Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 April 2017
Darby Man Pleads Guilty to Aiding in Preperation of Fraudulent Tax ReturnsRead the Press Release
Mohamed Waritay, 41, of Darby, Pennsylvania entered pleas of guilty to a two-count Information charging him with aiding and assisting in the preparation of false and fraudulent tax returns for his clients, announced Acting United States Attorney Louis D. Lappen.
According to court documents, the charges arose from Waritay’s scheme, which included tax years 2009 through 2014, in which he placed materially false items on the fraudulent tax returns such as inflated deductions, bogus tax credit amounts and fictitious dependent identities. The inflated deductions included itemized deductions such as gifts to charity, medical expenses and unreimbursed employee expenses on IRS Form 2106. Waritay also placed bogus tax credit amounts on the fraudulent tax returns related to education and residential energy credits, and falsely documented dependents by placing the biographical information of unrelated children on his clients’ returns, in order to defraud the United States government. Waritay’ scheme caused a tax loss to the United States in the amount of approximately $175,939.00. Additionally, during the course of the IRS investigation into Waritay’s conduct, Waritay met with one of his clients twice prior to that client’s scheduled interview with IRS agents. During those meetings, Waritay instructed his client to lie and provide false statements to IRS agents conducting the client’s interview in a corrupt effort to impede the investigation.
The defendant faces a maximum possible sentence of 6 years imprisonment, 3 years supervised release, $200,000 fine, $200 special assessment
The case was investigated by Internal Revenue Service, Criminal Investigations and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
Cross Lanes felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Fred Wallace Hammon, Jr., 36, entered his guilty plea to being a felon in possession of a firearm.
Hammon admitted that on September 1, 2016, he possessed Remington, Model 742 Woodsmaster, .30-06 caliber rifle. Hammon was prohibited from possessing any firearm under federal law because of felony convictions in Kanawha County Circuit Court in 2000 for two counts of aggravated robbery and in 2011 for wanton endangerment, being a felon in possession of a firearm, and possessing a firearm on the grounds of an educational facility.
Hammon faces up to 10 years in federal prison when he is sentenced on July 13, 2017.
The Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
- Follow us on Twitter: SDWVNews
Convicted Felon Sentenced to 10 Years for Possessing FirearmsRead the Press Release
RICHMOND, Va. – A convicted felon who possessed four firearms, including two weapons capable of accepting large capacity magazines, was sentenced today to a statutory maximum sentence of 10 years in prison.
Marvin Whiters, 29, of Richmond, pleaded guilty on January 12. According to court documents, on April 28, 2016, officers observed Whiters distribute heroin to a cooperating witness at a gas station close to Whiters’ residence. Later that day, the Richmond Police Department executed a search warrant at Whiters’s residence and discovered drugs and four firearms, including an M-4 carbine, semi-automatic rifle; an AK semi-automatic pistol; two semi-automatic 9mm pistols; 500 rounds of ammunition; a rifle optic; additional amounts heroin and packaging; and a bulletproof vest. The M-4 carbine and the AK pistol were firearms capable of accepting large capacity magazines.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-131.
Cincinnati Woman Pleads Guilty to Embezzlement Scheme, Defrauding IRSRead the Press Release
CINCINNATI – Angelia Zwick, also known as Angelia Strunk, 46, of Cincinnati, pleaded guilty in U.S. District Court today to charges related to an embezzlement scheme that defrauded her employer. Specifically, she pleaded guilty to one count of wire fraud and one count of willfully filing a false income tax return with the Internal Revenue Service (IRS).
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Jason Hayden, Acting Special Agent in Charge, U.S. Secret Service, announced the plea entered into today before U.S. District Judge Susan J. Dlott.
According to court documents, from approximately July 2009 through May 2013, Angelia Zwick worked for Sheakley Group, Inc. and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC, a company owned by Zwick.
As a result, Zwick took more than $328,000 of workers’ compensation refunds intended for her employer or its clients and diverted those refunds into bank accounts that she controlled.
In addition, Zwick filed false income tax returns with the IRS for the 2010, 2011, and 2012 income tax years, for which she owes $121,810 in additional income taxes. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer and she claimed false expenses for Amerihealth. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share.”
Wire fraud is a crime punishable by up to 20 years in prison and filing a false income tax return with the IRS carries a potential maximum sentence of three years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.
# # #
Cardi Corp. to Pay $500,000 Civil Settlement to Resolve Federal Claims of Improper Installation of I-Way Crash RailingRead the Press Release
PROVIDENCE – Acting United States Attorney Stephen G. Dambruch and Todd A. Damiani, Special Agent-in-Charge of the Region One Office of Inspector General for the U.S. Department of Transportation, today announced that Cardi Corporation, the primary contractor responsible for construction of the I-195 I-way project and the Providence River Bridge, will pay $500,000 to resolve the federal government’s claims that in 2007 Cardi Corporation improperly installed a crash railing on the I-195 I-Way bridge and its approach.
An investigation by the United States Attorney’s Office and the Region One Office of Inspector General for the U.S. Department of Transportation concluded that Cardi improperly installed the crash railing by cutting, eliminating, or altering key segments of structural reinforcing steel rebar that was intended to anchor the railing to the bridge. The government alleges that these changes rendered the railing unsafe, inadequate and, unfit for its intended use and/or not in compliance with project specifications.
The railing is a critical part of the safety systems designed to prevent vehicles from veering off the roadway in the event of a crash. In some areas, the rail is all that lies between the roadway and the river below. The defect in the rail, installed in 2007, came to light in 2013 when a vehicle crashed into the railing, prompting further investigation and testing.
Based on the findings of its investigation, the federal government alleges that the rail actually installed by Cardi was materially different from the design specification required by its contract with RIDOT, and from FHWA-mandated safety standards. The federal government, which funded 80% of the cost of the bridge project through the Federal Highway Administration (“FHWA”), alleges that Cardi made these changes to the rail’s design without necessary approvals from the Rhode Island Department of Transpiration (“RIDOT”), the state agency responsible for overseeing the bridge project.
Under the terms of the civil agreement, Cardi will pay $500,000 to resolve the federal government’s civil claim, which represents a full recovery of FHWA federal funds used for the installation of the rail. The rail in question, which was installed in a section of the bridge project known as Contract 7, has since been replaced with a new design that meets FHWA safety criteria. The federal government did not fund or contribute to any of the costs of this repair.
“When the federal government spends money on infrastructure projects, it does so with the clear expectation that taxpayers will get what they pay for: safe, conforming, and adequate work.” said Acting U.S. Attorney Stephen G. Dambruch. “When that fails to happen, this Office will not hesitate to use all means at our disposal to ensure that federal funds are used properly, and that the roads and bridges that federal dollars pay for are safe for the driving public.”
“As evidenced by this settlement agreement with Cardi Corporation, we remain steadfast in our commitment to ensuring the integrity of the programs designed to maintain and improve our nation’s transportation infrastructure,” said Todd Damiani, regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
The government’s case was handled by Assistant U.S. Attorneys Zachary A. Cunha, Richard B. Myrus, and Bethany N. Wong.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
California Man Sentenced to 235 Months in Prison for Large-Scale Methampetamine, Cocaine and Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Reginald Braddy, age 33, formerly of San Bernardino, California, was sentenced today by U.S. District Court Judge Malachy E. Mannion to serve 235 months’ imprisonment (19 years and 7 months) for large-scale methamphetamine, cocaine and heroin trafficking in Monroe County.
According to United States Attorney Bruce D. Brandler, Braddy was convicted of conspiracy to distribute in excess of nine kilograms of methamphetamine, as well as additional amounts of cocaine and heroin, after a four-day jury trial before Judge Mannion in May 2016. Another individual, Fontaine Horton, age 37, also of San Bernardino, was also convicted of conspiracy to distribute methamphetamine, cocaine and heroin, as well as two counts of distributing methamphetamine.
Braddy and Horton were charged with obtaining high-quality methamphetamine from sources in California, along with heroin and cocaine, which they then distributed for profit in the Monroe County area between 2012 and 2014. Fontaine Horton is currently awaiting sentencing.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Officers from the Orange County, California Sheriff’s Office, the Scranton Police Department, and Plainfield Township, Pennsylvania, Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
###
Bergen County Man Admits Robbery of New Jersey Bar, Carjacking, and Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – A Bergen County man today admitted that he participated in the December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Jostin Reyes, 21, of Waldwick, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.
According to documents filed in this case and statements made in court:
Reyes admitted that on Dec. 25, 2015, he and others forcibly robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Reyes and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Reyes admitted that he and others forced the driver into the back of the vehicle and took over driving. Reyes also admitted that he and others caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for Aug. 2, 2017.
Reyes and five other defendants were originally charged by federal criminal complaint in November 2016. Reyes, Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 19, of Suffern, New York, and Juan Chiliseo-Vega, 20, of Suffern, are charged with the bar robbery, as well as the carjacking and kidnapping that took place afterwards. Balmore Carrillo-Iraheta, 19, of Suffern, and Oscar Avalos-Cortez, 23, of New City, New York, are only charged with the bar robbery.
