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9 May 2017
Notice of Court ProceedingsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
David Jerome Butler to make initial appearance tomorrow morning in federal court pursuant to a federal arrest warrant obtained by ATF on Friday, May 5, 2017COLUMBIA, SOUTH CAROLINA – United States Attorney Beth Drake announced this afternoon that an initial appearance has been scheduled for David Jerome Butler tomorrow morning at 10am at the Federal Courthouse in Greenville, South Carolina.
WHEN:Wednesday, May 9, 2017, at 10:00 a.m.
WHERE:Clement F. Haynsworth Federal Building
Courtroom #4
300 East Washington Street
Greenville, SC 29601#####
Navy Port Engineer Admits Working on Projects Despite Having a Personal Financial InterestRead the Press Release
Assistant U.S. Attorney Phillip L.B. Halpern (619) 546-6964
NEWS RELEASE SUMMARY – May 9, 2017
SAN DIEGO – U.S. Navy Port Engineer John Nasshan pleaded guilty today to a conflict of interest charge, admitting that he improperly administered projects at the Navy’s Southwest Regional Maintenance Center involving a defense contractor with whom he had a financial relationship.
According to his plea agreement, Nasshan made decisions and recommendations affecting Navy contracts with NevWest, Inc. even though he made personal loans to a company official, which is a conflict of interest.
Nasshan has been employed at Southwest Regional Maintenance Center as a Combat Systems Port Engineer since March of 2009. As a Combat Systems Port Engineer, Nasshan drafted technical direction letters, recommended which contractors were qualified for jobs and verified and certified work performed on Navy ships by contractors.
Among other things, San Diego-based NevWest provides combat systems engineering support, electronic technical support, enterprise management and application development services in command, control and communications, computers, combat systems, intelligence, surveillance and reconnaissance, and electronics space modernizations.
As detailed in government pleadings, between May 2011 and September 2015, Nasshan had a financial interest in the business affairs of NevWest. In particular, Nasshan loaned NevWest more than $30,000 at the same time that NevWest was engaged in numerous subcontracts with Southwest Regional Maintenance Center. Naashan made these loans despite recognizing that his job required that he administer NevWest subcontracts.
In order to hide and conceal their illegal activity, Nasshan and an official at NevWest agreed to keep their financial arrangement secret; to deal in cash when exchanging amounts over $10,000; and to structure the cash they were exchanging by dividing it up into amounts of $10,000 or less.
Nasshan also lied to both Naval Criminal Investigative Service and Federal Bureau of Investigation agents regarding his relationship with NevWest. For example, on November 13, 2015, he falsely told an FBI agent that he did not have a financial interest with NevWest; that he never gave a NevWest employee cash or a check; and he never loaned a company official or NevWest money.
“As in all phases of the Government contracting process, it is essential that the work performed by contractors be done free of undue influence, bias, or favoritism,” said Acting U.S. Attorney Alana W. Robinson. “Accordingly, government officials and employees are prohibited from working on any and all matters that would affect their personal financial position.”
“The successful prosecution of this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, our federal law enforcement partners and the U.S. Attorney's Office,” said Gunnar Newquist, Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should be a warning to those who would attempt to take advantage of the U.S. Navy, for personal gain. We are unified in our efforts to catch criminals who not only defraud the U.S. Navy, but specifically are stealing money from the American taxpayers at the direct loss to our warfighters.”
Chris Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service's Western Field Office said: “DCIS and its partner agencies will aggressively investigate Department of Defense personnel who abuse their positions of trust and corruptly advance their own interests. This behavior tarnishes the integrity of the Department's procurement processes and erodes the public's faith in government.”
“The FBI seeks truth and justice in our investigations,” commented FBI Special Agent in Charge Eric S. Birnbaum. “Today’s conviction shows that the FBI, along with our investigative partners, will ultimately uncover the truth despite roadblocks created by those who stand to personally benefit from their lies.”
DEFENDANT: Case Number 17cr1166-JLS
John Nasshan Age: 55 Jamul, CA
SUMMARY OF CHARGES
Conflict of Interest – Title 18, U.S.C., Section 208
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Napa California Resident Sentenced to 5 Years in Prison for EmbezzlementRead the Press Release
A 67-year-old resident of Napa, California was sentenced today in U.S. District Court in Seattle to five years in prison, announced U.S. Attorney Annette L. Hayes. TERRANCE L. COSGROVE pleaded guilty in December 2016 to two counts of wire fraud and one count of mail fraud for a series of embezzlements totaling nearly $4 million. The funds were stolen from a fishing company and from trusts set up by COSGROVE’s close friends to provide for those friends’ wives and children. At sentencing U.S. District Judge John C. Coughenour also imposed restitution in the amount of $2,915,916, and a forfeiture money judgment in the amount of $3,936,977.
“This defendant carefully tended a veneer of honesty and loyalty, while betraying those who trusted him most,” said U.S. Attorney Annette L. Hayes. “He stole not only from his business partners but from the widow and children of close friends. The significant prison sentence imposed in this case is the proper ending to this callous crime.”
“By pillaging the finances of close friends’ families, Mr. Cosgrove subjected to further trauma the very people he pledged to help,” said Assistant Special Agent in Charge Carlos Mojica. “He exploited his immense responsibility as a business partner and trustee to fuel his greed. Thanks to the exhaustively detailed work of forensic accountants working alongside investigators for years, Mr. Cosgrove faces justice for his despicable betrayal.”
According to records filed in the case, COSGROVE engaged in a series of thefts. First in 2009, the partners in a fishing company called ISP Trading discovered that COSGROVE had been taking management fees in excess of the fees the partners had authorized. COSGROVE embezzled more than $3 million.
The two other embezzlement schemes involved theft from accounts where COSGROVE had been appointed as a trustee by close friends. In 2013, the widow of one of COSGROVE’s close friends discovered that COSGROVE had depleted the trust that had been set up by her husband. COSGROVE stole more than $335,000. The widow was forced to sell the family home to avoid foreclosure because of the thefts. In the third criminal scheme, between 2011 and 2012, COSGROVE diverted funds that had been set up to benefit the wife and children of a close friend. In this instance COSGROVE stole more than half a million dollars.
In his plea agreement COSGROVE admits he used the funds to live a life of luxury with multiple expensive homes, luxury cars, country club memberships and expensive hobbies such as wine collecting.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
Press contact for the U.S. Attorney’s Office on May 9 and 10, 2017 is Colleen Bernier at (206) 553-7970. After May 10 please contact Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Max Myong Ahn Sentenced for Selling SpiceRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MAX MYONG AHN, age 60, from Dededo, Guam, was sentenced in District Court on May 8, 2017, to five years probation to include one year home detention, restitution in the amount of $583.00 to the Department of Public Health – Medicaid Division and a $7,500 fine, for Unlawful Use of the Mail to Facilitate the Distribution of Controlled Substance Analogues. The Court also ordered AHN to pay a mandatory $100 assessment fee.
The Federal Analogue Act, 21 U.S.C. § 813, is a section of the United States Controlled Substances Act passed in 1986. The law allows any chemical "substantially similar" to a controlled substance listed in Schedule I or II to be treated as if it were also listed in those schedules, but only if intended for human consumption. These similar substances are often called designer drugs, spice or bath salts.
On November 3, 2016, AHN entered a guilty plea to an Information charging him with Unlawful Use of the Mail to Facilitate the Distribution of Controlled Substance Analogues, in violation of 18 U.S.C. §§ 2 and 1952(a)(3). Undercover investigations at Gallop USA and Max’s Smoke Shop (Max’s), both owned by AHN, revealed that AHN sold Spice to customers and friends. Agents seized 25 bags of spice and 50 plastic jars containing spice residue from Max’s. Agents also seized 792.8 grams of spice and $129,842 in United States currency from Gallop.
Acting U.S. Attorney Anderson stated, “The Drug Enforcement Administration actively works to properly control new generations of designer drugs. These substances are a significant threat to the health of users both domestically and internationally. The Department of Justice and our local and federal partners remain committed to early and active enforcement of drug laws to protect our communities.”
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration, Guam Customs & Quarantine Agency, Guam Police Department, Alcohol, Tobacco, & Firearms, Superior Court of Guam Probation Office, and the Naval Criminal Investigative Service. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Massachusetts Man Sentenced to 7½ Years for a Heroin Distribution ConspiracyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Victor Rosario, 32, of Lawrence, Massachusetts was sentenced today in U.S. District Court by Judge Jon D. Levy to 7½ years in prison and four years of supervised release for conspiring to distribute heroin. Rosario pled guilty on January 6, 2017.
Court records reveal that between July 2015 and January 2016, Rosario regularly supplied heroin to several Maine residents who transported it from Lawrence to Maine and distributed some of it to associates and customers. In January 2016, state agents seized over 100 grams of heroin from one of Rosario’s Maine customers who was returning to Maine after purchasing it from Rosario. Federal agents later arranged for the covert purchase of heroin from Rosario in Lawrence.
This case was investigated by the Maine Drug Enforcement Agency, the Maine State Police, and the U.S. Drug Enforcement Administration, and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Maryland Man Sentenced to over 4 Years in Federal Prison for Transporting Stolen GoodsRead the Press Release
Sold $500,000 Worth of Designer Sunglasses and Other Items Stolen from Shopping Mall Kiosks
Baltimore, Maryland – On May 8, 2017, U.S. District Judge Richard D. Bennett sentenced Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland to 57 months in prison, followed by three years of supervised release, for a scheme to sell property stolen from shopping mall kiosks online.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from October 7, 2014 through March 29, 2016, Halsey used online accounts opened in different names and identities to sell stolen items, including designer sunglasses, and shipped the items nationwide from his home in Dundalk, Maryland.
Specifically, Halsey’s co-conspirator, William Albert Engel, broke into kiosks and stores in shopping malls in Cape Girardeau, Missouri; Fairview Heights, Illinois; Wilmington, North Carolina, and Myrtle Beach, Columbia, and Florence, South Carolina, and stole merchandise which he brought to Halsey in Maryland. Halsey sold the property through an online market, and used the U.S. Postal Service and commercial carriers to ship the stolen property to the buyers. Halsey provided cash from the sale of the stolen property to Engel and also helped to finance Engel’s travel expenses to other states to commit thefts in order to obtain more property for sale. Halsey maintained multiple online market accounts, online payment accounts, and bank accounts under different names and identities during the scheme.
On August 28, 2015, law enforcement searched Halsey’s residence and recovered over $200,000 worth of stolen designer sunglasses, as well as a printing and labeling system, and a large number of documents related to selling sunglasses through an online market. Law enforcement also recovered lock-pick kits and numerous atlases and street maps.
Halsey admitted that more than five individuals participated in the scheme, helping Halsey to package and ship the stolen sunglasses, providing their identification information to Halsey to set up bank and online accounts, and/or assisting in the thefts. Halsey organized the sale of items online and their shipment to buyers outside Maryland. The estimated loss from the scheme was approximately $500,000.
Engel has pleaded guilty and is scheduled to be sentenced on June 5, 2017, at 3:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Littleton Woman Sentenced to Seven Years in Federal Prison for Oil and Investment SchemeRead the Press Release
DENVER – Jill M. Evans, age 51, of Littleton, Colorado, was recently sentenced by U.S. District Court Judge John L. Kane to serve 84 months (7 years) in federal prison for wire fraud and money laundering, the U.S. Attorney’s Office, FBI and Internal Revenue Service – Criminal Investigations announced. Following her prison sentence, Evans was ordered to serve 3 years on supervised release. She was also ordered by Judge Kane to pay $2,094,500 in restitution. Evans was indicted by a federal grand jury on May 21, 2015 and pled guilty on January 23, 2017. She was remanded to the custody of the U.S. Marshals at the end of the hearing.
