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7 March 2017
Ukrainian National Arrested in Connection with Scheme to Illegally Export Rifle Scopes and Thermal Imaging EquipmentRead the Press Release
Earlier today, Volodymyr Nedoviz, a lawful permanent resident of the United States and citizen of Ukraine, was arrested on federal charges of illegally exporting controlled military technology from the United States to end-users in Ukraine. Federal agents also executed a search warrant at a Philadelphia, Pennsylvania location that was used in connection with Nedoviz’s illegal scheme.
Nedoviz is scheduled to make his initial appearance today at 2:00 p.m. at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Ramon E. Reyes, Jr.
The arrest and charges were announced by U.S. Attorney Robert L. Capers of the Eastern District of New York; Acting Assistant Attorney General for National Security Mary B. McCord; FBI Assistant Director in Charge William F. Sweeney, Jr., New York Field Office; Special Agent in Charge Angel M. Melendez, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) for New York; and Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
The complaint alleges that the defendant conspired with others located in both Ukraine and the United States to purchase export-controlled, military-grade equipment from sellers in the United States and to export that equipment to Ukraine without the required licenses. The devices obtained by the defendant and his co-conspirators included some of the most highly powerful and technologically sophisticated night vision rifle scopes and thermal imaging equipment available, including, among others, an Armasight Zeus-Pro 640 2-16x50 (60Hz) Thermal Imaging weapons sight, a FLIR Thermosight R-Series, Model RS64 60 mm 640x480 (30Hz) Rifle Scope, and a ATN X-Sight II 5-20x Smart Rifle Scope. In many cases, the devices purchased by the defendant and his co-conspirators retail for almost $9,000, and they are specifically marketed to military and law enforcement consumers.
As part of the conspiracy, in order to induce U.S.-based manufacturers and suppliers to sell them the export-controlled devices and to evade applicable controls, the defendant and his co-conspirators falsely purported to be United States citizens and concealed the fact they were exporters. The defendant and his co-conspirators also recruited, trained, and paid other U.S.-based individuals to export the controlled devices to Ukraine via various freight forwarding companies. Among other things, the defendant and his co-conspirators instructed the U.S.-based individuals to falsely describe the nature and value of the equipment they were attempting to export. In addition, to conceal their identities, as well as the true destination of the rifle scopes and thermal imaging equipment, the defendant and his co-conspirators instructed that the items be shipped using false names and addresses.
The export of military-grade rifle scopes and thermal imaging equipment requires a license from either the United States Department of State or the United States Department of Commerce. Both the Department of State and the Department of Commerce have placed restrictions on the export of items that they have determined could make a significant contribution to the military potential and weapons proliferation of other nations and that could be detrimental to the foreign policy and national security of the United States.
“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of U.S. regulatory and law enforcement agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to vigorously prosecute violations of our laws that help maintain the superiority of our armed forces on land, sea, and air.” Mr. Capers expressed his grateful appreciation to the FBI’s Joint Terrorism Task Force.
“Export controls on military technology and equipment are put in place so military-grade gear doesn’t end up in the wrong hands. As we alleged, Nedoviz colluded with co-conspirators to illegally purchase highly powerful, technologically sophisticated equipment intended for law enforcement and military and then export to Ukraine without the proper licenses. The FBI will continue to protect our national security assets as we work with our partners to prevent the exportation of restricted materials,” said Sweeney, FBI Assistant Director in Charge, New York Field Office.
“Nedoviz, a Ukrainian national, falsely pretended to be a citizen of the United States in order to purchase highly sensitive military grade equipment, that would later be illegally exported to Ukraine” said Melendez, Special Agent in Charge, Melendez of HSI New York. “These items including rifle scopes and thermal imaging equipment have strict export controls in order to make sure that our soldiers overseas never have to encounter them on the battlefield. It is a mission we at HSI take very seriously.”