Chiliseo-Vega and Guillermo Carrillo-Iraheta previously pleaded guilty in Newark federal court to separate informations in connection with their involvement in the conspiracy. They await sentencing.
The charges against Barahona, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Michele Ann Adubato Esq., Bayonne, New Jersey
Atlantic City, New Jersey, Man Sentenced to Six Months in Prison, Six Months Home Confinement, for Conspiring to Defraud IRS of Nearly $120,000 in TaxesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to six months in prison and six months home confinement for his role in a conspiracy to defraud the IRS of $119,880 in income taxes over three years, Acting U.S. Attorney William E. Fitzpatrick announced today.
John Schultz, 74, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:Schultz, William Boland, and another conspirator were partners in Royal Rolling Chairs Inc., a business based in Atlantic City that provided rolling chair transportation services to patrons on the boardwalk. As owners, they were responsible for accurately reporting income received by the business to the IRS.
Schultz admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted that the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.
In addition to the prison term, Judge Rodriguez sentenced Schultz to one year of supervised release – which includes the six months of home confinement – fined him $3,000, and ordered him to pay $31,110 in restitution.
Boland previously pleaded guilty to the same conspiracy charge and is scheduled to be sentenced by Judge Rodriguez on May 4, 2017. Abdus Mian, the bookkeeper for Royal Rolling Chairs, pleaded guilty to making false statements to federal investigators and was sentenced on April 4, 2016, to one year of probation.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Field Office, with the investigation leading to today’s sentencing.
The government is represented by Deputy Attorney in Charge Matthew J. Skahill of the U.S. Attorney's Office in Camden.
Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City
Akron men sentenced to 15, 10 years in prison for selling fentanylRead the Press Release
Two Akron men were sentenced to prison for selling fentanyl, Acting U.S. Attorney David A. Sierleja said.
Brian L. Williams, 54, was sentenced to 15 years in prison by U.S. District Judge John Adams.
Adams sentenced Terrance L. Ford, 50, to 10 years in prison.
“Drug dealers such as these are responsible for the wave of death that has plagued our state over the past few years,” Sierleja said. “Aggressive enforcement, combined with education, prevention and treatment, are all key parts to our comprehensive strategy to combating this epidemic.”
Detectives from the Akron Police Department’s Narcotics Unit and agents from the Drug Enforcement Administration searched the home of Williams and Ford on July 27, 2016 and recovered over 100 grams of a substance containing fentanyl along with several fentanyl patches, according to court documents.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Akron Police Department and the DEA.
14 April 2017
York Man Charged with Armed Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed today in U.S. District Court in Harrisburg charging a York man with bank robbery.
According to United States Attorney Bruce D. Brandler, Ryan Warnick, age 37, assisted Derek Bowman, age 34, of York in an armed robbery of the PNC Bank located in York, Pennsylvania on January 9, 2016, by acting as the get-away driver. Bowman was sentenced to serve 141 months’ imprisonment on February 16, 2017.
This matter was investigated by the Springettsbury Township Police Department and the Federal Bureau of Investigation. The prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to twenty-five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
With the Individual Income Tax Filing Deadline Approaching, Justice Department Warns Willful Violations of Tax Laws Are CriminalRead the Press Release
WASHINGTON - With the annual tax return filing deadline almost upon us, the vast majority of taxpayers are complying with their legal obligation to file accurate returns and pay the taxes that they owe. However, there are taxpayers who attempt to evade paying their fair share of taxes, file false returns, fail to file returns or seek to obstruct the Internal Revenue Service (IRS)’s efforts to assess or collect monies that are due. The Justice Department’s Tax Division warns taxpayers who attempt to violate the federal tax laws that they face prosecution, jail, restitution and significant monetary penalties.
“Most Americans follow the tax law and rightfully expect that each of their fellow citizens will do the same,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Yet every year some taxpayers try to take a different path – they hide money offshore, declare only a small portion of their income, make up bogus deductions and lie to the IRS if they are caught. With this year’s filing deadline approaching, these taxpayers should stop, reverse course and simply pay what they owe. As the Justice Department’s recent criminal prosecutions make clear, the consequences for willful violations are severe: jail time and substantial monetary penalties.”
“The majority of Americans file their taxes without issue and they would tell you that they want strong enforcement of the tax laws to ensure that we are all paying our fair share,” said Chief Richard Weber of IRS Criminal Investigation. “For those thinking about intentionally evading the tax laws – IRS-CI has the finest financial investigators and are trained to follow the money trail wherever it may lead.”
Over the past year, the Tax Division and the U.S. Attorney’s Offices have worked closely with the IRS and other law enforcement partners to enforce the nation’s tax laws fully, fairly and consistently through criminal investigations and prosecutions across the country, as evidenced by the sampling of recent convictions listed below. These enforcement efforts continue year-round.
Recent Tax Evasion and Filing False Tax Returns Prosecutions:
-
In March, Denver Nichols, a Labadie, Missouri roofing contractor, pleaded guilty to filing false 2007 and 2008 income tax returns. Nichols operated his roofing business under the name Eagle Roofing Co. He late filed false 2007 and 2008 returns that underreported his business’s gross receipts by approximately $959,500 and $794,680.
-
In March, Stephen Leib, a Philadelphia, Pennsylvania tech business owner, pleaded guilty to tax evasion. Leib owned New Wave Logistics Inc. He evaded more than $800,000 in taxes by cashing a significant amount of his business’s gross receipts at a check cashing facility, lying to his accountant about the total amount of income he earned and filing false tax returns.
-
In March, Jeffrey Nowak, a Las Vegas, Nevada liquor storeowner, was sentenced to serve 41 months in prison for tax evasion and conspiring to defraud the United States. Nowak conspired with Ramzi Suliman, with whom he jointly owned and operated liquor stores in Las Vegas. Nowak and Suliman skimmed cash receipts and provided their accountant with a phony set of books that omitted nearly $4 million in cash receipts.
-
In February, Jose Echeverria, a Chelan Falls, Washington businessman, pleaded guilty to filing a false individual income tax return. Echeverria owned and operated a produce sales business. He underreported his income by approximately $564,292.
-
In December 2016, James and Mardeen Perin, former owners of Sully’s Pub in West Des Moines, Iowa, pleaded guilty to aiding and assisting in filing a false tax return. The Perins filed a false 2013 tax return that did not report cash that they earned through their business.
Recent Failure to File Tax Returns Prosecutions:
-
In March, James Burton and Lucretia Pecantte-Burton, two Louisiana attorneys, pleaded guilty to failing to file individual income tax returns. Burton and Pecantte-Burton were partners of the law firm Pecantte-Burton & Burton (PB&B) and regularly received cash payments. They also had a partnership interest in a tax return preparation business. Burton and Pecantte-Burton did not file 2007 through 2009 income tax returns.
-
In February, Samuel Frazier, a Gulfport, Mississippi businessman, was sentenced to serve 12 months in prison for failing to file an individual income tax return. Frazier owned two companies in Gulfport: Frazier Fire Systems LLC and EZ Haul Demolition and Construction LLC. Frazier failed to file a 2009 tax return despite earning more than $618,253 in income.
-
In December 2016, John Raschella, a former Parma, Ohio resident, was convicted at trial for failing to pay more than $1 million in income taxes, interest and penalties for 1995, 1996 and 1998 through 2012 on income earned as an insurance salesman. He also failed to timely file income tax returns between 1989 and 2012.
-
In June 2016, Carlos Cortes, a San Antonio, Texas artist, was sentenced to serve 12 months in prison for failing to file an individual income tax return. Cortes did not file tax returns for 2006 through 2009, despite earning more than $1.3 million in income during this time.
Recent Prosecutions Involving the Use of Nominee Entities and Offshore Bank Accounts to Hide Assets and Income:
-
In March, Casey Padula, a Port Charlotte, Florida owner of Demandblox, a marketing and information technology business, pleaded guilty to conspiracy to commit tax and bank fraud. Padula conspired to move more than $2.5 million to offshore accounts in Belize and disguised them as business expenses in the corporate records. Padula used the funds to pay for personal expenses and purchase significant personal assets.
-
March, Masud Sarshar, a Los Angeles, California businessman, was sentenced to serve 24 months in prison for hiding more than $23.5 million in offshore bank accounts. Sarshar maintained several undeclared bank accounts at Israeli banks, both in his name and in the names of entities that he created. Between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to those undeclared accounts and earned more than $2.5 million in interest income. Sarshar reported none of this income on his individual and corporate tax returns.
-
In January, three Orange County, California residents pleaded guilty to hiding millions of dollars in secret foreign bank accounts. Dan Farhad Kalili, David Ramin Kalili and David Shahrokh Azarian, willfully failed to file legally required reports, commonly known as FBARs, disclosing their bank accounts in Switzerland and Israel.
-
In January, Peggy and John DeYoung, a Missoula, Montana couple, pleaded guilty to conspiring to defraud the United States. The DeYoungs had not filed an income tax return since 1998. Peggy DeYoung earned income through her ownership interest in two companies that owned Southern California mobile home parks. The DeYoungs also established a number of purported trusts. They owned bank accounts in the names of these trusts using fabricated taxpayer identification numbers and paid personal expenses from the accounts, causing a tax loss of $376,350.
