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6 April 2017
Toledo man charged with stealing $182,000 from Department of Veterans AffairsRead the Press Release
A Toledo man was indicted for allegedly stealing $182,000, said David A. Sierleja, Acting United States Attorney for the Northern District of Ohio.
Gilbert W. Young, 70, was indicted on one count of theft of government money. Young, between 1995 and 2016, allegedly converted for his own use $182,724 from the U.S. Department of Veterans Affairs to which he was not entitled, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Department of Veterans Affairs Inspector General, in Cleveland. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Central Valley Residents Appear in Court for Federal Passport OffensesRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert and David Zebley, Special Agent in Charge, U.S. State Department Diplomatic Security Service, announced today the recent prosecution of five separate passport fraud offenses. According to court documents, the defendants possessed United States passports for themselves or for others that were produced without lawful authority. Three of those defendants appeared in court today before U.S. Magistrate Stanley Boone in Fresno.
Docket # 1:17-cr-017
Rafael Antonio Guilarte Rojas, 39, of Bakersfield, was arraigned today. He is charged with possessing an identification document with intent to defraud the United States. He is alleged to have possessed a California driver’s license in a false name when Diplomatic Security Special Agents encountered him on January 5, 2017, while investigating the passport application he submitted in the same false name.
Docket # 1:17-cr-016
Luis Alberto Hecht Rojas, 33, of Bakersfield, was also arraigned today. He is charged with possessing an identification document with intent to defraud the United States. He is alleged to have possessed a California driver’s license in a false name when Diplomatic Security Special Agents encountered him on January 5, 2017, while investigating the passport application he submitted in the same false name.
Docket # 1:17-cr-046
Maria Cruz Lopez, 42, of Bakersfield, pleaded guilty today to possessing a false United States identification document. She possessed a United States passport issued to her in her identity, but with another person’s photograph on it on August 13, 2012. United States Magistrate Judge Stanley A. Boone sentenced Lopez to two years of probation, a $1,500 fine, and 60 hours of community service.
Docket # 1:16-cr-161
Luis Garcia Jauregui, 53, of Bakersfield, is charged with possessing a false United States identification document. He is alleged to have possessed a United States passport issued to him in a false name when Diplomatic Security Special Agents encountered him on November 19, 2015, while investigating the passport application he submitted in the same false name. On February 24, 2017, a warrant was issued for his arrest.
Docket # 1:16-cr-160
On February 2, 2017, Carolina Garcia Velazquez, 41, of Fresno, was convicted of possessing a false United States identification document. She possessed a United States passport that had been issued to her in a false name when Diplomatic Security Special Agents encountered her during the course of her false passport investigation. U.S. Magistrate Judge Stanley Boone sentenced her to two years of probation, a $2,000 fine, and 100 hours of community service.
The defendants still facing charges face a maximum statutory penalty of one year in prison and a maximum statutory fine of $100,000 if convicted. 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.
These cases are the product of an investigation by the Diplomatic Security Service. Assistant U.S. Attorney Megan S. Richards is prosecuting the cases.
Third Defendant Convicted in Connection with Gun Store BurglariesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that the third charged defendant has been convicted of engaging in a scheme to burglarize gun stores. O’NEAL THOMPSON, age 21, of Baton Rouge, Louisiana, pled guilty yesterday before U.S. District Judge Shelly D. Dick to conspiring to steal firearms, possess and sell stolen firearms, and receive and possess unregistered machine guns and silencers. He also pled guilty to stealing firearms from federally licensed firearms dealers. He will be sentenced at a later date.
During his guilty plea hearing, THOMPSON admitted to conspiring with CHARLES K. EVANS and GENO EUGENE LYONS to steal firearms from Hebert Guns in Prairieville, and Meaux Guns in Baton Rouge. THOMPSON admitted that in July of 2015, he, EVANS, and LYONS unsuccessfully attempted to steal firearms from Hebert Guns, then drove to Meaux Guns, where they forcibly entered and stole approximately forty‐three (43) firearms, including pistols, rifles, machineguns, and silencers. All three then split up the firearms in order to sell them. THOMPSON subsequently sold his share of the firearms. EVANS and LYONS have previously pled guilty for their involvement in the attempted burglary of Hebert Guns, the burglary of Meaux Guns, and the burglary of Bowie Outfitters in Baton Rouge in June of 2015.
Acting U.S. Attorney Amundson stated: “Prosecuting offenders who violate the federal gun laws is a top priority for this office and the U.S. Department of Justice generally. Stolen guns and armed felons fuel the violent crime plaguing our communities and threaten our safety and security. I applaud the united efforts of the various federal, state, and local law enforcement agencies and the prosecutors in this important matter.”
This investigation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with substantial assistance from the Baton Rouge Police Department, the East Baton Rouge Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Peter Smyczek.
Synergy Services Honored for Work on Behalf of Child VictimsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, presented the annual Crystal Kipper & Ali Kemp Memorial Award today to Synergy Services in recognition of the organization’s valued contribution to preventing and responding to the exploitation of children.
“Synergy Services is a staunch advocate and compassionate caregiver for children and families in crisis,” said Larson. “Synergy is a strong ally in our work to combat human trafficking and child exploitation. I’m pleased to recognize Synergy’s contribution as a valuable partner in responding to the needs of our most vulnerable victims.”
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme – “Strength. Resilience. Justice.” – reflects a vision for the future in which all victims are strengthened by the response they receive, organizations are resilient in response to challenges, and communities are able to seek collective justice and healing.
Executive Director Robin Winner received the award on behalf of Synergy Services. This is the 14th year for the award to be presented in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Roger Kemp, Ali Kemp’s father, and Anna Rea, Crystal Kipper’s mother, participated in today’s presentation.
Synergy Services, Inc. began in 1970 as Synergy House, the only shelter for runaway and homeless youth in western Missouri. Synergy now provides a full continuum of nationally accredited care to assist children and families with immediate respite from violence, and services which empower clients to find and choose good options for future safety and success. In addition to their work to treat the effects of violence, Synergy provides supportive services to families in crisis in an effort to prevent violence. They also focus on community education in an effort to build a safer society. Their programs include crisis hotlines, emergency shelter, transitional housing, therapeutic services, advocacy, mentoring and violence prevention programs throughout the greater Kansas City area. They provide these services regardless of ability to pay.
Synergy’s new Children’s Center in the Northland celebrated its grand opening last fall. Synergy now has more beds available to serve children from birth to 17 years old. Their hope is to no longer have to turn children away because of limited beds and resources. The Children’s Center is not a foster care agency, but an emergency placement shelter designed to provide stabilization to children in crisis (such as homelessness, domestic violence, incarceration, or unexpected hospitalization).
National Crime Victims’ Rights Week
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in recognition of a valued contribution to preventing and responding to the exploitation of children.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim Assistance Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim Assistance personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim Assistance Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at https://www.ovc.ncjrs.gov/ncvrw.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
St. Louis Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
St. Louis, MO – Kenneth Edwards, St. Louis, admitted to a wire fraud scheme involving identity theft and counterfeit checks this morning. Edwards pled guilty to three counts of wire fraud associated with checks presented at the Maplewood Wal-Mart and Sam’s Club in December 2015.
According to his plea agreement, Edwards and others unknown stole identifiers of an area individual and used that information to create checks he used to purchase high end electronics. Judge Ronnie White, who accepted Edwards’ guilty plea, set a sentencing date of July 5, 2017.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 or both. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Springfield Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Scott Goodwin-Bey, 49, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 10 years in federal prison without parole, the statutory maximum sentence for the offense.
On Oct. 4, 2016, Goodwin-Bey was found guilty of being a felon in possession of a firearm and ammunition. U.S. District Judge M. Douglas Harpool issued the verdict on Oct. 4, 2016, following a one-day bench trial on Aug. 23, 2016.
According to the court’s findings of fact, Goodwin-Bey entered the Star Mart on W. Chestnut Expressway on Nov. 30, 2014, carrying a loaded Ruger 9mm pistol. Goodwin-Bey placed the gun on the counter and the store clerk took the firearm and handed it to the store manager. Both the clerk and the manager recognized Goodwin-Bey from earlier interactions because he had behaved in a strange manner. The clerk escorted Goodwin-Bey outside the store and Goodwin-Bey left in a white Lincoln. The store manager dialed 911 and requested that officers come to the Star Mart because of concern over Goodwin-Bey’s actions.
When an officer arrived, the store manager turned over the firearm. Another officer stopped Goodwin-Bey, who was driving the Lincoln, and he was arrested. Officers found loose 9mm ammunition on the floor of his vehicle and in the parking lot in front of the store in the vicinity of where the vehicle had been parked.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Goodwin-Bey has two prior felony convictions for carrying a concealed weapon and prior felony convictions for being a felon in possession of a firearm, possession of crack cocaine, resisting arrest and conspiracy to distribute crack cocaine.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Springfield Man Indicted for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today on charges related to a conspiracy to distribute methamphetamine in Greene County, Mo., and for illegally possessing firearms.
Bradley Blas, 24, of Springfield, was charged in an eight-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Blas participated in a conspiracy to distribute 500 grams or more of methamphetamine in Greene County from Aug. 31, 2016, to March 16, 2017. The indictment also charges Blas with one count of possessing a firearm in furtherance of the drug-trafficking conspiracy and in furtherance of the possession of methamphetamine with the intent to distribute on March 16, 2017. Blas allegedly possessed a Ruger .380-caliber semi-automatic pistol.
In addition to the conspiracy, Blas is charged with drug-trafficking and firearms offenses that occurred on three separate occasions.
Blas is also charged with one count of possessing 50 grams or more of meth to distribute and one count of being a felon in possession of firearms on Aug. 31, 2016. Blas allegedly possessed a Taurus 9mm semi-automatic pistol, a Glock .380-caliber semi-automatic pistol, a Heritage Manufacturing .22-caliber revolver and an FIE .25-caliber semi-automatic pistol.
Blas is also charged with one count of possessing 500 grams or more of meth to distribute and one count of being a felon in possession of firearms on March 15, 2017. Blas allegedly possessed a Ruger .223-caliber semi-automatic rifle, a DPMS .223-caliber semi-automatic rifle and a Springfield Armory .45-caliber semi-automatic pistol.
Blas is also charged with one count of possessing 50 grams or more of meth to distribute and one count of being a felon in possession of a firearm on March 16, 2017. Blas allegedly possessed a Ruger .380-caliber semi-automatic pistol.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Blas has two prior felony convictions for assault and prior felony convictions for distributing a controlled substance and stealing a motor vehicle.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Springfield, Mo., Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Combined Ozarks Multi-Jurisdictional Enforcement Team, and the Greene County, Mo., Sheriff’s Department.