“Today’s arrest demonstrates the Office of Export Enforcement's strong commitment to enforcing our nation's export control and public safety laws. We will continue to work with our law enforcement partners to keep the most sensitive goods out of the most dangerous hands,” said Special Agent in Charge Carson, U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
If convicted of the charges, the defendant faces up to 20 years in prison and a $1 million fine.
The case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Peter W. Baldwin and Michael Keilty are in charge of the prosecution, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
VOLODYMYR NEDOVIZ
Age: 32
Queens, New York
E.D.N.Y. Docket No. 17-M-208
Two More Commercial Fisherman Plead Guilty to Ilegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, DAVID SAUNDERS, JR., 46, of Poplar Branch, North Carolina, and MICHAEL POTTER,59, of Bayboro, North Carolina pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira), and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that in seven separate fishing trips between January 27, 2009, and February 9, 2010, SAUNDERS, then Captain of the Bridgot Denise, a commercial trawler, harvested approximately 14,579 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Wanchese, North Carolina. The estimated fair market retail value of the 14,579 pounds of illegally harvested fish exceeds $116,000.
To conceal the illegal harvests, SAUNDERS submitted false statements under penalty of perjury to NOAA, claiming he caught the fish in state waters on all but one of his fishing trips. On five of those seven federal vessel trip reports, SAUNDERS claimed he harvested the fish in the Albemarle Sound – internal state waters where trawling for striped bass is prohibited by state law.
Based on this same review, NOAA also determined that POTTER, then Captain of the Jane Carolyn, a commercial trawler, was fishing for Atlantic striped bass 9 nautical miles from the coast of North Carolina on the same day that the Lady Samaira was boarded. NOAA further determined that between February 8, 2010, and February 13, 2010, POTTER harvested approximately 4,305 pounds of Atlantic striped bass from the EEZ, which he sold to fish dealers in Wanchese and Lowland, North Carolina. In an interview in July 2014, POTTER admitted that he knew it was illegal to harvest Atlantic striped bass from the EEZ, but falsely denied ever doing so. The estimated fair market retail value of the 4,305 pounds of illegally harvested fish exceeds $34,000.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,000 pound ocean trawl quota were taken illegally from the EEZ.
Six other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO, and United States v. John Roberts¸ No. 4:15-CR-3-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues at DOJ’s Environmental Crimes Section in these important cases.”
Manny Antonaras, Acting Assistant Director for the NOAA’s Southeast Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
A sentencing hearing has been scheduled for the Court’s June 5, 2017, term of court. SAUNDERS and POTTER each face a maximum sentence of 5 years imprisonment and/or a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Shennie Patel, Shane Waller, and Joel LaBissonniere of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Two KC Men Sentenced to Lengthy Prison Terms for Large-Scale Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were sentenced in federal court today for their roles in a large-scale drug-trafficking conspiracy.
Frenklyn Piggie, 39, and Olufemi Siffre, 39, both of Kansas City, were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Piggie was sentenced to 25 years in federal prison without parole. Siffre was sentenced to 20 years in federal prison without parole.
Piggie and Siffre have each pleaded guilty to participating in a conspiracy to distribute more than five kilograms of cocaine and more than 280 grams of crack cocaine. Piggie also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Piggie was the leader of an extensive network of cocaine and crack cocaine dealers. Siffre purchased cocaine from Piggie and other suppliers. Piggie and Siffre sold cocaine and crack cocaine to numerous street-level drug dealers.
Investigators learned that Piggie would be receiving a large shipment of cocaine and that Siffre was to purchase a portion of this shipment. Search warrants were executed at Piggie’s residence and at Siffre’s drug houses on Jan. 5, 2014.
Piggie was armed with an FNH semi-automatic pistol with an extended, 30-round magazine when officers entered his residence. Piggie and his supplier, co-defendant Jesus M. Frye-Santoyo, 31, of Kansas City, Kan., were found hiding in the garage and were both arrested.
