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11 April 2017
Attorney General Jeff Sessions Announces the Department of Justice’s Renewed Commitment to Criminal Immigration EnforcementRead the Press Release
Attorney General Jeff Sessions today spoke to Customs and Border Protection personnel at the United States-Mexico border in Nogales, Arizona.
In his remarks, the Attorney General announced that he has issued the attached memo to United States Attorneys that mandates the prioritization of criminal immigration enforcement. The memo directs federal prosecutors to focus on particular offenses that, if aggressively charged and prosecuted, can help prevent and deter illegal immigration.
Additionally, the Attorney General revealed that the Department of Justice will add 50 more immigration judges to the bench this year and 75 next year. He also highlighted the Department's plan to streamline its hiring of judges, reflecting the dire need to reduce the backlogs in our immigration courts.
Please find below the full remarks from Attorney General Sessions.
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Remarks Prepared for Attorney General Jeff Sessions
Meeting with Customs and Border Protection Personnel and Immigration Policy Announcement
NOGALES, ARIZONA
Good morning, everyone. Let me start by thanking the brave men and women of Customs and Border Protection, who not only served as our gracious hosts today, but who put themselves in harm’s way each day to secure our borders and protect us.
Here, along our nation’s southwest border, is ground zero in this fight. Here, under the Arizona sun, ranchers work the land to make an honest living, and law-abiding citizens seek to provide for their families.
But it is also here, along this border, that transnational gangs like MS-13 and international cartels flood our country with drugs and leave death and violence in their wake. And it is here that criminal aliens and the coyotes and the document-forgers seek to overthrow our system of lawful immigration.
Let’s stop here for a minute. When we talk about MS-13 and the cartels, what do we mean? We mean criminal organizations that turn cities and suburbs into warzones, that rape and kill innocent citizens and who profit by smuggling poison and other human beings across our borders. Depravity and violence are their calling cards, including brutal machete attacks and beheadings.
It is here, on this sliver of land, where we first take our stand against this filth.
In this fight, I am here to tell you, the brave men and women of Customs and Border Protection: we hear you and we have your back. Under the President’s leadership and through his Executive Orders, we will secure this border and bring the full weight of both the immigration courts and federal criminal enforcement to combat this attack on our national security and sovereignty.
The President has made this a priority — and already we are seeing the results. From January to February of this year, illegal crossings dropped by 40 percent, which was unprecedented. Then, last month, we saw a 72 percent drop compared to the month before the President was inaugurated. That’s the lowest monthly figure for at least 17 years.
This is no accident. This is what happens when you have a President who understands the threat, who is not afraid to publically identify the threat and stand up to it, and who makes clear to law enforcement that the leadership of their country finally has their back. Together, we will drastically reduce the danger posed by criminal aliens, gang members and cartel henchmen.
To that end, the President and I want to do our best to arm you, and the prosecutors who partner with you, with more tools in your fight against criminal aliens. So today, I am pleased to stand here with you and announce new guidance regarding our commitment to criminal immigration enforcement. As we speak, I am issuing a document to all federal prosecutors that mandates the prioritization of such enforcement.
Starting today, federal prosecutors are now required to consider for prosecution all of the following offenses:
- The transportation or harboring of aliens. As you know too well, this is a booming business down here. No more. We are going to shut down and jail those who have been profiting off this lawlessness — people smuggling gang members across the border, helping convicted criminals re-enter this country and preying on those who don’t know how dangerous the journey can be.
- Further, where an alien has unlawfully entered the country, which is a misdemeanor, that alien will now be charged with a felony if they unlawfully enter or attempt enter a second time and certain aggravating circumstances are present.
- Also, aliens that illegally re-enter the country after prior removal will be referred for felony prosecution — and a priority will be given to such offenses, especially where indicators of gang affiliation, a risk to public safety or criminal history are present.
- Fourth: where possible, prosecutors are directed to charge criminal aliens with document fraud and aggravated identity theft — the latter carrying a two-year mandatory minimum sentence.
- Finally, and perhaps most importantly: I have directed that all 94 U.S. Attorneys Offices make the prosecution of assault on a federal law enforcement officer — that’s all of you — a top priority. If someone dares to assault one of our folks in the line of duty, they will do federal time for it.
To ensure that these priorities are implemented, starting today, each U.S. Attorney’s Office, whether on the border or interior, will designate an Assistant United States Attorney as the Border Security Coordinator for their District. It will be this experienced prosecutor’s job to coordinate the criminal immigration enforcement response for their respective offices.
For those that continue to seek improper and illegal entry into this country, be forewarned: This is a new era. This is the Trump era. The lawlessness, the abdication of the duty to enforce our immigration laws and the catch and release practices of old are over.
In that vein, I am also pleased to announce a series of reforms regarding immigration judges to reduce the significant backlogs in our immigration courts.
Pursuant to the President’s executive order, we will now be detaining all adults who are apprehended at the border. To support this mission, we have already surged 25 immigration judges to detention centers along the border. I want to thank personally the judges who answered the call to help us with this new initiative.
In addition, we will put 50 more immigration judges on the bench this year and 75 next year. We can no longer afford to wait 18 to 24 months to get these new judges on the bench. So today, I have implemented a new, streamlined hiring plan. It requires just as much vetting as before, but reduces the timeline, reflecting the dire need to reduce the backlogs in our immigration courts.
With the President’s Executive Orders on Border Security, Transnational Criminal Organizations and Public Safety as our guideposts, we will execute a strategy that once again secures the border; apprehends and prosecutes those criminal aliens that threaten our public safety; takes the fight to gangs like MS-13 and Los Zetas; and makes dismantlement and destruction of the cartels a top priority. We will deploy a multifaceted approach in these efforts: we are going to interdict your drugs on the way in, your money on the way out and investigate and prosecute your trafficking networks to the fullest extent of the law.
Why are we doing this? Because it is what the duly enacted laws of the United States require. I took an oath to protect this country from all enemies, foreign and domestic. How else can we look the parents and loved ones of Kate Steinle, Grant Ronnebeck and so many others in eye and say we are doing everything possible to prevent such tragedies from ever occurring again?
Let me finish where I started, by thanking you — the brave men and women in uniform who are at the front lines of this fight. I know we ask a tremendous amount from all of you, but know this: we have your back, and will do all we can to empower you and support you in your work.
God bless you and thank you.
Memo on Renewed Commitment to Criminal Immigration EnforcementAlexandria Man Pleads Guilty to $2.3 Million Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man who ran multiple scams that defrauded numerous investors of over $2.3 million, pleaded guilty today to conspiracy to commit wire fraud.
According to the statement of facts filed with the plea agreement, Gregg Seitz, 49, recruited investors to invest in purported real estate opportunities. Investors were told that Seitz and others were involved in purchasing, renovating and reselling distressed real estate for pennies on the dollar, and that the investors’ money would be used to help purchase and “flip” the real estate. Seitz claimed to have experience with large real estate deals and to be earning large returns on his own money from these investments. Later, Seitz found additional investors, who asked to loan money to finance a purported software company, which investors were falsely told had a lucrative contract with U.S. Department of Homeland Security. In fact, there were no real estate deals and there was no lucrative contract with the Department of Homeland Security. Rather, Seitz used new investor money to pay back old investors and finance his own lifestyle. For example, Seitz spent some of the money on luxury cars, mortgage payments on a townhouse in Alexandria, a wine business, travel to Mexico, Italy and the Caribbean, and purchases from high-end retailers. The total loss to investors was over $2.3 million.
Seitz faces a maximum penalty of 20 years in prison when sentenced on July 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the plea. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-98.
Albuquerque Man Sentenced to Prison for Robbing Two Fast-Food Restaurants and Brandishing a Firearm During the RobberiesRead the Press Release
ALBUQUERQUE – Sheldon Harris, 28, of Albuquerque, N.M., was sentenced today in federal court to 114 months in prison for violating the Hobbs Act by robbing two Albuquerque-area fast food restaurants and brandishing a firearm during the robberies. Harris will be on supervised release for two years following his prison sentence. Harris was also ordered to pay restitution to the fast food restaurants.
Harris was arrested on April 20, 2016, on a ten-count indictment charging him with: robbing Albuquerque-area Subway restaurants on Aug. 22, 2015, Sept. 6, 2015, Sept. 8, 2016, Sept. 26, 2015, and Oct. 5, 2015; robbing Albuquerque-area Blake’s Lotaburger restaurants on Oct. 1, 2015, Oct. 5, 2015, Oct. 11, 2015, and Oct. 18, 2015; and brandishing a firearm during a crime of violence from Aug. 22, 2015 through Oct. 18, 2015. According to the indictment, Harris committed the crimes in Bernalillo County, N.M.
On Sept. 12, 2016, Harris pled guilty to Counts 8 and 9 of the indictment, each charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce. He also pled guilty to Count 10, charging him with brandishing a firearm during a crime of violence. In entering the guilty plea, Harris admitted that on Oct. 11, 2015 and Oct. 18, 2015, he robbed Blake’s Lotaburger restaurants at gunpoint. Harris further admitted that when he robbed the Blake’s Lotaburger restaurants and several other restaurants in the Albuquerque-area, he used a firearm.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado prosecuted this case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Joshua Greene, 19, of Albuquerque, N.M., pled guilty today in federal court to heroin trafficking charges. Greene’s plea agreement includes a recommendation that Greene be sentenced within the range of 60 to 87 months in federal prison followed by a term of supervised release to be determined by the court. The plea agreement also requires Greene to forfeit $28,135 in cash, a handgun and a gold necklace set with 1,728 natural diamonds valued at $11,555, and to pay a money judgment in the amount of $28,250.
Greene and co-defendant Kayleb Reyos, 22, were arrested in May 2016, as the result of a DEA investigation into heroin and methamphetamine trafficking in northwest Albuquerque. The complaint alleges that Greene and Reyos sold an aggregate of 36 ounces (2.25 pounds) of heroin and 3 ounces (.18 pounds) of methamphetamine to undercover law enforcement agents during a series of transactions occurring between Feb. 2016 and May 2016. The two men were arrested when the DEA executed a federal search warrant at their residence in northwest Albuquerque. During the search, the DEA seized an additional pound of heroin, bulk amounts of cash, a handgun, and drug paraphernalia.
Greene and Reyos were subsequently charged in a ten-count indictment filed on June 14, 2016. The indictment charged Greene and Reyos with conspiracy to distribute heroin from Feb. 2016 to May 2016. It also charged the two defendants with distributing heroin on Feb. 25, 2016, April 12, 2016, and May 4, 2016, and distributing methamphetamine on March 23, 2016. Greene separately was charged with distributing heroin on Feb. 4, 2016, March 9, 2016, and March 22, 2016, and possessing heroin with intent to distribute on May 17, 2016. Reyos separately was also charged with possessing heroin with intent to distribute on May 17, 2016.
During today’s proceedings, Greene pled guilty to a felony information charging him with conspiracy and distribution of heroin. In entering the guilty plea, Green admitted that from Feb. 4, 2016 through May 17, 2016 he directed a small-scale drug trafficking organization in the northwest Albuquerque. Greene further admitted that on March 22, 2016, he sold approximately 135.1 grams of heroin to an undercover law enforcement agent. Greene remains in custody pending a sentencing hearing, which has yet to be scheduled.
Reyos has entered a plea of not guilty to the charges against him in the indictment. Charges in criminal complaints and indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Kristopher Houghton and Alexander Uballez are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Alabama Man Indicted on Federal Charges of Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces today the return of an indictment charging Christopher Jaye Boykin (34, Lisman) with four counts of receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison on each of count. Boykin was arrested on March 14, 2017, at his home in Alabama. His trial is 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the Jacksonville Beach Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Acting U.S. Attorney Settles Civil Rights Suit Against New York City for Violating the Americans with Disabilities ActRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has settled a federal civil rights lawsuit alleging that the CITY OF NEW YORK (the “City”), and specifically the NEW YORK CITY POLICE DEPARTMENT (“NYPD”), violated the Americans with Disabilities Act of 1990 (“ADA”) through its medical disqualification of an HIV positive applicant for a Police Communications Technician position. The settlement agreement was entered today by U.S. District Judge Ronnie Abrams.