Recent Prosecutions of Attempts to Obstruct IRS Efforts to Assess and Collect Taxes:
-
November 2016, Richard Thomas Grant, a Point Richmond, California man, was sentenced to serve 33 months in prison. Grant stopped filing income tax returns and paying income taxes despite earning significant income as a partner with an engineering company. Grant attempted to frustrate IRS collection and audit efforts by filing lawsuits against the IRS. To conceal his income, Grant used prepaid debit cards and money orders to pay personal expenses.
-
In November 2016, Steven Headden Young of St. Petersburg, Florida, was sentenced to serve 21 months in prison. Young evaded a substantial portion of his individual income taxes for 2007 through 2011 and interfered with an IRS audit. He fabricated a letter from the IRS to a bank directing the bank to send subpoenaed records to a bogus address.
-
In October 2016, Henti Lucian Baird, a Greensboro, North Carolina resident and former IRS revenue officer, pleaded guilty. Baird filed tax returns each year but has not paid since at least 1998. Baird created nominee bank accounts to hide hundreds of thousands of dollars from the IRS, submitted false information to the investigating IRS officer regarding these accounts and transferred funds from nominee accounts to avoid impending IRS levies.
-
June 2016, Paul Tharp, a North Carolina man, was sentenced to serve 21 months in prison. Tharp failed to file tax returns for 2003 through 2006, and the IRS assessed income tax against him for those years. Tharp attempted to evade payment of his tax debt by filing false disclosures with the IRS, omitting businesses that he owned as well as bank accounts and rental income.
More information about the Tax Division’s criminal and civil enforcement efforts in these and other areas is on the division’s website. The IRS website also has information about how to report tax fraud.
-
Winner Woman Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, woman convicted of Felon in Possession of a Firearm was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Amber Rae Millian, age 34, was sentenced to 6 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Millian was indicted by a federal grand jury on April 8, 2015. She pled guilty on January 3, 2017.
The conviction stems from an incident that occurred on November 18, 2014, wherein Millian was arrested for spotlighting deer on the edge of Winner. Millian, having previously been convicted of a felony, was in possession of a .22 caliber rifle and multiple rounds of .22 caliber ammunition at the time of her arrest. As part of her sentence, Millian will forfeit ownership of the firearm and ammunition.
This case was investigated by the South Dakota Department of Game, Fish and Parks, and the Federal Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jennifer Mammenga and Kirk Albertson prosecuted the case.
White River Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a White River, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 11, 2017, by U.S. District Judge Roberto A. Lange.
Stephan George Jones, age 45, was sentenced to 120 months in custody, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted by a federal grand jury on May 17, 2016. He pled guilty on January 24, 2017.
Between September of 2013 and May of 2016, Jones knowingly and intentionally conspired with others to distribute more than 500 grams of methamphetamine, a Schedule II controlled substance, in South Dakota. Jones received distributable quantities of methamphetamine from individuals who knew that he intended to engage in further distribution of it. Jones also provided methamphetamine to others, knowing that they intended to engage in further distribution of it within South Dakota. It was reasonably foreseeable to Jones that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy. Jones admitted that between 1.5 and 5 kilograms of methamphetamine was involved in the criminal offense, and that he was an organizer, leader, manager, or supervisor in the criminal activity.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Welling Man Found Guilty of Multiple Counts of Controlled Substance CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that IAN ALEXANDER BOWLINE, age 32, of Welling, Oklahoma was found guilty of 7 counts of OBTAINING A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Section 843(a)(3) and Title 18, United States Code, Section 2; 7 counts of USE OF A REGISTRATION NUMBER OF ANOTHER PERSON TO OBTAIN A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Section 843(a)(2) and Title 18, United States Code, Section 2; 1 count of ATTEMPTING TO OBTAIN A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Sections 843(a)(3) and 846 and Title 18, United States Code, Section 2; and 1 count of ATTEMPTING TO USE A REGISTRATION NUMBER OF ANOTHER PERSON TO OBTAIN A CONTROLLED SUBSTANCE BY FRAUD, in violation of Title 21, United States Code, Sections 843(a)(2) and 846 and Title 18, United States Code, Section 2. The jury trial began on Tuesday, April 4, 2017 and concluded on Wednesday, April 12, 2017 with the guilty verdicts.
Beginning in or about 2010, and continuing until the date of the service of a search warrant at Bowline’s residence on May 7, 2013, Bowline lead an organization aimed at obtaining Oxycodone by utilizing false prescriptions manufactured by Bowline and distributed to other coconspirators who, in turn, presented the false prescriptions to pharmacies and obtained 90 to 120 count Oxycodone pills at 30 mg. dosages per pill. The false prescriptions were generated by Bowline, contained valid DEA physician license numbers, and were printed on special watermark paper used by physicians when writing prescriptions. Bowline obtained the DEA physician numbers and paper from the internet.
The false prescriptions were presented to pharmacies in Oklahoma, Arkansas, and Missouri. The evidence presented at trial included items seized from a search of Bowline’s residence. Agents seized a computer, laptop, and thumbdrives which contained approximately 90 blank prescriptions in a format used to produce and print the prescriptions and 50 completed prescriptions that had been illegally passed at pharmacies within and outside Oklahoma. Prosecutors also presented false prescriptions that had been filled by various pharmacies and identified as being manufactured and signed by Bowline. During the course of the trial, evidence was presented that Bowline was involved in the diversion of approximately 14,000 Oxycodone pills.
The verdicts obtained are the result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
Acting United States Attorney Douglas A. Horn stated, “The diversion of Opioids such as Oxycodone has caused irreparable harm to those who have fallen prey to its addictive qualities. This office will continue to vigorously pursue and prosecute individuals who develop and utilize sophisticated means to obtain Oxycodone, or other legally prescribed medications, and distribute them to others thereby perpetuating the destructive cycle of Opioid addiction.”
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
statutory range of punishment for each count is not more than 4 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorneys Shannon Henson and John David Luton represented the United States.
Vallejo Man Sentenced to 7 Years in Prison After Facebook Reported Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E Burrell Jr. sentenced Robert Patton McGee, 53, of Vallejo, today to seven years in prison for distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Facebook reported to the National Center for Missing and Exploited Children (NCMEC) that someone had uploaded suspected images of child pornography to a Facebook profile. The investigation of these profiles led law enforcement to execute a search warrant at McGee’s residence in June 2014. When interviewed by law enforcement officers, McGee admitted to sending and receiving child pornography through Facebook and email. Analysis of Facebook and email addresses used by McGee showed that between November 10, 2011, and May 9, 2014, McGee distributed thousands of images and videos containing child pornography.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Jeremy J. Kelley prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
U.S. Attorney and IRS Announce Message to Potential Tax CheatsRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including a listing of recent tax fraud prosecutions and sentences.
“During this time of the year, IRS will receive millions of tax returns from honest taxpayers who file their returns on time and pay all the taxes they owe,” said U.S. Attorney Bruce D. Brandler. “Today’s warning is not for them; it is for tax cheats who break tax laws and abuse our tax system. If you belong in this category, pay close attention. My office will hold accountable anyone who participates in a tax fraud scheme that puts an added tax burden on honest taxpayers and drains our public finances.”
“With the 2017 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said IRS Criminal Investigation Acting Special Agent in Charge Gregory Floyd. "IRS Criminal Investigation will vigorously investigate those individuals who knowingly and willfully evade their tax obligation."
FILING FALSE TAX RETURNS AND EVASION
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for filing false federal tax returns and committing tax evasion. Defendants have received substantial sentences for tax fraud, ranging from several years in prison to home confinement. Restitution is mandatory and often includes substantial interest and penalties. For example, the following individuals were charged and/or sentenced for tax fraud recently:
Angel P. Oliva, of Carlisle, Pennsylvania, was charged in a criminal information on April 14, 2017, for aiding in filing a false tax return related to payroll taxes. Oliva was part owner of the Middlesex Diner in Carlisle, Pennsylvania. It is alleged that Oliva evaded the payment of all employment taxes from 2011 through 2014, by reporting only a portion of the wages paid to the diner employees. The total tax loss alleged is approximately $809,000.
Michael Runco, of Olyphant, Pennsylvania, was charged in a criminal information on April 3, 2017, for failing to pay the IRS employment taxes withheld from his employees’ paychecks and filing a false personal income tax return omitting substantial personal income in 2010. Runco operated Runco Transportation, Inc., a business that provided school bus transportation services under contract with Mid Valley School District, Lackawanna County, Pennsylvania. During 2006 through 2010, Runco Transportation, Inc. employed as many as 12 individuals. While federal employee employment taxes were withheld from employee paychecks, Runco allegedly failed to account for and pay these tax monies over to the IRS on behalf of his employees. Runco also received compensation from his company but failed to report this income on his 2010 personal income tax return. The total tax loss to the IRS is alleged to be approximately $78,578. Runco is scheduled to enter a plea of guilty on April 19, 2017.