Springfield Man Indicted for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury for his role in a conspiracy to distribute at least a kilogram of heroin in Greene County, Mo.
Craig S. Shade, 49, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
The indictment alleges that Shade participated in a conspiracy to distribute one kilogram or more of heroin in Greene County from July 11, 2014, to July 6, 2016.
In addition to the conspiracy, Shade is charged with one count of distributing heroin on June 22, 2016, and one count of possession with intent to distribute heroin on July 6, 2016.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, COMET (the Combined Ozarks Multi-jurisdiction Enforcement Team) and the Greene County, Mo., Sheriff’s Office.
Southern Illinois and Missouri Residents Charged with Methamphetamine OffensesRead the Press Release
On April 4, 2017, three southern Illinois and one Missouri resident were charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Garrick E.R. Recker, a/k/a "Curtis Lowe," 26, of Lenzburg, Paige M. Gleghorn, 26, of Sparta, Jeremy J. Humphries, 31, a/k/a "Hump," and "Slick," of Tilden, and Derek L. Sumpter, 29, a/k/a "Doucher," of Cape Girardeau, were charged in a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges the offense occurred between 2015 and February 2017, in Perry, Randolph, Monroe, and St. Clair Counties. On April 6, 2017, Gleghorn made her initial appearance in federal court. She was ordered held without bond pending a May 15, 2017, jury trial. Recker, Sumpter, and Humphries had previously appeared in federal court and were also ordered held without bond pending trial.
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 4 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.
South Laredo Crack Dealers Sentenced to Lengthy Terms of ImprisonmentRead the Press Release
LAREDO, Texas – The reputed leader of the Melendez Drug Trafficking Organization from South Laredo has been ordered to federal prison for life, announced Acting U.S. Attorney Abe Martinez.
A federal jury convicted Adan Melendez aka “12,” 40, in June 2015 on 20 counts related to drug trafficking to include drug conspiracy and possession with intent to distribute cocaine, crack and marijuana; using minors in drug operations; drug distribution; conspiracy to commit money laundering; maintaining a drug premises; possession with intent to distribute marijuana; and possession a firearm in relation to a drug trafficking offense.
Today, U.S. District Judge Diana Saldaña sentenced Melendez to life in prison.
Melendez’s two sons - Adan Melendez Jr. aka “Vivi,” 22, and Andres Melendez aka “Chon,” 21, both of Laredo - were also sentenced today. Melendez Jr. received a sentence of 147 months for the drug conspiracy, while his younger brother was ordered to serve 188 months in prison for both the conspiracy and for possession with intent to distribute cocaine.
A total of 18 defendants have now been sentenced as part of Operation “Revocation.” The 15 others received terms up to 210 months in prison. Ten additional defendants convicted in the case are still pending sentencing.
Melendez and his two sons ran an organization that distributed cocaine, crack and marijuana in South Laredo from at least 2012 until they were arrested in the summer of 2014. Testimony during trial revealed that Melendez profited approximately $1,200 per day from his operations and spent tens of thousands on luxury cars for himself and his sons.
At the hearing today, Judge Saldaña stated that she could find no redeeming value in Melendez’s background or lifestyle. Assistant U.S. Attorney (AUSA) José Angel Moreno likened the drug dealers to vampires, quoting from a Fifth Circuit case describing drug dealers:
“This observation of the en banc Court is patently correct, and we so hold. Except in rare cases, the murder’s red hand falls on one victim only, however grim the blow; but the foul hand of the drug dealer blights life after life and, like the vampire of fable, creates others in its owner’s own image–others who create others still, across our land and down our generations, sparing not even the unborn.”
The Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and Texas Department of Public Safety conducted the Organized Crime Drug Enforcement Task Force investigation. AUSAs Moreno and Jorge Vela are prosecuting the case.
Seven Tax Return Preparers Charged, Repeat Offender Sent to PrisonRead the Press Release
HOUSTON - With the deadline for filing income tax returns rapidly approaching, Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI) have jointly announced seven newly-charged tax return preparers as well as a significant sentencing and delivered a warning to those who are thinking about breaking the law by committing tax crimes.
“Federal law requires everyone to pay their fair share of taxes,” said Martinez. “False tax returns are an attempt to cheat the system, the U.S. Treasury and ultimately the American people. Return preparers have an obligation to seek only the refunds their clients are entitled to and charge a reasonable fee in doing so. Those who abuse their filing privileges will be investigated, caught and prosecuted to the fullest extent of the law. All taxpayers should also exercise caution in selecting preparers on whom they rely in seeking an appropriate refund. If a preparer promises financial dividends that are too good to be true, it may well be and could require a much greater repayment than the excess received.”
“Society places tax practitioners in a position of trust. Their customers provide them with some of their most sensitive personal information. When that trust is violated and the information is abused for fraudulent purposes, it causes significant harm not only to the individuals who are directly victimized but to the entire community,” said Goss. “IRS-CI special agents are working tirelessly to protect taxpayers from fraud and investigate potential unscrupulous tax return preparers.”
One such notable recent case involved a local tax return preparer who was ordered to federal prison for a second time for preparing false tax returns and obstructing the IRS in its enforcement of federal income tax laws.
Cedric Keith Oliphant, who was previously charged with and convicted of preparing dozens of false 2006-08 client tax returns, was released on bond in that case under a condition that he have no involvement in the preparation of tax returns other than his own. However, while awaiting sentencing, Oliphant resumed preparing fraudulent tax returns, attempting to hide his activity by putting the business and bank accounts in other people’s names.
He was sentenced 33 months on the earlier case and released from prison Aug. 26, 2016. A week later, he was taken into custody on the second case and ordered into custody. He later pleaded guilty to those charges and is now serving another 28-month federal prison sentence. He was further ordered to pay more than $725,000 in restitution for both cases. The Financial Litigation Unit of the United States Attorney’s Office has already seized $205,000 in cash, three cars worth $32,600 and Oliphant’s personal residence in Huntsville as partial satisfaction of his restitution obligation.In addition to this significant sentencing, the U.S. Attorney’s Office has recently filed cases against seven other tax return preparers for aiding and assisting in the preparation and electronic filing of materially false U.S. Individual Income Tax Returns.
Yesterday, authorities arrested Ryan Damont Akers following the return of an indictment charging 15 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today. The U.S. Individual Income Tax Returns listed in the indictment cover years 2012 through 2014. The false items variously claimed on the returns include, among others, false amounts of gifts to charity by cash or check, false unreimbursed employee expenses, false losses from sole proprietorships and false Schedule D net long term capital losses, according to the indictment.
Also arrested yesterday was Dale Bradford Harding, charged with 15 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others as well as one count of willfully filing a false income tax return for himself. Those tax returns cover years 2010 through 2014, with false items variously claimed on the returns including, among others, false amounts of gifts to charity by cash or check, false unreimbursed employee expenses, false losses from sole proprietorships, false Schedule E losses from partnerships or S corporations and false Schedule D net long term capital losses. He is expected to make an initial appearance in federal court in the near future.
Another recent filing includes the case against Yomi Michael John, doing business in Houston as Postal Tax Services. He is charged by criminal information alleging that during calendar years 2010 through 2013, he aided and assisted in the preparation and electronic filing of dozens of materially false 2009 through 2012 U.S. Individual Income Tax Returns for unsuspecting clients. John allegedly included materially false income, expenses, deductions and credits in these tax returns in order to generated at least $214,413 in excessive refunds. John kept a portion of the fraudulent refunds as preparation fees, according to the charges. He is expected to make his initial appearance in federal court on April 12, 2017.
In another separate but similar case, Crystal T. Kemp is charged with 16 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. The 16 false income tax returns that Kemp prepared for others cover tax years 2012 through 2015 with false claims on the returns including false losses from sole proprietorships, false education credits, false earned income credits and false child tax credits, according to the charges. She also allegedly filed two false income tax returns for herself for tax years 2013 and 2014. The indictment alleges these tax returns falsely claimed a much lower income than Kemp actually received from her business, CQ Tax Preparation.
Chester Swanson is yet another return preparer, charged with 21 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. The 21 U.S. Individual Income Tax Returns listed in the indictment cover years 2012 through 2015. The false items allegedly included on those return include false amounts of medical expenses, false amounts of gifts to charity, false unreimbursed employee expenses, false losses from sole proprietorships, false education credits and false deductions for tuition and fees. He is set for trial Aug. 14, 2017.
Finally, Derwin Blackshear and Terranjala “Denise” Wilder Smith operated a return preparer business known as Level One Tax Service in Houston. They were indicted earlier this year on charges they prepared and filed false tax returns reporting false wages and withholding taxes for clients for tax years 2011 through 2014. A total of 25 individual returns were charged in the indictment which resulted in fraudulent refunds totaling more than $250,000. Blackshear and Wilder allegedly received a portion of the fraudulent refunds as fees for preparing and filing the fraudulent tax returns. They are set for trial Sept. 11, 2017.
Each count of aiding and assisting in the preparation of false income tax returns is up to three years in federal prison and a possible $250,000.
IRS-CI conducted all of the investigations in these matters. Assistant U.S. Attorneys Jimmy Sledge, Charles J. Escher and Justin Martin are prosecuting the cases.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Sentencings for April 3 - April 5, 2017Read the Press Release
Richard Lee Wickham, 46, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 5, 2017, for conspiracy to distribute at least 1.5 kilograms of methamphetamine. Wickham was arrested in Casper, Wyoming. He received 235 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $1,000.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Dylan Tyler Carpenter, 24, formerly of Gillette, Wyoming, was sentenced by Chief Federal District Court Nancy D. Freudenthal on April 4, 2017, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for using and carrying firearms during and in relation to a drug trafficking crime. Carpenter was arrested in Gillette, Wyoming. He received 140 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Chad Thomas Johnson, 35, of Newcastle, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 4, 2017, for production of child pornography. Johnson received 204 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and a $1,700.00 fine. Restitution will be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Dustin Allyn Lee, 37, of Carpio, North Dakota, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2017, for possession with intent to distribute more than 50 grams of methamphetamine. Lee received 57 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Charles Patrick Jeffery, 39, of Kinnear, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2017, for possession of child pornography. Jeffery was arrested in Lander, Wyoming. He received 40 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and $3,000.00 in restitution. This case was investigated by the Federal Bureau of Investigation.
Roberto Jimenez Beltran, 50, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 3, 2017, for conspiracy to distribute methamphetamine. Beltran was arrested in Torrington, Wyoming. He received 37 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $200.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Scarborough Man Sentenced to 33 Months on Firearm ChargeRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Primo Tosi a/k/a “Brian”, 31, of Scarborough, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 33 months in prison and three years of supervised release for possession of a firearm by a person subject to a protection order. Tosi pleaded guilty to the charge on October 31, 2016.