Acting U.S. Attorney Joon H. Kim said: “The ADA prohibits employers from denying job applicants employment opportunities on the basis of a disability or perceived disability. As a result of this lawsuit, the City of New York has acknowledged that HIV status is not a basis to deny an individual employment. We will continue to work to ensure that employers do not discriminate against job applicants with disabilities.”
According to the Complaint, filed in federal court in Manhattan on January 17, 2017, the applicant – who is HIV positive – applied for the position of Police Communications Technician. The applicant successfully underwent an initial screening process, which included a background check, and received a conditional offer of employment. Following receipt of the conditional offer of employment, the applicant was required to undergo a medical examination. Shortly after completion of the medical examination, the NYPD informed the applicant that he needed to submit additional paperwork, including a blood test. After the applicant submitted the requested paperwork, the NYPD disqualified him solely because of his “HIV low CD4 count.”
The NYPD’s failure to hire the applicant because of his HIV status was in clear violation of the ADA. ADA prohibits employers from discriminating against qualified individuals solely on the basis of a disability, such as being HIV positive, in the hiring process.
As part of the settlement, the City extended the applicant a conditional offer of employment, is paying the applicant $85,000, and acknowledges that its disqualification of the applicant based on his HIV low CD4 count was in error.
More information on the obligations of employers with respect to job applicants with disabilities is available at www.ada.gov and www.eeoc.gov.
Mr. Kim thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Natasha Waglow Teleanu is in charge of the case.
5 Eastern European Immigrants Plead Guilty to Credit Card Fraud and Identity Theft Charges Related to Cyberattacks on 3 U.S. CompaniesRead the Press Release
LOS ANGELES – The fifth and final defendant charged with using credit and debit cards obtained from a series of cyberattacks on U.S. companies that resulted in an estimated $5 million in losses – and caused one victim company to go out of business – has pleaded guilty to federal fraud charges.
Irina Fedoseeva, 33, a Russian national who resides in the Koreatown District of Los Angeles, pleaded guilty yesterday afternoon to conspiracy to use unauthorized credit and debit cards and admitted causing more than $225,000 in losses.
In a plea agreement filed in United States District Court, Fedoseeva admitted to helping make fraudulent purchases with debit cards obtained as a result of cyberattacks on two healthcare administrators in December 2015 and February 2016.
After helping a co-defendant make unauthorized purchases from retail stores that included Apple and Best Buy, Fedoseeva resold the merchandise on the internet.
Four other defendants previously pleaded guilty to federal fraud charges for their roles in the computer attacks.
Timur Safin, 29, of Burbank; Dmitry Fedoseev, 34, of Koreatown; and Kristina Gerasimova, 22, of the Miracle Mile District of Los Angeles, all of whom are Russian nationals, each pleaded guilty on March 20 to aggravated identity theft and debit/credit card fraud.
The fifth defendant charged as a result of this investigation – Siarhei Patapau, 26, of the Miracle Mile District of Los Angeles, a native of Belarus – pleaded guilty on March 6 to similar felony charges.
All five defendants pleaded guilty before United States District Judge Stephen V. Wilson, who is scheduled to sentence the defendants during hearings scheduled in June and September.
According to court documents filed in two separate cases, the five defendants conspired with computer hackers, some of whom are believed to be in Russia. The hackers staged attacks that included:
- a July 2014 intrusion into an airline’s computer system in which the hackers funded pre-paid credit cards in the amount of $900,000;
- a December 2015 hack into the system of a healthcare administrator that allowed the cybercriminals to reactivate a dormant dependent care account and order the production of numerous debit cards that were used to make approximately $550,000 in fraudulent purchases; and
- a February 2016 attack on another healthcare administrator that allowed the intruders to order the production of debit cards linked to reactivated accounts that were used to make approximately $3.5 million in fraudulent purchases.
The computer hackers directed the pilfered debit and credit cards to be sent to the five defendants charged in Los Angeles and other co-conspirators. Members of the conspiracy then used the unauthorized cards to make cash withdrawals, purchase money orders and make purchases at retail outlets such as Apple, Best Buy, Home Depot and Target.
For example, Safin admitted in court that he used a number of the pre-paid credit cards to withdraw approximately $5,074 at ATMs throughout Los Angeles County and to purchase money orders totaling $19,420. He used debit cards obtained from the healthcare administrators to make at least $225,000 in fraudulent purchases.
When they were arrested last year, Fedoseev was in the possession of more than 519 unauthorized credit, debit and gift cards, and Patapau was found with approximately 525 credit and debit cards in other people’s names.
As a result of their guilty pleas, Patapau, Safin and Fedoseev each face a statutory maximum sentence of 12 years in federal prison when they are sentenced by Judge Wilson. Gerasimova faces a statutory maximum sentence of seven years, and Fedoseeva faces a statutory maximum sentence of five years.
The investigation that led to the two cases filed in Los Angeles was conducted by the Federal Bureau of Investigation.
The two criminal cases are being prosecuted by Assistant United States Attorneys Bryant Yang and Eric Tung of the General Crimes Section.
26 Individuals Indicted for Smuggling Cocaine Through the Luis Muñoz Marín International AirportRead the Press Release
SAN JUAN, Puerto Rico – On April 10, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against twenty-six defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The indictment alleges that beginning on a date unknown, and continuing up to and until the return of the indictment, the defendants smuggled multi-kilogram quantities of cocaine through the Luis Muñoz Marín International Airport (LMMIA) to the Continental United States. The smuggled cocaine was destined to major cities in the Eastern coast. The defendants charged in the indictment had several different roles.
The lead defendant [1] Humberto Concepción-Andrades was identified as the leader and supplier of a Drug Trafficking Organization (DTO) that smuggled multi-kilogram quantities of cocaine through the LMMIA in Carolina, Puerto Rico. The facilitators were identified as: [2] Jose Colón-Guzmán, [3] Miguel García-Blasco (an employee for JetBlue Airlines at LMMIA and currently a Southwest Airlines employee at the Orlando International Airport), [4] Tito Diaz-Serrano (an employee for Antilles Services, an airport services company at LMMIA), [5] Tomás Domínguez-Rohena (an employee of American Airlines at LMMIA and Miami International Airport), [6] Alexander Gazmey-Santiago (an employee of the International Meal Company who worked at the Air Margaritaville restaurant in LMMIA); and [10] Danel González-González, who smuggled multi-kilogram quantities of cocaine through DHL and through employees of Perfect Cleaning Services Inc., a company that provides cleaning service at LMMIA.
Defendants in the indictment include employees of Air Margaritaville (a restaurant located beyond the TSA security check point at LMMIA): [7] Harold Oliveras-Landrau, [8] Rodney Pérez-Ortega, [11] Michael Danet-Delgado, [12] Jose Paris-Romero, [13] Jean Ocasio-Castro, [14] Orbi Villar-Enriquez, [15] Héctor Ortiz-Brignoni, [16] Edwin Rosario-Rosario and [17] Rafael Coriano-Sierra.
Additional defendants included current and former employees of American Airlines at LMMIA cargo department: [18] Luis Diaz-Colón, [19] Miguel Ruiz-Delgado, [20] Daniel Vélez-Sanjurjo, [21] Marcos González-Figueroa and [22] Brian Otero.
Defendant [24] Aimee Monegro-Polanco is the wife of defendant [1] Humberto Concepción-Andrades. Along with [1] Humberto Concepción-Andrades, [24] Aimee Monegro-Polanco funneled narcotic proceeds through bank accounts of corporations they created to conceal the nature, source, location, ownership, or control of the narcotic proceeds.
Defendants were used as mules to carry the narcotics through LMMIA to its final destination in the Continental United States: [9] Ángel Almodovar-García, [25] Carl Frank Zubillaga and [26] David Figueroa-Colón.
[9] Ángel Almodovar-García also smuggled multi-kilogram quantities of cocaine through LMMIA with the help of UPS driver [23] Felix Rosado-Colón.
The indictment sets forth various methods used by the co-conspirators to smuggle the drugs:
Bathroom Smuggling Method at LMMIA
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [3] García-Blasco. [3] García-Blasco. [3] García-Blasco would then smuggle the kilograms of cocaine past security at LMMIA into the secured area of LMMIA. Defendants [9] Almodovar-García, [25] Zubillaga and [26] Figueroa-Colón worked as mules for the DTO. The mules would arrive at LMMIA, pass through a TSA security checkpoint and contacted [3] García-Blasco or another facilitator. The facilitators indicated the specific bathroom where the mule would meet [3] García-Blasco and receive the kilograms of cocaine. Once the mules had obtained the kilograms they placed them into their carry-on luggage and boarded flights to the Continental United States.
American Airlines Smuggling Method
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [3] García-Blasco. [3] García-Blasco, then provided the cocaine to another facilitator, [4] Díaz-Serrano. [4] Díaz-Serrano then contacted American Airlines employees, who were previously indicted in 2015, who worked for the drug trafficking organization (DTO).
The mules would enter the airport and hand their checked luggage containing multi-kilogram quantities of cocaine to member(s) of the DTO who were working at the American Airlines counter. The American Airlines DTO member(s) would place a sticker onto the checked luggage indicating that it had been cleared by TSA, when in fact the luggage had not been cleared by TSA. The American Airlines employees would then place the checked luggage with other luggage, which had been previously cleared by TSA, and would load them onto commercial airlines headed to the Continental United States.
Air Margaritaville Restaurant Smuggling Method
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [6] Gazmey-Santiago, who would contact members of the DTO employed at the Air Margaritaville restaurant inside LMMIA.
Defendant [12] Paris-Romero, among others, received the cocaine and would place it into the Black Coffee garbage chute at LMMIA, thereby moving the cocaine past the security checkpoint and into the secure area of the airport. Once the cocaine was removed from the trash chute, defendants [8] Pérez-Ortega and [13] Ocasio-Castro would remove the cocaine and store it inside lockers in the Air Margaritaville employee locker room.
Defendants [15] Ortiz-Brignoni, [17] Coriano-Sierra, and other members of the DTO, would move the cocaine from the lockers into the dishwashing area of the Air Margaritaville restaurant. Defendants [16] Rosario-Rosario, [12] Paris-Romero were waiters at the restaurant. They delivered the cocaine inside five pound bags of Gustos Coffee Company coffee bags to defendants [9] Almodovar-García, [25] Zubillaga and [26] Figueroa-Colón. After receiving the coffee bags with the cocaine, the mules boarded flights to the Continental United States. Each Gustos Coffee Company coffee bag contained approximately three to four kilograms of cocaine.
Perfect Cleaning Services Inc. Smuggling Method
Defendant [1] Concepción-Andrades supplied multi-kilogram quantities of cocaine to a DTO facilitator who provided the cocaine to defendant [10] González-González. Gonzalez-Gonzalez ultimately supplied the cocaine to an employee(s) of Perfect Cleaning Services Inc., one of these employees was previously indicted in 2015. The mule(s) would arrive at LMMIA, go through a TSA security checkpoint and contact an employee of Perfect Cleaning Services Inc. The Perfect Cleaning Services Inc. employee would then meet the mule inside a bathroom at LMMIA. The Perfect Cleaning Services Inc. employee would then slide a backpack or piece of luggage containing multi-kilogram quantities of cocaine to the mule under the center divider of the stalls. The mule would then board a flight to the Continental United States.
American Airlines Cargo Smuggling Method
According to the Indictment, defendant [4] Diaz-Serrano facilitated a smuggling venture utilizing American Airlines cargo employees. The employees who participated in this smuggling method were: [18] Díaz-Colón, [19] Ruiz-Delgado, [20] Vélez-Sanjurjo, [21] González-Figueroa, and [22] Brian Otero. As American Airlines employees, they could ship goods free of charge on American Airlines flights. They would obtain multi-kilogram shipments of cocaine in boxed goods, and use American Airlines employee IDs at the American Airlines cargo counter at the airport. The employee would then fill out the proper cargo paperwork and take the shipment through security inspection. DTO members would then clear the shipment and place it on a flight to the Continental United States.