According to the indictment and plea agreement, in September 2011 and continuing through May 2015, Evans devised a scheme to defraud at least eight individuals whom she solicited to invest in alleged oil transactions. Evans represented to potential investors that she or one of her companies, Paramount Mortgage or Evcom, had a contract with a Russian company to purchase tankers of diesel oil and jet fuel. She claimed that the oil deals could not be completed until certain fees or other expenses related to the deals could be paid.
Evans falsely told investors they would receive a return on their investment ranging from fifty percent to fifty times their original investment within a matter of days or weeks. She told investors that their funds would be held in an escrow account and would be fully refundable if the oil deal did not close. Evans instructed investors to transfer funds to bank accounts. Investors’ funds were not used as represented and were also sent to personal bank accounts that Evans controlled.
Evans told investors that oil deals were nearing successful completion and that disbursements of profits were imminent. She forged e-mails and letters from an attorney at Salans, a major international law firm now merged with Dentons, stating the deal was proceeding and certain steps in the transaction were being completed. She represented that this law firm and Barclays Bank were vetting the deal, when they were not. She created false wire confirmations that she sent to her victims to conceal the disposition of their funds. Evans also sent e-mails attaching fabricated court documents regarding the status of civil litigation purporting to award Evans or related parties substantial sums of money.
Furthermore, Evans concealed from her victims her December 2011 criminal indictment by a State of Colorado grand jury and her subsequent March 2013 criminal conviction for theft and forgery. Evans’s bond conditions prohibited her from entering into any financial transactions in excess of $1,000, and the terms of her subsequent state sentence prohibited her from investing money, entering into any financial contracts or arrangements, and having access to or control of any funds of any individual.
“This is long-term, deliberate, professional stealing,” said Acting U.S. Attorney Bob Troyer. “Luckily for the victims, our prosecutors and the IRS CI and FBI investigators are even more skilled and dogged at rooting out rank theft from innocent victims. And the defendant will have a nice chunk of time to reflect on that.”
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Steven Osborne, IRS-Criminal Investigation, Special Agent in Charge, Denver Field Office. “IRS-Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."
“This sentence sends a strong message to anyone considering deceiving others with fraudulent investment schemes.” said FBI Denver Special Agent in Charge Calvin Shivers. “The FBI will continue to work with our law enforcement partners to protect innocent victims from being preyed upon.”
This case was investigated by IRS – Criminal Investigation and the FBI. The case was prosecuted by Assistant U.S. Attorneys Anna K. Edgar and Rebeca Weber.
Leader of Alien Smuggling Ring Gets Three YearsRead the Press Release
Assistant U. S. Attorney Christopher Alexander (619) 546-6665
NEWS RELEASE SUMMARY – May 8, 2017
SAN DIEGO – Issac Mahatma Osuna-Sanchez, the ringleader of an alien smuggling crew, was sentenced in federal court Friday to three years in prison for bringing 14 undocumented immigrants into the United States from Mexico in a small boat off the coast of California.
Osuna-Sanchez and three others - Enrique Ramirez-Fernandez, Mario Alejandro Sainz-Avila, and Hector Velasquez – pleaded guilty in connection with the events of November 4, 2016, when the U.S. Coast Guard encountered and stopped a vessel on the open sea operating at night, without any navigation or running lights. They discovered the smugglers and the undocumented immigrants on board.
At sentencing, U.S. District Judge William Q. Hayes found that Osuna-Sanchez was a manager of the smuggling venture and his conduct created a substantial risk to the immigrants on board the vessel.
U.S. Border Patrol agents identified one of the vessel’s occupants as a citizen of Nicaragua; the remainder were citizens of Mexico. Border Patrol agents arrested all eighteen occupants and transported them to the Imperial Beach Border Patrol Station.
In addition to the smugglers, two of the others who were aboard the vessel - Ernesto Ignacio Madrigal-Garza and Danilo Alberto Mairena - had previously been deported to Mexico from the United States. They were prosecuted for unlawful reentry into the United States by a previously deported alien, in violation of Title 8, U.S.C., Section 1326. Madrigal-Garza’s prior criminal history involved felony convictions for access device fraud and one prior immigration offense. Mairena’s prior criminal history involved numerous misdemeanor and felony convictions involving violent crimes such as battery, assault, and numerous domestic violence related offenses.
The remaining twelve undocumented individuals, not charged as alien smugglers, were held as material witnesses.
Earlier, on April 19, 2017, Judge Hayes sentenced one of the vessel’s pilots, Mario Alejandro Sainz-Avila, to a prison term of 24 months, for his role in smuggling the fourteen undocumented aliens. In addition, Judge Hayes sentenced two others who aided in smuggling the aliens, Enrique Ramirez-Fernandez and Hector Velasquez, to thirteen months and one day.
DEFENDANTS Case Number 16CR2752-WQH
Issac Mahatma Osuna-Sanchez Age: 22 Tijuana, B.C., Mexico
Enrique Ramirez-Fernandez Age: 27 Ensenada, Mexico
Mario Alejandro Sainz-Avila Age: 31 Navolato, Sinaloa, Mexico
Hector Velasquez Age: 22 Navolato, Sinaloa, Mexico
SUMMARY OF SENTENCES
DEFENDANTS SENTENCE
Issac Mahatma Osuna-Sanchez 36 months of custody
Enrique Ramirez-Fernandez 13 months and one day of custody
Mario Alejandro Sainz-Avila 24 months of custody
Hector Velasquez 13 months and one day of custody
SUMMARY OF CHARGES
Attempted Bringing in Undocumented Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii), and Title 18, U.S.C., Section 2.
Maximum penalty: 10 years’ imprisonment and $250,000 fine.
Bringing in Undocumented Aliens and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(II).
Maximum penalty: 10 years’ imprisonment and $250,000 fine.
AGENCIES
United States Coast Guard
United States Border Patrol
Las Vegas Man Sentenced to over 13 Years in Prison for Conspiracy to Travel for Sex with Minors and Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man, who conspired to travel to Michigan for sex with two minors and who was in possession of approximately 6,000 images of child pornography and approximately 300 videos of child pornography, was sentenced today to 160 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Bryon Quackenbush, 43, pleaded guilty to one count each of conspiracy to travel with the intent to engage in illicit sexual contact and possession of child pornography. United States District Judge Kent J. Dawson presided over the sentencing hearing.
According to admissions made in the plea agreement, Quackenbush chatted extensively over the internet with co-defendant Robert Norwood-Charlier, who was under investigation for production, distribution, and possession of child pornography, and co-defendant Ryan Lively about pedophilia and their membership in “Guardians,” a fantasy-universe group that discusses “mind control’ over others. They also shared sexually explicit images and videos of children with each other. During an interview with law enforcement, Quackenbush admitted that he traveled to Kalamazoo, Mich., knowing Norwood-Charlier both produce child pornography and perform sexual acts on children. Furthermore, Quackenbush admitted that he received copies of videos from Norwood-Charlier of children being sexually exploited. During a search warrant of Quackenbush’s residence, law enforcement seized computers and numerous electronic devices. A forensic evaluation found approximately 6,000 images and approximately 300 videos of minors engaged in sexually explicit conduct.
The case was investigated by the FBI and the Internet Crimes Against Children Task Force; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Vegas Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who falsely represented himself to be a successful securities trader and investor pleaded guilty today to stealing monies as part of an investment fraud scheme, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Sean Christopher Sladek, 40, pleaded guilty to one count of wire fraud. United States District Judge Jennifer A. Dorsey scheduled sentencing for Aug. 14, 2017. At the time of sentencing, Sladek faces a maximum of 20 years in prison.
According to the plea agreement, Sladek admitted that he falsely and with intent to defraud represented himself as a successful securities trader and investor. In fact, he was not a successful securities trader or investor. On or about May 9, 2013, he caused and intended to cause a victim in California to transfer $100,000 to him. He told the victim that the monies would generate positive returns through trading, securities transactions, and/or investment in securities. Sladek did not generate positive returns and had no intent to do so.
Furthermore, Sladek agreed to make restitution in the amount of $1,427,923, for losses caused by his criminal investment fraud scheme, and he agreed to pay a criminal forfeiture money judgment in the amount of $2,638,143.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Jared Grimmer.
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Las Cruces Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Benjamin David Romero, 38, of Las Cruces, N.M., was sentenced today in federal court to 60 months in prison for his conviction on methamphetamine trafficking charges. Romero will be on supervised release for four years after completing his prison sentence.
Romero and co-defendant Roque Henry Atencio, 42, also of Las Cruces, were arrested on Feb. 6, 2016, on a criminal complaint charging them with methamphetamine trafficking offenses. According to the complaint, Romero and Atencio sold two bags containing an aggregate of 47.35 grams of pure methamphetamine to undercover law enforcement agents in Doña Ana County, N.M., on April 2, 2015.
Romero and Atencio were indicted on April 21, 2016, and were charged with participating in a conspiracy to distribute methamphetamine and distributing methamphetamine on April 2, 2015. The indictment included forfeiture allegations requiring Romero and Atencio to forfeit $2,000 to the United States.
During today’s sentencing hearing, Romero entered into a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Romero pled guilty to the indictment and admitted that on April 2, 2015, he provided approximately 47.35 grams of pure methamphetamine to Atencio, which Atencio subsequently sold to an individual working with law enforcement.
Atencio entered a guilty plea on Oct. 5, 2016, without the benefit of a plea agreement. At sentencing, Atencio faces a statutory minimum penalty of five years and a maximum of 40 years in prison. Atencio remains in custody pending a sentencing hearing, which is currently scheduled for May 22, 2017.
This case was investigated by the Las Cruces office of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Settles Immigration-Related Discrimination Claim Against Rhode Island-Based Staffing AgencyRead the Press Release
The Justice Department reached a settlement agreement today with Provisional Staffing Solutions (Provisional), a temporary staffing agency located in Cranston, Rhode Island. The agreement resolves the department’s investigation into whether Provisional discriminated against non-U.S. citizens when checking their work authorization documents, in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Provisional routinely requested that non-U.S. citizens present specific identity documents to prove their work authorization, such as a Permanent Resident Card (PRC), while not requesting a specific identity document from U.S. citizens. Lawful permanents residents and other work-authorized non-U.S. citizens often have the same identity and work authorization documents available to them as U.S. citizens, and may choose from among the acceptable documents to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.
Under the settlement, Provisional must pay a civil penalty of $16,290 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel and be subject to departmental monitoring and reporting requirements.
"The Justice Department cautions employers not to erect discriminatory barriers to employment," said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. "Companies large and small must ensure that their Form I-9 practices comply with federal law. We appreciate Provisional’s cooperation with the Department to address this issue."
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Provisional Staffing Solutions Settlement AgreementJustice Department Settles Immigration-Related Discrimination Claim Against RI Staffing AgencyRead the Press Release
WASHINGTON – The Justice Department reached a settlement agreement today with Provisional Staffing Solutions (Provisional), a temporary staffing agency located in Cranston, Rhode Island. The agreement resolves the department’s investigation into whether Provisional discriminated against non-U.S. citizens when checking their work authorization documents, in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Provisional routinely requested that non-U.S. citizens present specific identity documents to prove their work authorization, such as a Permanent Resident Card (PRC), while not requesting a specific identity document from U.S. citizens. Lawful permanents residents and other work-authorized non-U.S. citizens often have the same identity and work authorization documents available to them as U.S. citizens, and may choose from among the acceptable documents to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.
Under the settlement, Provisional must pay a civil penalty of $16,290 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel and be subject to departmental monitoring and reporting requirements.