Court records reveal that in May 2016, officers of the Scarborough Police Department responded to a call from Tosi’s former girlfriend who reported being threatened with a firearm by him. While later executing a search warrant, officers seized a 12 gauge shotgun and ammunition in Tosi’s bedroom and an antique rifle. Tosi was prohibited from possessing firearms as a result of a protection from abuse order issued by the Maine District Court in Bridgton in January 2016.
In imposing the sentence, Judge Hornby departed upward one year from the advisory sentencing guideline range because of Tosi’s prior criminal history that included four convictions for misdemeanor crimes involving domestic violence against three different women and due to his risk of recidivism.
The investigation was conducted by the Scarborough Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Romanian Business Owner Sentenced to 13 Years in Prison for Bribery of a Public OfficialRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Dumitru Martin, 55, of Romania, today to 13 years in prison for conspiracy to commit bribery and bribery of a public official, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Martin owned and operated a Romanian company called Polaris M. Holdings. Co-defendants Anamaria Cruceru, 49; Constantin Schiller, 63; and Marcelle Banaga, 41, all of Romania, were employees of Polaris. Between June 2014 and December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a high-level United States Air Force (USAF) contracting officer in an effort to win multiple multimillion-dollar contracts for Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of any contract awarded. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Kogalniceanu Air Base in Romania. The contract was valued at over $10 million. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal various bribe payments totaling just over $1 million. Thereafter, as part of the conspiracy, the defendants caused Polaris to wire $100,000 from Romania to a bank account in the United States as the initial bribe payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement, and there was no contract to be awarded to Polaris.
U.S. Attorney Talbert said: “The Eastern District of California has many military and other government facilities that obligate taxpayer money in the course of negotiating high-dollar contracts. The sentence imposed today acknowledges the importance of rooting out corruption and protecting the integrity of the contracting process. My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Judge Nunley said at sentencing that, “bribery is not a victimless crime.” He went on to note that bribery creates a “pay-to-play environment” in which people feel “they can’t participate if they do it the right way.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
Banaga, Schiller and Cruceru pleaded guilty to conspiracy to commit bribery. They are scheduled to be sentenced by Judge Nunley on May 11, 2017. They each face a maximum statutory penalty of five years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Roanoke Man Pleads Guilty to Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man faces up to 30 years in federal prison after pleading guilty this morning in the United States District Court for the Western District of Virginia in Roanoke to federal drug and gun charges, Acting United States Attorney Rick A. Mountcastle announced.
De’Shae Antonio Webb, 27, of Roanoke, pled guilty today to one count of distribution of cocaine and one count of possession of a firearm by a previously convicted felon.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Andrew Bassford, Webb sold cocaine to a police informant and was observed to be in possession of a firearm during the drug transaction.
The Roanoke City Police Department, the Roanoke HIDTA and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of the case. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Retired Fulton County Jailer Guilty of Receiving Kickbacks Tied to 3.3 Million Construction Project on Fulton County Detention CenterRead the Press Release
Ricky Parnell admitted to receiving kickbacks totaling at least $175,000 from contractors
PADUCAH, Ky. – Retired Fulton County Jailer Ricky Parnell pleaded guilty today in United States District Court before Senior Judge Thomas B. Russell, to his role in a conspiracy to defraud Fulton County, Kentucky, citizens through kickbacks and inflated costs associated with the $3.3 million 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr.
“Public corruption simply cannot be tolerated,” stated United States Attorney John Kuhn. “Corrupt public officials erode the fairness and integrity of our public institutions, and they undermine the public’s trust in our government. I hope this conviction will reassure the public that the Department of Justice will hold elected officials to the highest standards of honesty and integrity.”
Parnell, 59, of Hickman, Kentucky, pleaded guilty to Honest Services Fraud and multiple counts of Wire Fraud for using his official position to enrich himself by soliciting and accepting gifts and payments from defendant contractors, in exchange for influencing the Fulton County Fiscal Court to award the defendants contracts on the project.
Parnell admitted to directing Ronald D. Armstrong, 60, of Dresden, Tennessee; Jimmy Boyd, 56, of South Fulton, Tennessee; Michael Homra, 79, of Fulton, Kentucky; and Daniel C. Larcom, 42, of Union City, Tennessee, to intentionally overcharge Fulton County for services and supplies provided as part of jail projects. Parnell presented the inflated invoices and contracts to the Fulton County treasurer for payment to the defendants and their respective companies. In turn, the defendant contractors would use the excess proceeds to pay kickbacks, in the form of both cash and checks, to Parnell. Parnell received at least $175,000 in money and other things of value.
In addition, defendants Armstrong, Boyd, Homra, and Larcom took steps to cover up their activities and dealings with Parnell, including using cash to provide Parnell with kickbacks, structuring withdrawals from banks to use for these kickbacks, and creating false and inflated invoices for services and materials in order to satisfy the cash kickbacks demanded by Parnell.
Contract defendants Larcom, Armstrong and Boyd have pleaded guilty in United States District Court to charges including Honest Service Wire Fraud and Wire Fraud for their individual roles in this conspiracy.
The charged activity took place between April 2015 and August 2016. Parnell served as the Fulton County Jailer from 1990 until late last year and remains free on bond. A sentencing date is scheduled in Paducah, before Senior Judge Russell, on July 3rd.
If convicted at trial, Parnell could be sentenced to no more than 20 years in prison per count, pay a $250,000 fine for each count, and be sentenced to serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Restaurant Owners Charged in Tax Fraud SchemeRead the Press Release
BOSTON – Three restaurant owners were charged yesterday in a superseding indictment with tax fraud in connection with the operation of three Boston-area restaurants.
Hazrat Khan, 57, of Middletown, NY; Khurshed Iqbal, 57; and Rahman Zeb, 60, all Pakistani nationals, were charged in an 18-count superseding indictment with conspiracy and willful failure to pay over taxes. Khan and Iqbal were initially indicted in April 2016. Khan remains on pretrial release; Iqbal and Zeb’s whereabouts are unknown.
According to court documents, the defendants defrauded the government and avoided paying payroll and income taxes owed by two Crown Fried Chicken restaurants located in Boston and Chelsea and the New York Fried Chicken restaurant in Mattapan. Khan and Iqbal allegedly took steps to conceal their ownership interests in two of the stores and another conspirator, acting at their direction, provided the tax preparers for those stores with false information about the restaurants’ payroll and income, causing the tax preparers to file false tax returns. The indictment alleges a similar scheme at the Mattapan store, where Khan and Zeb conspired to provide tax preparers with false payroll and income information, resulting in the filing of false tax returns for that store as well.
Federal law requires employers to withhold payroll taxes and then pay them over to the IRS. To avoid paying taxes, Khan, Iqbal and Zeb are alleged to have falsely reported the number of employees—some of whom were undocumented workers—and wages paid to the IRS. They are also alleged to have paid employees under the table and filed income-tax returns that falsely described their sales, total income, compensation of officers, salaries and wages, and taxable income.
The charge of conspiracy provides for a sentence of no greater than five years in prison, a maximum of three years of supervised release, a fine of $250,000 and restitution. The charge of willful failure to pay over taxes provides for a sentence of no greater than five years in prison, a maximum of three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Charged with Child PornographyRead the Press Release
Kyle Hobbs, 24 of Philadelphia, PA was charged today by Information with possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a $250,000 fine, forfeiture, restitution, at least 5 years of supervised release up to a lifetime of supervised release, and special assessments of $100 and, if not indigent, an additional $5,000.
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
Pair Sentenced for Fort Benning Jewelry Store BurglaryRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Antonio Riggins, age 35, of Columbus, GA, and Steven Scott, aged 49, also of Columbus, were sentenced today for their roles in a Balfour Jewelry store burglary that occurred on Fort Benning on November 14, 2015.
Chief U.S. District Court Judge Clay D. Land sentenced Mr. Riggins to 18 months confinement, followed by 3 years supervised release. Mr. Scott was sentenced to 27 months confinement, consecutive to a revoked state of Georgia sentence, followed by 3 years supervised release.
The evidence showed that in November 2015, both Mr. Riggins and Mr. Scott were civilian contract workers on Fort Benning. On or about November 12, 2015, both men went to the Balfour’s Jewelry store, posing as customers, and surveyed the premises. Balfour’s is part of a mini-mall that includes other shops. They determined that there was little or no surveillance equipment inside the store. On November 14, 2015, the two men returned to the store after business hours. Mr. Scott possessed a hammer, which he used to break a glass paned door which led inside the main mall. He then used a pair of wire cutters to pierce a metal roll down door that separated Balfour’s from the mall area. Mr. Scott then entered the store and stole approximately $38,000 worth of rings and other assorted jewelry. His handprint was recovered from the floor adjacent to the point of entry. While Mr. Scott burglarized the store, Mr. Riggins remained outside as a lookout.
For the next six days, both Mr. Riggins and Mr. Scott sold much of the stolen jewelry to local pawn shops. An additional quantity of stolen jewelry was recovered from Mr. Scott’s home. Most of the stolen items were eventually recovered. Both defendants admitted their roles in the burglary.
The case was investigated by the Fort Benning Criminal Investigations Division and the Federal Bureau of Investigation.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Oklahoma City Man Sentenced to 280 Months in Prison for Producing Child PornographyRead the Press Release
Oklahoma City, Oklahoma – MICHAEL LEE SAPP, 43, of City, was sentenced today by Chief United States District Judge Joe Heaton to serve 280 months in federal prison for downloading child pornography and for manufacturing child pornography depicting himself engaged in sex acts with a young girl, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records and statements made in court, an undercover Edmond Police Department detective downloaded child pornography from Sapp’s computer in February 2016. On June 30, 2016, officers executed a search warrant at Sapp’s apartment, where they seized numerous electronic devices for examination. Forensic analysis discovered tens of thousands of pictures and videos of child pornography depicting prepubescent girls as well as images of children in bondage and animals engaging in sex acts with children. Officers also discovered among Sapp’s child pornography collection images that he had produced himself. These images depicted Sapp engaging in sex acts with a young girl, and, using a computer, he had later annotated them with lewd commentary. Sapp also had in his possession girls’ panties and photographs of girls that were apparently taken surreptitiously at his apartment complex and at a pool.
Sapp was indicted by a federal grand jury on August 17, 2016, and pled guilty on October 18, 2016. After serving the 280-month prison sentence, Sapp will be required to register as a sex offender and be under supervision of the United States Probation Office for the rest of his life.
This case is the result of an investigation by the Edmond Police Department and was prosecuted by Assistant U.S. Attorney Brandon Hale, Project Safe Childhood Coordinator.