Investigators recovered six kilograms of cocaine and approximately $185,000 in drug-trafficking proceeds from Piggie’s residence. Investigators also recovered four other firearms during the search of the residence, including a loaded AK-47 assault rifle beneath a sofa in the living room, a loaded Desert Eagle 9mm pistol under a sofa cushion in the living room, a Ruger 9mm pistol with an extended magazine in a backpack under the kitchen table and a loaded FNH pistol on the floor in a bedroom.
Investigators also recovered evidence of crack cocaine trafficking from Siffre’s houses, including drug paraphernalia, three bags containing a total of 20 grams of cocaine, and a bag containing a small amount of crack cocaine. Investigators also found a .44-caliber revolver in a hidden compartment in a bedroom closet.
Piggie’s criminal record details a lengthy criminal history that is characterized by drug distribution and the possession and use of firearms, including two prior convictions in federal court for being a felon in possession of a firearm. A months-long investigation of Piggie and his co-conspirators included numerous controlled purchases and the use of wiretaps.
Frye-Santoyo was sentenced to 10 years and 10 months in federal prison without parole after pleading guilty to his role in the conspiracy.
Piggie, Siffre and Frye-Santoyo are among 18 co-defendants who have been sentenced in this case. Co-defendant James Caldwell, 39, of Kansas City, Mo., has pleaded guilty to his role in the conspiracy and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and Jeff Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Two Charged in Heroin Trafficking SchemeRead the Press Release
JOHNSTOWN, Pa. – Two residents of Johnstown and Philadelphia, Pa., were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The six-count indictment named as defendants Ava Blackwell, 24, of Solomon Homes, Johnstown, Pa. and Kareem Jamal Jones, 27, of Philadelphia, Pa.
According to the indictment presented to the court, from Aug. 25, 2016, through Sept. 14, 2016, Blackwell and Jones conspired to distribute and possess with the intent to distribute less than 100 grams of heroin. On each of the dates of Aug. 25, Aug. 29 and Sept. 14, 2016, Blackwell distributed less than 100 grams of heroin; on Sept. 7, 2016, Jones distributed less than 100 grams of heroin; and on Sept. 14, 2016, Blackwell and Jones possessed with the intent to distribute less than 100 grams of heroin.
The law provides for a maximum total sentence for Ava Blackwell of 100 years in prison, a fine of $5,000,000, or both, and for Kareem Jamal Jones, of 60 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Blackwell and Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Man Sentenced for Misdemeanor Conviction for Stealing Prescription Pain Medication in New MexicoRead the Press Release
ALBUQUERQUE – Michael Adams, 52, of Horizon City, Texas, was sentenced today in Las Cruces, N.M., to two years of probation for his conviction on a federal misdemeanor theft of government property charge arising out of his theft of prescription pain medication being shipped by the Veterans Administration through the United Parcel Service (UPS). Adams was also ordered to pay $537.03 in restitution to the victim of his crime.
Adams was charged by a misdemeanor information filed on Dec. 12, 2016, with theft of government property on Aug. 21, 2013. According to the information, Adams committed the crime in Otero County, N.M.
On Jan. 10, 2017, Adams pled guilty to the misdemeanor information and admitted that on Aug. 21, 2013, while employed by UPS in Alamogordo, N.M., he stole a package containing prescription pain medication sent by the Veterans Administration through the UPS.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Tampa Man Pleads Guilty to Paying Health Care KickbacksRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Anthonio Miller (26, Tampa) today pleaded guilty to conspiracy to pay kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Miller was an active duty petty officer with the U.S. Navy stationed at MacDill Air Force Base in Tampa. Beginning in October 2014, he became a sales representative for Centurion Compounding Inc., Centurion, a marketing firm located in Wesley Chapel, utilized sales representatives as independent contractors to market compounded medications, specifically creams for pain and scars, to health care benefit program beneficiaries. Centurion focused its promotional efforts on TRICARE beneficiaries based upon an understanding and belief that TRICARE would pay claims for these compounded creams.