“The Justice Department cautions employers not to erect discriminatory barriers to employment,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Companies large and small must ensure that their Form I-9 practices comply with federal law. We appreciate Provisional’s cooperation with the Department to address this issue.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
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Idaho Man Pleads Guilty to Federal Gun ViolationRead the Press Release
BOISE — Timothy Bojorquez, Jr., 29, of Plainview, Idaho, pleaded guilty today to illegal possession of firearms after being convicted of a misdemeanor crime of domestic violence, Acting U.S. Attorney Rafael Gonzalez announced. Bojorquez was indicted in February by a federal grand in Boise.
According to the plea agreement, between December 9, 2016, and February 9, 2017, Bojorquez illegally possessed five firearms, including two high-powered rifles and three pistols. Bojorquez was prohibited from possessing firearms under federal law because he was previously convicted of inflicting corporal injury to a spouse/cohabitant/parent of child, on January 17, 2007, in the Superior Court of California County of San Joaquin, California. That crime constituted a conviction for a misdemeanor crime of domestic violence under federal law, which prohibited Bojorquez from possessing firearms.
In November 2016, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Bojorquez’s illegal firearm possession, communicating with him through his Instagram and Facebook accounts about the sale of firearms. On February 9, 2017, ATF agents executed a search warrant at Bojorquez’s residence in Plainview, Idaho, discovering his cache of firearms.
The charge of illegal possession of a firearm after a misdemeanor conviction for domestic violence is punishable by up to ten years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be August 7, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Boise ATF office. It was brought as part of Project Safe Neighborhoods, a nationwide initiative launched in May 2001 by the Department of Justice to combat gun violence in the United States. Project Safe Neighborhoods marshals federal, state, and local resources to target and prosecute those who commit gun crimes. For more information about Project Safe Neighborhoods, visit https://www.bja.gov.
Fulton Man Pleads Guilty to Child Pornography After Lost Cell Phone Is Turned InRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography after his lost cell phone, which contained images of child pornography, was turned in to law enforcement.
Anthony Quin Hodges, 51, of Fulton, pleaded guilty before U.S. Magistrate Judge William A. Knox to the charge contained in a Feb. 15, 2017, federal indictment.
By pleading guilty today, Hodges admitted that he had been viewing child pornography from a variety of websites for approximately two to three years and storing the images on his Google Photos account. Hodges used his cell phone for searching, maintaining and distributing images of child pornography.
Two Fulton residents turned in the phone, which Hodges said had been lost or stolen, to the Fulton Police Department on Jan. 17, 2017, after they found it abandoned in their driveway. Prior to reporting the incident to law enforcement, the residents powered on the phone to try to identify the owner. Upon trying to locate the owner of the phone, they discovered images child pornography. One of the residents also opened the Facebook icon and observed a Facebook page for Hodges. Investigators obtained a search warrant for the phone and discovered pornographic images of prepubescent children as well as links to apparent child pornography websites.
Hodges also admitted sending unsolicited images of child pornography to an individual. Investigators interviewed the individual who received the text message from Hodges, which contained child pornography. The individual reported he received pornographic images of prepubescent females from Hodges on several occasions. He did not solicit these images, and repeatedly told Hodges to stop sending him child pornography. The individual repeatedly warned Hodges it was illegal to possess child pornography.
Hodges was already under investigation at the time his cell phone was turned in to law enforcement. On October 24, 2016, a Boone County Cyber Crimes Taskforce detective received a CyberTip from the National Center for Missing and Exploited Children. Google had filed a complaint about an account holder, later identified as Hodges, who uploaded images of child pornography to Google Photos. Shortly after Hodges was identified by law enforcement, his cell phone was turned in to the police department.
Under federal statutes, Hodges is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Boone County Cyber Crimes Taskforce and the Fulton, Mo., Police Department.
Project Safe Childhood
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."
Former SEC Employee Pleads Guilty to Making False Statements Designed to Conceal Prohibited TradingRead the Press Release
A former employee of the Securities and Exchange Commission (SEC) pleaded guilty today in federal court in Washington, D.C., to making false statements in government filings in order to conceal his prohibited trading of options and other securities, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Inspector General Carl W. Hoecker of the SEC.
David Humphrey, 60, of Vail, Arizona, pleaded guilty before U.S. District Judge Rosemary Collyer of the District of Columbia in connection with multiple false statements he made on annual Office of Government Ethics Confidential Financial Disclosure Reports (Form 450s), as well as on internal SEC certifications of holdings. Sentencing is set for Aug. 8, 2017.
According to the plea agreement, Humphrey worked for the SEC in Washington, D.C., for 16 years and was a branch chief in the Division of Corporation Finance from 2004 to 2014. Applicable SEC employee ethics regulations prohibited Humphrey from trading options where the underlying interest was a security or group of securities and from purchasing or holding securities in entities the SEC directly regulates, such as financial institutions. In addition, within his role at the SEC, Humphrey was required to pre-clear securities transactions, make certifications that his holdings were in compliance with these regulations, and annually file Form 450s to disclose assets held for investments with a value greater than $1,000 or that produced more than $200 in income at the end of the reporting period.
Humphrey admitted that despite knowing the restrictions on SEC employees’ trading of options, he devised and executed an “options trading strategy” under which he traded options over 100 times from his SEC computer at various times between 2001 and 2014. During this period, in order to conceal his options trading, Humphrey admitted that he signed and submitted multiple Form 450s that failed to disclose reportable assets, including prohibited options. For example, in 2013, Humphrey submitted a false Form 450 that failed to report the sale of reportable options in 2012, and in 2014, he submitted a separate Form 450 that failed to report reportable options sales and investments holdings in 2013. Furthermore, in 2013 and 2014, Humphrey falsely certified that he was in compliance with all applicable SEC regulations relating to prohibited holdings, when in fact Humphrey had traded options in violation of those regulations, he admitted.
The SEC Office of Inspector General investigated the case. Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section is prosecuting the case.
Former Revenue Officer and Owner of Tax Consulting Business Sentenced to Prison for Tax Evasion and Impeding the Tax LawsRead the Press Release
WASHINGTON — A former Internal Revenue Service (IRS) revenue officer who is a resident of Greensboro, North Carolina, was sentenced to serve 43 months in prison today for tax evasion and corruptly endeavoring to impede the due administration of the internal revenue laws, 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 1989 through 2014, Henti Lucian Baird operated HL Baird’s Tax Consultants. Baird had previously worked as an IRS revenue officer for 12 years. Although Baird filed tax returns every year, he has not paid taxes since at least 1998. He used his knowledge and experience as a revenue officer to evade paying his own taxes. He hid hundreds of thousands of dollars that he earned from his consulting business in bank accounts that he created in the names of his children and used money orders and cashier’s checks to pay his personal expenses. In response to IRS collection efforts, he submitted a false collection form on which he claimed to have only one bank account and concealed the existence of his nominee accounts. When Baird learned that the IRS had become aware of these accounts and intended to levy them, he withdrew the funds before the IRS could seize them. To stall impending liens and levies and evade paying the taxes he owed, Baird filed, in bad faith, a cash offer in compromise to settle his tax debt, a request to discharge the levies on the nominee accounts and an application to subordinate his federal tax lien. During this time when Baird was refusing to pay over to the IRS the taxes he duly owed, Baird continued to pay the mortgage on his 4,300 square-foot home, annual fees for his timeshare in Florida and car payments on his BMW.
Baird also corruptly endeavored to impede the internal revenue laws by using his stepson’s identity, without his knowledge, to apply for a Preparer Tax Identification Number that Baird used to file over 900 tax returns for clients, as well as his own tax returns. Baird advertised himself to clients as specializing in “IRS problems, delinquent returns, offer-in-compromise, tax problems, delinquent employee taxes and release of liens and levies,” and submitted at least 120 power of attorney forms to the IRS on behalf of clients falsely claiming to be an enrolled agent, even though the IRS revoked his authorization to represent taxpayers in 2009.
“For well over a decade, Lucian Baird abused his prior experience with the IRS to evade paying the taxes he owed and stymie the IRS’s collection efforts, while spending the government’s money on personal luxuries,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone is required to pay their fair share, and those, like Lucian Baird, who make every effort to dodge their legal obligation to pay what they owe, will face significant consequences including jail and monetary penalties.”
“Henti Lucian Baird engaged in an elaborate scheme to hide assets in nominee accounts for the sole purpose of evading the payment of taxes owed to the federal government,” said Acting U. S. Attorney Hairston. “Through the tireless efforts of dedicated prosecutors from the Tax Division and the United States Attorney’s Office, and special agents from the IRS, Baird has been brought to justice for his crimes.”“The criminal actions of Henti Lucian Baird not only cheated the Treasury Department and law-abiding citizens with his tax evasion efforts, he took advantage of family members to perpetrate additional fraud,” said Chief Richard Weber of IRS Criminal Investigation. “This sentence should send a clear message; It doesn’t matter who you are or where you worked, IRS Criminal Investigation, along with their law enforcement counterparts, will work diligently to uncover fraudulent tax schemes and bring you to justice.”
In addition to the term of prison imposed, Baird was ordered to serve one year of supervised release and to pay $573,422.74 in restitution to the IRS. Baird pleaded guilty in October 2016.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Former Milton Auctioneer Sentenced for Defrauding Investors of $21 MillionRead the Press Release
BOSTON – A well-known auctioneer was sentenced today in federal court in Boston for defrauding more than 90 victims – many of whom were friends, business associates and sophisticated investors – of more than $21 million.
Acting United States Attorney William D. Weinreb said, “Mr. Flynn preyed upon friends and family, taking their hard earned money with promises of high returns. Instead, he violated their trust, and used their investments to perpetuate an elaborate Ponzi scheme, using the money for his own personal expenses including renovations to his Milton home.”
“Through sophisticated financial schemes, Mr. Flynn took advantage of a wide array of victims, cheating them out of millions of dollars,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This case highlights the FBI's commitment to aggressively following the money, so that financial fraudsters like Flynn - who are motivated by greed - are brought to justice and do not take advantage of the hard working men and women of our communities.”
Daniel J. Flynn III, 54, of Milton, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to four years in prison, three years of supervised release and ordered to pay restitution. In February 2017, Flynn pleaded guilty to nine counts of wire fraud.
Beginning around 2007, Flynn and another individual started a real estate fund called the DJF Real Estate Opportunity Fund (“the Fund”). The fund touted Flynn’s experience in real estate and boasted of an extraordinary rate of return on investments. To convince potential investors that the Fund was solid, Flynn purported to own promissory notes worth millions of dollars and an apartment complex in Quincy. In fact, Flynn fraudulently created the promissory notes and used the Quincy apartment complex to defraud investors.
Specifically, Flynn used the promissory notes to defraud investors by soliciting loans from investors to purchase or invest in a piece of distressed real estate. In return, Flynn gave the investor a promissory note guaranteeing the investor of a 12 to 15 percent return. Although Flynn did make payments to investors, as is typical in a Ponzi scheme, the money came from other victims – not real estate investment profits. In total, Flynn defrauded about 60 individuals and entities of approximately $18.4 million.
In addition, Flynn used the Quincy apartment complex to defraud investors. In 2005, Flynn purchased the property for $995,000. Despite the fact that he already owned the property, Flynn caused the Fund to purchase the apartment complex for approximately $2.2 million. Flynn then convinced some investors to loan him money to develop the units and convinced other investors to loan him money to purchase the property – despite the fact that he already owned it – and promised a 12 to 15 percent profit in return. Flynn never repaid the investors.
Lastly, acting as a real estate broker, Flynn sold two properties in Dorchester generating $451,000 in profits, but never returned the proceeds to the property owner. The property owner later died due to heart failure, but family members recalled that the victim and Flynn were involved in a heated argument about the money.
Acting U.S. Attorney Weinreb and FBI SAC Shaw made the announcement today. Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit prosecuted the case.
Former Lutonix Executive Pleads Guilty to Stealing Trade SecretsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of CHRISTOPHER BARRY, 46, for stealing trade secrets from his former employer, Lutonix, Inc. BARRY, who was charged by felony information on April 5, 2017, pleaded guilty before U.S. District Judge Richard H. Kyle in St. Paul, Minn.