Joseph Andershonis, of Stroudsburg, Pennsylvania, pleaded guilty on March 20, 2017, for failing to pay employment taxes. Andershonis owned and operated Just Very Affordable, Inc., a Stroudsburg home renovation business, and failed to pay employment taxes from the first quarter of 2010 to the last quarter of 2012, resulting in a tax loss of more than $212,000. Sentencing is scheduled for June 22, 2017.
Diego Rojas, of Dunmore, Pennsylvania, pleaded guilty on March 7, 2017, to making false claims against the government. Rojas deposited more than 350 United States tax refund treasury checks, at least 250 which were identified as fraudulent, into the check cashing company he owned and operated, Dunmore Check Cashing. The value of the checks was more than $1.6 million. Rojas agreed to make full restitution in the amount of $1,669,864 to the Internal Revenue Service. Sentencing is scheduled for June 20, 2017.
Theodore Martin and his wife, Arminda Martin, of Ravenna, Ohio (formerly resided in York County), were both sentenced to one year and one day imprisonment on October 18, 2016. The Martins operated three cemetery businesses, including Suburban Memorial Gardens in Dover, Pennsylvania, and Grandview Memorial Park and Fairview Memorial Park in Ohio. The Martins failed to report to the Internal Revenue Service $786,533 they received from the operations of the cemeteries located in Ohio during the years 2008, 2009, 2010 and 2011. The Martins were ordered to pay restitution in the amount of $304,837.
Jeffrey Miller, of Shavertown, Pennsylvania, pleaded guilty on October 12, 2016, for failing to pay his companies employment taxes and failing to pay his personal taxes. From the first quarter of 2010 to the last quarter of 2012, Miller failed to pay the employment taxes for JMSI Environmental Corporation which he owned and operated. Additionally, Miller failed to file his own personal income tax returns from 2008 through 2011. These actions resulted in a tax loss of more than $473,000. Sentencing is scheduled for June 15, 2017.
Paul Biko, of Harrisburg, Pennsylvania, was sentenced on September 21, 2016, to 18 months’ imprisonment for federal tax fraud in relation to his three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. Biko was ordered to pay restitution in the amount of $437,336.
Joel Fuller, formerly of Hazleton, Pennsylvania, was charged in a Criminal Information on September 9, 2016, with failing to remit federal payroll taxes to the IRS. Fuller owned and operated two Hazleton, Pennsylvania-based marketing businesses that sold time shares to prospective clients on behalf of vacation companies, from 2010 through 2013. The Information alleges that Fuller withheld federal payroll taxes from his employees’ paychecks, but failed to then remit those taxes, totaling approximately $180,000 to the Internal Revenue Service. Fuller is scheduled to plead guilty and be sentenced on June 14, 2017.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are conducting a continuing major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them.
The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity Theft
• Phone Scams
• Phishing
• Return Preparer Fraud
• Offshore Tax Avoidance
• Inflated Refund Claims
• Fake Charities
• Falsely Padding Deductions on Returns
• Excessive Claims for Business Credits
• Falsifying Income To Claim Credits
• Abusive Tax Shelters
• Frivolous Tax Arguments
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
# # #
U.S. Air Force Service Members Charged with Sex Offenses Involving A MinorRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that two active duty service members of the United States Air Force have been charged with sex offenses alleged to have occurred on the Dover Air Force Base in Dover, Delaware. Airman First Class Dalian Washington, 25, has been arrested and charged by criminal complaint with Sex Trafficking of a Child and Sexual Abuse of a Minor. Airman First Class Akeem Beazer, 21, has been arrested and charged by criminal complaint with Sexual Abuse of a Minor.
According to the criminal complaints, in approximately August of 2016, Washington obtained a 15-year-old female child for the purpose of having sex with her. Washington picked the child up at the Dover Division of Motor Vehicles (“DMV”) from a man he believed to be her “pimp” in exchange for $20. Washington then took her to his dorm room on base, where she stayed, off and on, for several months. Washington enlisted Beazer to help him look after the child, and Beazer began having sex with her, too.
Washington and Beazer were arrested on March 31, 2017, and they made their initial appearances in United States District Court that afternoon. Washington and Beazer waived their rights to preliminary and detention hearings. They will remain in custody pending further proceedings.
If convicted, Washington faces a mandatory minimum sentence of at least ten years, and up to twenty years, in prison. Beazer faces a maximum sentence of fifteen years in prison.
Any person possessing information about this matter is encouraged to contact the Federal Bureau of Investigation at (410) 265-8080.
The case is being investigated by the United States Air Force Office of Special Investigations, the Delaware State Police, the Delaware Department of Justice, and the Federal Bureau of Investigation. Assistant United States Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
The charges in the criminal complaints are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Men and One Woman Charged with First Degree Burglary and LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, men and an Eagle Butte, South Dakota, woman have been indicted by a federal grand jury for First Degree Burglary and Larceny.
Heideman, age 24, Tristan Yellow Horse, age 31, and Nicole Condon, a/k/a Nicole Garreau, a/k/a Nicole Yellow Horse, age 39, were indicted on January 19, 2017. Yellow Horse appeared before U.S. Magistrate Judge Mark A. Moreno on February 27, 2017, and pled not guilty to the Indictment.
Nicole Condon appeared before U.S. Magistrate Judge Mark A. Moreno on January 30, 2017, and pled not guilty to the Indictment.
Joshua Heideman appeared before U.S. District Court Judge Roberto A. Lange on March 22, 2017, and pled guilty to First Degree Burglary. A presentence investigation report was ordered and a sentencing date was set for June 5, 2017.
The Indictment alleges that on October 8, 2016, Heideman, Yellow Horse, and Condon unlawfully entered and remained in someone’s residence with the intent to steal the property of the owner, and aided and abetted in the commission of that offense.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Yellow Horse and Condon are presumed innocent until and unless proven guilty.
This investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Yellow Horse, and Condon were remanded to the custody of the U.S. Marshals Service. The jury trial for Condon and Yellow Horse is currently scheduled for July 25, 2017.
Tennessee Man Pleads Guilty to Unauthorized Access of Former Employer’s NetworksRead the Press Release
An Arlington, Tennessee man pleaded guilty today to intentionally accessing a competing engineering firm’s computer network without proper authorization in order to obtain proprietary information, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Lawrence J. Laurenzi of the Western District of Tennessee.
Jason Needham, 45, co-owner of HNA Engineering, pleaded guilty today before U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee. Sentencing is set for July 14, 2017.
As part of his guilty plea, Needham admitted that, over a nearly two-year period, he repeatedly accessed the servers of Allen & Hoshall, his former employer, to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents. Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to the firm’s marketing plans, project proposals, company fee structures and the rotating account credentials for the company’s internal document-sharing system. According to the plea, Needham used his unauthorized access to view, download and copy proprietary business information worth approximately $425,000.
The FBI investigated the case. Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Needham InformationTaunton Man Pleads Guilty to Multiple Child Enticement and Child Pornography ChargesRead the Press Release
BOSTON - A Taunton man pleaded guilty today in federal court in Boston to child exploitation and related offenses in connection with coercing seven minors to send sexually explicit images.
Joseph Debrum, 40, pleaded guilty to seven counts of coercion and enticement of a minor, six counts of sexual exploitation of children and two counts of distribution of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 18, 2017.
Between May 2014 and March 2015, Debrum assumed fictitious online identities of either a 21-year-old woman or a 16-year-old woman to coerce and entice seven minor victims living in six states to engage in sexually explicit conduct. Debrum enticed the victims to send him pictures of the conduct over the internet, or he viewed the acts live online while taking photos on his cell phone. Debrum coerced the victims, whose ages ranged from 14 to 16-years-old, including threatening to expose the photos. Debrum also disseminated some of the photos, which constitutes distribution of child pornography. He sent photos of one victim to that victim’s parent, as well as photos of a second victim to a third victim. On April 2, 2015, Debrum was interviewed by law enforcement and admitted to assuming fictitious female identities while communicating online with the victims. He also admitted to asking them to take nude pictures and, in some cases, to do specific sexual acts.
Each charge of sexual exploitation provides for a mandatory minimum sentence of 15 years and no greater than 30 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of coercion and enticement of a minor provides for a mandatory minimum sentence of 10 years and no greater than a lifetime in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistance was provided by the Taunton Police Department and Loudon County, Va., Sheriff’s Office. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb’s Major Crimes Unit are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Tallahassee Man Sentenced to 60 Months in Prison for Receipt of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Antonio Fuguet, 36, of Tallahassee, was sentenced today to 60 months in prison for receipt of child pornography, after pleading guilty on January 5. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2015, law enforcement officers discovered child pornography files online through a peer-to-peer network that were traced to Fuguet’s residence. A forensic examination of Fuguet’s laptop computers revealed child pornography videos and more than 230 images, many of which involved children under the age of 12.
U.S. Attorney Canova said: “Protecting our children from exploitation is a top priority of my office and the Department of Justice. I commend the hard work of our prosecutors and law enforcement professionals who protect our communities and bring child predators to justice.”