DHL Smuggling Method
Defendant [1] Concepción-Andrades supplied multi-kilogram quantities of cocaine to a DTO facilitator who provided the cocaine to defendant [10] González-González, who smuggled the multi-kilogram quantities of cocaine onto cargo planes headed to the Continental United States.
“These individuals developed numerous smuggling lines to transport cocaine through the LMMIA in Puerto Rico to the Continental United States. Today we have brought their operations to a grinding halt,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The members of our AirTAT initiative will continue to work together to ensure that our airports are not used to smuggle contraband into the United States mainland.”
Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) is in charge of the investigation with the collaboration of the Federal Bureau of Investigation (FBI), Drug Enforcement Agency (DEA), the U.S. Marshals and the Police of Puerto Rico.
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents and illicit proceeds. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental United States as well as international destinations.
10 Convictions from Operation Riptide in Six Weeks Since ArrestsRead the Press Release
NORFOLK, Va. – On March 1 over 150 law enforcement agents and officers executed a major takedown, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk. Today, two more federal defendants pleaded guilty to firearm and drug charges, bringing the total convictions to 10 in the six weeks since the takedown.
The Bureau of Alcohol, Tobacco, and Firearms (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from this office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and/or other narcotics. Operation Riptide resulted in the recovery of over 50 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and 47 hand guns, 18 of which had obliterated serial numbers or were stolen), over 170 grams of heroin, 65 grams of powder cocaine, 290 grams of crack cocaine, and a bullet proof vest.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Larry Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge Raymond A. Jackson and U.S. Magistrate Judge Lawrence Leonard accepted the pleas for the ninth and tenth federal defendants.
The case is being prosecuted by Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young, along with Special Assistant U.S. Attorney John F. Butler, James F. Entas, of the Virginia Attorney General’s Major Crimes and Emerging Threats Unit, and Norfolk Assistant Commonwealth Attorney Catherine Paxson.
The ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police investigated this case with assistance from the Virginia Beach and Chesapeake Police Departments, and the Norfolk and Chesapeake Sheriff’s Offices.
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 Nos. 2:17-cr-Case Nos. 2:17-cr-21, 25, 26, 27, 28, 32, 34, 36, 37.
Name, AKA
Age, Hometown
Pleaded Guilty to the Following Charge(s)
Guilty Plea
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
March 16
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Distribution of a Controlled Substance; Possession of Firearms in Furtherance of a Drug Trafficking Crime
March 21
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
March 22
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
March 29
Evrick Speight
aka “P”
23, Virginia Beach
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
April 5
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin
April 10
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
April 11
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
April 10
Keone Devon Perry, 23
23, Chesapeake
Transfer of Firearm to Prohibited Person
April 10
Carl Lee Walton, 22
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
April 11
10 April 2017
Wichita Man Sentenced in Armed Bank RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to seven years in federal prison for his part in robbing a local bank, U.S. Attorney Tom Beall said.
Andre Bryant, 30, Wichita, Kan., pleaded guilty to one count of aiding and abetting or brandishing a firearm in a crime of violence. In his plea, he admitted that on June 13, 2016, he and co-defendants robbed the Carson Bank at 4461 E. Douglas in Wichita. Two individuals who were disguised entered the bank, one of them brandishing a firearm. They demanded and received money before fleeing. The money they received contained a global positioning device that police used to track Bryant and the co-defendants and arrest them.
Co-defendants Raishat Magill and Elijah Shelton are set for sentencing Thursday.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Wichita Man Sentenced for Using Stolen Identity to Take Out $43,000 Car LoanRead the Press Release
WICHITA, KAN. - A Wichita man who used a stolen identity to take out a $43,000 car loan was sentenced Monday to 45 months in federal prison, U.S. Attorney Tom Beall said.
Jacob Michael Martin, 32, Wichita, pleaded guilty to one count of bank fraud and one count of aggravated identity theft. In his plea, Martin admitted he used another man’s identity when he went to CarMax and applied for a loan to buy a 2012 Jaguar. As a result, Wells Fargo Bank issued a loan of $43,599.47 in the victim’s name. Martin presented a counterfeit Kansas driver’s license with his own picture and the name of the victim. He also gave the lender the victim’s Social Security number.
Martin is one of 13 people charged in an indictment filed in May 2016 alleging the conspirators worked together to steal mail from mailboxes, forge identification documents, obtain fraudulent credit cards and shop with stolen identities.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Waterbury Man Sentenced to 51 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMAR JONES, also known as “Mitch,” 35, of formerly of Ansonia and Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 51 months of imprisonment, followed by three years of supervised release, for distributing heroin. JONES also was ordered to perform 80 hours of community service during his term of supervised release.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in March 2016, the Ansonia Police Department and DEA received information that JONES was selling heroin in and around Ansonia and Waterbury, and that some of the heroin distributed by Jones had led to a non-fatal overdose. Officers made two controlled purchases of heroin from JONES in March 2016. Based on these sales, on April 14, 2016, Ansonia Police conducted a court-authorized search of JONES’s former residence in Ansonia and seized approximately 66 grams of heroin, 22 grams of crack cocaine, more than $17,000 in cash and three vehicles. JONES was arrested on that date for state narcotics offenses and was released on a $100,000 bond.
While released on bond, JONES continued to distribution heroin. Investigators conducted additional controlled purchases of heroin from JONES, and then from Alvin Lopes when the investigation revealed that he was working with Jones to distribute heroin.
JONES has been detained since his arrest on August 11, 2016. On December 5, 2016, he pleaded guilty to one count of conspiracy to distribute heroin and one count of possession with intent to distribute heroin and cocaine base (“crack”).
Lopes, of Waterbury, pleaded guilty to one count of conspiracy to distribute heroin and, on January 18, 2017, he was sentenced to 27 months of imprisonment.
This investigation was conducted by the Drug Enforcement Administration and the Ansonia Police Department. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Jocelyn Courtney-Kaoutzanis.
Virginia Department of Social Services Agrees to Pay $7.1 Million to Resolve Alleged False Claims for SNAP FundsRead the Press Release
The Virginia Department of Social Services (VDSS) has agreed to pay the United States $7,150,436 to resolve allegations that it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
“SNAP is an important vehicle for helping needy families,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement reflects the Justice Department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that its eligibility decisions are accurate. USDA requires that the quality control processes the states use ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions. The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
As part of the settlement, VDSS admitted that, beginning in 2010, it retained Julie Osnes Consulting, a quality control consultant, to reduce its SNAP benefits determination error rate by training VDSS quality control workers to “use whatever means necessary” to find a benefits decision “correct” rather than finding an error. VDSS also admitted that if its quality control staff “could not find a way to make a benefits decision correct,” they were instructed to “find a reason to ‘drop’ the case, or eliminate it from the sample.” VDSS acknowledged that this outcome-driven method, as implemented by VDSS between 2010 and 2015, “injected bias into the case review process” because it was designed to lower VDSS’s reported error rate by falsely reporting errors as “correct” or eliminating them from the sample. Through its use of these biased methods, VDSS was improperly awarded USDA performance bonuses for 2011, 2012, and 2013.
VDSS further admitted that VDSS quality control workers did not want to use the methods proposed by Julie Osnes Consulting because they believed the methods lacked integrity, injected bias into the quality control process, and violated USDA requirements, and that they communicated these concerns to their supervisors. VDSS admitted that the former VDSS quality control manager pressured and intimidated these employees to force them to adopt these methods, including, according to these employees, threatening termination, providing negative performance reviews, taking away teleworking and flexible scheduling privileges, and engaging in other forms of harassment and retaliation.
As part of the settlement, VDSS and the United States also agreed that VDSS had taken certain corrective actions beginning in 2015, including terminating its use of the improper quality controls methods devised by Julie Osnes Consulting.
“We appreciate the commitment and investigative assistance provided by our partners at the U.S. Department of Justice’s Civil Division, U.S. Attorney’s Office, and Virginia Office of the State Inspector General,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at USDA, OIG. During our investigation, we worked together to address the concerns of state employees and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. Today’s settlement sends a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
The settlement was the result of an investigation conducted by the USDA Office of Inspector General (USDA-OIG), the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the Western District of Wisconsin that arose out of a nationwide audit of SNAP QC processes by the USDA-OIG.
Upstate New York Man Sentenced to 33 Months in Crystal Meth CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on Friday, April 7, 2017, Justin R. Brennan, 37, of Queensbury, New York, was sentenced in the United States District Court in Burlington following his guilty plea to Conspiracy to Distribute Five Grams or More of Methamphetamine. Chief U.S. District Court Judge Christina Reiss sentenced Brennan to 33 months in prison followed by three years of post-release supervision.
According to court records, the defendant was charged by information with one count of conspiracy to distribute methamphetamine, commonly referred to as “crystal meth.” As part of the plea agreement, Brennan stipulated that between April 2015 and April 2016, he conspired to take possession of between 1.5 and 4.5 kilograms of methamphetamine for the purposes of distribution in Vermont and elsewhere.
On or about April 13, 2016, Brennan sold approximately 28 grams of methamphetamine to a cooperating witness for the government. Law enforcement discovered that Brennan had fronted a significant amount of methamphetamine to his customers, including approximately 56 grams shortly before his arrest in April 2016. During the execution of a search warrant at Brennan’s upstate New York residence, law enforcement agents discovered over 50 grams of methamphetamine that Brennan had planned to distribute for profit.
Acting United States Attorney Eugenia A.P. Cowles credited the Federal Bureau of Investigation, as well as the Vermont State Police Drug Task Force and the New York State Police, for their hard work and cooperation in the investigation of this case.
Brennan was represented by Richard Goldsborough, Esq. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Two Sentenced for Conspiring to Sexually Exploit ChildrenRead the Press Release
TYLER, Texas — A man and woman have been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Brian Casper, 27, of Tyler, Texas pleaded guilty on Nov. 1, 2016, to conspiracy to sexually exploit children and was sentenced to 336 months in federal prison today by U.S. District Judge Ron Clark. Casper will be required to register as a sex offender upon his release from federal prison.
Taylor Keeth, 22, of Indianola, Iowa, pleaded guilty on Dec. 7, 2016, to conspiracy to sexually exploit children and was sentenced to 282 months in federal prison today by Judge Clark. She will also be required to register as a sex offender upon her release from federal prison.
According to information presented in court, between November 2014 and August 2015, Casper, knowingly conspired and agreed with Keeth, Crystal Beam, 35, of Medford, Oregon, and Lacy Brooks, 31, of Searcy, Arkansas, to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Crystal Beam pleaded guilty on Nov. 14, 2016, to conspiracy to sexually exploit children. Lacy Brooks, 31, of Searcy, Arkansas, pleaded guilty on Jan. 10, 2017 in the Eastern District of Arkansas, to production of child pornography and distribution of child pornography. Beam and Brooks are awaiting sentencing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Tyler Police Department, Port of Galveston Police Department, White County (Arkansas) Sheriff's Office, Indianola (Iowa) Police Department, and the Medford (Oregon) Police Department. This case is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorneys Erin O'Leary and Kristin Bryant of the Eastern District of Arkansas.
Two Randolph County Residents Charged with Methamphetamine OffenseRead the Press Release
On April 4, 2017, two Randolph County residents were charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Rodney V. Howie, 47, of Tilden, and Jordan P. Leggans, 29, of Sparta, were charged in a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between 2015 and February 2017, in Perry, Randolph, Monroe, and St. Clair Counties. On April 10, 2017, Howie and Leggans made their initial appearances in federal court. They were ordered held without bond pending an April 13, 2017, detention hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office, Perry County, Missouri Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Two Men Convicted in Unrelated Cases for Distributing Child Porn Sentenced to Lengthy Prison SentencesRead the Press Release
LUBBOCK, Texas — Two men who were convicted in unrelated cases on child pornography offenses have been sentenced to lengthy federal prison sentences by Senior U.S. District Judge Sam R. Cummings, announced U.S. Attorney John Parker of the Northern District of Texas.