According to the defendant’s guilty plea, from 2007 until May 1, 2015, BARRY was the Vice President of Research & Development for Lutonix, Inc. (“Lutonix”), a company based in New Hope, Minn. that develops, manufactures, and sells drug coated balloon (“DCB”) medical products. In his role, BARRY was responsible for all research and development, quality assurance, and manufacturing activities for the company, among other things. BARRY was also directly involved in the development of Lutonix’s primary product, an extremely valuable proprietary DCB called the Lutonix 035 DCB.
According to the defendant’s guilty plea, in May 2015, BARRY left Lutonix and accepted employment as CEO of Urotronic, a start-up medical device company founded by a former Lutonix employee. As BARRY was planning to leave Lutonix, he stole numerous trade secret files belonging to the company so that he could utilize the proprietary information in connection with his next job. During his employment with Urotronic, BARRY transferred the stolen trade secret files from his portable hard drive onto his Urotronic work computer. Additionally, while BARRY was employed at Urotronic, he shared several procedural documents containing Lutonix trade secrets with other Urotronic employees.
This case is the result of an investigation conducted by the FBI, the Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorney Benjamin Langner.
Defendant Information:
CHRISTOPHER BARRY, 46
Medina, Minn.
Convicted:
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Theft of Trade Secrets, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Former IRS Revenue Officer and Owner of Tax Consulting Business Sentenced to Prison for Tax Evasion and Impeding the Tax LawsRead the Press Release
A former Internal Revenue Service (IRS) revenue officer who is a resident of Greensboro, North Carolina, was sentenced to serve 43 months in prison today for tax evasion and corruptly endeavoring to impede the due administration of the internal revenue laws, 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 1989 through 2014, Henti Lucian Baird operated HL Baird’s Tax Consultants. Baird had previously worked as an IRS revenue officer for 12 years. Although Baird filed tax returns every year, he has not paid taxes since at least 1998. He used his knowledge and experience as a revenue officer to evade paying his own taxes. He hid hundreds of thousands of dollars that he earned from his consulting business in bank accounts that he created in the names of his children and used money orders and cashier’s checks to pay his personal expenses. In response to IRS collection efforts, he submitted a false collection form on which he claimed to have only one bank account and concealed the existence of his nominee accounts. When Baird learned that the IRS had become aware of these accounts and intended to levy them, he withdrew the funds before the IRS could seize them. To stall impending liens and levies and evade paying the taxes he owed, Baird filed, in bad faith, a cash offer in compromise to settle his tax debt, a request to discharge the levies on the nominee accounts and an application to subordinate his federal tax lien. During this time when Baird was refusing to pay over to the IRS the taxes he duly owed, Baird continued to pay the mortgage on his 4,300 square-foot home, annual fees for his timeshare in Florida and car payments on his BMW.
Baird also corruptly endeavored to impede the internal revenue laws by using his stepson’s identity, without his knowledge, to apply for a Preparer Tax Identification Number that Baird used to file over 900 tax returns for clients, as well as his own tax returns. Baird advertised himself to clients as specializing in “IRS problems, delinquent returns, offer-in-compromise, tax problems, delinquent employee taxes and release of liens and levies,” and submitted at least 120 power of attorney forms to the IRS on behalf of clients falsely claiming to be an enrolled agent, even though the IRS revoked his authorization to represent taxpayers in 2009.
“For well over a decade, Lucian Baird abused his prior experience with the IRS to evade paying the taxes he owed and stymie the IRS’s collection efforts, while spending the government’s money on personal luxuries,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone is required to pay their fair share, and those, like Lucian Baird, who make every effort to dodge their legal obligation to pay what they owe, will face significant consequences including jail and monetary penalties.”
“Henti Lucian Baird engaged in an elaborate scheme to hide assets in nominee accounts for the sole purpose of evading the payment of taxes owed to the federal government,” said Acting U. S. Attorney Hairston. “Through the tireless efforts of dedicated prosecutors from the Tax Division and the United States Attorney’s Office, and special agents from the IRS, Baird has been brought to justice for his crimes.”
“The criminal actions of Henti Lucian Baird not only cheated the Treasury Department and law-abiding citizens with his tax evasion efforts, he took advantage of family members to perpetrate additional fraud,” said Chief Richard Weber of IRS Criminal Investigation. “This sentence should send a clear message; It doesn’t matter who you are or where you worked, IRS Criminal Investigation, along with their law enforcement counterparts, will work diligently to uncover fraudulent tax schemes and bring you to justice.”
In addition to the term of prison imposed, Baird was ordered to serve one year of supervised release and to pay $573,422.74 in restitution to the IRS. Baird pleaded guilty in October 2016.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Deputy Executive Director of USAID Contractor Pleads Guilty to Theft of More Than $200,000 in Grant FundsRead the Press Release
WASHINGTON – Eugene Sickle, the former deputy executive director of a South African research institute, pled guilty today to a scheme in which he stole more than $200,000 in grant funds originating with the U.S. Agency for International Development (USAID).
The guilty plea was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia, and Jonathan Schofield, Special Agent in Charge for the USAID Office of Inspector General, Office of Investigations.
Sickle, 47, a chemist and a citizen of South Africa, pled guilty in the U.S. District Court for the District of Columbia to a charge of theft concerning programs receiving federal funds. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of six months to 12 months and a day of incarceration. The plea agreement requires Sickle to pay $206,250 in restitution. He is to be deported upon completion of his sentence. The Honorable Ketanji Brown Jackson scheduled a sentencing hearing for August 1, 2017.
“Eugene Sickle abused his position to steal more than $200,000 meant to promote safer childbirth practices in South Africa,” said U.S. Attorney Phillips. “His actions undercut efforts by the U.S. Agency for International Development to help those in need. His arrest and prosecution demonstrate our commitment to ensuring U.S. dollars are spent properly.”
“When individuals are entrusted by the United States to help implement its overseas development programs, nothing but the highest ethical and legal standards are demanded,” said Special Agent in Charge Schofield. “Theft from those who have nothing - from a program dedicated to safer childbirth no less - not only violates the law but is an affront to the very dignity of America's ideals and largess. Whether such egregious behavior transpires domestically or overseas, the OIG stands ready to ensure perpetrators are held to account.”
Based in Washington, D.C., USAID is the lead U.S. government agency that works to end extreme global poverty and enable resilient, democratic societies. It has regional offices in foreign countries to implement and administer USAID programs and funds. USAID South Africa is one such regional office that works with local organizations in that country.
According to a statement of offense, signed by the defendant as well as the government, Sickle was deputy executive director of the Wits Reproductive Health and HIV Institute, a South African research institute focusing on sexual and reproductive health as well as vaccine-preventable diseases. Its primary source of funding is USAID, and Sickle administered grant funds for projects. One such project involved a mobile electronic device software application, in connection with the South African National Department of Health, which would help facilitate safer childbirth deliveries in South Africa.
On October 2, 2015, according to the statement of offense, Sickle and the institute’s chief executive officer signed a contract with a company called Alzar Consulting Services Ltd. to develop the childbirth app. Likewise, an individual named “Dr. Carla Das Neves” Alzar’s purported director, signed the contract. Pursuant to this contract, the institute made two payments to Alzar totaling $206,250. However, the childbirth app has never been developed.
Subsequent investigation revealed that Sickle created Alzar in the British Virgin Islands. Unbeknownst to anyone at the research institute, he was the sole owner of the company. Sickle also created e-mail accounts for Alzar and fake Alzar employees, including “Carla Das Neves.” He created a fake LinkedIn page for “Carla Das Neves,” which had a beach scene for a picture, and falsely claimed that “Carla Das Neves” was a trained expert in aid/relief work.
Sickle shepherded the research institute’s contract with Alzar through the approval and compliance process. He signed the contract both as himself and also as “Carla Das Neves.”
According to the statement of offense, Sickle did not perform any of the work required under the contract, nor did anyone else. None of the USAID money was used for its intended purpose to facilitate safer childbirth in South Africa. Instead, Sickle diverted the money to himself personally, and an associate.
Sickle resigned from his position last year. Agents with the USAID Inspector General’s Office arrested him in Washington, D.C., in February 2017. He has been in custody ever since.
This case is being investigated by the U.S. Agency for International Development Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys John P. Marston and Denise Simmonds and Special Assistant U.S. Attorney Vesna Harasic-Yaksic of the U.S. Attorney’s Office for the District of Columbia.
Former Dance Moms Star Sentenced to Prison, Fined for Hiding Assets and Illegally Transporting Foreign Currency into the U.S.Read the Press Release
PITTSBURGH - Reality television performer Abigale Lee Miller has been sentenced in federal court to one year and a day incarceration on her conviction of concealing assets from the bankruptcy court, and one count of failing to report an international currency transaction, Acting United States Attorney Soo C. Song announced today. In addition, the court imposed two years’ supervised release, a $120,000 money judgement and a $40,000 fine.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Miller, 51.
According to the information presented to the court, in 2010 Miller filed a Petition in bankruptcy seeking to reorganize debts from the operation of the Abby Lee Miller Dance Studio. The court was advised that during the bankruptcy case, Miller failed to disclose to the bankruptcy court revenue she earned from the sale of merchandise and ticket sales at Master Class dance sessions she hosted in cities in the U.S. in 2012 and 2013. Additionally, Miller failed to report to customs officials that she transported in excess of $10,000 in foreign currency from Australia into the United States in the summer of 2014, totaling approximately $120,000.
“This defendant secreted and structured profits that she derived outside the United States from performances by children,” stated Acting U.S. Attorney Song. “Failing to disclose profits both in federal court and upon entry into the United States undermines our justice system and the integrity of our borders.”
"Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons. Those who abuse the bankruptcy process by committing fraud threaten the integrity of the entire system. Bankruptcy fraud not only impacts creditors like businesses and financial institutions, it can also result in higher loan fees and higher taxes for everyone," said Special Agent in Charge Robert Johnson of the Federal Bureau of Investigation's Pittsburgh Division. "That is why we continue to work with our partners in law enforcement to thoroughly investigate allegations of bankruptcy fraud and hold those who commit it accountable."
“As part of a bankruptcy fraud task force, the US Postal Inspection Service will continue to pursue those who defraud creditors and attempt to shield assets from the bankruptcy court,” stated Tommy D. Coke, US Postal Inspector in Charge of the Pittsburgh Division.
“Today’s sentence demonstrates that our judicial system truly is ‘Justice for All.’ Those who manipulate the bankruptcy process, the tax system, and laws of our country, regardless of their social status, will be pursued and held accountable for their actions,” said Greg Floyd, Acting Special Agent in Charge of IRS-Criminal Investigation, Philadelphia Field Office.
“HSI special agents remain vigilant against those who would knowingly attempt to circumvent United States law at and beyond our borders. When individuals lie on travel documents, our nation’s border controls and the integrity of our financial system are severely undermined, thus placing the security of our nation at risk,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “We are proud to have contributed to this investigation along with our other federal law enforcement partners.”
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the United States Trustee, the United States Postal Inspection Service, the Internal Revenue Service-Criminal Investigation and U.S. Customs and Immigration Enforcement (ICE)/Homeland Security Investigations (HSI) for the investigation leading to the successful prosecution of Abigale Lee Miller.
Former Corrections Officer Cadet in Elmore, Alabama Pleads Guilty to Assaulting Handcuffed ManRead the Press Release
Montgomery, Alabama – Jeremy Walker (26), a former corrections officer cadet with the Elmore Correctional Facility in Elmore, Alabama pleaded guilty in federal court to a civil rights violation for assaulting a handcuffed man, announced Acting U.S. Attorney for the Middle District of Alabama A. Clark Morris, and Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. Walker is a resident of Montgomery, Alabama.