Ohio man indicted for chase in which he threw bottles of explosive chemicals at officersRead the Press Release
A Bloomdale man was indicted on multiple charges related to a chase in which he lit and threw bottles of explosive chemicals at law enforcement officers, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
William B. Milliron, 45, was charged with assault on federal officers, possession and use of a destructive device during a crime of violence, manufacturing and possessing methamphetamine and being a felon in possession of ammunition.
U.S. Marshals were searching for Milliron near Bowling Green on Feb. 24 because of a probation violation in Florida. They spotted Milliron and attempted to pull over Milliron, who fled. Marshals pursued and officers from the North Baltimore Police Department joined the chase, according to court documents.
Milliron began throwing bottles containing unknown substances at the pursuing cars, and one of the bottles exploded on the front end and windshield of the police vehicle, according to court documents.
The pursuit continued into Fostoria and then Findlay, when Milliron’s vehicle went off the road and crashed. Milliron was arrested and had 13 rounds of live ammunition in his pants pocket, according to court documents.
The substance in the bottles was found to be a combination of chemicals used to manufacture methamphetamine. The chemicals are highly volatile, toxic and combustible. The bottles had paper wicks which were charred from being lit on fire, according to court documents.
Milliron has multiple felony convictions in Florida for crimes including grand theft of firearms, resisting an officer with violence, battery on an officer, manufacture of methamphetamine and other crimes, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation and the U.S. Marshals Service. The case is being handled by Assistant United States Attorney Thomas P. Weldon
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ohio Man Sentenced to 110 Months in Prison in Connection with Cocaine Smuggling ConspiracyRead the Press Release
St. Thomas, USVI – Christopher Butler, 30, of Twinsburg, Ohio, was sentenced today to 110 months in prison, followed by five years of supervised release, for possession of cocaine with intent to distribute, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also ordered Butler to pay a $100 special assessment and perform 400 hours of community service.
On January 23, 2017, Butler pleaded guilty to one count of possession with intent to distribute not less than 3.5 and not more than 5 kilograms of cocaine in connection with a 13-member drug smuggling ring operated by Nilda Morton of St. Thomas. Morton utilized airline employees and female drug couriers to smuggle cocaine through the Cyril E. King Airport. Morton, the leader of the organization, was sentenced by Judge Gomez on March 23, 2017 to 97 months in prison. On March 16, 2017, Gomez also sentenced Dellana Magner to five years in prison. Both Morton and Magner were ordered to complete five years of supervised release and perform 400 hours of community service on their cocaine possession convictions.
Still awaiting sentencing on cocaine possession charges are Vanier Murraine, 34, a native of St. Thomas and resident of Detroit; Drue Williams, III, 35, of Twinsburgh, Ohio; Taheeda George, 37, Roniqua Hart, 24, Kinia Blyden, 23, and Jerrisha Rawlins, 22, all of St. Thomas. Also awaiting sentencing are Rasheem Morton, 36, Monique David, 40, and Te’Nae George, 23, all of St. Thomas, who pleaded guilty to money laundering conspiracy. Kanya Tirado, 38, of St. Thomas, who was found guilty by a federal jury of three counts of cocaine conspiracy and possession with intent to distribute cocaine, will be sentenced on June 8, 2017.
This case is the result of a joint investigation by the Federal Bureau of Investigation in Pittsburgh, New York, Cleveland, Detroit, and St. Thomas. It was prosecuted by Assistant United States Attorney Delia L. Smith.
New York Man Gets Three Years in Prison for Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 36 months in prison for his role in a conspiracy to traffic approximately two kilograms of cocaine from Puerto Rico to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Ramis Esteves, 33, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiring to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Esteves was arrested on March 24, 2015 in Bergen County after he accepted delivery of approximately two kilograms of cocaine which had been sent by mail from Puerto Rico. Esteves admitted that he conspired with co-defendant Sasha Melendez, 38, of Bergenfield, New Jersey, to distribute the cocaine.
In addition to the prison term, Judge Cecchi sentenced Esteves to three years of supervised release.
Melendez previously pleaded guilty to conspiracy to distribute cocaine and was sentenced Jan. 5, 2017 to 37 months in prison.
Acting U.S. Attorney Fitzpatrick credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Paul Brenner, Esq.
New Orleans Man Sentenced to 10 Years in Prison for Interstate Heroin CaseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LARRY DUPOR, age 44, of New Orleans, was sentenced today after previously pleading guilty to one count of conspiracy to distribute one kilogram or more of heroin and one count of attempted distribution of 100 grams or more heroin.
U.S. District Judge Jane Triche Milazzo sentenced DUPOR to 120 months imprisonment on the drug conspiracy and 60 months on the attempted distribution charge, to run concurrently. DUPOR was also placed on 5 years of supervised release following his term of imprisonment.
According to court records, during a traffic stop of a Fiat on Interstate-10 East in Calcasieu Parish, law enforcement officers found four packages of heroin weighing approximately one kilogram in total. The driver admitted that DUPOR had paid her $1,000 in cash to transport the heroin from Houston, where DUPOR was residing at the time, to Lejeune HARRIS at a car wash in New Orleans East. During the course of the conspiracy, from August 1, 2014 through May 1, 2015, DUPOR directed the driver to deliver heroin from him in Texas to HARRIS in New Orleans approximately two to three times per month.
After the traffic stop, the driver agreed to assist law enforcement by following through with a delivery of ‘sham’ heroin to HARRIS. While under law enforcement surveillance, the driver received a text from DUPOR directing her to deliver the ‘sham’ packages weighing approximately 750 kilograms in total to HARRIS. The driver was met by HARRIS, who took the packages and handed the driver $2,000 in cash. HARRIS entered the car wash office and was detained by surveillance agents. Agents obtained a search warrant for the car wash office and recovered an additional 479 grams of heroin in a hidden area where HARRIS had stored the three packages of ‘sham’ heroin.
HARRIS pled guilty to conspiracy to distribute one kilogram or more of heroin, possession with the intent to distribute 100 grams or more heroin, and attempted distribution of 100 grams or more of heroin. On March 16, 2017, HARRIS was sentenced to 240 months imprisonment on the drug conspiracy and 120 months each on the possession and attempted possession charges, to run concurrently.
Acting U.S. Attorney Evans praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Shirin Hakimzadeh were in charge of the prosecution.
New Jersey Man Indicted for Possessing Crack and Heroin with Intent to DistributeRead the Press Release
PLATTSBURGH, NEW YORK – Markell Reyes, age 19, of Jersey City, New Jersey, was indicted yesterday for possessing crack cocaine and heroin with the intent to distribute them.
The announcement was made by United States Attorney Richard S. Hartunian; Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector; and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
According to a complaint filed on March 21, 2017, Reyes got out of a taxi in Ogdensburg, New York, and fled on foot after he encountered a Border Patrol agent who had been questioning the driver of the taxi. He was ultimately detained and a search of his bag, which was left in the taxi, revealed approximately 60 grams of crack, 250 bags of heroin, and a revolver.
On March 21, 2017, Reyes appeared in Plattsburgh, before United States Magistrate Judge Gary L. Favro, and was detained pending a trial before United States District Court Judge David N. Hurd. If convicted on all counts, Reyes faces at least 5 years and up to 40 years in prison; a term of post-imprisonment supervision of at least 4 years and up to life; and a fine of up to $5 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the U.S. Border Patrol and DEA, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Mounds Man Sentenced to 14 Months for Stealing Firearms from Federal DealerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEROD LEROY GAMMILL, age 32, of Mounds, Oklahoma, was sentenced to 14 months imprisonment and 3 years of supervised release for STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2.
The Indictment alleged that on or about May 12, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly steal from Richy’s Gun & Pawn, a federal licensed firearms dealer, firearms.
The charge arose from an investigation by the Checotah Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Montgomery County Man Indicted Federally for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Kyle Stephen Thompson, age 31, of Burtonsville, Maryland, on 18 counts of production of child pornography. The indictment was returned late on April 5, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, from May 9, 2015, to January 28, 2017, Thompson allegedly engaged in sexually explicit conduct with three minors, in order to produce visual depictions documenting the abuse.
Investigators believe that Kyle Thompson may have befriended women who have young girls in order to gain access to those girls. Anyone who may have information regarding inappropriate or criminal activity committed by Thompson, or possible victims of Thompson, is asked to contact the Baltimore FBI at 410-265-8080.
If convicted, Thompson faces a mandatory minimum of 15 years in prison and up to 30 years in prison for each of the 18 counts of production of child pornography. Thompson is currently detained on related state charges. Thompson’s initial appearance in U.S. District Court in Greenbelt has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Kristi N. O’Malley, who are prosecuting the federal case.
Michigan Man Sentenced to 235 Months in Prison for Sex Trafficking and Interstate Transportation for ProstitutionRead the Press Release
David Q. Givhan, aka “Premier,” 35, of Kalamazoo, Michigan, was sentenced yesterday to 235 months in prison by U.S. District Court Judge David J. Hale, after being convicted by jury of one count of sex trafficking and three counts of interstate transportation for prostitution.
The sentencing was announced by Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Division.
“The defendant sexually exploited young women for his own profit,” said Acting Assistant Attorney General Wheeler. “When they refused he sexually assaulted them and when they fled he found them and brought them back. There is no place for this type of conduct in civilized society. This sentence sends a clear message that the Justice Department will work tirelessly to hold traffickers accountable for their crimes.”
“Forcible sex trafficking is effectively a form of modern day slavery,” said U.S. Attorney Kuhn. “The defendant’s victims were vulnerable women, whom he terrorized by violence, threats and other coercions. Today’s sentence should be a strong message that sex trafficking will be vigorously prosecuted by my office and the Department of Justice.”
“Givhan’s sentence, handed down during Victims’ Rights Week, is reflective of the heinous nature of sex trafficking,” said Special Agent in Charge Hess. “The FBI is committed to aggressively investigating these crimes and removing the victims from an environment of violence and exploitation.”
According to evidence and testimony presented at trial, Givhan prostituted three women for his profit at various times between October 2014 and April 2015 and transported them from Michigan to Kentucky and other states for the purpose of prostitution. He used force, fraud and coercion to compel one of the women to prostitute for him between October 2014 and March 2015. He initially recruited the woman – a single mother of three – using false promises of steady income and a better life. However, once she began earning money, he kept it all. Givhan required her to earn $1,000 a day and beat other women in front of her. Givhan also required her to tattoo his alias, “Premier,” on her neck and threatened to hurt or kill her or her family if she refused to continue prostituting for him. When she objected to his demand that she perform particular acts for customers, he sexually assaulted her. At one point, the woman tried to leave Givhan, but he found her and brought her back. On a trip to Florida, he compelled her to continue prostituting for his profit, even after she sought medical attention for severe pain and bleeding. Shortly thereafter, she managed to escape by enlisting the help of a hotel clerk and her mother.