Ambrose Ledezma, 24, of San Angelo, Texas, was sentenced last week to 135 months in federal prison. Ledezma pleaded guilty in December 2016 to one count of distributing child pornography. Ledezma was remanded to custody following his sentencing hearing. According to documents filed in his case, Ledezma used Kik, an instant messenger software application that operates over the Internet, to send and receive messages. On April 15, 2015, Ledezma used Kik to distribute two images of child pornography to a Kik group named “Only For Kid Porn.” Each of the images distributed to this group by Ledezma depicts a minor prepubescent female engaged in sexually explicit conduct. Ledezma had obtained these images over the Internet by searching for images of minors engaged in sexually explicit conduct. The Department of Homeland Security, Homeland Security Investigations investigated the case.
Cody Brett Wilcox, 26, of Lubbock, Texas, was also sentenced last week to 188 months in federal prison. Wilcox pleaded guilty in December 2016 to one count of distributing child pornography. He has been in custody since his arrest in November 2016. According to documents filed in his case, Wilcox, using Kik, located a person who had posted that he was looking for “dads into incest, taboo, etc.” Wilcox contacted this person and messaged with him from October 20, 2016, through October 26, 2016. During the communications, Wilcox informed the other person that he had a lot of child pornography and that he traded the material on a regular basis. Wilcox sent the other person five images of child pornography. The images depicted prepubescent minor females engaged in sexually explicit conduct. The Lubbock Police Department and the Federal Bureau of Investigation investigated this case.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney Steven M. Sucsy prosecuted both cases.
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Store Clerk Pleads Guilty in Money Laundering ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Cresson, Pa. pleaded guilty in federal court in Johnstown to a charge of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
Melissa R. Seymore, 41, of Cresson, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, PA, that dealt in new and used merchandise. Ms. Seymore was an employee/clerk at the business. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customer” coming into the store, or was received by the employees as proceeds of this conduct.
Judge Gibson scheduled sentencing for August 9, 2017, at 10:00 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Seymore.
Springfield Business Owner Pleads Guilty to Wire Fraud, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., business owner pleaded guilty in federal court today to a $555,000 wire fraud scheme and to failing to pay taxes on any of the embezzled income.
Rebecca Pargeon, 58, of Springfield, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with wire fraud and filing a false tax return.
Pargeon owned and operated three different medical payment collection businesses – Pargeon Medical Services, LLC, Kids First Pediatric Billing, LLC, and Surgical Billing Solutions, LLC. Pargeon was hired by medical practitioners throughout the country to collect monies owed by their patients and insurance companies as payment for medical services provided. Upon collecting monies owed to a medical practitioner, Pargeon was contractually obligated to deposit the checks she received into the practitioner’s bank account. At the end of each month, the practitioners would pay her a percentage of the monies her businesses collected on their behalf.
By pleading guilty, Pargeon admitted that she embezzled $555,558 from her clients from Jan. 11, 2012, to April 26, 2016. Pargeon took payments she collected, which were made payable to the medical practitioners, and fraudulently deposited them into her business and personal bank accounts without the approval or authority of the medical practitioner. Pargeon did not have the authority to sign their names, endorse any of the checks, or deposit them into her business or personal bank accounts. Pargeon admitted that she fraudulently endorsed and deposited over 740 checks made payable to her medical practitioner clients.
Pargeon also admitted that she failed to report the embezzled income on her federal tax returns for 2012 through 2015. This resulted in a total tax loss to the government of $170,749, without penalty or interest. Pargeon, who prepared the tax returns herself utilizing the Turbo Tax computer tax program, specifically pleaded guilty to failing to report $232,929 in income received from the fraud scheme and earned from her businesses in 2012.
Under the terms of today’s plea agreement, Pargeon must forfeit to the government $726,307, which represents the proceeds of the wire fraud scheme as well as $232,929 in income Pargeon received in 2012 for the fraud scheme and earned from her businesses, but which she failed to report on her 2013 tax return.
Under federal statutes, Pargeon is subject to a sentence of up to 23 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Spotlight on Idaho U.S. Attorney’s Criminal Immigration ProgramRead the Press Release
BOISE – “The United States Attorney’s Office for the District of Idaho is committed to using its prosecutorial resources to address the most significant threats to public safety and border security in the most effective, consistent, and rational way,” announced Acting United States Attorney Rafael Gonzalez. The U.S. Attorney’s Office prioritizes the prosecution of criminal aliens who return illegally and continue to commit crimes after having been convicted and removed.
The Enforcement and Removal Operations (ERO) section of the Office of Immigration and Customs Enforcement (ICE), and other components of the Department of Homeland Security (DHS), refer matters for criminal prosecution to the U.S. Attorney’s Office. U.S. Attorney’s Office’s Immigration Crimes Coordinator then reviews the matters for prosecution. Over the past ten years, the U.S. Attorney’s Office has, on average, prosecuted 80 criminal immigration cases each year. This number includes prosecutions of criminal aliens who have illegally returned following conviction and removal, and prosecutions of aliens who possessed or used fraudulent immigration documentation while in the United States.
According to DHS, in fiscal year 2016, approximately 240,255 aliens were removed from the United States. Those removals included individuals apprehended in the interior of the United States, as well as those encountered at or near the border or ports of entry. For illegal aliens apprehended in the interior of the country, more than 90 percent had previously been convicted of a crime.
“The U.S. Attorney’s Office, together with its main criminal law enforcement partner, ICE ERO, will vigorously pursue criminal charges against criminal aliens, focusing on those who threaten the safety of our community,” Gonzalez said.
Southern Illinois Public Corruption Task Force Introduces New TiplineRead the Press Release
On Monday, April 10, 2017, Donald S. Boyce, United States Attorney for the Southern District of Illinois, and Brendan F. Kelly, State’s Attorney for St. Clair County, Illinois, announce the introduction of the Southern Illinois Public Corruption Task Force Tip Line: 618-589-7353. There will also be a billboard campaign in connection with the Tip Line.
Anyone with information concerning public corruption occurring within the 38 counties that make up the Southern District of Illinois is encouraged to call the Tip Line. Agents from the FBI, IRS Criminal Investigations, and Illinois State Police will professionally and swiftly investigate any information provided. It is only by citizens alerting law enforcement to public corruption that law enforcement can continue to investigate and prosecute those officials who have betrayed their oaths and the public trust by choosing to make public service into self-service.
St. Clair County State’s Attorney Brendan Kelly said, "Over the past five years, we have greatly increased prosecution of public corruption. With trust in our public institutions at an all-time low, we must do everything we can to protect it from those who would violate it."
U.S. Attorney Boyce said, "Concerned citizens are the government’s biggest asset when it comes to exposing people who are abusing the public’s trust and misusing taxpayer money to line their own pockets. This initiative is designed to solicit the public’s help in identifying and targeting public corruption."
Six Indicted for Defrauding Solano County Energy Company Involving over $2.2M in Total LossRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 25-count indictment on April 6, 2017, charging six defendants in connection with their various roles in defrauding an energy generation company of over $2.2 million, United States Attorney Phillip A. Talbert announced. The indictment was unsealed today, and all six defendants were arraigned today on the indictment.
The defendants have been charged as follows:
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Timothy Chapin, 38, formerly of Lathrop, is charged with three counts of conspiracy to commit mail or wire fraud, five counts of mail fraud, 14 counts of wire fraud, and three counts of conspiracy to commit money laundering.
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Manuel Agueros, 37, formerly of Lathrop, and Dodge City, Kansas, is charged with two counts of conspiracy to commit mail or wire fraud, three counts of mail fraud, 11 counts of wire fraud, and two counts of conspiracy to commit money laundering.
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Jeffrey Reilley, 53, of Ripon, is charged with one count of conspiracy to commit mail and wire fraud and six counts of wire fraud.
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Paul Fournier, 34, of Scottsdale, Arizona, is charged with one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, eight counts of wire fraud, and one count of conspiracy to commit money laundering.
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Jorge Eguiluz, 46, of Stockton, is charged with one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
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Robert Lautenslager, 38, of Castro Valley, is charged with one count of conspiracy to commit mail and wire fraud, two counts of mail fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
According to the indictment, Chapin, Reilley, and Agueros all worked for a Florida-based energy generation company that operated wind farms in the Solano County town of Birds Landing in California. Chapin, a senior business technician, and supervisors Reilley and Agueros executed a scheme that caused the generation of purchase orders for parts and services not actually needed at the wind farms. Those purchase orders were sent to three Arizona-based shell companies that had been set up by Fournier; the shell companies had no facilities and provided no actual products or services. The shell companies then submitted fraudulent invoices to the energy generation company for undelivered products and unperformed services, and were paid on those invoices in an amount just under $2 million. Also according to the indictment, Chapin, Agueros, and Eguiluz engaged in a similar scheme using a company called “J. Eguiluz Labor Service LLC” as the shell company to submit fraudulent invoices and be paid on those invoices. Further still, Chapin and Lautenslager engaged in a similar scheme using a shell company set up by Lautenslager to submit fraudulent invoices and be paid on those invoices.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Nirav Desai is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The money laundering charges are subject to fines of up to $500,000 or twice the value of the property involved in the money laundering transactions. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Sissonville felon who stole seven rifles pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Sissonville man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Jeffrey Phelix, 32, entered his guilty plea to being a felon in possession of a firearm.
Phelix admitted that on October 25, 2016, he broke into a garage at the residence of a licensed firearms dealer and stole seven rifles. One of the rifles Phelix stole had a suppressor attached, which functions as a silencer to reduce the noise from firing the gun and is illegal to possess without the registration required by the National Firearms Act. Phelix was arrested after his fingerprint was recovered from the window of the garage. Phelix was prohibited from possessing any firearm under federal law because of a 2011 felony conviction in Kanawha County Circuit Court for burglary by breaking and entering.
Phelix faces up to 10 years in federal prison when he is sentenced on June 28, 2017.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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.
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Seventh Defendant Indicted for Oxycodone-Related ChargesRead the Press Release
United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin announced that on April 4, 2017, a federal grand jury returned an eight-count superseding indictment against seven individuals involved in distributing Oxycodone. The original indictment named Lance Bruette (age: 34) of Minocqua, Orvin Kay (age: 57) of Milwaukee, Frank Lawrence (age: 38) of Saint Germain, Mitchell Plantikow (age: 29) of Woodruff, Troy Plantikow (age: 52) of Woodruff and Lacey Stanick (age: 31) of Woodruff, Wisconsin) as the defendants.
The superseding indictment includes Serena Johnson (age: 34) of Lac Du Flambeau as a co-conspirator. Count one of the superseding indictment, charges all seven defendants with conspiracy to distribute oxycodone in violation of Title 21 United States Code Section 846. The other seven counts of the indictment were not changed.
According to the criminal complaint filed against Orvin Kay, certain members of the conspiracy who resided in Northern Wisconsin would drive to Milwaukee and pick up hundreds of oxycodone 30 mg pills per week from Orvin Kay. They would then distribute those oxycodone pills to individual users, as well as co-conspirators who would sell the pills to other individuals. The maximum penalty for all of the charges is 20 years in prison and a $1,000,000 fine.
The following agencies are participating in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice - Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department and the Rhinelander Police Department. The case is being prosecuted by Assistant United States Attorneys Zachary J. Corey and Benjamin Wesson.
An indictment and a criminal complaint is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Rochester Man Pleads Guilty to Armed Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Oliver, 26, of Rochester, NY, pleaded guilty to possession with intent to distribute cocaine and carrying a firearm during a drug trafficking crime, before U.S. District Judge Charles J. Siragusa. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, a fine of $1,000,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on September 18, 2016, a Rochester Police Department officer was on patrol in the Joseph Avenue area in Rochester. The officer saw a 2014 Ford Focus almost strike someone on a bicycle when it was turning right onto William Warfield Drive. A records check revealed that the vehicle had been reported stolen.