As a part of his plea, Walker admitted that on July 3, 2014, while he was on duty as a corrections officer trainee at the Elmore Correctional Facility, he argued with, and then pushed, an inmate. Walker and the inmate went to the ground and other corrections officers intervened. The inmate was handcuffed and placed in a holding cell. Walker’s brother, who was also a corrections officer, attempted to enter the holding cell, but other officers restrained him. Walker admitted that while the other officers were focused on keeping his brother from entering the holding cell, he ran into the cell and punched the handcuffed inmate in the head several times. Walker then threw the victim to the floor. Other officers entered the cell and restrained Walker. Walker acknowledged that his assault caused injury to the victim.
“The vast majority of law enforcement and corrections officers are dedicated to protecting and serving the public with honor,” said A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. “They walk a tough line every day they are on duty. However, when they cross the line and assault an individual that poses no threat, they will be held accountable for their actions.”
“Law enforcement is always held to a higher standard,” stated Robert Lasky, Special Agent in Charge of the Mobile Division of the FBI. “Due to our strong relationship with the Department of Corrections, these cases will continue to be a priority for our office."
“The Justice Department will vigorously prosecute corrections officers who abuse their power to break the law and violate the constitutional rights of others,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Actions such as the defendant’s threaten the public’s confidence in our criminal justice system, and we will not allow such conduct to stand.”
Walker will be sentenced in federal court at a date to be determined. He faces a sentence of up to 10 years in prison.
This case was investigated by the FBI’s Mobile Field Office with the cooperation of the Alabama Department of Corrections. It is being prosecuted by Assistant U.S. Attorney Rand Neeley for the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Former Corrections Officer Cadet in Alabama Pleads Guilty to Assaulting Handcuffed ManRead the Press Release
The Justice Department announced that Jeremy Walker, a former corrections officer cadet with the Elmore Correctional Facility in Elmore, Alabama, pleaded guilty in federal court yesterday to a civil rights violation for assaulting a handcuffed man.
As a part of his plea, Walker admitted that on July 3, 2014, while he was on duty as a corrections officer trainee at the Elmore Correctional Facility, Walker argued with, and then pushed, an inmate. Walker and the inmate went to the ground and other corrections officers intervened. The inmate was handcuffed and placed in a holding cell. Walker’s brother, who was also a corrections officer, attempted to enter the holding cell, but other officers restrained him. Walker admitted that, while the other officers were focused on keeping his brother from entering the holding cell, Walker ran into the cell and punched the handcuffed inmate in the head several times. Walker then threw the victim to the floor. Other officers entered the cell and restrained Walker. Walker acknowledged that his assault caused injury to the victim.
“The Justice Department will vigorously prosecute corrections officers who abuse their power to break the law and violate the constitutional rights of others,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Actions such as the defendant’s threaten the public’s confidence in our criminal justice system, and we will not allow such conduct to stand.”
“The vast majority of law enforcement and corrections officers are dedicated to protecting and serving the public with honor,” said Acting U.S. Attorney A. Clark Morris for the Middle District of Alabama. “They walk a tough line every day they are on duty. However, when they cross the line and assault an individual that poses no threat, they will be held accountable for their actions.”
Walker will be sentenced in federal court at a date to be determined. He faces a statutory maximum of up to 10 years in prison.
This case was investigated by the FBI’s Mobile Field Office with the cooperation of the Alabama Department of Corrections. It is being prosecuted by Assistant U.S. Attorney Rand Neeley for the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Former Canadian Moneygram and Western Union Agent Pleads Guilty to $4.4 Million Fraud SchemeRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lucas Obi, age 53, of Toronto, Canada, a former Western Union and MoneyGram agent, pled guilty today before United States Magistrate Judge Martin C. Carlson to defrauding thousands of victims out of approximately $4.4 million via international mass marketing, consumer fraud schemes.
According to United States Attorney Bruce D. Brandler, Obi was indicted in December 2012, and was extradited to the United States from Canada. Obi was not arraigned on his Indictment in Harrisburg, Pennsylvania until August 2016.
According to the indictment, Lucas Obi, A/K/A “Suleman Ajukwusualim, was the owner/operator of a Western Union and a MoneyGram agency, both of which were known as Canada Cash Express, Inc., and located at the same Toronto address. According to the indictment, Obi conspired with others between 1999 and 2010 to commit the wire fraud offense and was the leader of a group of fraud complicit MoneyGram and Western Union agents in the greater Toronto area. Obi was the group’s mentor and leader who taught others how to engage in mass marketing fraud and complicit money transfer agent activity. Obi trained the agents on how to process fraud induced money transfers and allowed them to keep a cut, 5% to 10%, for their role in the schemes. Obi also recruited persons to act as money transfer outlet owners on his behalf, gathered fraudulently induced money transfer checks from other fraud complicit agents, and deposited the checks with fictitious name endorsements into his bank accounts. Obi then distributed the fraud proceeds, less his cut, to numerous greater Toronto area fraudsters and money launderers.
The known total dollar loss associated with all fraud reported money transfers paid out at Canada Cash Express and Obi’s other fraud complicit check-pooling agents is $4,482,927. Pursuant to a deferred prosecution agreement with MoneyGram, a $100 million victim restitution fund was established for victims of Obi’s fraud. A $586 million restitution fund is also being established for victims who sent their money via Western Union pursuant to the recently filed, January 19, 2017, Western Union deferred prosecution agreement with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the U.S. Justice Department.
Sentencing is tentatively scheduled for August 15, 2017.
The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service, the Federal Trade Commission, the Toronto Police Service, the Royal Canadian Mounted Police, the Ontario Provincial Police, the Canadian Anti-Fraud Centre, the Canada Competition Bureau, and the Ministry of Government Services. The Justice Department's Office of Internal Affiars provided assistance with the extradition of the defendant. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
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 for each count is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 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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Former Attorney Sentenced to 3 Years in Prison for Defrauding Clients of More Than $900KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN O’BRIEN, 53, of North Kingstown, R.I., was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for stealing more than $950,000 from clients of his law practice.
According to court documents and statements made in court, O’BRIEN was an attorney with an office located in Fairfield. Between approximately April 2011 and June 2014, O’BRIEN defrauded four clients by using funds from one client to pay off debts owed in connection with his representation of other clients, and also to pay for personal expenses, including the tuition for one of his children at a private high school.
In approximately May 2012, O’BRIEN accepted $458,343.06 into his Interest on Lawyer Trust Account (“IOLTA”) as proceeds of a reverse mortgage taken by a client (“Client 1”) and his client’s wife, both of whom are now deceased. The funds from the reverse mortgage were intended to pay debts that would keep the client’s family business sustainable. Between June 2012 and February 2014, O’BRIEN disbursed only $204,000 to the family business. In approximately July 2013, O’BRIEN received an additional $194,636.89 from bank accounts held in the name of his client and one of his client’s children. The funds were supposed to be distributed to the client’s children. Only $104,008 was distributed. In approximately April 2014, O’BRIEN accepted $837,250 into his IOLTA as proceeds of a sale of his client’s real property. Only $470,000 of that amount was disbursed to his client’s heirs. The first check written from O’BRIEN’s IOLTA account upon receipt of the $837,250 was to a prior unrelated client for a debt owed to that client. In total, O’BRIEN defrauded Client 1 of $712,221.95.
In May 2011, O’BRIEN deposited $74,250 from a second client (“Client 2”) into his IOLTA. The money was never disbursed to the client.
In approximately September 2011, O’BRIEN agreed to represent a terminally ill woman (“Client 3”) for estate planning. Upon this client’s death in January 2013, O’BRIEN received $137,000 from the estate into his IOLTA. After the deposit, O’BRIEN paid personal expenses from the IOLTA, including his son’s private school tuition and thousands of dollars to his ex-wife. Only $112,283.20 was distributed to the heirs of O’ BRIEN’s client. Upon a review of this matter by the Connecticut Bar Statewide Grievance Committee, O’BRIEN produced fraudulent memos allegedly written to the daughter of his client requesting “release” of various amounts. One of the memos included payment to the family business of Client 1 for a $15,000 lawnmower, which was paid for from Client 3’s estate. Client 3 did not purchase a lawnmower from the family business of Client 1.
O’BRIEN represented a client (“Client 4”) in the purchase of the client’s deceased mother’s home in Westport. In two payments in August 2013 and February 2014, the client transferred to O’BRIEN approximately $199,332 for purchase of the home, which O’BRIEN was supposed to pay to the fiduciary of the estate to complete the sale. In approximately April 2014, O’BRIEN finally paid the fiduciary of the estate to complete the sale. The check to the fiduciary of Client 4’s mother’s estate was the first check written from the defendant’s IOLTA upon receipt of the $837,250 in Client 1’s real estate sale proceeds. Because of the delay in the defendant’s transfer of payment to the fiduciary of the estate, Client 4 incurred approximately $13,558.38 in storage fees for belongings while the property was unavailable for occupancy by Client 4.
While O’BRIEN was engaged in the above conduct, he made withdrawals of thousands of dollars in cash from his IOLTA. On several occasions, deposits of the same or similar amounts were made into his personal bank account on the same day that the funds were withdrawn from his IOLTA.
Chief Judge Hall ordered the government to submit a proposed restitution order within 14 days.
On December 29, 2016, O’BRIEN pleaded guilty to one count of wire fraud.
O’BRIEN resigned from the Connecticut bar in June 2015.
This matter was investigated by the U.S. Secret Service and the Connecticut Financial Crimes Task Force, with assistance from investigators of the Connecticut Statewide Bar Grievance Committee. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Father and Son Plead Guilty in Conspiracy to Pay Bribes and GratuitiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that James Mazzariello, Jr., 62, and his son, Adam Mazzariello, 37, both of Alden, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to pay bribes to City of Buffalo police officers. James Mazzariello, Jr. also pleaded guilty plea to making and subscribing a false tax return. The defendants face a maximum penalty of five years in prison, a fine of $250,000, or both.
“In all public corruption cases, our goal is to identify those public officials who violate the trust of the people,” said Acting U.S. Attorney Kennedy. “As prosecutors, however, we are constrained by the evidence that we are able to gather. Here, that evidence culminated in today’s pleas. We will continue, along with the FBI, Buffalo Police and NYS, our efforts to identify and bring to justice any police officer who may have accepted illegal bribes. Since sunlight is the best disinfectant, we expect that this case will clean up the way towing services are provided in the City of Buffalo.”
"The facts of this case are the reason the FBI's public corruption program exists," said Adam S. Cohen, Special Agent-in-Charge of the FBI's Buffalo Division. "There were accusations that tow truck operators were offering bribes to public officials, in this instance police officers. Not only did the Mazzariello’s engage in this corrupt activity in their regular course of business, but they then went on to profit significantly as a result of those bribes."
Assistant U.S. Attorneys Russell T. Ippolito, Jr., and Maura K. O’Donnell, who are handling the prosecution, stated that James Mazzariello, Jr. owned and operated Jim Mazz Auto, Inc. (“Jim Mazz Auto”) and National Towing, Inc. (“National Towing”). The companies were involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello supervised the towing services aspect of his father’s businesses.
Between January 2009 and May 2012, Jim Mazz Auto tow truck operators, at the direction of the defendants, made bribe payments to certain City of Buffalo police officers for their assistance in enabling the drivers to tow motor vehicles damaged in accidents in the City of Buffalo. The tow truck operators made these bribe payments from their own personal funds and were then reimbursed by the defendants. James Mazzariello, Jr. and Adam Mazzariello also directed and authorized others to make reimbursement payments to tow truck operators for bribe payments.