After deliberating for under five hours, the jury found the defendant guilty on all four counts on Dec. 13, 2016. A fifth count was dismissed during trial.
The investigation was opened when Louisville Metro Police Department officers encountered a woman Givhan had transported from Michigan to Louisville, Kentucky, during a prostitution sting coinciding with the Kentucky Derby.
The case was investigated by the FBI’s Louisville Division and Louisville Metro Police Department. The case was prosecuted by Assistant United States Attorney Amanda E. Gregory of the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Miami Almighty Imperial Gangsters Nation Member Sentenced on Racketeering ConspiracyRead the Press Release
A member of the Almighty Imperial Gangsters Nation was sentenced to 300 months in prison today in Southern District of Florida for conspiracy to conduct and participate in the affairs of the gang through a pattern of racketeering activity.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Field Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Division made the announcement.
Miguel Pedraza, aka “Fuzzy,” 35, of Chicago, was sentenced to 300 months in prison for his involvement in the RICO conspiracy before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida.
According to Pedraza’s plea agreement, the Almighty Imperial Gangsters Nation is a violent street gang that originated in Chicago in the 1980s and expanded to other areas of the country, including Indiana and South Florida. Members and associates of the Almighty Imperial Gangsters Nation are responsible for numerous acts of violence, including murder, attempted murder, aggravated battery, aggravated assault, narcotics distribution and other criminal activities, occurring in Illinois, Indiana and the South Florida area and elsewhere.
According to admissions made in connection with his plea, Pedraza has been a member of the Almighty Imperial Gangsters Nation since 1997 and that for a period of time, he took over the street leadership of the gang’s activities in the Drake and Courtland area of Chicago, Illinois. Pedraza admitted that while in Chicago on Aug. 3, 2002, he shot and killed another individual who Pedraza believed was a rival gang member. Pedraza also admitted that he received stolen guns from other Almighty Imperial Gangsters Nation members, distributed cocaine and heroin to other members, and earned money for other members and regularly financed activities through funds derived from narcotics distribution of controlled substances.
Pedraza is the last of 16 defendants to be sentenced in this case. Co-defendants Victor Emmanuel Lopez, aka “Magic,” Jose Ivan Herrera, “Spyro,” Ramon Madruga, aka “Porky,” Alex Enrique Somarriba, “A-Rock,” Robert Martinez, aka “Trap,” Santiago Salcedo, aka “Chino,” Rogelio Perez, aka “Popeye,” Carlos Mena, aka “Rollo,” Piero Benitez, aka “Bam Bam,” Eddie Camacho, aka “NeNe,” Carlos Gomez, aka “Lokes,” Guillermo Sinisterra, aka “Memo,” Elio Quesada, aka “Whiz,” and Brandon Foeman, aka “Drama.”
The FBI field offices in Miami and Chicago, along with the Miami-Dade Police Department; the City of Miami Police Department; the Chicago Police Department; the Franklin Park, Illinois, Police Department and the East Chicago Police Department investigated the case, with assistance from the U.S. Attorney’s Offices for Southern District of Florida, the Northern District of Indiana and the Northern District of Illinois, the FBI and ATF field offices in Merrillville, Indiana, the State Attorney’s Offices of Miami-Dade and Broward counties in Florida and the State Attorney’s Offices in Cook and DuPage Counties in Illinois, as well as the Florida Department of Corrections and the Broward County Sheriff’s Office.
Trial Attorneys Joseph A. Cooley, Rebecca A. Staton and Nicholas J. Regalia of the Criminal Division’s Organized Crime and Gang Section and the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case, with the assistance of the U.S. Attorney’s Office for the Northern District of Indiana and the State Attorneys’ Offices for Miami-Dade and Broward counties.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS AGATON-VAZQUEZ, age 25, a native of Mexico, pled guilty today to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, AGATON-VAZQUEZ was previously removed from the United States on April 4, 2017. He was later found in the Eastern District of Louisiana on January 3, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
AGATON-VAZQUEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Eldon E. Fallon set sentencing for July 6, 2017.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Jon Maestri is in charge of the prosecution.
Mercedes Man Convicted of Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 21-year old resident of Mercedes has entered a guilty plea to one count of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez.
Gabriel Eduardo Sanchez came to the attention of law enforcement following an out-of-state investigation which began Sep. 17, 2015, into another individual who was arrested for electronically sending images of child pornography over the Internet. Through that investigation, it was determined that this individual had shared child pornography with Sanchez while utilizing the Kik messenger app.
On Sept. 14, 2016, FBI agents executed a federal search warrant at Sanchez’s Mercedes residence, during which time they seized several electronic devices and digital media storage devices. A forensic examination revealed more than 2,000 videos and in excess of 1,000 images of child pornography involving children who were clearly young engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence.
During the plea today, Sanchez admitted he downloaded, received and shared child pornography on Kik Messenger and WhatsApp and saved the images on multiple storage devices.
U.S. District Judge Ricardo Hinojosa accepted the guilty plea and set sentencing for June 14, 2017. At that time, Sanchez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Member of Trenton Drug Trafficking Organization Pleads GuiltyRead the Press Release
TRENTON, N.J. – A Trenton, New Jersey, man today admitted his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding area, Acting U.S. Attorney William E. Fitzpatrick announced today.
Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E,” 21, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part his guilty plea, Abdullah admitted to possessing one or more firearms during the conspiracy.
In December 2016, Abdullah and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader and Elijah Abdullah’s brother, Ishmael Abdullah. Elijah Abdullah is the third defendant to plead guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Elijah Abdullah and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Elijah Abdullah.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with the narcotics conspiracy, Elijah Abdullah and other members of the Abdullah DTO maintained joint access to multiple firearms.
The conspiracy charge carries a mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing set for July 19, 2017.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Scott C. Curley; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian A. Michael; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Michael A. Armstrong, Willingboro, New Jersey
Mattapan Man Indicted on Cocaine Distribution and Conspiracy ChargesRead the Press Release
BOSTON – A Mattapan man was indicted today in U.S. District Court in Boston in connection with distributing cocaine and conspiring with others to distribute cocaine.
Francisco Torres, 37, was indicted today on two counts of distributing cocaine and one count of conspiring with others to distribute cocaine. On Feb. 16, 2017, Torres was arrested in the South End neighborhood of Boston following a sting operation where he was caught allegedly exchanging 850 grams of cocaine for a paper bag containing more than $33,000 in cash. Immediately after the exchange, officers approached Torres, who subsequently threw the bag of cash over a fence. Officers arrested Torres and recovered the money. Torres was initially detained, but released on bond after appearing before U.S. Magistrate Judge M. Page Kelley.
The two charges of cocaine distribution each provide for a minimum of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. The third charge of conspiracy provides for a maximum of 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Wagner, Director of the New Hampshire State Police; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys Christine Wichers and John T. McNeil of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Man Pleads Guilty to Distributing CrackRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Adam Williams, a/k/a “Pacman,” 36, of Worcester, Massachusetts pleaded guilty yesterday in U.S. District Court to distribution of cocaine base, commonly known as crack.
According to court records, on April 10, 2015, a witness working with law enforcement, purchased $200 worth of crack from Williams in Bangor.
Williams faces up to 20 years in prison, a $1,000,000 fine, and between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.
Manchester Man Pleads Guilty to Federal Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT V. GENTILE, 80, of Manchester, pleaded guilty today in Hartford federal court to federal firearm offenses, and also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on February 10, 2012, GENTILE was arrested after a federal investigation had revealed that he was involved in the illegal distribution of prescription narcotics. Subsequent court-authorized searches of GENTILE’s Manchester residence resulted in the seizure of 200 Percocet tablets packaged for distribution, two .38 caliber Smith & Wesson revolvers, a .22 caliber North American Arms revolver, a .22 caliber derringer, a 12-gauge pistol-grip shotgun, numerous rounds of ammunition, boxes of 12-gauge shotgun shells, five handgun silencers, other items and approximately $22,000 in cash. GENTILE pleaded guilty to federal drug and firearm offenses and, on May 9, 2013, was sentenced to 30 months of imprisonment, followed by three years of supervised release.
On March 2, 2015, while on supervised release, GENTILE sold a .38 Colt Cobra revolver, which was loaded with five rounds of Smith & Wesson .38 Special ammunition, for $1,000 to an individual he knew to be a convicted felon. The sale occurred at GENTILE’s residence, where the revolver had been hidden in a couch cushion.
GENTILE was arrested on a criminal complaint on April 17, 2015, and was ordered detained. On April 28, 2015, a grand jury returned an indictment charging him with possession of ammunition by a convicted felon, and sale of a firearm to a convicted felon.
On May 2, 2016, FBI special agents executed an unrelated federal search warrant at GENTILE’s Manchester residence and seized a .22 caliber Browning semi-automatic pistol, a 9mm Walther semi-automatic pistol, a .380 caliber RPB Industries, M11-Al semi-automatic pistol, and an unregistered silencer. On May 24, 2016, a grand jury returned an indictment charging GENTILE with one count of possession of firearms by a previously convicted felon, and one count of possession of an unregistered silencer.
Today, GENTILE pleaded guilty to one count of possession of ammunition by a previously convicted felon, which is contained in the April 2015 indictment. He also pleaded guilty to one count of possession of firearms by a previously convicted felon and one count of possession of an unregistered silencer, both of which are contained in the May 2016 indictment. GENTILE also admitted that he violated the terms and conditions of his supervised release.
GENTILE is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 25, 2017, at which time he faces a maximum term of imprisonment 10 years on each count, and additional penalties for violating his supervised release.
GENTILE has been detained since his arrest on April 17, 2015.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Man pleads guilty to his role in a meth distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jerry “Jake” Wilson Hartley, of Elkins, West Virginia, was convicted today for methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Hartley, age 36, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Hartley admitted to conspiring with others to distribute more than 500 grams of methamphetamine in the Northern District of West Virginia and elsewhere. The crime occurred from May 2013 until October 2016.
Hartley faces up to twenty years and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Louisiana man pleads guilty to having counterfeit moneyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Nicholas Ross McCullen, of Lake Charles, Louisiana, was convicted today for possessing counterfeit money, Acting United States Attorney Betsy Steinfeld Jividen, announced.
McCullen, age 30, pled guilty to one count of “Posses Counterfeit Obligations.” McCullen admitted to having 50 counterfeit one hundred dollar bills. The crime occurred in Jefferson County in August 2015.