“These children are re-victimized every time one of these horrendous images is shared over the Internet, and now this criminal will be held accountable,” said Susan L. McCormick, Special Agent in Charge of HSI Tampa. “This sentencing, and the hard work of our HSI special agents with our Leon County Sheriff’s Office partners, has made our communities safer today.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Leon County Sheriff’s Office, the Florida Department of Law Enforcement, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Gary Milligan.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
South Carolina Man Charged with Interstate Stalking and Aggravated ID Theft Targeting Pennsylvania ResidentRead the Press Release
PITTSBURGH - A South Carolina resident has been indicted by a federal grand jury in Pittsburgh on charges of interstate stalking and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned on April 11 and unsealed today, named Nathaniel Earl Dunlap, 28, formerly of Shaler Township and now of Clover, South Carolina as the sole defendant.
According to the indictment, Dunlap placed false and fraudulent food delivery orders online, using the identity of another individual, which placed the victim L.W. under substantial emotional distress.
Dunlap will make his initial appearance in Federal Court today at 12:15 p.m.
The law provides for a maximum total sentence of 17 years in prison, a fine of $1,000,000 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Secret Service, the United States Postal Inspection Service and the Shaler 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.
Shreveport woman sentenced to 60 months in prison for methamphetamine distributionRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport woman was sentenced Wednesday to 60 months in prison for her role in a methamphetamine distribution conspiracy.
United States District Judge S. Maurice Hicks Jr. sentenced Haylee N. Haigler, 36, of Shreveport, on one count of conspiracy to possess with intent to distribute methamphetamine. She was also sentenced to four years of supervised release. According to the January 11, 2017 guilty plea, law enforcement agents arrested Haigler’s boyfriend, Lee Edward Watkins, 36, of Shreveport, on July 20, 2016 after observing him selling methamphetamine in the parking lot of Haigler’s apartment complex. Upon his arrest, Watkins admitted to selling the drugs and said there were more drugs and firearms in Haigler’s apartment. Agents found additional methamphetamine and three pistols there. Haigler later admitted that she assisted in the drug dealing and sometimes traveled with Watkins to Texas to obtain more drugs.
Judge Hicks sentenced Watkins on January 30, 2017 to 120 months in prison and five years of supervised release for the conspiracy count and for one count of possession of a firearm in furtherance of a drug trafficking crime.
The DEA conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Second Defendant Pleads Guilty to Distributing Heroin and Cocaine on Dark Web Marketplace AlphabayRead the Press Release
FRESNO, Calif. — Abudullah Almashwali, 31, a Yemeni national formerly residing in Brooklyn, New York, pleaded guilty today to distribution of heroin and cocaine, and conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Almashwali and co-defendant Chaudhry Ahmad Farooq, 24, a Pakistani national residing in Brooklyn, New York, using the vendor names “Area51” and “DarkApollo,” were large-scale heroin and cocaine distributors on the dark web marketplace AlphaBay. Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly Bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
According to the criminal complaint, Almashwali and Farooq accepted orders for heroin and cocaine on AlphaBay, and then mailed the narcotics from post offices in New York to customers throughout the United States. They received payment in Bitcoin. In May 2016, law enforcement made two undercover purchases of heroin from “Area51,” which were delivered to a post office box in the Eastern District of California. Postal records revealed that Almashwali purchased the postage for the two heroin parcels mailed to law enforcement, and that Farooq was involved in other mailings. Law enforcement agents were also able to determine that the encrypted email address used by “Area51” and “DarkApollo” was associated with actual Twitter, Instagram, and Facebook accounts used by Farooq.
On January 17, 2017, Farooq pleaded guilty to conspiring to traffic heroin. According to the plea agreement, Farooq admitted to selling 636.5 grams of heroin on the dark web marketplace Alpha Bay in exchange for $145,807 in Bitcoin.
This case is a product of an investigation by the Drug Enforcement Administration, with assistance provided by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the IRS Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
U.S. District Judge Dale A. Drozd is scheduled to sentence Almashwali on July 24, 2017, at 1:30 p.m. and Farooq on May 15, 2017. Almashwali and Farooq face a maximum statutory penalty of 20 years in prison and a $1 million fine. 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.
Schuylkill County Man Guilty of Methamphetamine TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernest Schaeffer, age 41, of Schuylkill Haven, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion to conspiring with others to distribute more than 500 grams of methamphetamine.
According to United States Attorney Bruce D. Brandler, Schaeffer admitted to committing the offense between June and October 2016. Schaeffer was indicted by a federal grand jury in January 2017.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Under the terms of the plea agreement, Schaeffer agreed to forfeit to the government a residence and property in Schuylkill Haven that was connected to the drug trafficking operation, and four firearms.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant United States Attorney Francis P. Sempa 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 this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years in prison. 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.
# # #
Rosebud Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Lavern David Luxon, Jr., age 25, was sentenced to 96 months in prison, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Luxon was indicted by a federal grand jury on April 13, 2016. He pled guilty on January 24, 2017.
The conviction stems from an incident that occurred on September 4, 2015, wherein Luxon assaulted a 15-year-old girl at her home in Parmelee, South Dakota. Luxon had been working at the house that day and was permitted by the girl’s parents to spend the night. He then sexually assaulted the girl in the middle of the night while everyone else in the house was asleep. The girl reported the assault the next day.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Luxon was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Indicted for Assault and Child Abuse ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Child Abuse.
Dustin Witt, age 25, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 10, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 6, 2016, Witt assaulted an individual with shod feet with intent to do bodily harm and that the assault resulted in serious bodily injury. The Indictment further alleges that Witt abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of eighteen.
The charges are merely an accusation and Witt is presumed innocent until and unless proven guilty.
The nvestigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Witt was released on bond pending trial. A trial date has not been set.
Rapid City Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
A criminal complaint was filed against Thomas Gary Thompson, age 27, on March 30, 2017. Thompson was indicted on April 4, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 7, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 22, 2017, Thompson knowingly and intentionally possessed methamphetamine with the intent to distribute it.
The charge is merely an accusation and Thompson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mellette County Sheriff’s Office, South Dakota Department of Criminal Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Thompson was remanded to the custody of the U.S. Marshals Service pending trial. A sentencing date has been set for June 6, 2017.
Property of Deceased KC Business Owner Seized as Proceeds of $10 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a civil forfeiture complaint has been filed in federal court for property acquired and maintained by Mark Sellers, a Kansas City, Mo., business owner who was under investigation by the FBI for a $10 million investment fraud scheme before he shot and killed himself on Aug. 2, 2016.
The forfeiture complaint alleges that the property is subject to federal forfeiture because it was derived from the proceeds of an investment fraud scheme in which Sellers stole approximately $10 million from approximately 100 investors through his firm, Selden Companies, LLC, from December 2007 through at least 2015. The complaint, filed under seal on Thursday, April 13, 2017, and unsealed today, alleges that Sellers committed mail fraud, wire fraud and bank fraud. The Department of Justice provides a process by which victims who suffer losses from a fraud scheme may seek relief once any assets have been forfeited.
The government is seeking forfeiture of Sellers’ former residence at 6009 N. Cosby Court in Kansas City, Mo. Also included in the complaint is a 2014 Porsche 911 and 77 pieces of jewelry that were seized by law enforcement officers, as well as the proceeds of five life insurance policies that have been cashed with death benefits totaling $6 million.
Investment Fraud Scheme
According to the complaint, the FBI began investigating Sellers on June 6, 2016, after receiving a complaint from an investor. Sellers fraudulently misrepresented to investors in the Kansas City area as well as Georgia, Alabama and elsewhere that he would use the funds to purchase companies and turn them around to sell at a profit. Sellers hid from investors, the complaint says, the fact that he and his wife spent almost all of the invested funds to maintain their own lavish lifestyle.
Sellers’ primary source of income from 2008 through 2016 was investor funds he used for his own personal benefit. Sellers’ bank records show approximately $9.9 million of investor funds were utilized for his own personal use and benefit to fund his lifestyle, vehicles, life insurance policies, homes, jewelry and credit card purchases. Sellers allegedly laundered the invested funds through multiple bank accounts.
Financial records indicate Sellers expended approximately $9.9 million of investor funds in the following ways:
Approximately $343,343 in mortgage payments for his personal residence;
Approximately $931,384 on remodeling, upgrading, and maintaining his personal residence (included kitchen remodeling and installing landscaping, tile and granite, new cabinets and windows, and fencing, as well as installing and maintaining an in-ground swimming pool);
Approximately $701,102 at Tivol jewelry store;
Approximately $253,641 at Aristocrat Motors and Thoroughbred Ford to purchase luxury vehicles for him and his wife;
Approximately $260,131 at Midwest Trust Company;
Approximately $7,461,116 to credit card companies.
Credit Card Bust Out Scheme
In addition, the complaint says, when Sellers had depleted the investors’ funds, he defrauded several financial institutions by running a large credit card “bust out” scheme in a final effort to maintain his and his wife’s lifestyle. A bust out scheme is a type of credit card fraud in which an individual establishes a normal usage pattern and solid repayment history, then racks up numerous charges and maxes out the card with no intention of paying the bill. The consumer establishes the card issuer’s trust and a strong credit profile with the goal of opening numerous accounts and receiving credit line increases so that more funds are available.