The investigation examined and substantiated 19 different bribe payments made by Jim Mazz Auto tow truck operators to City of Buffalo Police Officers. Approximately $500 in payments were made to City of Buffalo police officers while the gross revenue Jim Mazz Auto derived from making such bribe payments totaled $43,022.74. The gross revenue consisted of payments made to Jim Mazz Auto for towing, as well as for mechanical and collision repair work.
In addition, James Mazzariello, Jr. filed false corporate tax returns and individual tax returns for tax years 2009 and 2010. He also significantly underreported the total amount of gross revenue for his business in order to pay less in federal taxes. The total tax loss was $125,311.
The pleas are the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Internal Revenue Service Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office; the New York State Department of Motor Vehicles’ Division of Field Investigation, under the direction of Owen McShane, Director of Investigations; the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet; the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The defendants are scheduled to be sentenced on August 24, 2017 at 12:30 p.m. in front of Judge Arcara.
FBI and the U.S. Attorney's Office Continue to Fight Against Child PornographyRead the Press Release
DENVER – As part of the Department of Justice’s ongoing efforts to prosecute sexual predators and protect innocent victims, Acting U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers are highlighting five recent child pornography cases that demonstrate both agencies’ commitment to that mission. These cases follow shortly on the heels of Acting U.S. Attorney Bob Troyer's announcement of the formation of the Cybercrime and National Security Section, which is dedicated to protecting the citizens of Colorado and the nation from the growing threat of online crimes and threats to the homeland. The below cases demonstrate the effectiveness of this new section in responding to these threats.
Sharee Ewudzi-Acquah, age 47, of Westminster, Colorado, pleaded guilty on April 28, 2017 to possessing child pornography. She had been held without bond following her arrest by the FBI on the indictment obtained on October 20, 2016. According to the Plea Agreement and facts provided to the court during the defendant’s detention hearing, the defendant traded child pornography with multiple other like-minded people using an application on her cellular telephones. The defendant shared dozens of images of child pornography online, and she engaged in graphic chats with others about having sex with children. She also chatted with a man about having a child they could molest together. Following the forensic analysis on Ewudzi-Acquah’s phones, agents determined the defendant was using cloud storage, foreign emails, and foreign cloud storage – in both New Zealand and in Russia. Evidence also showed that the defendant, who had a long-term job at the University of Colorado, traded child pornography and chatted about child pornography while at work. The defendant is scheduled to be sentenced on July 28th, 2017 before U.S. District Court Judge Philip Brimmer. The defendant has agreed in the Plea Agreement not to seek a sentence of less than five years. She faces up to 10 years in federal prison, and up to a $250,000 fine to be followed by not less than 5 years up to lifetime supervised release. The defendant was remanded to custody pending the sentencing hearing.
Walter Briggs, age 62, of Denver, Colorado, pleaded guilty on August 18, 2016, to a possession of child pornography charge. He was sentenced on April 24th, 2017 by Chief U.S. District Court Judge Marcia Krieger to serve 15 years in federal prison followed by supervised release for life. He was also ordered to pay $22,000 in restitution to his victims. Briggs was held without bond after his arrest by the FBI on the indictment on January 28th, 2016. He was remanded to custody following the sentencing hearing. According to court records, Briggs has two other felony sex convictions and was a registered sex offender at the time he committed the federal offense. In 1984, the defendant was convicted of Attempted Sexual Assault on a Child. In 1993, the defendant was convicted of Sexual Assault on a Child by One in a Position of Trust. Each involved the sex assault of minor girls. In October 2015, law enforcement found that Briggs was sharing online over 1,400 images and videos of child pornography, mostly of infant and toddler girls. The defendant was present at his home when FBI executed a search warrant. He was found in possession of at least 8,000 images of child pornography. The sheer size of his collection made a more exact accounting difficult since he had another 160,000 images across multiple devices. FBI found at least 1,000 images of infants or toddlers, and over 100 sadomasochistic sex abuse images of children.
Paul Andrew Lee, age 54 of Parker, Colorado was arrested after being indicted by a federal grand jury on one count of accessing the Internet with intent to view child pornography. On April 28th, 2017, the defendant appeared in custody before the Honorable Magistrate Judge Mix. The court advised him that because he has at least one prior sex-related conviction, he was facing prison time of not less than 10 nor more than 20 years’ imprisonment, not less than five years nor more than life supervised release, and a fine of up to $250,000. The defendant was ordered held without bond by U.S. Magistrate Judge Kristen L. Mix. The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Damien Marc Smith, age 45 of Denver, Colorado, was arrested on April 26th, 2017 after being indicted of two counts of distribution and possession of child pornography charges. During the detention hearing on May 1, 2017, the government proffered evidence showing the defendant had been sharing and downloading child pornography for at least 10 years, and that he had been previously fired from a job for viewing child pornography at work, a fact not reported to law enforcement. Shortly before a search warrant was executed on defendant’s residence, an undercover law enforcement officer downloaded approximately 700 images and 250 videos of child pornography from the defendant. One of the videos of child pornography that he was sharing was over two hours long. During the search warrant execution, the defendant was found in possession of at least 140,000 images and videos of child pornography. The defendant had sorted his collection of child pornography into folders on his devices with titles such as “pre-teen hard core,” and “!keepers”. The defendant was ultimately released on bond conditions. If convicted of distribution of child pornography, the defendant faces not less than 5 years, and up to 20 years in federal prison. If convicted of possession of child pornography, he faces up to 10 years' imprisonment. Both counts also carry potential fines of up to $250,000 per count as well as not less than 5 years’ up to lifetime of supervised release. The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
These cases were investigated by the FBI and the FBI Child Exploitation Task Force. They are being prosecuted by Assistant U.S. Attorney Valeria Spencer, assigned to the Cybercrime and National Security Section at the Colorado U.S. Attorney’s Office.
David Eugene Reed, age 66, of Longmont, Colorado was sentenced on April 26th, 2017 by U.S. District Court Judge William Martinez to serve 64 months in prison and pay $10,100 in fines and special assessments followed by 10 years of supervised release. Reed was also ordered to pay restitution of $14,500 to the victims of his crime. The sentence was handed down on April 26, 2017, and Reed was remanded into custody at the conclusion of the hearing. According to court records, the FBI executed a search warrant at the defendant’s home in Longmont. Reed, a recent retiree, was present during the search and he told the FBI agents that he had accessed child pornography daily for approximately 15 years, that he attempted to cover up his conduct by running a cleaning tool on his computer every day, and that he searched for child pornography on the “Dark Web” through “Tor” anonymization software. A computer forensic analysis revealed that Reed had amassed 248,150 images and 1,341 videos that depicted the sexual abuse of children. The files were organized on the defendant’s computer by folders bearing the child victims’ names.
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorney David Tonini, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Office.
Erie Woman Charged with Illegally Possessing FentanylRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Tiesha Lasha Henderson, 30, as the sole defendant.
According to the indictment presented to the court, on March 15, 2017, Henderson possessed with intent to distribute forty grams or more of fentanyl.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Erie County Detective Bureau, the Erie Police Department and the Millcreek Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Indicted for Defrauding Woman He Met OnlineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of wire fraud and engaging in monetary transactions in property derived from specified unlawful activity, Acting United States Attorney Soo C. Song announced today.
The seven-count indictment named Henry James Corder, 63, of Erie, Pennsylvania.
According to the indictment presented to the court, Corder stole from a victim that he met online, falsely stating that he was a U.S. Marshal that could help her with an advance fee scheme that she was a victim of. He also falsely claimed he needed money for cancer treatments, funeral services for relatives, business partnerships in which he promised to include the victim and items for a security business.
The law provides for a maximum total sentence of 100 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Elk Grove Man Found Guilty in $1M Adult-Adoption Immigration Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Helaman Hansen, 64, of Elk Grove, was found guilty today by a federal jury for operating an elaborate adult-adoption fraud scheme that targeted undocumented aliens, U.S. Attorney Phillip A. Talbert announced.
After an 11-day trial, the jury found Hansen guilty of 12 counts of mail fraud, three counts of wire fraud, and two counts of encouraging and inducing illegal immigration for private financial gain.
According to evidence presented at trial, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for an annual fee of $150, but that fee gradually grew and eventually was as high as $10,000.
According to evidence presented at trial, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their 16th birthdays could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and others acting at his direction induced approximately 500 victims to pay more than $1 million to join the fraudulent program.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys André M. Espinosa and Katherine T. Lydon are prosecuting the case.
Hansen is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 3, 2017. Hansen faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of mail fraud and wire fraud. He faces up to 10 years in prison and a $250,000 fine for each count of encouraging and inducing illegal immigration for private financial gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Contra una Agencia de Contratación con Sede en Rhode IslandRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia llegó a un acuerdo hoy con Provisional Staffing Solutions («Provisional»), una agencia de contratación temporal con sede en Cranston, Rhode Island. El acuerdo resuelve la investigación por parte del Departamento sobre si Provisional discriminó a individuos que no eran ciudadanos de los EE. UU. a la hora de comprobar sus documentos de autorización para trabajar, en contra de la ley de Inmigración y Nacionalidad (INA», por sus siglas en inglés).
La investigación del Departamento concluyó que Provisional, de forma rutinaria, solicitó a individuos que no eran ciudadanos de los EE. UU. que presentasen documentos de identidad específicos para demostrar que cuentan con autorización para trabajar, tales como una tarjeta de residencia permanente (PRC, por sus siglas en inglés), mientras que no pidieron documentos de identidad específicos a ciudadanos estadounidenses. En muchos casos, los ciudadanos estadounidenses y los residentes permanentes legales y otros individuos que no son ciudadanos de los EE. UU. pero que sí cuentan con autorización para trabajar disponen de los mismos documentos de identidad y autorización para trabajar y pueden elegir de las Listas de Documentos Aceptables para demostrar que tienen autorización para trabajar. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales injustas con base en la ciudadanía o nacionalidad de origen de dichos empleados.
Conforme el acuerdo, Provisional deberá pagar una multa civil a los Estados Unidos que asciende a $16.290, publicar notificaciones para informar a los trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitar a su personal de recursos humanos y someterse a los requisitos de declaración y supervisión del Departamento.
«El Departamento de Justicia les advierte a los empleadores que no deben crear barreras discriminatorias al empleo», declaró el Fiscal General en funciones, Tom Wheeler, de la División de Derechos Civiles. «Tanto las empresas grandes como las pequeñas deben asegurar que sus prácticas en lo que se refiere al Formulario I-9 cumplan con las leyes federales. Agradecemos la cooperación de Provisional con el Departamento por abordar este asunto».
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Settlement Agreement
Dubuque Area Men Plead Guilty to Participating in Fraud that Targeted Elderly Victims Throughout the United StatesRead the Press Release
Two men who participated in a scheme to defraud victims across the United States have pled guilty in federal court in Cedar Rapids.
Carlos Rodriguez, age 37, from the Dubuque, Iowa area, pled guilty today and was convicted of one count of wire fraud.
At the plea hearing, Rodriguez admitted he participated in a scheme to defraud people throughout the United States and that the fraud was primarily targeted towards the elderly. Rodriguez admitted that other individuals called victims on the phone and told these victims that a relative was in jail. The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released. Rodriguez further admitted that the money was being wired to various participants in the fraud who would pick up the wire transfers. Rodriguez admitted that he was one of the participants in and around Dubuque who received wire transfers from the victims.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Rodriguez remains in custody of the United States Marshal pending sentencing. Rodriguez faces a possible maximum sentence of 20 years’ imprisonment, a fine, and 3 years of supervised release following any imprisonment.
Previously, on March 2, 2017, another individual, Shawn Vaassen, pled guilty to participating in the same scheme to defraud as Rodriguez. At his plea hearing, Vaassen admitted that he too was picking up wire transfers sent to the Dubuque area by victims of the scheme. At the same plea hearing, Vaassen also pled guilty to unlawfully possessing a sawed off shotgun.