McCullen faces up to twenty years 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 Anna Z. Krasinski is prosecuting the case on behalf of the government. The U.S. Secret Service and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Kirkland Tax Defier Indicted for Nearly Two Decade Scheme to Avoid Paying Income TaxesRead the Press Release
The owner of a Kirkland, Washington interior design business was indicted today in a nearly twenty-year scheme to avoid paying several hundred thousand dollars in income taxes, announced U.S. Attorney Annette L. Hayes. DANIEL NIX, 56, was indicted by the grand jury on thirteen counts of tax evasion, eleven counts of providing fictitious financial obligations, and one count of corrupt interference with the administration of the Internal Revenue Code. A second defendant, KAREN STREET, 58, also of Kirkland, was indicted on two counts of providing fictitious financial obligations. Arraignment on the indictments is scheduled for April 20, 2017.
According to the indictments, NIX operates Dannix Design, an interior design firm for medical offices. As detailed in the indictment, as early as 1998 and from 2000 to 2007, NIX refused to pay his income taxes, which over that time totaled more than $340,000. NIX set up shell companies to hide his income and assets, filed false bankruptcy claims, and filed false claims against the government. For tax years 2010-2013, NIX continued to use a variety of strategies to hide his income and avoid any tax assessments. In February 2013, NIX sent eleven fake money orders to the IRS to make it appear he was paying his tax obligations. The total face value of the eleven fake money orders exceeded a million dollars. His long-time partner, KAREN STREET, also submitted two fake money orders as payment for back taxes she owed.
Tax evasion is punishable by up to five years in prison and a $250,000 fine. Presentation of fictitious financial instruments is punishable by up to 25 years in prison and a $250,000 fine. Attempts to interfere with the administration of the tax code is punishable by up to three years in prison and a $5,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Seungjae Lee.
Justice Department Settles Immigration-Related Discrimination Claim Against Florida Roadside Assistance Services CompanyRead the Press Release
The Justice Department reached an agreement today with Brickell Financial Services Motor Club, Inc., d/b/a Road America Motor Club, Inc. (Road America), headquartered in Miami, Florida. The settlement resolves the department’s investigation into whether the company violated the Immigration and Nationality Act (INA) by discriminating against work-authorized immigrants when verifying their work authorization.
The department concluded, based on its investigation, that Road America routinely requested that lawful permanent residents show their Permanent Resident Cards to prove their work authorization but did not request specific documents from U.S. citizens. Lawful permanent residents often have the same work authorization documents available to them as U.S. citizens, and may choose acceptable documents other than a Permanent Resident Card to prove they are authorized to work. The investigation further revealed that Road America required lawful permanent resident employees to re-establish their work authorization when their Permanent Resident Cards expired, even though federal rules prohibit this practice. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.
“When verifying the work authorization of employees, employers may not erect unnecessary barriers based on employees’ citizenship or national origin,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Employers must ensure they are aware of their legal obligations to avoid discrimination, and we applaud Road America for committing itself to do so through this settlement.”
Under the settlement, Road America will pay a civil penalty of $34,200 and pay $1,044 to compensate a worker who lost wages due to its unfair documentary practices. Road America has also agreed to post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel, and be subject to departmental monitoring and reporting requirements.
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the antidiscrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Road America Settlement AgreementJury Finds Pair Guilty on All 40 Counts in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Dax Roberson, United States Department of Agriculture–Office of Inspector General, Special Agent in Charge, Tracey D. Montaño, Special Agent in Charge, IRS-Criminal Investigation, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced Thursday that a federal jury has returned guilty verdicts against Jacqueline Mills and Anthony Waits on all 40 counts in which the pair was charged in a multi-million dollar fraud scheme involving money intended to feed hungry children in Arkansas.
The jury found Mills, 41, of Helena-West Helena, guilty of one wire-fraud conspiracy charge, 25 counts of wire fraud, 10 counts of bribery, and 3 counts of money laundering. Waits, 38, of England, was convicted of one count of wire-fraud conspiracy. United States District Court Judge James M. Moody, Jr. presided over the eight-day trial, which concluded Thursday with the jury verdict. Judge Moody will sentence Mills and Waits at a later date.
“This verdict confirms what the evidence has shown from the beginning—Jacqueline Mills and Anthony Waits are thieves who preyed on the most vulnerable members of our society,” Harris said. “Their outrageous behavior—literally stealing millions of dollars intended to be used for feeding hungry Arkansas children—is among the most egregious fraud this office has seen, and we will request a sentence that reflects the seriousness of their conduct.”
Mills and Waits stole more than $4 million from United States Department of Agriculture (USDA) feeding programs administered in Arkansas through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After approval, they can provide meals as part of the feeding programs, and are reimbursed for the eligible meals they serve.
As proven in trial, Mills, who said she operated 34 feeding sites, submitted grossly inflated numbers of meals purportedly served from her sites. In some cases, no meals were served at all. Co-conspirators Tonique Hatton and Gladys Waits (Anthony Waits’ estranged wife)—who worked for DHS and have already pleaded guilty—assisted Mills in her deception. Hatton and Gladys Waits were responsible for approving Mills’ programs at various times. Mills also made bribe payments to Hatton and Gladys Waits to provide protection from DHS scrutiny. Hatton and Gladys Waits were among more than 50 witnesses who testified during the trial.
Mills was among those who testified, as well. The jury rejected Mills’ testimony that the payments made to Hatton and Gladys Waits were merely gifts—including a $5,000 housewarming gift to Hatton—or reimbursements.
The USDA paid Mills more than $2.7 million on her inflated claims, which included several locations where meals were never served. The jury also found that various property seized from Mills during the investigation were proceeds of the offense and were to be forfeited. This property includes real estate, four vehicles, and more than $490,000 seized from multiple bank accounts.
Anthony Waits was linked to programs that illegally acquired $1.6 million. Anthony Waits recruited multiple feeding program sponsors to submit inflated feeding claims. Those sponsors then paid to Waits substantial portions of the funds they received from the fraudulent claims. Those sponsors, such as Waymon Weeams, James Franklin, Christopher Nichols, and Rueben Nims, gave Waits a percentage of the federal money they received in exchange for Waits’ wife, the DHS employee, approving the inflated claims.
“I want to thank the U.S. Attorney’s office, OIG special agents, and our investigative partners for their hard work on this investigation,” Roberson said. “When the integrity of nutrition programs for needy children is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
“Today’s verdict is a direct result of the excellent partnership IRS, the U.S. Attorney’s office, and our law enforcement partners have in combating violations of federal law,” Montaño said. “Stealing from government-sponsored programs is not a victimless crime; it is a crime against the American public. This case is particularly troubling when you consider this particular government program exists to benefit disadvantaged children. This verdict should serve as a deterrent to those who might contemplate similar fraudulent actions.”
“Today’s verdict is a resounding victory and sends a strong message to individuals who defraud federal programs designed to help disadvantaged children,” Upchurch said. “I appreciate the tireless efforts of the agents and the staff of the Little Rock FBI field office, the United States Attorney’s Office, the USDA-Office of Inspector General, Internal Revenue Service Criminal Investigations, and the United States Marshalls Service for their thorough attention to this case.”
Multiple defendants have already been sentenced for their various roles in the same scheme. Those defendants sentenced include: Kattie Jordan, sentenced to 63 months’ imprisonment on March 15, 2016; Nims, sentenced to 21 months’ imprisonment on November 2, 2016; Hatton, sentenced to 108 months’ imprisonment on January 4, 2017; Franklin, sentenced to 24 months’ imprisonment on January 10, 2017; and Maria Nelson, sentenced to 30 months’ imprisonment on January 31, 2017. Gladys Waits, Nichols, Weeams, Francine Leon, Michael Lee, Alexis Young, Erica Warren, and Harper have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing.
All told, law enforcement has uncovered more than $11 million in fraud related to these USDA Arkansas feeding programs.
“I am pleased that with the help of many outstanding law enforcement agencies and agents, and countless hours of work, we were able to uncover and successfully prosecute this scheme,” Harris said. “At the same time, I am sickened that it could happen at all. I hope this entire case, including this trial, serves as warning for those who try to take advantage of these worthwhile federal programs.”
The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both. The penalty for bribery and money laundering is not more than 10 years’ imprisonment, not more than a $250,000 fine, or both.
Although everyone initially indicted in this scheme has now been convicted, the investigation is still ongoing, and continues to be conducted by the USDA–Office of Inspector General, Internal Revenue Service–Criminal Investigations, Federal Bureau of Investigation, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Johnson City Resident Sentenced to Serve over Eight Years in Federal Prison for Methamphetamine and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. – On April 6, 2017, Joey Edward Holmes, 39, of Johnson City, Tennessee, was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 100 months in federal prison. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Holmes was also ordered pay $200 special assessments.
Holmes pleaded guilty in December 2016 to conspiring to manufacture methamphetamine and being a felon in possession of a firearm. According to information on file with the U.S. District Court, , who was part of a larger conspiracy, produced methamphetamine using pseudoephedrine supplied to him by others. When he was arrested on the methamphetamine charges, officers found a 9 mm semi-automatic pistol, ammunition, crystal methamphetamine, digital scales, hundreds of small plastic zipper bags and other items consistent with a drug lab in his home. has been in federal custody since his April 2016 arrest.
Agencies involved in this investigation included the Washington County Sheriff’s Office and Drug Enforcement Administration. Assistant U.S. Attorneys J. Greg Bowman and Helen Smith, represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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IARA Sentenced for Transferring Nearly $1.4 Million to Iraq in Violation of SanctionsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the Islamic American Relief Agency (IARA), formerly headquartered in Columbia, Mo., was sentenced in federal court today for transferring nearly $1.4 million to Iraq in violation of federal sanctions.
IARA has been dissolved, and has divested itself of all its funds and property. IARA’s assets, which consisted of 14 bank accounts and an interest in a piece of real estate in Boone County, Mo., were transferred to Heifer International, Inc., an unrelated charity. A total of $818,894 was given to Heifer International to further the goal of providing relief to farmers and drought victims in east Africa. The real estate has not yet been sold. Articles of Dissolution were filed with the Missouri Secretary of State on April 5, 2017, terminating IARA as a registered corporation with the state of Missouri.
At today’s sentencing hearing, Assistant U.S. Attorney Steven Mohlhenrich summarized the organization’s conduct for the court, stating that IARA willfully violated U.S. economic sanctions on Iraq, a very important national security matter, and further misused its status as a charity to solicit donations that donors thought were going toward lawful charitable projects, but were not. Further, IARA knowingly engaged in prohibited transactions with a deputy to specially designated global terrorist Gulbuddin Hekmatyar, in Pakistan. Then, when Congress placed IARA on a list of organizations that supported terrorism, the organization hired a former member of Congress, co-defendant Mark Siljander, to act as an unregistered agent for a foreign entity, and at Siljander’s direction concealed the payments to him by routing them through non-profit entities.