A short while later, the officer approached the parked car which was still running. Oliver was in the driver’s seat. As he approached the driver’s side door, the officer could smell burnt marijuana. He asked Oliver about the smell and the defendant motioned to a burnt marijuana cigarette located in the center console. The officer then instructed Oliver to get out of the car, which he did. Once out of the car, the officer placed the defendant in handcuffs and then lifted Oliver’s shirt and found a loaded handgun hanging out of his right pants pocket. A search of Oliver’s car recovered 13 individual glassine bags of cocaine.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing is scheduled for July 11, 2017, at 10:00 a.m. before Judge Siragusa.
Randolph County Resident Charged with Methamphetamine OffenseRead the Press Release
On April 4, 2017, a Randolph County man was charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Brian A. Mudd, 59, of Ruma, was charged in a one-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between June 2016 and December 8, 2017, in Randolph County. On April 10, 2017, Mudd made his initial appearance in federal court. He was ordered held without bond pending an April 13, 2017, detention hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Chester Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office also assisted in the investigation. The case is assigned to Assistant United States Attorneys Amanda A. Robertson and Adam E. Hanna for prosecution.
Preston County woman guilty of embezzlementRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Bruceton Mills, West Virginia woman has been convicted of embezzling $87,529 from West Virginia University, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Loretta J. Reckart, age 55, pled guilty today to one count of “Theft Concerning Programs Receiving Federal Funds.” Reckart admitted to embezzling while employed by West Virginia University from October 2010 to July 2016 in Monongalia County.
Reckart faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams prosecuted the case on behalf of the government. The United States Department of Health and Human Services - Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Physician Pleads Guilty to One Count of Conspiracy to Pay and Receive Illegal KickbacksRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOBIE CREAR, M.D., age 70, of New Orleans, pled guilty today to one count of conspiracy to pay and receive illegal kickbacks.
On December 12, 2016, CREAR, who operated Comprehensive Nursing and Home Health Service, Inc. (Comprehensive), was charged in a Bill of Information for illegally paying recruiters to bring Medicare beneficiaries to Comprehensive causing a loss to Medicare in the amount of $810,556.
CREAR faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Sarah S. Vance set sentencing for July 12, 2017.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
Philadelphia Man Sentenced to 84 Months for Defrauding the IRSRead the Press Release
Today, United States District Court Judge Legrome D. Davis sentenced Ahmed Kamara, 41 of Collingdale, Pennsylvania, to 84 months’ imprisonment for conspiring to defraud the Internal Revenue Service by filing false federal income tax returns, announced Acting United States Attorney Louis D. Lappen. Defendant Kamara pleaded guilty to preparing and filing false federal income tax returns, wire fraud, and aggravated identity theft on July 18, 2016.
Ahmed Kamara and five co-conspirators were charged with conspiring to file false federal tax returns for themselves and others. As a manager of Medmans Financial Services, a tax preparation business operating out of Philadelphia, Kamara prepared fraudulent federal income tax returns for himself and his clients. From 2008 to 2013, Kamara obtained names, dates of birth, and social security numbers of children in foster care, and falsely claimed that these children were the dependents on the fraudulent federal income tax returns he prepared for himself and his clients. Over this period of time, Kamara prepared 1,217 returns which resulted in a tax loss to the Internal Revenue Service of approximately $7,972,093.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Frank Costello.
Orange County Man Sentenced to over 9 Years for Operating Fake Law Firms that Promised to Help Struggling HomeownersRead the Press Release
SANTA ANA, California – A Brea man was sentenced today to 109 months in custody for operating a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm.
Bryan D’Antonio, 50, was sentenced by United States District Judge David O. Carter, who ordered the defendant to spend 97 months in federal prison and to serve the final year of the sentence in a halfway house. In addition to the sentence of over eight years, Judge Carter ordered D’Antonio to pay $3,826,977 in restitution.
D’Antonio pleaded guilty last August to one count of conspiracy to commit mail and wire fraud in relation to his role as owner and operator of Rodis Law Group (RLG) and America’s Law Group (ALG). D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme that induced homeowners to pay between $3,500 and $5,500 for the services of RLG and its successor entity, ALG.
In connection with his gulty plea, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stating that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys.
D’Antonio was previously convicted of mail and wire fraud and was sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. And, in violation of the permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation in which employees routinely misrepresented the services RLG and ALG would provide.
“While still under court supervision after serving a prison term in another telemarketing case, D’Antonio oversaw what was essentially a boiler room operation that preyed upon struggling homeowners,” said Acting United States Attorney Sandra R. Brown. “Hundreds of victims lost millions of dollars after D'Antonio’s employees told a series of lies that misrepresented nearly every aspect of the business. Today’s lengthy sentence will ensure that he will not have the opportunity to defraud unsuspecting victims for many years.”
“This defendant – a repeat telemarketing fraudster - took advantage of vulnerable homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “His two fake law firms promised homeowners assistance saving their homes and modifying their mortgages. The sad reality is both firms were nothing more than telemarketing scams.”
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications for homeowners. For example, the telemarketers falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their cases. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by D’Antonio, a convicted felon who was prohibited from engaging in telemarketing.
“Mr. D’Antonio preyed upon victims who were already experiencing difficult circumstances and robbed them of their remaining financial resources,” said Deirdre L. Fike, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Homeowners seeking financial assistance should thoroughly investigate businesses before investing their money in advance of receiving services.”
D’Antonio’s was charged along with two co-defendants – Charles Wayne Farris and Ronald Rodis – both of whom pleaded guilty last year to conspiring to commit mail and wire fraud. Farris and Rodis are scheduled to be sentenced by Judge Carter on May 1.
This case was investigated by the Federal Bureau of Investigation, which received the assistance of IRS Criminal Investigation.
“Mr. D’Antonio masterminded a scheme that stole nearly $9 million from homeowners across the country who were already on the verge of losing their homes,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “Taxpayers deserve our vigilance in the investigation and prosecution of individuals who profit from such unscrupulous acts.”
The case is being prosecuted by Assistant U.S. Attorney Joseph T. McNally of the Santa Ana Branch Office and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.
North Port Man Sentenced in Check Cashing Bank Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Michael Wesley (49, North Port) to 27 months in federal prison for his role in a bank fraud scheme. The Court also ordered him to pay restitution to the banks involved. Wesley pleaded guilty on December 12, 2016.
According to court documents, Wesley was engaged in a fraud scheme in which he would obtain checks that had been stolen from United States Postal Service mailboxes. He would then use the personal information printed on those stolen checks to cash, at the victim’s own bank, worthless checks made payable to the victim but that had been written on closed accounts from other banking institutions. In this manner, Wesley frequently obtained cash from federally insured financial institutions.
This case was investigated by the United States Postal Inspection Service, with assistance from the Sheriff’s Offices in Manatee, Hillsborough, Seminole, and Lee Counties, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Newark Drug Dealer Man Sentenced in Erie to 15 Years in PrisonRead the Press Release
ERIE, Pa. - A former resident of Newark, New Jersey, has been sentenced in federal court to 180 months in jail and 10 years supervised release on his conviction of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Zavia L. Johnson, 48. The sentence was ordered to be served consecutively to a 14 year sentence Johnson is currently serving.
According to information presented to the court, on November 2, 2012, Johnson, who was from Newark, New Jersey, was traveling South on Interstate 79 after leaving Rochester, New York, and was pulled over by a Trooper with the Pennsylvania State Police after a traffic violation was observed. A certified drug detection canine alerted to the presence of drugs in the vehicle, and a search warrant was executed. During the search of the vehicle, law enforcement officers discovered 175 wrapped “bricks” containing 8,700 stamp bags, or dosage units, of heroin. In addition, $7,000.00 in cash was located in a duffle bag in the trunk of the vehicle.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
New York State Man Sentenced for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Erie, Pa. – A resident of Rosedale, New York has been sentenced in federal court to 36 months in jail on his conviction of conspiracy to commit wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Adetunji Gbadegeshi, 60, of Rosedale, New York.
According to information presented to the court, Gbadegeshi used the hundreds of stolen identities found in his house to open bank accounts that were used as repositories for fraudulently obtained federal tax refunds. Gbadegeshi would then remove the money from the accounts and distribute it to his co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Gbadegeshi.
Nashville Man Charged with Federal Firearm Offense After Firing at Metro Police OfficersRead the Press Release
Antonio L. Bender,19, of Nashville, Tenn., has been charged with being an unlawful user of a controlled substance in possession of firearms, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. These charges follow an incident on March 27, 2017, where Bender shot at two Metropolitan Nashville police officers who were investigating the sound of gunfire in the area of the J.C. Napier and Tony Sudekum public housing developments.
“Let me be perfectly clear – the U.S. Attorney’s Office has a zero-tolerance policy when violence is directed at our law enforcement officers,” said Acting U.S. Attorney Jack Smith. “When such violence is directed at law enforcement officers the U.S. Attorney’s Office will give full priority to determining whether federal laws have been violated and if so, will seek to prosecute the offender.”
According to the criminal complaint, on March 27, 2017, two uniformed Metro Nashville police officers were patrolling on Charles E. Davis Blvd., in the area of the J.C. Napier and Tony Sudekum public housing developments when they heard gunfire. Both officers exited their patrol car to investigate further and heard additional gunshots as they walked toward the building at 168 Charles E. Davis Blvd. The officers then encountered two suspects, one of which, later identified as Bender, pointed two guns equipped with laser lights at the officers and fired one shot. Bender then fled and after a short foot chase, he was taken into custody by the officers and two loaded, semi-automatic pistols were recovered.
Subsequent investigation by agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives determined that Bender was a regular user of marijuana and cocaine and he is a member of the Rollin 60s gang.
If convicted, Bender faces up to 10 years in prison.
This case was investigated by the Metropolitan Nashville Police Department and the ATF. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Mongomery Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
Montgomery, Alabama – Lamont Raynell Thompson (34), of Montgomery, Alabama pled guilty earlier today to a federal charge of possession with intent to distribute heroin, announced A. Clark Morris, Acting United States Attorney for the Middle District of Alabama.
According to court documents, Thompson possessed and distributed heroin in the Montgomery area. His indictment alleges that Thompson distributed heroin on four separate occasions in 2014. Then, on December 2, 2014, law enforcement recovered more heroin from his residence. Today, Thompson admitted to possession with intent to distribute the heroin recovered from his residence.
Thompson is currently facing a maximum sentence of 20 years in prison for this offense. His sentencing hearing will be scheduled in the next few months.
“The U.S. Attorney’s Office is committed to taking these poisonous substances off of our streets. The heroin and opioid crisis is a clear danger to our children, parents, family, friends and community. All too often, these drugs are laced with other lethal substances that can lead to serious injury and death. We will continue to vigorously prosecute the pushers of these poisons in hopes of making our community safer and free from these dangerous drugs,” stated Acting U.S. Attorney Morris. “We are working with our law enforcement partners to ensure the safety of our citizens.”
This case was investigated by the Drug Enforcement Administration and the Montgomery Police Department. The case is being prosecuted by Assistant United States Attorney Verne Speirs.
Mississippi Tax Return Preparer Pleads Guilty to Obstructing the IRS and Filing False ReturnsRead the Press Release
WASHINGTON – A Gulfport, Mississippi tax return preparer pleaded guilty today to obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents filed with the court and information presented at the plea hearing, Doris Kelley, 65, of Gulfport, Mississippi, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley made hundreds of thousands of dollars from her scheme and caused a tax loss of more than $495,000.
The sentencing hearing is scheduled for July 7. Kelley faces a statutory maximum sentence of three years in prison on both counts. She also faces a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mississippi Tax Return Preparer Pleads Guilty to Obstructing the IRS and Filing False ReturnsRead the Press Release
A Gulfport, Mississippi tax return preparer pleaded guilty today to obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents filed with the court and information presented at the plea hearing, Doris Kelley, 65, of Gulfport, Mississippi, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley made hundreds of thousands of dollars from her scheme and caused a tax loss of more than $495,000.
The sentencing hearing is scheduled for July 7. Kelley faces a statutory maximum sentence of three years in prison on both counts. She also faces a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mechanicsville Man Sentenced to Prison for Tax EvasionRead the Press Release
RICHMOND, Va. – A former executive of Nutronix Revolution, Inc., a multi-level vitamin and supplement marketing company, was sentenced today to 30 months in prison and ordered to pay $963,357.86 for income tax evasion.