Sellers opened approximately eight credit cards with JP Morgan Chase over several years, ran up large credit card balances, increased the credit limit available on the credit cards, and then paid the bill with ACH transfers backed by insufficient funds. This type of activity occurred on one credit card 92 times in a five-month span.
J.P. Morgan Chase Bank was left with an outstanding balance on Sellers’ credit cards of approximately $557,000. Commerce Bank sustained a loss of approximately $33,000 caused by Sellers depositing several insufficient funds checks into his bank accounts.
Events During the Investigation
On July 18, 2016, Kansas City police officers were called to the Sellers’ residence for a possible homicide/suicide. Upon arrival, officers found Sellers incoherent in his bedroom lying next to his wife, Sandra Sellers, who was deceased. Sandra Sellers had been shot in the head, and Sellers had attempted to overdose on medication. Sellers was taken to an area hospital for medical attention and evaluation.
On Aug. 2, 2016, law enforcement officers executed a search warrant at Sellers’ residence. Sellers was not home at the time the warrant was executed. At approximately 8:33a.m., Sellers arrived in his Ford Explorer. When Sellers realized he was not able to turn onto N. Cosby Court because law enforcement had blocked the intersection (to prevent Sellers from approaching the residence), he accelerated past the intersection. At that time, law enforcement officers stopped the vehicle, which was occupied solely by Sellers. Sellers stopped his vehicle and shot himself in the head with a .22-caliber revolver. Sellers was transported to an area hospital where he later succumbed to his self-inflicted gunshot wounds.
This case is being prosecuted by Assistant U.S. Attorney Curt Bohling. It was investigated by the FBI.
Philadelphia Woman Charged with Preparation of False Income Tax ReturnsRead the Press Release
Rhonda Coleman, 56, of Philadelphia, PA, was charged by Indictment unsealed today with nineteen counts of aiding and assisting in the preparation of materially false income tax returns, announced Acting United States Attorney Louis D. Lappen. According to the Indictment, Coleman is the co-owner of P.C. Tax Services, a business located in Philadelphia. She used her position as a tax preparer at the business to falsely overstate and include income, deductions and credits on her clients’ returns without the authorization of those clients between 2011 and 2012.
If convicted the defendant faces a maximum possible sentence of 48 years’ imprisonment, three years’ supervised release, a $1,900,000 fine, and a $1,900 special assessment.
The case was investigated by Internal Revenue Service, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Pensacola Man Sentenced to More Than Seven Years in Prison for Federal Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Awald Edward Pokrant Jr., 50, of Pensacola, has been sentenced to 86 months in prison after pleading guilty on January 24, 2017, to unlawfully possessing a firearm as a convicted felon and possessing an unregistered firearm. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2016, law enforcement officers who responded to an armed disturbance observed Pokrant fleeing the scene. After a high-speed chase, the officers pulled Pokrant over and transported him back to the location of the incident. At the scene, an injured and bleeding victim told officers that Pokrant had struck her with a hammer. Law enforcement officers observed blood splatter in several locations in the house and recovered a hammer. A search of the house revealed firearms and ammunition. The victim later told officers that Pokrant might have moved additional firearms to a friend’s house. Law enforcement officers recovered eight firearms and more than 1,000 rounds of ammunition from this other location.
This case resulted from investigations by the ATF Gun Crime Response Team, which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation, the Escambia County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, the Florida Department of Law Enforcement, and the Pensacola Police Department. It was prosecuted by Assistant U.S. Attorney James M. Ustynoski.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
Pennsylvania Man Pleads Guilty to Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Ratanack Oung, a/k/a Yoshi, 32, of Allentown, Pa., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Oung was indicted on these charges and arrested with co-conspirator Virayuth Chau, 40, of Temecula, Calif., who pleaded guilty in March 2013. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 13, 2017.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
The charge of conspiracy to distribute marijuana provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.
Orlando Man Sentenced for Theft of Government Money and Aggravated Identity TheftRead the Press Release
Orlando, Florida - U.S. District Judge Paul G. Bryon has sentenced Manuel Enrique Santana (36, Orlando) to four years in federal prison for theft of government funds and aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $64,889.15, the proceeds of the charged criminal conduct. Santana was found guilty by a jury on January 10, 2017.
According to the evidence presented at trial, Santana deposited 47 stolen federal tax refund checks into three of his own bank accounts over a 10-day period in early 2014. The vast majority of checks were endorsed with forged signatures of the intended payees, all of whom had filed returns for the 2013 tax year and were expecting to receive their refund checks by mail. The combined value of the stolen checks was more than $64,000.
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service - Criminal Investigation, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Oregon Law Enforcement Partners Encourage Reporting of All Perceived Hate CrimesRead the Press Release
PORTLAND, Ore. – In response to an increase in perceived hate-related activity across the Portland Metro Area, the United States Attorney’s Office, along with law enforcement partners from across the state, encourage anyone with information about hate-related activity to contact their local law enforcement agency and the FBI.
If you are concerned about your safety, please call 9-1-1 immediately.
Recent reports of hate-related activity in our state are deeply concerning to members of our law enforcement community. Beyond local reports, Oregonians have likely seen an increase in news reports and social media posts about alleged hate crimes and harassment across the country. These reports have caused many in our community to fear for their own or their loved ones’ safety.
“The United States Attorney’s Office, with our local, state, and federal law enforcement partners, wants to reassure community members that we are united in our efforts to combat hate crimes in any form and to repudiate the targeting of individuals because of their actual or perceived race, color, religion, national origin, disability, sexual orientation, gender or gender identity” said Billy J. Williams, United States Attorney for the District of Oregon. “We remain committed to vigorously investigating and prosecuting all hate crimes.”
“We must stand together against hate because all Oregonians deserve to feel safe in our communities," said Oregon Attorney General Ellen Rosenblum. "A hate crime occurs when somebody intentionally subjects another to offensive physical contact, physical injury, or damage to another person’s property based on their race, color, religion, sexual orientation, gender identity or national origin. Fortunately, in Oregon we have laws that protect us from these hateful acts.”
“Everyone has a right to live, work and worship freely and without fear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “When someone commits a crime of violence against you because of your race, religion, national origin, sexual orientation, disability, gender or gender identity, the FBI will stand with you to make sure our shared community is both safe and just.”
Victims and witnesses of crime are not responsible for determining whether an action rises to the level of a hate crime. Law enforcement personnel in Oregon encourage over-reporting. Links to Oregon police departments and county sheriffs’ offices are listed below:
-
List of Oregon Police Departments
-
List of Oregon County Sheriffs’ Offices
For crimes committed in Oregon, the FBI Portland Division can be reached at (503) 224-4181. A list of all local FBI offices is available at: https://www.fbi.gov/contact-us/field-offices. Reports to the FBI can also be submitted online from any state via: https://tips.fbi.gov.
Additionally, the Oregon Department of Justice collects reports of hate crimes to ensure these are passed on to the appropriate authority for investigation via the following web form: https://justice.oregon.gov/crimereporting/hatecrime.
If you have questions about your rights or the hate crime reporting process, please contact any of the following law enforcement agencies:
- United States Attorney’s Office – District of Oregon: (503) 727-1000
- Oregon Department of Justice: (503) 378-4400
- FBI - Portland Division: (503) 224-4181
-
Mission Man Sentenced for Assaulting a Federal Officer and Simple AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer and Simple Assault was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Patrick Medearis, age 33, was sentenced to 22 months in prison, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Medearis was indicted by a federal grand jury on January 21, 2016. He pled guilty on January 24, 2017.
convictions stem from two separate incidents. On October 31, 2015, Medearis and his girlfriend got into an altercation while driving to Mission. y stopped at the Gus Stop convenience store, at which point Medearis’ girlfriend got out of the vehicle. Medearis grabbed her shirt as she tried to get away and ripped her top off. He then chased after her and grabbed the shirt she was covering herself with before departing the area. Rosebud Sioux Tribe Law Enforcement Services (RSTLES) responded and a warrant was subsequently issued for Medearis’ arrest.
On November 28, 2015, a RSTLES officer responded to a report that Medearis, possibly intoxicated, was outside a home in White Horse, revving his engine. The officer subsequently made contact with Medearis during a vehicle stop. During the vehicle stop, Medearis got out of the vehicle and approached the officer brandishing a knife. He refused commands to drop the knife until another RSTLES officer arrived to assist, at which point Medearis was forcibly subdued and arrested.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Medearis was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with Criminal ContemptRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Criminal Contempt.
Clint Roubideaux, age 32, was indicted on February 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 10, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 6 months in custody and/or a $1,000 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 14, 2017, Roubideaux, willfully and unlawfully disobeyed and resisted a United States District Court process, order, and command to appear in Court.
The charge is merely an accusation and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Roubideaux was released on bond pending trial. A trial date has not been set.
Members of International Child Exploitation Conspiracy Plead GuiltyRead the Press Release
A Wichita, Kansas man and a Chicopee, Massachusetts man pleaded guilty today to production of child pornography for their participation in a group of individuals who operated two websites for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division made the announcement.