However, Mohlhenrich emphasized, the reason the case was important, and the reason IARA was ultimately designated by the Office of Foreign Assets Control as a specially designated global terrorist, should not be forgotten. IARA was a member of a larger organization headquartered in Sudan that was itself an al-Qaeda supporter. The IARA connection to al-Qaeda dated back to well before Sept. 11, 2001; it arose while Osama Bin Laden was a guest of the government of Sudan. During that same period, Ziyad Khaleel, who lived in Columbia and was a fundraiser for IARA, purchased a satellite telephone and deliver it to al-Qaeda operatives while he was on travel paid for by IARA in February 1997. That satellite phone was used by al-Qaeda to direct operations and to orchestrate the Aug. 7, 1998, simultaneous bombings of U.S. embassies in Kenya and Tanzania, which killed more than 200 people.
On July 20, 2016, IARA (through a representative of the board of directors) pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act, one count of conspiracy to commit money laundering and one count of obstructing the administration of internal revenue laws, which were contained in an Oct. 21, 2008, federal indictment.
IARA served as the U.S. office of the Islamic Relief Agency (ISRA), an international organization headquartered in Khartoum, Sudan. IARA took in between $1 million and $3 million in contributions annually from 1991 to 2003. It also received funds from the United States Agency for International Development (USAID). IARA employed approximately six full-time employees and 10-12 part-time employees.
IARA was closed in October 2004 after being identified by the U.S. Treasury Department as a specially designated global terrorist organization. IARA was reconstituted in order to resolve this criminal matter. Now that this case is resolved, IARA has dissolved itself as a corporation for all time. Under the terms of the plea agreement, IARA and its board of directors agreed they will not form a new corporation to conduct the activities that IARA formerly conducted.
IARA secretly funneled $1,375,000 to Iraq in violation of United States economic sanctions. President George H.W. Bush declared a national emergency with respect to Iraq in August 1990, which resulted in sanctions against sending or transferring money, funds or goods directly or indirectly to any person in Iraq or to the government of Iraq. In violation of the Iraqi sanctions, IARA collected funds that were illegally transferred to Iraq with the assistance of a Jordanian national. According to today’s plea agreement, this individual either took the cash into Iraq or purchased items in Jordan and transported them into Iraq.
IARA corruptly endeavored to impair and impede the due administration of the Internal Revenue laws by using its tax-exempt status to solicit funds, representing that they were legitimate charitable contributions, and to misuse part of those funds by transferring those funds to Iraq, a purpose prohibited by law. During the entire period in which the Iraq sanctions were in effect, IARA solicited donations through various means, including pamphlets, flyers, newsletters and personal correspondence, requesting contributions to pay for projects in Iraq. IARA did not disclose the fact that the organization had provided funds for projects and persons in Iraq in its annual filings with the Internal Revenue Service.
Several officials and employees of IARA have previously pleaded guilty and been sentenced.
IARA Executive Director Mubarak Hamed, a naturalized U.S. citizen originally from Sudan, was sentenced to four years and 10 months in federal prison without parole. Hamed pleaded guilty to conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions. Hamed also pleaded guilty to obstructing the administration of the laws governing tax‑exempt charities by misusing IARA=s tax‑exempt status, providing false information to the IRS, and lying to federal agents.
IARA fundraiser Abdel Azim El-Siddig was sentenced to two years of probation. El-Siddig pleaded guilty to conspiring to lobby for IARA=s removal from a Senate Finance Committee list of charities suspected of having terrorist ties, while concealing this advocacy and not registering with the proper authorities.
IARA board member Ali Mohamed Bagegni, a native of Libya who is a naturalized U.S. citizen, and IARA fundraiser Ahmad Mustafa, a citizen of Iraq and a lawful permanent resident alien, were each sentenced to six months of probation. Federal prosecutors asked the court to give Bagegni and Mustafa credit for their substantial assistance to the government in the investigation and prosecution of the case. Bagegni pleaded guilty to his role in the conspiracy to illegally transfer funds to Iraq in violation of federal sanctions. Mustafa was a fundraiser for IARA from 1996 until it was closed in 2004, but at the time he worked for the organization he was unaware it had no permission to send funds to Iraq. Mustafa pleaded guilty to illegally transferring funds to a family member in Iraq in violation of federal sanctions.
Hamed and El‑Siddig hired Mark Deli Siljander in 2004 to lobby for IARA=s removal from a U.S. Senate Finance Committee list of charities suspected of funding international terrorism, and its reinstatement as an approved government contractor. IARA lost its status as an approved government contractor in 1999, when the U.S. Agency for International Development (USAID) terminated grants for two relief projects in Mali, Africa.
Siljander, who operated a Washington, D.C. consulting business called Global Strategies, Inc., had been a member of the U.S. House of Representatives from Michigan and was a U.S. Ambassador to the United Nations General Assembly. Earlier in 2004, Siljander had assisted IARA in hiring another former congressman and lobbyist (identified as “R.P.H.”), who was paid $15,000 to advocate for IARA’s removal from the list and reinstatement as an approved government contractor.
Siljander, Hamed and El‑Siddig agreed with each other to conceal Siljander=s efforts on IARA=s behalf. In order to do so, Siljander instructed Hamed and El‑Siddig to transfer $75,000 of IARA=s funds to him by funneling them through nonprofit entities. El-Siddig carried at least three checks issued to Siljander=s charities from Chicago to Washington, D.C., and gave them to Siljander.
In exchange for the payments, during the summer of 2004, Siljander acted as an agent for IARA by contacting persons at the U.S. Senate Finance Committee, USAID, the Department of Justice, and the Department of the Army, in an effort to have IARA removed from the USAID list of debarred entities, and to remove IARA from the Senate Finance Committee=s list of charities suspected of funding terrorism. Federal law requires anyone who serves as an agent of a foreign entity, including an organization, to register with the U.S. Attorney General.
Siljander admitted that in two separate interviews he repeatedly lied to FBI agents and prosecutors acting on behalf of a federal grand jury. Siljander obstructed justice by falsely denying that he was hired to advocate for IARA, and by falsely claiming that the payments from IARA were charitable donations intended to assist him in writing a book about bridging the gap between Islam and Christianity.
Siljander was sentenced to one year and one day in federal prison without parole after pleading guilty to obstruction of justice and acting as an unregistered foreign agent.
This case was prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Brian Casey from the U.S. Attorney=s Office for the Western District of Missouri, and Trial Attorney Paul G. Casey from the National Security Division of the U.S. Department of Justice. The case was investigated by the FBI, IRS-Criminal Investigation and U.S. Agency for International Development, Office of the Inspector General.
Husband and Wife Tax Preparers Indicted for Conspiracy to Prepare False Federal Income Tax ReturnsRead the Press Release
RENO, Nev. – Two tax return preparers were charged on Wednesday with conspiring to defraud the United States and preparing false federal income tax returns, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Thomas Michael Bidegary, 66, and Ginger A. Bidegary, 56, both of Winnemucca, Nev., are each charged with one count of conspiracy to defraud the United States. In addition, Thomas is charged with seven counts of aiding and assisting in the preparation of false federal income tax returns, and Ginger is charged with three counts of aiding and assisting in the preparation of false federal income tax returns.
According to the indictment, Thomas Bidegary is a former IRS employee who operated Winnemucca Tax and Bookkeeping Service, a tax preparation business, located in Winnemucca, Nevada. He and his wife, Ginger, were involved in the preparation of federal income tax returns. As alleged, the Bidegary’s conspired with each other to prepare and file false and fraudulent individual income tax returns. Beginning in at least 2009 and continuing through 2014, the Bidegary’s advised clients that by making small monetary “investments” into various businesses the Bidegary’s owned, the clients could decrease their annual taxable income and increase their tax refunds. As part of the scheme, in instances when clients provided “investment” funds, the Bidegary’s would prepare false tax forms for the corresponding tax year that included large fictitious business losses in order to reduce the client’s taxable income and obtain a larger refund than what the client was entitled to receive.
If convicted, the Bidegary’s face a statutory maximum sentence of five years in prison for conspiracy and three years for each count of preparing false tax returns. They also face a term of supervised release, restitution, and monetary penalties.
The case is being investigated by the IRS-Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Carla Higginbotham.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
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Hempstead Man Pleads Guilty to Robbery Conspiracy and Brandishing A Firearm During Crime of ViolenceRead the Press Release
Today, at the federal courthouse in Central Islip, New York, James Rogers pleaded guilty to conspiring to commit gunpoint robberies of commercial retail stores in Nassau and Suffolk Counties between August 10, 2015 and December 21, 2015 and the brandishing of a firearm during the robbery of a Petco Pet Store in Hicksville, New York on August 20, 2015.
The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Thomas C. Krumpter, Acting Nassau County Police Commissioner (NCPD), and Timothy D. Sini, Suffolk County Police Commissioner (SCPD).
As part of the plea, Rogers admitted his role in 15 robberies that occurred in 11 different towns in Nassau and Suffolk Counties, including the gunpoint robbery of Petco, various women’s clothing stores and a Babies R’ Us. On almost every occasion, Rogers committed the robberies at or near the opening or closing time of the businesses, his face covered, brandishing a black handgun, threatening employees and customers, and restraining them using toy handcuffs or plastic zip-tie restraints. Rogers took United States currency, jewelry and personal items from his victims, and fled the locations in a car or sports utility vehicle driven by his co-conspirator.
“Addressing violent crimes that terrorize our neighborhoods and jeopardize the safety of our citizens is a priority, and the defendant will now be held accountable for his actions,” stated Acting United States Attorney Rohde. Ms. Rohde extended her grateful appreciation to the Drug Enforcement Administration for its assistance on the case.
“This case is yet another example of great collaboration among law enforcement agencies in the region,” stated SCPD Commissioner Sini. “Let the message be clear: Suffolk and Nassau police departments, working with our federal law enforcement partners, will not tolerate perpetrators of violent crime in our communities.
“Defendant Rogers committed fifteen armed robberies in Nassau and Suffolk counties, preyed on unsuspecting business owners and their customers, thus becoming one of our top law enforcement priorities. Society is a safer place now that this defendant will be incarcerated,” stated Acting NCPD Commissioner Krumpter.
Today’s plea took place before United States District Judge Joseph F. Bianco. When he is sentenced on October 18, 2017, Rogers faces up to life in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
JAMES ROGERS
Age: 47
Hempstead, New York
E.D.N.Y. Docket No. 16-CR-530 (JFB)
Grand Jury Returns 12-Count Indictment Charging Diehl in Bankruptcy Fraud CaseRead the Press Release
SALT LAKE CITY -- A federal grand jury returned a 12-count indictment late Wednesday afternoon charging Terry Charles Diehl, age 61, of Salt Lake City, with filing false declarations and concealing assets in connection with his Chapter 11 bankruptcy reorganization. Diehl is a Utah real estate developer and former board member of the Utah Transit Authority.