Blair S. Bremner, 50, of Mechanicsville, pleaded guilty on Nov. 7, 2016. According to court documents, Bremner, who holds a business degree from Virginia Polytechnic Institute and State University, has a history of not filing his income tax returns. For example, between 2006 and 2014, despite earning a substantial income while working as Vice President of Marketing for Nutronix Revolution, Bremner did not file tax returns with the IRS, refusing to file his returns or pay income taxes due totaling $963,357.86. Additionally, Bremner refused to file his returns or pay income taxes despite his father having been convicted and sentenced to 18 months in federal prison for the same type of criminal activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Kimberly Lappin, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney S. David Schiller 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-81.
Maryland Man Charged with Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Maryland man was charged in federal court today with enticing a minor to engage in illicit sexual activity following an Amber Alert issued over the weekend.
William Lee Dela Cruz, 22, of Maryland, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Dela Cruz, who had an initial court appearance this afternoon, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, an Amber Alert was issued for the 12-year-old victim, identified in court documents as “Jane Doe,” on Sunday, April 9, 2017. Members of the public contacted law enforcement in response to the Amber Alert and she was recovered in Wentzville, Mo., the same day. Dela Cruz was arrested by Wentzville police officers.
Jane Doe told investigators she had been involved in an online relationship with Dela Cruz since November 2016 (when she was 11 years old). They communicated through telephone, Skype, Facebook Messenger and Discord (an application that provides free voice and text options, especially for communications between individuals involved in the gaming culture). Jane Doe stated she met Dela Cruz online through the computer game Onigiri, a multi-player fantasy online role-playing game.
On Saturday, April 6, 2017, Dela Cruz and his brother (who has not been charged) drove from Maryland to Missouri to pick up Jane Doe with the intent of driving her back to Maryland, according to the affidavit.
During the drive back to Maryland, the affidavit says, an argument between the brothers occurred. As a result, Dela Cruz’s brother dropped them off at a service station and drove away. Dela Cruz and Jane Doe attempted to obtain a room at the Hampton Inn in Wentzville but did not have sufficient funds for a room. Instead, they slept on a couch in the lobby of the hotel.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI, the Blue Springs, Mo., Police Department and the Wentzville, Mo., Police Department.
Last of 22 Defendants Sentenced in Federal and State Operation Targeting Violent Crime in Cann Park (Savannah) NeighborhoodRead the Press Release
CORRECTION: In our original press release, the sentences listed for Defendants Grant and Benton were in error. As noted below, Defendant Benton pled guilty to drug conspiracy and was sentenced to 5 months in prison and 3 years of supervised release; Defendant Grant pled guilty to use of a communication facility and was sentenced to 27 months in prison and 1 year of supervised release.
SAVANNAH, GA – Roy Mobley, aka “Grind,” 37, of Savannah, Georgia, was sentenced today by Senior United States District Court Judge William T. Moore, Jr. to 33 months in federal prison, followed by 3 years of supervised release. Mobley was the last of 22 defendants convicted as part of a joint federal and state operation targeting violent crime and gang activities in the Cann Park (Savannah) neighborhood.
Cann Park is a small neighborhood near downtown Savannah located next to historic Beach High School. In 2015 and 2016, a small number of gang-affiliated individuals regularly trafficked in drugs and guns in Cann Park, spreading crime throughout the neighborhood. In a joint ATF and Savannah-Chatham Metropolitan Police Department (SCMPD) operation, individuals in Cann Park that were trafficking guns and drugs were identified and targeted as part of a 6-month undercover investigation. The criminal activities charged in the federal indictments all occurred in the Cann Park neighborhood. Many of the defendants were members of the Cann Park Goons and the Fast Lane Gang, self-proclaimed gangs operating in Cann Park. As part of the investigation, agents seized 17 firearms and significant amounts of heroin, powder cocaine, crack cocaine, marijuana and MDMA.
Violent crime rates have sharply fallen in Cann Park since the March 2016 arrests and prosecutions. Since March 2016, violent crime in Cann Park has dropped 40%; aggravated assaults with a gun have dropped 75%; and “shots fired” calls dropped 50%.
Acting U.S. Attorney Jim Durham said, “A small number of people are committing most of the violent crimes in Savannah. The Cann Park Operation is just one example of how we can work together to remove from our neighborhoods those trafficking in drugs, guns and fear. The U. S. Attorney’s Office and our federal partners will continue to partner with SCMPD and the DA’s Office as we take back our great city.”
Tim Graden, ATF Resident Agent in Charge, Savannah Field Office stated, “To a citizen who lives in fear, the worst gang in America is one committing crimes in their neighborhood, the one selling drugs on their block and the one whose illegal use of firearms endangers their lives. When agencies work together to proactively prosecute these criminals, we make neighborhoods a safer place.”
The Savannah residents convicted and sentenced as part of the Cann Park Operation include:
Marquiel Bell, aka “Quelly,” aka “Julio,” 19: pled guilty to possession of a stolen firearm and sentenced to 7 months in prison and 3 years supervised release;
Roemain R. Bennett, aka “Ratt,” 33: pled guilty to drug and firearms offenses and sentenced to 208 months in prison and 5 years supervised release;
Jesse Benton, 27: pled guilty to drug conspiracy and sentenced to 5 months in prison and 3 years of supervised release;
Mario Grant, 33: pled guilty to use of a communication facility and sentenced to 27 months in prison and 1 year of supervised release;
Benjamin Gordon, 43: pled guilty to drug trafficking and sentenced to 102 months in prison and 3 years supervised release;
Jamal Hilton, aka “Jamel Hilton,” aka “Jamaal Hilton,” aka “Mel,” aka “Tommy Henderson II,” 31: pled guilty to drug trafficking and sentenced to 5 months in prison and 3 years supervised release;
Jeremy James, 34: pled guilty to possession of ammunition by a convicted felon and sentenced to 77 months in prison and 3 years supervised release;
Kristopher Kemp, 30: pled guilty to possession of a firearm by a drug user and sentenced to 24 months in prison and 3 years supervised release;
Nicholas Kemp, 28: pled guilty to possession of firearm by a convicted felon and sentenced to 46 months in prison and 3 years supervised release;
Stephen Kemp, 25: pled guilty to possession of a firearm by a drug user and sentenced to 30 months in prison and 3 years supervised release;
Jacqueline Mavity, 44: was placed on pre-trial diversion;
Roy Mobley, aka “Grind,” 37: pled guilty to drug trafficking and sentenced to 33 months in prison and 3 years supervised release;
Albert Morisette, 31: pled guilty to drug distribution and sentenced to 6 months in prison and 3 years supervised release;
Alekseyer X. Mungin, 37: pled guilty to drug and firearms offenses and sentenced to 84 months in prison and 3 years supervised release;
Rashaun Padgett, aka “Ray Ray,” 31: who pled guilty to drug trafficking and sentenced to 21 months in prison and 3 years supervised release;
Michael Porter, 36: pled guilty to drug distribution and sentenced to 11 months in prison and 3 years supervised release;
Marvin Roberts, aka “Steady,” 29: pled guilty to drug trafficking and sentenced to 31 months in prison and 3 years supervised release;
Tony Small, 20: pled guilty to drug trafficking and sentenced to 6 months in prison and 3 years supervised release;
Kareem Savage, aka “Rashaad Roberts,” 27: pled guilty to drug trafficking and sentenced to 5 years of probation;
Jamaine Wallace, 35: pled guilty to cocaine trafficking and sentenced to 78 months in prison and 3 years supervised release;
Simmeon Whitfield, aka “Yon,” 26: pled guilty to drug trafficking and sentenced to 24 months in prison and 3 years supervised release;
Xavier Whitfield, aka “Kenny,” 30: pled guilty to drug trafficking and sentenced to 14 months in prison and 3 years supervised release; and
Travis Young, 35: pled guilty to cocaine trafficking and sentenced to 151 months in prison and 3 years supervised release.
There is no parole in the federal system. Once the defendants are released from prison, they will serve a term of supervised release, under the direct supervision of the United States Probation Office.
The Cann Park Operation was investigated by ATF and SCMPD, with assistance from the U. S. Marshals Service, the Chatham-Savannah Counter Narcotics Team (CNT) and the Chatham County Sheriff’s Office. Assistant United States Attorneys Greg Gilluly, Charlie Bourne and Jennifer Kirkland prosecuted the cases on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 201-2522.
Las Cruces Residents Plead Guilty to Federal Counterfeiting ChargesRead the Press Release
ALBUQUERQUE – Andrew Barnett, 36, and Summer Provencio, 36, both of Las Cruces, N.M., pled guilty today in federal court to conspiring to create and pass counterfeit U.S. currency.
Barnett and Provencio, together with co-defendants Victoria Perez, 41, and Patrick Fernandez, 33, both of Las Cruces, were charged in a 183-count indictment filed on Feb. 15, 2017. Count 1 of the indictment charged the four defendants with conspiring to create fraudulent U.S. currency from April 2016 through Sept. 2016. Counts 2 to 57 charged Barnett alone with manufacturing counterfeit currency in various denominations from April 2016 through Sept. 2016. Counts 58 to 116 charged Barnett and Perez with manufacturing counterfeit currency in $20 denominations on May 8, 2016. Counts 117 to 124 charged Barnett and Provencio with using counterfeit currency to make purchases on April 18, 2016; and Counts 125 to 183 charged Barnett, Perez and Fernandez with using counterfeit currency to make purchases on May 8, 2016. According to the indictment, the defendants committed these offenses in Dona Ana County, N.M.
During today’s proceedings, Barnett pled guilty to Count 1 of the indictment charging him with conspiracy. In entering the guilty plea, Barnett admitted that from April 2016 through Sept. 2016, he conspired with his co-defendants to manufacture and use counterfeit U.S. currency. According to his plea agreement, on April 18, 2016, Barnett created eight counterfeit five-dollar bills by scanning a real five-dollar bill and printing copies on a home printer. Barnett gave the counterfeit bills to Provencio, who used the bills to pay for hair and nail products at a Las Cruces beauty supply store. On May 8, 2016, Barnett created about 125 counterfeit $20 bills by printing copies on a home printer; this counterfeit currency was used to make purchases at a Las Cruces auto salvage business.
Provencio also pled guilty today to the conspiracy count of the indictment, and admitted that on April 18, 2016, she used eight counterfeit five-dollar bills created by Barnett on a home printer to make a purchase at a Las Cruces beauty supply store.
At sentencing, Barnett and Provencio each face a maximum penalty of five years in federal prison. Sentencing hearings have yet to be scheduled.
Perez and Fernandez have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Las Cruces Police Department. Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
KC Woman Pleads Guilty to Marriage FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to her role in a marriage fraud conspiracy.
Kakeland Barnes, 37, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an Aug. 31, 2016, federal indictment.
Barnes admitted that she participated in a conspiracy to assist African nationals in circumventing immigration laws by arranging fraudulent marriages. Co-defendants Delmar Dixon, 49, Shakeisha Harrison, 37, and Traci R. Porter, 44, all of Kansas City, also have pleaded guilty to their roles in the marriage fraud conspiracy. In addition to the conspiracy, Dixon pleaded guilty to falsely swearing in an immigration matter.
Dixon admitted that he arranged 30 to 40 fraudulent marriages, including his own. Dixon charged the African nationals $1,000 upfront for his services, which included providing them U.S. citizen spouses. The African nationals were additionally required to pay $500 to the spouse at the time of the wedding, and an additional $500 immediately after completion of the wedding. They were required to pay their spouses $250 each month after the weddings until the immigration process was complete. The African nationals were coached by Dixon on how to make their marriages appear legitimate.
Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) agents utilized an undercover agent in their investigation. The agent met with Dixon, who introduced the agent to Barnes, his intended spouse, on Jan. 23, 2016. Dixon advised the undercover agent that he and Barnes should rent an apartment in the Kansas City area and obtain life insurance policies together. The undercover agent also spoke alone with Barnes. Barnes told the agent she was involved with another man and had three children. She signified she understood the marriage would be a business transaction.