The cases are being prosecuted by Assistant United States Attorneys Timothy Vavricek and Anthony Morfitt and were investigated by Homeland Security Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-1001 and 17-CR-1004.
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Dominican National Pleads Guilty to Passport Fraud and Identity TheftRead the Press Release
BOSTON – A citizen of the Dominican Republic pleaded guilty today in federal court in Boston to passport fraud and identity theft.
Alvaro Luis Soto-Martinez, 31, a Dominican national who was residing in Hyde Park, Mass., pleaded guilty to one count of passport fraud, one count of misuse of a social security number, and one count of aggravated identity theft. U.S. District Court Judge Indira Talwani scheduled sentencing for August 8, 2017.
On Oct. 15, 2014, Soto-Martinez entered a Lowell post office and used the name, date of birth, and social security number of a United States citizen from Puerto Rico to apply for a United States passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of misuse of a social security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two years in prison, which must run consecutive to any other imposed term of imprisonment. Soto-Martinez will be subject to deportation upon completion of his sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A citizen of the Dominican Republic pleaded guilty today in federal court in Boston to a federal immigration charge.
Juan Antonio Colon, 52, a Dominican national residing in Boston, pleaded guilty to one count of re-entry of a removed alien. U.S. District Court Judge William G. Young scheduled sentencing for June 27, 2017.
On Nov. 9, 2016, after a motor vehicle stop in Roxbury, law enforcement officers arrested Colon for possession of Oxycodone, giving a false name, and operating with a suspended registration. Colon’s fingerprints have been altered, but federal agents were able to positively identify him using their comparative fingerprint analysis tool. Further investigation revealed that Colon was previously deported from the United States in May 2009 and July 2013.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Colon will be subject to deportation upon completion of his sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Criminal Division is prosecuting the case.
District Man Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
WASHINGTON – Arthur Chan, 31, of Washington, D.C., was sentenced today to nine months of home confinement and ordered to perform 180 hours of community service on a federal charge involving the sale of counterfeit designer apparel and accessories, announced U.S. Attorney Channing D. Phillips, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., and Michael W. Sonntag, Special Agent in Charge, Eastern Field Office, National Aeronautics and Space Administration (NASA) Office of Inspector General.
Chan pled guilty in January 2017, in the U.S. District Court for the District of Columbia, to trafficking in counterfeit goods. The Honorable Rosemary M. Collyer also ordered him today to serve one day in jail, complete 18 months of supervised release, and pay a forfeiture money judgment of $37,246, which represents the amount of proceeds he generated through the crimes.
According to a statement of offense, signed by the defendant as well as the government, Chan is a resources analyst at NASA’s Goddard Space Flight Center in Greenbelt, Md. Between November 2013 and March 2016, according to the statement of offense, he used two personal eBay accounts to complete approximately 610 sales of apparel and accessories bearing marks identical with, or substantially indistinguishable from, those registered to Hugo Boss. Among other things, Chan used his work computer at NASA to facilitate the counterfeit apparel sales scheme.
Chan imported all of these items from India to a mailbox he maintained at a UPS store in Lanham or his residence in Washington, D.C. According to the statement of offense, he netted a total of $37,246 from the sale of these items. During the investigation, law enforcement seized a variety of counterfeit items, including 113 counterfeit Hugo Boss wallets; 18 counterfeit Ralph Lauren Polo wallets; three counterfeit Fred Perry wallets; 23 counterfeit Hugo Boss Polo shirts; two counterfeit Fred Perry Polo shirts, and counterfeit Hugo Boss and Ralph Lauren packaging.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., and the NASA Office of Inspector General. Hugo Boss AG, based in Metzingen, Germany, provided assistance to the investigative team. The matter was prosecuted by Assistant U.S. Attorney Michael J. Marando, with assistance on asset forfeiture issues from Special Assistant U.S. Attorney Andrea Duvall.
District Man Indicted on Federal Charges for Armed Robbery and Assault of Letter CarrierRead the Press Release
WASHINGTON – Jerome A. Proctor, Jr., 23, of Washington, D.C., was indicted today on federal charges alleging that he robbed and assaulted a United States Postal Service letter carrier in Northeast Washington last fall.
The indictment was announced by U.S. Attorney Channing D. Phillips, Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The indictment charges Proctor with one count of robbery of United States mail, one count of assaulting, resisting or impeding certain officers or employees, and two firearms offenses. Proctor, who is in custody in Maryland for an unrelated matter, will be arraigned at a date to be scheduled by the Court.
The indictment charges Proctor with taking part in an attack at about 6 p.m. on Nov. 26, 2016, in the 2300 block of Second Street NE. During the course of the investigation, law enforcement learned that a letter carrier was completing his route when he was approached by an individual later identified as Proctor and an accomplice. Proctor allegedly pistol-whipped the letter carrier and ordered his accomplice to rummage through the letter carrier’s pockets.
According to the government’s evidence, Proctor and his accomplice took the letter carrier’s mail satchel and personal property, as well as his pants and sneaker, before the letter carrier was able to get up off the ground to try to flag down a car for assistance. As the letter carrier approached the car for help, he saw a shot fired in the air to scare away the car. The driver, frightened by the gunshot, sped off, but the letter carrier was able to run after the car and ultimately flagged down officers of the Metropolitan Police Department just blocks away.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The U.S. Postal Inspection Service and Metropolitan Police Department are investigating the case. It is being prosecuted by Assistant U.S. Attorney Laura Crane.
Counterfeiter Sentenced for Scheme in Southern Missouri, Nevada, CaliforniaRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a man who lived in his travel trailer was sentenced in federal court today for a counterfeiting scheme that victimized businesses across the United States.
Stuart E. Thurber, 56, was sentenced by U.S. District Judge Brian C. Wimes to two years and six months in federal prison without parole. Today’s sentence reflects an upward variance from the recommendation under the federal sentencing guidelines. The court also ordered Thurber to pay $9,000 in restitution to several Missouri businesses in Mountain View, Springfield and West Plains as well as businesses in Nevada and California.
On Sept. 6, 2016, Thurber pleaded guilty to possessing electronic images for the purpose of counterfeiting.
Thurber was arrested on April 5, 2016, by Mountain View, Mo., police officers for passing counterfeit $100 bills. When officers searched his truck and travel trailer in the Wal-Mart parking lot, they found three laptop computers, two hard drives and two printers. Thurber admitted that these items were used to print counterfeit $100 bills.
Thurber also acknowledged that the government could establish by a preponderance of the evidence that he engaged in counterfeiting from January 2014 to June 2016. Thurber, who lived in his Dodge Dakota pick-up and travel trailer, engaged in a counterfeiting operation whereby he “washed” the ink off of genuine bills and used his computer and color printer to create counterfeit $100 bills, which he then passed to unsuspecting businesses throughout the United States.
Thurber manufactured and passed at least 93 counterfeit $100 bills in the Western District of Missouri. Among the victims of Thurber’s criminal activity was Dollar General and Wal-Mart in Mountain View, Southern Supply in Springfield, Mo., and Dollar General in West Plains, Mo.
At the time of his arrest, Thurber attempted to avoid detection and punishment by claiming to be a citizen of New Zealand and presenting a counterfeit New Zealand identification card in the name David Turnbull.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service, the Mountain View, Mo., Police Department, the Ozark, Mo., Police Department and the West Plains, Mo., Police Department.
Columbia Man Charged with Possessing Meth to DistributeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in federal court today with possessing methamphetamine to distribute.
Gary Deangelo Warren, 31, of Columbia was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., with possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of the criminal complaint, a confidential informant – who identified Warren as his supplier – admitted to selling at least eight ounces of methamphetamine a day for the past two months. Columbia police officers seized approximately 119 grams of suspected methamphetamine from the confidential informant on May 8, 2017, during the execution of a search warrant at a motel room in Columbia.
At the direction of law enforcement, the confidential informant placed a series of text messages to Warren arranging to purchase eight ounces of methamphetamine. Warren was arrested when he arrived at the arranged meeting place for the sale. Warren was carrying a plastic bag with approximately 13 grams of suspected methamphetamine and a loaded Jimenez Arms .380-caliber semi-automatic pistol. Officers also found a plastic bag containing approximately 472 grams of methamphetamine inside a shoebox on the rear passenger floorboard of the vehicle Warren was driving.
Warren told investigators that he had arranged to meet with his source the following day to purchase one kilogram of methamphetamine.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
Co-Owner of Nick’s Famous Roast Beef Sentenced for Multi-Million Dollar Cash Skimming SchemeRead the Press Release
BOSTON – The co-owner of Nick’s Famous Roast Beef in Beverly, Mass., was sentenced today in federal court in Boston for skimming nearly $6 million in cash receipts from the business over a six-year period and not reporting that cash as income on business and personal tax returns.
Nicholas Markos, 70, of Lynn, was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation to be served in home confinement and ordered to pay $2,063,394 in restitution. In January 2017, Markos pleaded guilty to one count of conspiracy to defraud the United States by obstructing the IRS in assessing and collecting taxes and 10 counts of aiding and assisting in the filing of false corporate and personal tax returns.
In April 2017, co-owner Nicholas Koudanis, his wife, Eleni Koudanis, and their son, Steven Koudanis, were sentenced for their role in the scheme.
From 2008 to 2013, Nicholas Markos and his business partner, Nicholas Koudanis, skimmed more than $1 million in cash receipts each year from their business, which they failed to report on their corporate tax returns or personal tax returns, thereby avoiding the payment of nearly $1 million each in personal income taxes during that same period. Each week, Markos and Koudanis personally divided the cash receipts, determining how much to deposit into the business’ bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves. Eleni Koudanis was primarily responsible for the bookkeeping, and she provided some of the false income information to the tax preparer and recruited employees, including her son Steven Koudanis, to create false cash register receipts to be used, among other things, in connection with an IRS tax audit of the business. The actual cash register receipts were not provided to the tax preparer who prepared the business and personal tax returns.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
City of Chesapeake Agrees to Resolve ADA Review of Polling LocationsRead the Press Release
NORFOLK, Va. – The City of Chesapeake has agreed to resolve an Americans with Disabilities Act (ADA) compliance review of its polling locations to ensure its polling locations comply with the ADA.
“Voting is the cornerstone of our democracy,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Under this agreement, voters with disabilities in the City of Chesapeake can rest assured they can cast their ballots at polling places near their homes, alongside their neighbors.”
Title II of the ADA prohibits public entities from discriminating against people with disabilities in their programs, services and activities. With respect to polling places, public entities are required to select and use polling places that are accessible. As part of a nation-wide Department of Justice voting rights initiative, the U.S. Attorney’s Office conducted an ADA compliance review of the City of Chesapeake’s polling locations. The review revealed that many polling places in the City of Chesapeake have architectural barriers that make them inaccessible to voters who use wheelchairs or have mobility impairments.
Pursuant to the settlement agreement, the City of Chesapeake will make temporary and permanent changes to its polling places to make the locations accessible to voters who use wheelchairs or have mobility impairments. The City also has the option of relocating these polling locations to alternate accessible locations or, if relocation to an accessible polling place cannot be achieved under applicable law and regulations, otherwise complying with title II’s program accessibility requirements. The City will also provide training to poll workers and file reports with the U.S. Attorney’s Office on its compliance.
This matter was handled by Assistant U.S. Attorney Clare Wuerker.
To learn more about ADA requirements for polling place accessibility or about the ADA and other laws protecting the rights of voters with disabilities, visit www.ada.gov/ta-pubs-pg2.htm. For more information on the ADA and to access this publication, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Chicago Trader Sentenced to Nine Years in Prison for Defrauding Investors out of More Than $9 MillionRead the Press Release
CHICAGO — A Chicago trader was sentenced today to nine years in federal prison for defrauding investors out of more than $9 million.