U.S. Attorney for Utah John W. Huber and Special Agent-in-Charge Eric K. Barnhart of the FBI’s Salt Lake Division announced today’s indictment.
“We seek to protect the integrity of the bankruptcy court from those who would exploit its protections because of selfish motivation,” Huber said Wednesday. “The defendant is a former UTA board member. Among other conduct, the indictment alleges that the defendant received more than $1 million in gross income related to a UTA Front Runner real estate development. It further alleges that he knowingly and fraudulently misrepresented that income to the bankruptcy court,” Huber said.
The indictment alleges that several months prior to filing for bankruptcy on March 30, 2012, Diehl set up a company, Skyline Ventures Associates, Inc. (SVA), owned by his two daughters, but managed and controlled by him, to conduct his daily business and financial affairs. Additionally, Diehl caused a SVA business bank account to be opened. The indictment further alleges that although the authorized signatories on the SVA account were his daughters and office manager, Diehl controlled and directed all funds in and out of the account.
The indictment further alleges that despite Diehl's primary obligation to provide for full financial disclosure imposed by federal bankruptcy law, he filed false declarations with the bankruptcy court, knowingly and fraudulently omitting or misrepresenting facts about SVA and the funds he controlled in and out of the SVA account. For example, on Diehl's Statement of Financial Affairs, a bankruptcy filing requiring full disclosure of his current financial status, he omitted SVA, a corporation Diehl clearly managed and controlled in his daily business affairs. In this filing, the indictment alleges Diehl also omitted more than $1 million in gross business income stemming from a UTA Front Runner transit oriented development in Draper, Utah.
The indictment further alleges that on numerous Monthly Operating Reports, filings requiring Diehl to fully disclose all cash receipts, he failed to report all funds he directed in and out of the SVA account. Rather, Diehl reported only a fraction of his monthly cash receipts on his monthly filings. During the period from April 2012 (when he filed his bankruptcy petition) to May 2013 (when Diehl's plan of reorganization was confirmed), Diehl filed 11 Monthly Operating Reports underreporting cash receipts in and out of the SVA account he directed and controlled.
Finally, the indictment alleges that each directive by Diehl to move funds into the SVA account, much of which was not reported on Monthly Operating Reports, was a knowing and fraudulent act to conceal assets of Diehl's bankruptcy estate.
The first five counts of the indictment allege false declarations. The indictment also alleges seven counts of concealment of assets. The potential penalty for each count in the indictment is five years in prison and a fine of $250,000. A summons will be issued for Diehl to appear in federal court on the charges alleged in the indictment.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Federal prosecutors in the U.S. Attorney’s Office are prosecuting the case. The case is being investigated by special agents of the FBI and the U.S. Department of Transportation Office of Inspector General.
Gainesville Man Sentenced to 43 Years and 9 Months in Prison for Armed KidnappingRead the Press Release
GAINESVILLE, FLORIDA – Curtis Kennedy Williams, 31, of Gainesville, has been sentenced to 43 years and 9 months in federal prison for kidnapping, discharging a firearm during a crime of violence, and possession of a firearm by a convicted felon. Williams was convicted on July 27, 2016, following a jury trial. Co-defendant Shakayla Nicole Taylor, 22, of Harvey, Louisiana, was sentenced in September 2016 to 72 months in prison after pleading guilty to kidnapping. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2015, Williams and Taylor kidnapped a young woman in Gainesville by forcing her into a car and holding her at gunpoint. Taylor then drove them to her Louisiana residence. During the trip, Williams raped and beat the victim, and fired the gun into the backseat of the car. Williams and Taylor were arrested at an apartment complex in Louisiana where the victim was also rescued.
U.S. Attorney Canova said: “Combatting violent crime is a top priority for my office, the Department of Justice, and our many federal, state, and local law enforcement partners who tirelessly work to keep our communities safe. While a prison sentence cannot reverse the unspeakable trauma inflicted on the victim, it sends a strong message that those who commit brutal crimes and put other people’s lives in danger face serious consequences under the law.”
Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville division, said:“The FBI is committed to thoroughly investigating violent crimes of this nature, and we will continue to work with our local and state law enforcement partners to hold offenders accountable and ensure justice for their victims.”
Alachua County Sheriff Sadie Darnell said: “Violent crime will not be tolerated in Alachua County. This case shows the complete cooperation within the law enforcement community to bring justice to violent criminals.”
This case resulted from an investigation by the Federal Bureau of Investigation, the Alachua County Sheriff’s Office, and the Jefferson Parish Sheriff’s Office in Louisiana. Assistant United States Attorney Frank T. Williams prosecuted the case.
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 available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information OfficerFormer Torrington Resident Sentenced to 30 Months in Prison for Role in Stolen Identity Tax Refund SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIO PASCUAL AQUINO, 36, formerly of Torrington, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his involvement in a stolen identity tax refund fraud scheme.
According to court documents and statements made in court, AQUINO was involved in a conspiracy to fraudulently obtain U.S. Treasury tax refund checks made payable to individuals other than themselves, whose personal identifying information was stolen by co-conspirators. Typically, the individuals whose identities were stolen were citizens of Puerto Rico.
Between October 2011 and March 2013, AQUINO cashed approximately $650,000 worth of fraudulently-obtained tax refund checks at a check cashing store in Torrington. He also opened his own check cashing store in Hartford, Mega Money Transfers, and, in 2011 and 2012, proceeded to cash more than 300 fraudulently-obtained refund checks valued at a total of $750,926 through that store. Finally, Aquino sold six fraudulently-obtained refund checks valued at a total of $60,929 to an undercover agent. He also provided the undercover agent with a fraudulent Connecticut driver license in the name of an identity theft victim.
Judge Bryant ordered AQUINO to pay restitution in the amount of $532,500.
AQUINO, who most recently resided in Pasadena, Texas, has been detained since his arrest on May 31, 2016. On January 5, 2017, he pleaded guilty to one count of theft of public money.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, U.S. Postal Inspection Service, Waterbury Police Department, Hartford Police Department and Pasadena (Tex.) Police Department. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Former DEA Agent Sent to Prison on Child Pornography ChargesRead the Press Release
HOUSTON – A Massachusetts man who formerly resided in McAllen has been ordered to federal prison following his conviction of one count of access with intent to view child pornography, announced Acting U.S. Attorney Abe Martinez. James Patrick Burke, 39, was a former special agent with the Drug Enforcement Administration (DEA) and pleaded guilty June 2, 2016.
Today, U.S. District Judge Alfred H. Bennett took into consideration Burke’s conduct as well as his law enforcement and military service and ordered him to serve 84 months in prison. In handing down the sentence, Judge Bennett stated he was repulsed by the crime Burke committed and was unmoved by the lengthy statement Burke made in court in which he attempted to shift the blame elsewhere. Burke was further ordered to pay $4,000 in restitution to a known victim and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Burke came to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography. A search warrant was executed at Burke’s McAllen residence on Aug. 14, 2015, at which time investigators seized a laptop computer and a desktop computer. Burke admitted downloaded and viewed child pornography from the Internet, but would use forensic wiping software to delete the images and movies.
The forensic examination revealed remnants of the TOR browser which Burke had used to access the child pornography website as well as forensic wiping software. Agents also found remnants of the movie titles that are suggestive of child pornography.
An examination of what was collected from the server side of the website showed that Burke had accessed a total of 77 threads which contained 345 contact sheets with approximately eight images of child pornography per sheet. These images included children under the age of 12, bondage, acts of violence and children younger than two years of age. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
The FBI conducted the investigation.
Previously released on bond, Burke was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo, Linda Requenez and Alexandro Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Connecticut Resident Charged with Defrauding Lenders of More Than $3 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on Oct 22, 2015, a federal grand jury in New Haven returned a 14-count indictment charging MOHSEN YOUSSEF, 26, formerly of Vernon, with fraud offenses relating to an alleged scheme to secure more than $3 million in funding for his purported pita manufacturing business.
YOUSSEF was arrested in Canada on March 1, 2017, and has been detained since his arrest. He appeared today before U.S. Magistrate Judge Robert A. Richardson, entered a plea of not guilty to the charges and was ordered detained.
As alleged in the indictment, beginning in approximately October 2011, YOUSSEF defrauded various banks, a corporate leasing and vendor finance company, and the Connecticut Department of Economic and Community Development, in a scheme to secure funding for equipment purchases for his company, Amoun Pita and Distribution LLC (“Amoun Pita”), and other companies he controlled. According to its business plan, Amoun Pita was a bakery that manufactured pocket pita bread from a production facility in South Windsor, Connecticut.
As part of the alleged scheme, YOUSSEF provided false information when applying for loans, lines of credit, lease financing and state grants, purportedly to finance the acquisition of new pita manufacturing equipment, other machinery and inventory related to his businesses. The false information included documentation that inflated the assets and income of YOUSSEF and his companies, as well as fraudulently created invoices purporting to document equipment purchases that, in fact, never occurred. In order to induce victims to rely on the invoices he provided, YOUSSEF created marketing materials and websites for non-existent vendors.
It is alleged that YOUSSEF caused more than $3 million in losses through this scheme.
YOUSSEF, who has dual U.S and Egyptian citizenship, moved to Canada in 2014.
The indictment charges YOUSSEF with two counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; 11 counts of bank fraud, an offense that carries a maximum term of imprisonment of 30 years on each count, and one count of mail fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Quebec Provincial Police RELEX Unit, Montreal Police Service and Royal Canadian Mounted Police. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Avi M. Perry.
Former Adoption Attorney Charged with Wire FraudRead the Press Release
Steven G. Dubin, 64, of Warminster, Pennsylvania, was charged in an Indictment[1] with three counts of wire fraud, announced Acting United States Attorney Louis D. Lappen.
According to the Indictment, Dubin offered services to clients seeking to adopt children. After he submitted his resignation from the Pennsylvania bar, Dubin allegedly failed to inform some clients and prospective clients that he would soon be disbarred. Moreover, after he was disbarred and could no longer accept any new retainer fees, Dubin allegedly continued to accept new retainer fees and represented himself to be an attorney licensed to practice law in Pennsylvania.
According to the Indictment, after clients fired Dubin as their attorney, Dubin falsely promised clients that he would return their remaining retainer fees that he falsely claimed were being held in escrow. In some cases, Dubin allegedly never returned any retainer fees.
If convicted, the defendant faces a maximum possible sentence of 60 years in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Disciplinary Board of the Supreme Court of Pennsylvania, Office of Disciplinary Counsel, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
[1] An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.