The agent made a payment to Dixon and kept in contact with Dixon regarding his marriage. On February 19, 2016, the undercover agent wired $250 to Barnes and $500 to Dixon. Both retrieved the payments later that day. Dixon also offered the undercover agent $300 for each new client he referred.
Under federal statutes, Barnes is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Justice Department Warns Dishonest Return Preparers Face Criminal Prosecution and Civil InjunctionRead the Press Release
The Department of Justice warns that unscrupulous return preparers who prepare false tax returns will face civil and criminal enforcement. In the last year, the Department of Justice’s Tax Division filed dozens of civil actions throughout the United States seeking court orders to shut down dishonest return preparers who allegedly prepared false tax returns and in collaboration with U.S. Attorney’s Offices prosecuted dozens of returns preparers who prepared false tax returns.
“Return preparer fraud is a significant drain on the U.S. Treasury, and the Justice Department is committed to working with the Internal Revenue Service (IRS) to bring enforcement actions against unscrupulous return preparers who prepare fraudulent tax returns,” said Acting Assistant Attorney General David A. Hubbert. “The Tax Division will use all available enforcement tools to hold dishonest return preparers accountable and protect the U.S. Treasury from further damage.”
Most tax return preparers provide professional tax service. However, a few set out to use the personal and financial information provided to them to perpetrate fraud or other scams that can hurt their customers. Earlier this year, the IRS warned taxpayers that they are legally responsible for what is on the tax return even if someone else prepared the tax return. Indeed, taxpayers should be vigilant and ensure that their chosen return preparer reports accurate information. The IRS also warned the public about various schemes deployed by dishonest return preparers in its Dirty Dozen Tax Scams. The following is a list of several of those scams with examples of recent enforcement actions taken by the Justice Department.
Falsifying Income to Claim the Earned Income Tax Credit (EITC)
Dishonest return preparers fabricate income on customers’ returns to support a claim for the EITC, which is a credit for working people with low to moderate income and eligibility depends on a variety of factors such as income. For example, in tax year 2016, taxpayers with income between $13,900 and $18,200 were eligible for the maximum EITC. One of the ways to falsely claim the EITC is to fabricate income. For example:
- In Texas, a federal court sentenced a return preparer to 22 months in prison for filing false returns that included fraudulent business income, losses, credits and deductions and sought refunds to which his clients were not entitled;
- In Michigan, the Justice Department filed suit to enjoin a Detroit-area return preparer from preparing tax returns, in part, because she allegedly reported fictitious wages on a customer’s return in order to inflate a claim for the EITC; and
- In Kansas, a return preparer was sentenced to 27 months in prison for filing false returns that included fictitious business income on his clients’ returns in order to qualify them for the EITC.
Falsely Padding Deductions, Such as Charitable Contributions or Business Expenses
Unscrupulous returns preparers report false deductions on customers’ returns in order to reduce the amount of tax a customer owes, often resulting in a higher, but fraudulent, refund. For example:
- In New York, a federal court sentenced a return preparer who fabricated charitable contributions and unreimbursed employee expenses on his customers’ returns to 18 months in prison;
- In North Carolina, a federal court sentenced a return preparer to 18 months in prison for preparing false tax returns that included false unreimbursed employee business expenses; and
- In Florida, a federal court enjoined a West Palm Beach-area return preparer whom the government alleged had claimed false or inflated charitable contributions and office expenses for his customers.
Excessive Claims for Business Credits, such as the Fuel Tax Credit
The Fuel Tax Credit is a business credit generally limited to use of certain types of fuel for off-highway business use. A frivolous claim for the Fuel Tax Credit is typically one for a taxpayer who has not used these types of fuel for off-highway business use. For example:
- In Louisiana, the Justice Department filed suit to enjoin a New Orleans-area return preparer from preparing returns, in part, because she allegedly claimed false Fuel Tax Credits on her customers’ returns; and
- In New York, a federal court sentenced a return preparer to 36 months in prison for preparing false tax returns that included fictitious claims for fuel tax credits for her customer.
Falsely Inflating Refund Claims with False Claims for Education Credits
Education credits are available for certain higher education related expenses. Dishonest preparers claim education credits for customers who have not attended a qualifying educational institution. For example:
- In Mississippi, a federal court enjoined a return preparer that the government alleged made fraudulent claims for educations credits; and
- In California, a return preparer pleaded guilty to preparing false tax returns and admitted that she prepared returns that claimed false education credits.
Return Preparer Fraud
In addition to the tax scams, listed above, unscrupulous return preparers may be prosecuted or enjoined for other types of return preparer fraud. For example:
- In Idaho, a return preparer pleaded guilty to filing false returns without his clients’ knowledge. He included false medical and education expenses to inflate their refunds and then diverted part of the refund into a bank account he controlled;
- In Illinois, a federal court enjoined a return preparer from preparing returns that the government alleged had claimed false filing statuses and dependents for her customers; and
- In Florida, a federal court enjoined the owner of a return preparation business that had at one time stores in Alabama, Florida, Georgia, and North Carolina. The federal court found that the owner and his preparers engaged in a series of widespread fraudulent schemes and ordered the owner to pay the United States more than $950,000 in fees he received from preparing tax returns.
The IRS is reminding taxpayers that there is information available on the IRS’s website regarding the 2017 individual income tax return filing season. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal return preparers. In addition to tips on choosing a return preparer, the IRS warned taxpayers and tax professionals to be aware of scammers impersonating as the IRS. Earlier this year, the IRS alerted the public and tax professionals to some common scams to be aware of and ways to report suspicious activity.
In the past decade, the Tax Division has obtained convictions and injunctions against hundreds of unscrupulous return preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Announces Actions to Dismantle Kelihos BotnetRead the Press Release
The Justice Department today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the AnchorageDivision made the announcement.
“The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks. The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco. “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Department of Justice is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”
“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Bryan Schroder for the District of Alaska. “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation. We are lucky that we have talented FBI agents and federal prosecutors with the skillsets to help protect Americans from this pervasive cybercrime.”
“On April 8, 2017, we started the extraordinary task of blocking malicious domains associated with the Khelios botnet to prohibit further infections,” said FBI Special Agent in Charge Ritzman. “This case demonstrates the FBI’s commitment to finding and eradicating cyber threats no matter where they are in the world.”
Kelihos malware targeted computers running the Microsoft Windows operating system. Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system. According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010. The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic. Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums. The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds. Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.
As with other botnets, Kelihos is designed to operate automatically and undetected on victims’ computers, with the malicious code secretly sending requests for instructions to the botnet operator. In order to liberate the victim computers from the botnet, the United States obtained civil and criminal court orders in the District of Alaska. These orders authorized measures to neutralize the Kelihos botnet by (1) establishing substitute servers that receive the automated requests for instructions so that infected computers no longer communicate with the criminal operator and (2) blocking any commands sent from the criminal operator attempting to regain control of the infected computers.In seeking authorization to disrupt and dismantle the Kelihos botnet, law enforcement obtained a warrant pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. A copy of this warrant along with the other court orders are produced below. The warrant obtained by the government authorizes law enforcement to redirect Kelihos-infected computers to a substitute server and to record the Internet Protocol addresses of those computers as they connect to the server. This will enable the government to provide the IP addresses of Kelihos victims to those who can assist with removing the Kelihos malware including internet service providers.
The efforts to disrupt and dismantle the Kelihos botnet were led by the FBI’s Anchorage Office and New Haven Office; Senior Counsel Ethan Arenson and Harold Chun, and Trial Attorney Frank Lin of the Computer Crime and Intellectual Property Section; and Assistant U.S. Attorneys Yvonne Lamoureux and Adam Alexander of the District of Alaska. Critical assistance was also provided by foreign partners, and invaluable technical assistance was provided by Crowd Strike and The Shadow server Foundation in executing this operation.
The details contained in the civil complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The Government has and will continue to share samples of the Kelihos malware with the internet security community so that antivirus vendors can update their programs to detect and remove Kelihos. A number of free and paid antivirus programs are already capable of detecting and removing Kelihos, including the Microsoft Safety Scanner, a free product.
The documents filed by the Government as well as the court orders entered in this case are available online at the following web address: www.justice.gov/opa/documents-and-resources-related-us-v-peter-yuryevich-levashov
Justice Department Announces Actions to Dismantle Kelihos BotnetRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the Anchorage Division made the announcement.
"The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks. The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco. “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Department of Justice is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”
“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Schroder. “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation. We are lucky that we have talented FBI agents and federal prosecutors here in Alaska with the skillsets to help protect Alaskans from this insidious electronic disease.”
“On April 8, 2017, we started the extraordinary task of blocking malicious domains associated with the Kelihos botnet to prohibit further infections,” said FBI Special Agent in Charge Ritzman. “This case demonstrates the FBI’s commitment to finding and eradicating cyber threats no matter where they are in the world.”
Kelihos malware targeted computers running the Microsoft Windows operating system. Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system. According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010. The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic. Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums. The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds. Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.
As with other botnets, Kelihos is designed to operate automatically and undetected on victims’ computers, with the malicious code secretly sending requests for instructions to the botnet operator. In order to liberate the victim computers from the botnet, the United States obtained civil and criminal court orders in the District of Alaska. These orders authorized measures to neutralize the Kelihos botnet by (1) establishing substitute servers that receive the automated requests for instructions so that infected computers no longer communicate with the criminal operator and (2) blocking any commands sent from the criminal operator attempting to regain control of the infected computers.
In seeking authorization to disrupt and dismantle the Kelihos botnet, law enforcement obtained a warrant pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. A copy of this warrant along with the other court orders are produced below. The warrant obtained by the government authorizes law enforcement to redirect Kelihos-infected computers to a substitute server and to record the ternet Protocol addresses of those computers as they connect to the server. This will enable the government to provide the IP addresses of Kelihos victims to those who can assist with removing the Kelihos malware including internet service providers.
The efforts to disrupt and dismantle the Kelihos botnet were led by the FBI’s Anchorage Office and New Haven Office; Senior Counsel Ethan Arenson and Harold Chun, and Trial Attorney Frank Lin of the Computer Crime and Intellectual Property Section; and Assistant U.S. Attorneys Yvonne Lamoureux and Adam Alexander of the District of Alaska. Critical assistance was also provided by foreign partners, and invaluable technical assistance was provided by CrowdStrike and The Shadowserver Foundation in executing this operation.
The details contained in the civil complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The Government has and will continue to share samples of the Kelihos malware with the internet security community so that antivirus vendors can update their programs to detect and remove Kelihos. A number of free and paid antivirus programs are already capable of detecting and removing Kelihos, including the Microsoft Safety Scanner, a free product.
The documents filed by the Government as well as the court orders entered in this case are available online at the following web address:
- Complaint
- Motion for TRO & Order to Show Cause
- Memorandum of Law in Support of TRO
- Declaration in Support of TRO
- TRO & Order to Show Cause
- Search Warrant
- Search Warrant Application & Affidavit
- PRTT Order
- PRTT Application
Joint Federal & State Press Conference to Announce Results of Prosecutions Targeting Violence & Gang Activity in Cann ParkRead the Press Release
SAVANNAH, GA – Acting U.S. Attorney Jim Durham, ATF RAC Tim Graden, District Attorney Meg Heap, SCMPD Chief Joseph Lumpkin, CNT Deputy Commander Terry Shoop and other federal and state law enforcement officials will hold a news conference today to discuss the results of joint federal and state law enforcement actions targeting violent crime and gang activity in the Cann Park neighborhood (Savannah). Acting U.S. Attorney Durham, District Attorney Heap and SCMPD Chief Lumpkin will provide brief remarks, to be followed by an opportunity for media questions.
Event: News conference
Date/Time: April 10, 2017 at 1:30 p.m.