“Believing they were cloaked in the anonymity of the Internet, the members of the group sexually exploited hundreds of children around the nation and globe through deceit and trickery,” said Acting Assistant Attorney General Blanco. “This case exemplifies the threat of online predators to the world’s most unsuspecting and vulnerable victims. Our prosecutors and law enforcement partners are committed to overcoming the challenges posed by these complex investigations, identifying and notifying victims and their families and rooting out these offenders who lurk and hunt in the shadows of the web.”
“Despite the increasingly common use of technology to hide their conduct, those who seek to take advantage of children online will be found and prosecuted to the full extent of the law,” said U.S. Attorney Boente. “We hope that Operation Subterfuge can serve to show that vulnerable victims will get justice.”
“Crimes against children are among the most heinous crimes that the FBI investigates,” said Assistant Director Richardson. “This case is a prime reminder of the FBI’s unwavering commitment to delivering justice to those who victimize the most vulnerable members of our society. It also serves as a warning that we will stop at nothing to find those who commit these despicable acts. I am incredibly proud of the immense amount of time and effort that men and women throughout the FBI devoted to this investigation. I am also grateful to all of our partners whose collaboration was vital to making this a successful case.”
Allan Cortez, 34, and Edward Parson, 46, were charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing for Cortez is set for July 21, 2017, and sentencing for Parson is set for July 14, 2017.
According to admissions made in connection with the plea agreements, members of the group created false profiles on social networking and video sites popular with children posing as young teenagers to lure children to two websites they controlled. Parson and Cortez admitted that they showed the children who came to the website pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to convince those children that they were chatting live with another minor. Parson and Cortez further admitted that they used these videos to coerce and entice the children to engage in sexually explicit activity on their own web cameras, which could be viewed live by multiple adult members without the victim’s knowledge. Further, Parson and Cortez admitted that these videos were automatically recorded and made available for later download. Parsons and Cortez also admitted that the websites ranked the efforts of members to successfully lure children to the website and to coerce and entice them to engage in sexually explicit conduct on live web camera. Law enforcement agencies have disabled both websites.
In addition to Parson and Cortez, 10 other group members have been convicted and sentenced as follows:
Name, Age, Hometown
Status
Anthony Evans, 54, of Grahamstown, South Africa
Pleaded guilty in South Africa and was sentenced to 10 years in prison on May 29, 2015. An extradition request remains pending.
William J. Morgan, 36, of Essex, New York
Pleaded guilty June 26, 2015. Sentenced to 21 years in prison on Sept. 18, 2015.
Carl Zwengel, 51, of Princeton, Illinois
Pleaded guilty July 10, 2015. Sentenced to 18 years in prison on Oct. 2, 2015.
Milton Smith, Jr., 34, of Lorton, Virginia
Pleaded guilty Aug. 14, 2015. Sentenced to 30 months in prison on Feb. 3, 2017, after testifying at the trial of a co-conspirator.
Christopher McNevin, 37, of Carlisle, Ohio
Pleaded guilty Aug. 21, 2015. Sentenced to 19 years in prison on Dec. 4, 2015.
Karlo Hitosis, 32, of Bronx, New York
Pleaded guilty Oct. 30, 2015. Sentenced to 18 years in prison on Feb. 5, 2016.
Stephen Funk, 35, of Milwaukee, Wisconsin
Pleaded guilty Dec. 18, 2015. Sentenced to 21 years in prison on April 1, 2016.
James E. Hancock, 45, of Thomasville, Georgia
Pleaded guilty Dec. 29, 2015. Sentenced to 90 months in prison on April 1, 2016.
Brian K. Hendrix, 42, of Mt. Juliet, Tennessee
Convicted by jury on Jan. 8, 2016. Sentenced to 21 years in prison on April 8, 2016.
Jeffery Van Dyke, 46, of Weed, California
Pleaded guilty March 10, 2017. Sentencing scheduled for June 9, 2017.
An estimated 1,500 minors were lured to the websites. During the investigation, known as Operation Subterfuge, the FBI identified 357 minor victims in the United States, and Canada’s Royal Canadian Mounted Police’s (RCMP) National Child Exploitation Coordination Centre identified 43 minor victims in Canada. The FBI’s efforts to identify victims are ongoing.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case. Special Agents with the FBI’s Violence Against Children program led the investigation with the assistance of the FBI’s Operation Rescue Me, the Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Services Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
McLaughlin Man Charged with Aggravated Sexual Abuse and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Jeremy Agard, age 35, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on April 4, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 14, 2016, Agard knowingly caused and attempted to cause the victim to engage in a sexual act. The Indictment also alleges that on that same date, Agard unlawfully assaulted the same victim with shod feet, causing serious bodily injury to her.
The charges are merely accusations and Agard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Agard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Massachusetts Man Sentenced to 18 Months After Failing to Register as A Sex OffenderRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Beau Shields, 30, of South Barre, Massachusetts, was sentenced to 18 months in federal prison for failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA). Shields moved from New Hampshire to Massachusetts some time before April 2016 and did not register in Massachusetts and did not advise New Hampshire authorities that he was living in Massachusetts.
SORNA mandates that a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. gives an individual three days in which to register.
Shields was also sentenced to five years of supervised release, which will begin after he is released from prison.
The case was investigated by the United States Marshals Service with the assistance of the New Hampshire State Police and the Barre, Massachusetts, Police Department. The case was prosecuted by Assistant U.S. Attorney Don Feith.
###
Mason City Dental Office Manager Sentenced to 41 Months in Federal Prison After Stealing Nearly $500,000 from Her EmployerRead the Press Release
A former office manager of a small dental practice in Mason City, Iowa, who stole nearly $500,000 from her employer over the course of almost a decade, was sentenced yesterday in federal court in Cedar Rapids.
Pamela Harris, age 58, from Mason City, Iowa, was convicted of Wire Fraud. In a plea agreement, Harris admitted she was a trusted employee of the dental practice for approximately 21 years, from about 1993 until 2014. During this time, she had sole responsibility for the practice’s day-to-day finances. She was fired in 2014 after her fraud was discovered.
The two dentists that formed the practice authorized the creation of rubber stamps bearing their signatures to pay for legitimate expenses. However, the dentists always required Harris to obtain authorization before using the rubber stamps on a check to pay a bill. At no time did the dentists authorize Harris to create checks and use their rubber signature stamps to pay for her personal expenses without their knowledge.
From at least July 2005, and continuing through about May 2014, Harris defrauded the dentists and their practice. Harris used the rubber signature stamps of the dentists without their authorization to create forged checks drawn on the practice’s bank account. Harris forged checks made payable either to herself or to others, including credit card companies to pay for Harris’ personal expenses. Harris also maintained and used various credit card accounts she had opened in the name of the dental practice to pay for personal expenses without the authorization of the dentists.
For example, Harris admitted that, in May 2012, she forged a check bearing the signatures of the dentists to pay for a $4,000 white plastic fence at her home. In total, Harris admitted to stealing at least $491,254.86 from the dentists and their practice.
Harris was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. At the sentencing hearing, Judge Reade found Harris’s crime was “a very serious offense” and stressed a number of aggravating factors, including that Harris’s scheme was sophisticated and caused the dentists such a substantial financial hardship that they needed to take out lines of credit. Judge Reade found defendant had “spit in the eye” of her employers. During the hearing, Judge Reade also noted that Harris, through a civil attorney, had offered to repay approximately $100,000 of the stolen money, but only if the dentists would give Harris a good letter of recommendation for another job. The evidence at the hearing showed that the civil attorney wrote a letter stating, “this probably sounds outrageous to ask for a letter but if your client’s [sic] want more money, I think this is the only way.” The dentists declined the offer.
Harris was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $491,254.86 in restitution to the dentists. With respect to restitution, Harris will be given credit for approximately $150,000 that she deposited with the Clerk of Court before the conclusion of her sentencing hearing. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Harris was released on the bond previously set and is to surrender to the United States Marshal on May 8, 2017, at 10 a.m., in Cedar Rapids, pending her designation to a Bureau of Prisons facility.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the Mason City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-3029-LRR.
Follow us on Twitter @USAO_NDIA.
Maryland Man Sentenced to Seven Years in Prison for CarjackingRead the Press Release
WASHINGTON – Jesse Green III, 41, of Germantown, Md., was sentenced today to seven years in prison for a carjacking earlier this year in Southeast Washington in which he drove off with a woman and her 2-year-old granddaughter, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Green pled guilty in February 2017, in the Superior Court of the District of Columbia, to a charge of carjacking. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Green will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 8, 2017, at approximately 12:10 p.m., the woman, her husband, and their 2-year-old granddaughter were driving in a GMC Yukon sports utility vehicle. The husband pulled over and got out of the vehicle for a stop in the 5000 block of Kimi Gray Court SE. Green came out of a neighboring house and went to the vehicle. Then, without permission, he got into the driver’s seat and sped off, with the woman and child still in the vehicle. The child was in a car seat in the rear.
