant and determined that Bryant claimed credits and/or deductions her customers were not entitled to take on 96 percent (189) of these returns and understated their tax liabilities by more than $800,000.
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 some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.