Location: U.S. Attorney’s Office
22 Barnard Street, Suite 300
Savannah, GA 31401Participants: Acting U.S. Attorney Jim Durham
ATF RAC Tim Graden
District Attorney Meg Heap
SCMPD Chief Joseph LumpkinCNT Deputy Commander Terry Shoop
Miscellaneous: Press and law enforcement personnel should arrive at least 20 minutes early so they may be escorted to the U.S. Attorney’s Office 6th floor conference room.
Investigations by IRS Lead to Cases Against Tax Return PreparersRead the Press Release
LOS ANGELES –The United States Attorney’s Office and IRS Criminal Investigation today announced a 10-year prison sentence against one defendant and the filing of three criminal cases against four individuals who were involved in the preparation of fraudulent income tax returns.
While the vast majority of tax professionals provide honest and high-quality services, there are some dishonest return preparers who operate each filing season and perpetrate refund fraud, identity theft and other scams that hurt taxpayers. IRS Criminal Investigation and federal prosecutors work closely to shut down tax fraud schemes and prosecute the criminals behind them.
“The majority of tax return preparers are focused on helping taxpayers comply with their obligations to file timely and honest tax returns. The IRS relies upon these professionals to file truthful and accurate returns to deter tax fraud,” said Acting United States Attorney Sandra R. Brown. “Dishonest tax return preparers who defy the tax laws, whether for their own personal financial gain or to fraudulently obtain money for their clients, will be shut down permanently and face federal prosecution, which can result in significant prison sentences.”
“With the April 18th tax deadline looming, those who might consider preparing false tax returns should be aware of the extremely negative consequences of doing so,” stated Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation. “The IRS enforces the nation’s tax laws, but also takes particular interest in return preparers who unjustly enrich either themselves or their clients by preparing false claims for refunds. Be assured that the IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable.”
Oxnard Return Preparer Sentenced to 10 Years in Federal Prison in Scheme that Filed Nearly 13,000 Returns that Sought over $56 Million in Refunds
An Oxnard-based tax return preparer was sentenced this morning to 120 months in federal prison for his participation in a conspiracy to prepare and file approximately 12,825 fraudulent income tax returns that claimed more than $56 million in refunds.
Rodrigo Pablo “Paul” Lozano, also known as “El Profe,” 61, was sentenced by United States District Judge Philip S. Gutierrez.
Before the Internal Revenue Service was able to identify and stop the scheme, it had already paid out more than $23 million in refunds to Lozano and his co-conspirators. During today’s sentencing, Judge Gutierrez ordered Lozano to pay restitution of $23,094,300 to the IRS.
Lozano owned and operated an income tax preparation business – Lozano & Associates - Ayuda (“help” in Spanish) – where he hired, trained and supervised primarily Latino females in their late teens or early 20s to prepare clients’ federal income tax returns. Lozano operated his business by renting space from businesses that catered to Latino clients, such as a meat market on Hueneme Road in Oxnard. Lozano, a naturalized United States citizen from Mexico, went by the name “El Profe,” as he was a teacher before he began preparing tax returns.
Following a two-week jury trial last July, Lozano was found guilty of one count of conspiracy to defraud the United States. According to the evidence presented at trial, members of the conspiracy obtained Individual Tax Identification Numbers (ITINs), which are issued in lieu of a social security number to undocumented workers in the United States to allow them to file tax returns. The evidence demonstrated that co-conspirators provided Lozano with fake identification documents, such as Mexican Consular Identification Cards – also known as Matrícula cards – and birth certificates, which Lozano used to obtain ITINs in the names shown on the fake identification documents.
Using fake wage and tax statements (Forms W-2) and fictitious dependents, Lozano used the ITINs to file income tax returns that claimed the Additional Child Tax Credit, an IRS refund program designed to assist lower-income taxpayers with children. The fraudulent tax returns typically sought $3,000 to $4,000 in refunds. Lozano submitted nearly 13,000 false tax returns in an 18-month period in 2011 and 2012 while his employees were telling him that the identity and W-2 documents looked suspicious and the IRS was sending hundreds of warning notices stating that the tax returns and W-2s were invalid. Despite the repeated warnings, Lozano continued to direct his employees to file the fraudulent tax returns.
Lozano split the tax refunds with his co-conspirators. At times, he had employees count out tens of thousands of dollars in cash in a bathroom located next to his office space.
The case against Lozano was prosecuted by Assistant United States Attorney Byron J. McLain of the Major Frauds Section.
Owner of West Covina Tax Preparation Business and Associate Face Conspiracy and Other Federal Charges for Filing Hundreds of Allegedly Fraudulent Returns
The former owner of a West Covina tax preparation business has been arrested on charges that he and a co-conspirator used stolen identities to file 341 fraudulent federal and state tax returns that caused tax authorities to issue approximately $741,099 in tax refunds.
Ashrf Mohammed Aly, 42, the former owner and operator of Speedy Tax Service in West Covina, was arrested on April 3 by special agents with IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Aly and a second defendant in the case – Arthur Bakunts, 39 – were named in a 13-count indictment returned on March 14 by a federal grand jury. The indictment charges Aly and Bakunts with conspiracy, wire fraud, unlawful possession of another person’s identification, and aggravated identity theft. Bakunts was arrested in February pursuant to a criminal complaint initially filed in this case.
According to court documents, Aly and Bakunts obtained stolen identities and filed fraudulent federal and state income tax returns in the names of the identity theft victims. The fraudulent tax returns were filed electronically from locations in Mexico and Chula Vista, and the refunds were diverted to Aly and Bakunts.
Bakunts had multiple identity profiles, tax refund checks, and other trappings of identity fraud in his car when he was stopped at a sobriety checkpoint in Glendale on May 24, 2014, according to court documents.
Aly and Bakunts each have entered not guilty pleas to the charges in the indictment. Both men are in custody without bond pending trial. United States District Judge Dale S. Fischer has scheduled trials on May 9 for Bakunts and May 30 for Aly.
If convicted of the charges in the indictment, each defendant would face a maximum sentence of 145 years, plus consecutive two-year sentences for each of four counts of aggravated identity theft.
The case is being prosecuted by Assistant United States Attorney Ranee A. Katzenstein.
Carson Resident Indicted for Tax Return Preparer Fraud
Minon Miller, 52, of Carson, was indicted last week on charges that she prepared and filed fraudulent federal income tax returns for both her clients and herself. Miller will be summonsed to appear for an arraignment in United States District Court.
A federal grand jury returned a 41-count indictment last Thursday that charges Miller with 37 counts of aiding and assisting in the preparation of fraudulent income tax returns, two counts of subscribing to fraudulent tax returns that she filed on her own behalf, and two counts of failing to file an individual tax return.
The indictment alleges that, from 2011 through 2016, Miller prepared and filed 37 tax returns on behalf of her clients that falsely claimed itemized deductions, business income and expenses, education credits and residential energy credits.
The indictment also alleges that Miller filed two personal tax returns that under- reported her actual income. Miller’s 2010 and 2011 tax returns claimed gross receipts, respectively, of $12,155 and $26,200, when Miller knew she received substantially more than the figures on the tax returns, according to the indictment.
In addition, Miller failed to file her 2012 and 2013 individual income tax returns.
If she is convicted, Miller would face a statutory maximum sentence of three years in federal prison for each of the 41 counts in the indictment.
<The case against Miller is being prosecuted by Assistant United States Attorney Paul Rochmes of the Tax Division.
Long Beach Resident Indicted for Tax Fraud
A Long Beach man has been named by a federal grand jury in a 10-count superseding indictment that alleges he prepared and filed fraudulent federal income tax returns for both his clients and himself.
Lewis Jefferson Jr., 60, was charged last Wednesday and will be ordered to appear for an arraignment in United States District Court.
The superseding indictment charges Jefferson with eight counts of aiding and assisting in the preparation of fraudulent income tax returns and two counts of subscribing to fraudulent tax returns that he filed on his own behalf.
The superseding indictment replaces a eight-count indictment filed in January.
The superseding indictment alleges that over the course of 2011, Jefferson prepared and filed eight tax returns on behalf of seven clients that claimed false itemized deductions. The taxpayers were not entitled to claim the deductions – which ranged from $4,272 to $38,493 – on their tax returns.
The indictment also alleges that Jefferson filed two personal tax returns that under-reported his actual income. The 2010 and 2011 tax returns claimed gross receipts of $207,545 and $242,590, respectively, and Jefferson knew he received substantially more gross receipts than stated on the returns, according to the indictment.
If he is convicted of the 10 counts in the indictment, Jefferson will face a statutory maximum penalty of 30 years in federal prison.
The case against Jefferson is being prosecuted by Assistant United States Attorneys Charles Parker and James C. Hughes of the Tax Division.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Most tax return preparers provide professional tax service. However, a few set out to use the personal and financial information provided to them to perpetrate fraud or other scams that can hurt their customers. Earlier this year, the IRS warned taxpayers that they are legally responsible for what is on the tax return even if someone else prepared the tax return. Taxpayers should be vigilant and ensure that their chosen return preparer reports accurate information. The IRS also warned the public about various schemes deployed by dishonest return preparers in its Dirty Dozen Tax Scams.
Gulf Breeze Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Thomas E. Matassa, 24, of Gulf Breeze, pled guilty today to receipt of child pornography. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2016, a detective interviewed Matassa, who admitted to downloading child pornography online. A forensic examination of Matassa’s laptop revealed approximately 200 images of child pornography and more than 30,000 chat messages with underage males to exchange videos and images of child sexual acts. The defendant is detained, pending sentencing.
Matassa faces a maximum of 20 years and a minimum of 5 years in prison. The sentencing hearing is scheduled for June 29 at 1:00 p.m. at the United States Courthouse in Pensacola.
The case is being investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Georgia Bureau of Investigation, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
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.
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Amy Alexander, Public Information Officer
Gary’s Steals and Deals Owner Sentenced to 15 More Months in Prison for Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Portage, Pa. has been sentenced in federal court in Johnstown to 15 months in prison, consecutive to a sentence he is presently serving on a case prosecuted in the Middle District of Pennsylvania, and three years’ supervised release, on his conviction of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Gary E. Vaughn, 43, of Portage, Pa.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, PA, that dealt in new and used merchandise. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customer” coming into the store, or was received by the employees as proceeds of this conduct.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Vaughn.
Garden Grove Man Who Traveled to Canada to Have Sex with Girl He Met Online Sentenced to over 7 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A Garden Grove man who convinced a 13-year-old girl he met online to send him explicit videos – and then traveled to Canada to have sex with the victim – was ordered this afternoon to serve 87 months in federal prison.
Paul Binh Do, 30, was sentenced by United States District Judge David O. Carter.
Once he completes the prison term, Do will be on supervised release for the rest of his life.
Do pleaded guilty in May 2016 to one count of traveling with the intent to engage in illicit sexual conduct and one count of receipt of child pornography.
According to documents filed in United States District Court, Do began an online relationship with the then-13-year-old girl in September 2013, and soon thereafter they began exchanging naked videos of themselves engaging in sexual conduct.
In May 2014, Do traveled to Canada from Orange County to celebrate the victim’s 14th birthday and have sex with her, but he was stopped by Canadian law enforcement as he attempted to enter into the country.
When he was stopped by Canadian authorities, Do possessed digital devices that contained naked videos of the victim. Following his arrest in Canada, Do obstructed justice when he contacted the victim and asked her to tell law enforcement that she had lied to Do about her age when, in fact, she had been completely truthful about being 13.
In a sentencing memorandum filed with the court, prosecutors noted that evidence gathered from Do’s digital devices “showed that defendant was having conversations of a sexual nature with five other individuals that had indicated that they were minor girls.”
In August 2016, after he pleaded guilty, Do’s bond was revoked and he was remanded into custody after he visited eight different Orange County parks on 12 different occasions in violation of the terms of his release. At the time, Do claimed that he was playing Pokemon Go when he went to the parks in July 2016.
The investigation into Do was conducted by the Orange County Child Exploitation Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The Task Force received substantial assistance from HSI’s attaché office in Vancouver, the Calgary Police Service, Canada Border Services Agency, and the Royal Canadian Mounted Police’s Southern Alberta Internet Child Exploitation Unit.
The case against Do was prosecuted by Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office.