The woman demanded that Green let them out and attempted to grab the steering wheel. Green, however, kept driving fast, passing through stop signs. He crashed into a parked vehicle near 51st Street and Central Avenue SE, traveled up an embankment, and then crashed backward into a telephone pole. He attempted to flee, but was soon apprehended and has been in custody ever since. The victims were taken to a hospital by ambulance for examination and treatment.
In announcing the sentence, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Kathryn Rakoczy, Paralegal Specialist Richard Cheatham, and Victim/Witness Advocate James Brennan. Finally, they commended the work of Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Man Sentenced to Three Years in Prison for Assaulting Hotel HousekeeperRead the Press Release
WASHINGTON - Ernesto A. Mendoza, 18, who had no fixed address, was sentenced today to three years in prison for assaulting a housekeeper with a knife last fall at a downtown Washington hotel, U.S. Attorney Channing D. Phillips announced.
Mendoza pled guilty on Feb. 1, 2017, in the Superior Court of the District of Columbia, to assault with intent to commit first-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for a sentence of three years in prison. The Honorable José M. Lopez accepted the plea and sentenced Mendoza accordingly. Upon completion of his prison term, Mendoza will be placed on three years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on Nov. 26, 2016, Mendoza entered an 11th-floor room at the Grand Hyatt Washington hotel, in the 1000 block of H Street NW. The victim, a housekeeper, entered the room to clean it. When she came out of the bathroom, Mendoza was standing in the room. At first, the victim thought he was a guest who was occupying the room, and so she walked past him. However, Mendoza brandished a silverware knife, threatened her with it, and demanded that she go back to the bedroom.
Mendoza threatened the victim with the weapon and ordered her to take off her clothes. He then pulled his pants down. The victim attempted to grab the knife from him, and a struggle ensured. She screamed for help, and Mendoza tried to cover her mouth with a towel or cloth to prevent her from yelling. Eventually, after further struggles, she was able to escape.
Mendoza was identified based on surveillance video and was arrested on Dec. 29, 2016. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Metro Transit Police and Prince George’s County, Md. Police Departments. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialist T.J. McPhail. Finally, he commended the work of Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the case.
Maine Fisherman Pleads Guilty for Illegally Trafficking American EelsRead the Press Release
Today, Richard Austin pleaded guilty in federal district court in Norfolk, Virginia, to trafficking juvenile American eels, aka “elvers” or “glass eels,” in violation of the Lacey Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Acting Director Jim Kurth of the U.S. Fish and Wildlife Service (USFWS).
As part of his guilty plea, Austin admitted to illegally transporting or selling elvers in interstate commerce, which had been harvested illegally in Virginia and Massachusetts. According to the statement of facts filed with the plea agreement, Austin was a fisherman from Maine, who travelled to locations near Yorktown, Williamsburg, and Newport News, Virginia, as well as Massachusetts, to illegally harvest elvers. Austin then sold the elvers to dealers from Illinois and New York, who exported them from the United States to buyers in Asia. From 2013 to 2015, Austin trafficked approximately $189,374 worth of illegally-harvested elvers.
This plea was the result of “Operation Broken Glass,” a multi-jurisdiction USFWS investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for twelve individuals whose combined conduct resulted in the illegal trafficking of more than $2.94 million worth of elvers.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
The offense in this case is a felony under the Lacey Act, each carrying a maximum penalty of five years in prison, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
Sentencing is set for July 19, 2017.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller, and Assistant U.S. Attorney Joseph Kosky.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on April 14, 2017, Jason John Kahler, 42, of Lincoln, was sentenced to 14 years (168 months) in prison for his involvement in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between January of 2014, and January of 2016. Information obtained by law enforcement indicated that during that timeframe, Kahler was involved in the distribution of at least 5 kilograms (11 pounds) of methamphetamine in the Lincoln area. Following the prison term, Kahler will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Las Vegas Sports Betting Personality Indicted for Misuse of Social Security Numbers and Concealing Taxable WinningsRead the Press Release
LAS VEGAS, Nev. – David Nakama Oancea, aka “Vegas Dave,” 40, of Las Vegas, a Las Vegas sports betting personality, was indicted on Wednesday by a federal grand jury, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The indictment charges Oancea with nine counts of misuse of Social Security Numbers and 10 counts of causing false currency transaction reports to be filed based on the false Social Security Numbers.
As alleged in the indictment, Oancea placed sports bets for himself and others at casinos and sports books. He opened player accounts by providing the casinos and sports books with social security numbers assigned to others or to no one, but represented to the casinos that the social security numbers were his. When Oancea placed bets or collected winnings of more than $10,000, he caused the casinos and sports books to prepare and submit false Currency Transaction Reports containing false and fraudulent social security numbers. It is further alleged that Oancea caused casinos and sports books to prepare and file at least 137 false Currency Transaction Reports. The indictment seeks forfeiture of $551,318.20 from Oancea.
The case is being investigated by the Las Vegas Financial Crimes Task Force consisting of members of the IRS-Criminal Investigations, the Nevada Attorney General’s Office, the Henderson Police Department, and the Nevada Gaming Control Board. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
Kyle Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury,
Charles Gay, a/k/a Charles Dean Mercado, age 20, was indicted on March 21, 2017. Gay appeared before U.S. Magistrate Judge Daneta Wollmann on April 7, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Gay assaulting a juvenile male with a television and a knife at Kyle on October 10, 2015. This assault resulted in serious bodily injury to the juvenile male.
The charges are merely accusations and Gay is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Gay was released on bond pending trial. A trial date has been set for June 13, 2017.
Josephine County Man Sentenced to 60 Months for Illegal Possession of FirearmsRead the Press Release
MEDFORD, Ore. – On April 13, 2017, Anthony Benjamin Still, 41, of Grants Pass, Oregon was sentenced by U.S. District Court Judge Ann Aiken to 60 months in federal prison for unlawful possession of firearms. Upon his release from prison, Still will be on supervised release for three years.
On December 12, 2014, law enforcement officers searched Still’s residence in Grants Pass and found three firearms (including an AR-15-style rifle and a .223 caliber semi-automatic pistol with four loaded high-capacity magazines), over 900 rounds of ammunition, 84 pounds of marijuana, $5,000 in cash and drug notes. Officers determined Still was a felon with prior convictions for second degree burglary, unlawful delivery of marijuana and grand theft of a motor vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rogue Area Drug Enforcement team, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.
Jacksonville Woman Indicted for Possession of Counterfeit Government ChecksRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an
indictment charging Verdell Terria Jones (53, Jacksonville) with 10 counts of possession of counterfeit government checks. If convicted, she faces up to 25 years in federal prison on each of count. Jones was arrested on April 11, 2017, at her home in Jacksonville. According to facts presented at the detention hearing yesterday, this scheme is part of Jones’s involvement with the Sovereign Citizen Movement and her attempts to pass counterfeit government checks in order to pay off various loans. Her trial has been scheduled for June 5, 2017.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the FBI Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Bharatkumar Patel, aka Bharat Patel, 43, an Indian national who had resided in Midlothian, Illinois, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. He also agreed to deportation following his sentence. Sentencing is currently set for July 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, beginning in or about July 2013, Patel worked as a member of a crew of runners operating in the Chicago area and elsewhere throughout the country. Patel admitted to purchasing reloadable cards or retrieving wire transfers and using the misappropriated personal identifying information of U.S. citizens. Patel also admitted to opening personal bank accounts in order to receive scam proceeds and payments from defrauded victims as well as creating limited liability companies in his name to further the conspiracy. According to his plea, Patel opened one bank account that received more than $1.5 million in deposits over a one-year period and another bank account that received more than $450,000 in deposits over a five-month period.
Patel was charged for his role in the fraud and money laundering scheme alongside 55 other individuals and five call centers in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case along with Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Hampton Men Indicted for Bank Fraud and ID TheftRead the Press Release
NEWPORT NEWS, Va. – Two Hampton have been indicted on charges of conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and possession of a firearm by a convicted felon.
According to allegations in the indictment, Markis J. Dickerson, 21, who was arrested and taken into custody last night, and Christopher D. Boone, 25, who was already in state custody, conspired to obtain U.S. currency from several financial institutions by depositing worthless and counterfeit financial instruments into accounts belonging to other individuals and then conducting debit card transactions at ATM and retail locations throughout Hampton Roads.
According to the indictment, Dickerson and Boone allegedly recruited account holders of several financial institutions via social media to provide access to their debit cards and personal identification numbers for a period of time in exchange for monetary payment. Dickerson, Boone, and other conspirators then deposited worthless and counterfeit checks and money orders into the compromised accounts primarily through “mobile deposit” online banking applications. Dickerson, Boone, and others were then withdrew cash and made purchases at ATM and retail locations to access the funds made available through such fraudulent deposits. Both men carried firearms when conducting such transactions. Boone, a convicted felon, was prohibited from possessing a firearm.
Both men face a mandatory minimum penalty of two years in prison to run consecutive to a maximum possible penalty of 30 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Richard W. Myers, Chief of Newport News Police, made the announcement after the indictment was returned. Assistant U.S. Attorney Kaitlin C. Gratton is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-43.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.