NICK WURL, 27, the founder of Chicago-based Ludiera Capital LLC, fraudulently raised approximately $11.2 million from more than 60 investors. From January 2012 through May 2015, Wurl falsely portrayed Ludiera as a successful trading firm that was earning extraordinary profits from the buying and selling of commodities such as corn and soybeans. Wurl created phony bank records and false account statements to fraudulently represent that Ludiera was generating large profits and that investors’ funds were safe.
In reality, Wurl had lost or misappropriated more than $8 million, and he spent another $900,000 on business and personal expenses, including a Corvette and a luxury sport-utility vehicle.
Wurl, of Chicago, pleaded guilty last year to one count of mail fraud. U.S. District Judge John Z. Lee imposed the 108-month sentence in federal court in Chicago. Judge Lee also ordered Wurl to pay restitution of approximately $9.2 million. The government was able to freeze for victims approximately $3.4 million in Ludiera and Wurl assets that had been misappropriated and stashed in trading accounts.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the Kansas City office of the U.S. Commodity Futures Trading Commission, and the Chicago office of the U.S. Securities and Exchange Commission.
“Wurl’s investors suffered significant financial harm and emotional distress as a result of this scheme,” Assistant U.S. Attorneys Jacqueline Stern and Kaarina Salovaara argued in the government’s sentencing memorandum. “Wurl specifically promised investors that their funds were safe, because that was a key issue to the investors, but Wurl’s promise was a flat out lie.”
Wurl received investment funds from clients all over the United States, including California, New Jersey, Iowa, and Wisconsin. Several victims submitted letters to the Court prior to the sentencing hearing, describing how they were duped by Wurl. One of these victims and his mother invested a total of $550,000, only to learn later that Wurl had lied to them. Another victim described how Wurl’s scam had jeopardized his retirement plans and his daughter’s college financing.
Ludiera is now defunct.
Chelsea Man Sentenced for Cocaine Distribution Scheme in Massachusetts and Puerto RicoRead the Press Release
BOSTON – A Chelsea resident was sentenced today in federal court in Boston for distributing cocaine in Massachusetts and Puerto Rico.
Jose Ramirez-Baez, 40, was sentenced by U.S. District Court Judge Allison D. Burroughs to 43 months in prison and five years of supervised release.
In October 2016, Ramirez-Baez pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, two counts of attempted possession with the intent to distribute 500 grams or more of cocaine, and three counts of money laundering.
From June 2014 to March 2016, Ramirez-Baez shipped large quantities of cocaine from Puerto Rico to Massachusetts via both the United States Postal Service and the United Parcel Services. In December 2015, investigators in Puerto Rico seized two packages bound for Ramirez-Baez that contained five kilograms of cocaine. These packages ultimately led to Ramirez-Baez’s arrest and conviction. In addition, Ramirez-Baez laundered over $200,000 in cash by depositing drug proceeds into an account bearing the name J&Y Landscaping in an effort to conceal the fact that the proceeds were derived from drug trafficking.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Cape Cod Man Pleads Guilty to Fifteen Counts, Including Possession of a Firearm, Money Laundering and Heroin TraffickingRead the Press Release
BOSTON – A Cape Cod man pleaded guilty in U.S. District Court in Boston today in connection with trafficking heroin and money laundering.
Christopher Wilkins, 29, of Hyannis, pleaded guilty to 15 federal charges: nine counts of possession of heroin with the intent to distribute; conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and money laundering; conspiracy to possess a firearm in furtherance of drug trafficking charges; conspiracy to distribute and possess with the intent to distribute cocaine; possession of cocaine with the intent to distribute; and conspiracy to launder monetary instruments. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for August 16, 2017.
In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts, particularly on Cape Cod. As alleged in the charging documents, Wilkins, Denzel Chisholm, Christian Chapman, and other co-conspirators were responsible for a significant quantity of heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments.
Wilkins was one of the most prolific heroin distributors of the group. He distributed heroin to other drug dealers and to heroin users on nearly a daily basis. Furthermore, Wilkins distributed cocaine, which he sourced from co-defendant Aaron Mott-Frye.
In addition to the narcotics charges, Wilkins pleaded guilty to firearms and money laundering. On March 7, 2016, Wilkins attempted to obtain a firearm from co-defendant Benjamin Roderick in exchange for 10 grams of heroin. The firearm was recovered from Roderick before it could be passed to Wilkins. Wilkins also laundered over $200,000 in narcotics proceeds by depositing the drug money into bank accounts set up in his wife’s name, thereby concealing the origin and source of the funds.
Chisholm and Mott-Frye pleaded not guilty to the charges against them. Their trial is scheduled for June 5, 2017. Roderick pleaded guilty in September 2016 and was sentenced in January 2017. Chapman pleaded guilty in March 2017 and is scheduled to be sentenced on July 12, 2017.
The charge of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million; money laundering and conspiracy to possess a firearm in furtherance of drug trafficking provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000; possession of heroin and cocaine with the intent to distribute provides for a sentence of no greater than 20 years in prison, three years to life of supervised release, and a fine of up to $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Woman Charged for Transporting Eight Pounds of Fentanyl on BusRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a San Bernardino, Calif., woman was charged in federal court today after eight pounds of fentanyl were found in her luggage at a local bus station.
Esmeralda Castro, 18, of San Bernardino, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., with possessing fentanyl with the intent to distribute.
According to an affidavit filed in support of the federal criminal complaint, a K-9 sniffing luggage at a Kansas City, Mo., bus station on Monday, May 8, 12017, detected narcotics in a large, grey, hard-sided suitcase. The suitcase had a baggage claim ticket with Castro’s name on it, indicating it was being transported to New York, N.Y. A Kansas City police detective located Castro in the bus station and she agreed to let him search her luggage.
Castro told the detective that she had two bags – the hard-sided suitcase in the luggage compartment under the bus and a black-colored rolling bag in the passenger compartment. The hard-sided suitcase in the luggage compartment contained several clear heat-sealed food saver bags with marijuana, methamphetamine, a large glass marijuana pipe and a pink marijuana pipe. The rolling bag had a false compartment sewn into the bottom of the liner. When a police detective told Castro he was going to have the K-9 conduct a check of the bag, she ran out the back doors of the luggage area, but was apprehended and arrested. Inside the rolling bag, detectives found three large bundles wrapped in black carbon paper. The bundles, which weighed approximately eight pounds, contained fentanyl.
Castro told investigators she was carrying the bag to New York for her boyfriend, and was supposed to meet someone there and then return with $1,500 to deliver to her boyfriend.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney Pratten. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Bridgeport Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON PRAWL, also known as “Boots,” 29, of Bridgeport, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, PRAWL recruited, harbored and transported a 17-year-old female to engage in commercial acts. Beginning in approximately December 2015, the minor victim began to see prostitution clients at PRAWL’s residence. PRAWL used the website Backpage.com to advertise the minor victim’s services, which were priced at $80 for 10 to 15 minutes, $100 for 30 minutes, and $150 for an hour. The minor victim saw approximately four clients a day for approximately 30 days, and PRAWL took approximately $20 from each appointment. PRAWL also would take money for gas and other expenses when he would drive the minor victim to appointments away from his residence.
PRAWL has been detained since his arrest on related state charges on March 9, 2016.
Judge Shea scheduled sentencing for July 31, 2017, at which time PRAWL faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
PRAWL also has agreed to pay restitution of $2,500 to the minor victim, and $10,080 to a second minor victim of PRAWL’s prostitution enterprise.
This matter is being investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation, Homeland Security Investigations, Connecticut State Police, Bridgeport Police Department and Milford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Baltimore Man Sentenced to One Year and a Day in Federal Prison for Illegal Possession of Guns and SilencerRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Joseph Goldman, age 35, of Baltimore, Maryland today to one year and a day in prison, followed by three years of supervised release, for possessing unregistered firearms and for making a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, on December 19, 2016, while executing a search warrant at Goldman’s home as part of an investigation by Baltimore Police Department, law enforcement discovered a cache of suspected illegal firearms and contacted ATF for assistance.
The following firearms were recovered from Goldman’s residence and seized by law enforcement: from behind the couch in the first floor living room, a 556 short barrel AR-15 long gun with a silver 6.5 inch silencer attached; from Goldman’s bedroom, a 12 gauge short barrel shotgun and two semi-automatic pistols; and 20 rounds of ammunition, a machine vice, miscellaneous gun parts and tools.
Goldman admitted to making and possessing firearms in violation of the National Firearms Act (“NFA”). Specifically, Goldman sawed off the barrel of the shotgun, made a short barreled rifle without a serial number, and made a silencer for the rifle. Despite knowing the length of the firearms and the purpose of the silencer, Goldman did not register these items with the National Firearms Registration and Transfer Record.
Acting United States Attorney Stephen M. Schenning commended ATF, FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Attorney General Sessions to speak at DEA360 Heroin and Opioid Response Summit in West VirginiaRead the Press Release
WASHINGTON – Attorney General Jeff Sessions will give the opening remarks at a Drug Enforcement Administration (DEA) 360 Heroin & Opioid Response Summit on THURSDAY, MAY 11, 2017. The daylong event sponsored by the DEA, Community Anti-Drug Coalitions of America and the University of Charleston School of Pharmacy will bring together stakeholders and professionals working in law enforcement, prevention and education, treatment, recovery, health care and emergency response. The DEA’s 360 Strategy is designed to help cities and surrounding regions deal with the heroin and prescription drug abuse epidemic and the violent crime associated with it. The social media hashtag for the event is #DEA360Strategy.
WHO: Attorney General Jeff Sessions
WHAT: Speech at DEA360 Heroin & Opioid Response Summit.
WHEN: THURSDAY, MAY 11, 2017
9:00 a.m. EDTWHERE: University of Charleston
2300 MacCorkle Avenue, SE
Charleston, WV 25304
OPEN PRESS
(Camera Preset by for K9 Sweep: 8:15 a.m. EDT // Final Access: 8:40 a.m. EDT)NOTE: All media must RSVP and present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. The RSVP and event location logistics should be directed to David Traube, Director of Communications for the University of Charleston, at (304) 352-0014 or [email protected].
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Michael Ryan Prost, 36, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Prost and co-defendant Mike Jensen, 33, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Jensen was arrested in July 2016, on an indictment charging him with methamphetamine trafficking and firearms charges. The indictment subsequently was superseded on Aug. 9, 2016, to include Prost. The superseding indictment charged Jensen and Prost with conspiring to distribute methamphetamine from May 9, 2016 through May 25, 2016, and distributing methamphetamine on May 9, 2016. Jensen was charged individually with possession of a stolen firearm and carrying a firearm in relation to a drug trafficking crime on May 9, 2016, and distributing methamphetamine on May 25, 2016.
Today, Prost pled guilty to distributing approximately 57 grams of methamphetamine to Jensen on May 9, 2016, so that he could sell the methamphetamine to others. Jensen previously entered a guilty plea. At sentencing, Prost faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 48 of the 104 defendants have entered guilty pleas, and 18, including Jensen, have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Edward Han is prosecuting the case.
8 May 2017
Wichita Man Sentenced for Carrying .45 Caliber Derringer in Furtherance of Drug TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to five years in federal prison for carrying a firearm in furtherance of drug trafficking, U.S. Attorney Tom Beall said.
Daniel Christian Thomas, 32, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted he was driving a PT Cruiser that had been reported stolen when the Sedgwick County Sheriff’s office stopped him. A search of the car turned up a .45 caliber Bond Arms Snake Slayer derringer and .410 shotgun shells as well three baggies containing methamphetamine, two digital scales and approximately $1,000 in cash.
Beall commended the Sedgwick County Sheriff’s Department and Assistant U.S. Attorney Alan Metzger for their work on the case.