Miller was initially recruited into the Centurion scheme by other active-duty military members, including his co-defendant Cordera Hill, to be a patient and to obtain compounded creams marketed by Centurion. On October 22, 2014, Miller received a prescription from a doctor for pain cream and scar cream. He went on to obtain additional prescriptions in his own name, for which TRICARE paid approximately $60,673.06.
Miller agreed and conspired with other members of his Centurion sales marketing group, self-labeled “team cream,” to give and offer to give TRICARE beneficiaries incentives, such as cash, meals, entertainment, and travel expenses, to visit a doctor and obtain prescriptions for Centurion-marketed compounded creams for which Miller and other “team cream” members would receive commissions. Between October 2014 and February 2015, Miller caused approximately $655,611 in claims to be submitted to TRICARE, resulting in the payments of $558,090.04 for prescriptions, from which Centurion and Miller received commissions. Miller received commissions from Centurion totaling approximately $19,977.53 and, at the time Centurion was shut down in February 2015, Miller was owed an additional $34,999.25 in commissions from Centurion.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, the Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Tampa Brothers Sentenced for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced two Tampa brothers for conspiracy to commit tax fraud and aggravated identity theft. Keith Godbolt was sentenced to three years and six months in federal prison and Paul Johnson was sentenced to four years’ imprisonment. As part of their sentences, the Court also entered joint and several money judgements in the amount of $221,000, representing the proceeds of the tax fraud conspiracy. Godbolt and Johnson pleaded guilty in December 2016.
According to court documents, from August 2011 through April 2013, Godbolt, Johnson, and their co-defendant and mother, Elise Ellis, conspired to commit wire fraud, theft of government property, and identity theft by electronically filing fraudulent tax returns in other people’s names, using their social security numbers. The fraudulent tax refunds were directed to bank accounts in defendants’ names, or in some cases, to debit cards they controlled. Godbolt, Johnson, and Ellis then withdrew the fraudulent refunds by writing checks or otherwise transferring funds to each other through bank transfers or cash withdrawals.
Most of the fraudulently filed tax returns claimed unusually high taxable interest or dividend income, many using the exact same figure, with a large withholding amount, and a false occupation listed for the taxpayer. Many of the victims were deceased when their false tax return was filed.
Ellis pleaded guilty on January 3, 2017, she is scheduled to be sentenced on March 20, 2017.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Rochester Man Sentenced to 20 Months for Threatening to Kill Federal ProsecutorRead the Press Release
ROCHESTER, NEW YORK – Tony Ivey, age 53, of Rochester, New York, was sentenced today to 20 months in prison for threatening to kill an Assistant United States Attorney.
The announcement was made by United States Attorney Richard S. Hartunian of the Northern District of New York, whose office handled the prosecution.
On June 14, 2016, Ivey called the Rochester Branch Office of the United States Attorney’s Office for the Western District of New York, and threatened to kill an Assistant United States Attorney (AUSA) with an assault rifle. Prior to the threat, the AUSA had explained to Ivey that he could not directly assist Ivey with the complaint Ivey had called about and attempted to refer Ivey to an agency that could assist him.
Chief United States District Judge Frank P. Geraci, Jr., of the Western District of New York, also imposed a 3-year term of post-imprisonment supervised release.
This case was investigated by the United States Marshals Service for the Western District of New York, and was prosecuted by Assistant U.S. Attorney Geoffrey Brown of the Northern District of New York.
Reno Man Sentenced to 15 Years for Conspiracy to Provide Material Support to TerroristsRead the Press Release
RENO, Nev.— Balwinder Singh, 41, was sentenced today by U.S. District Judge Larry R. Hicks to 180 months in prison for conspiracy to provide material support and resources to terrorists for a movement to create an independent Sikh state in the Punjab region of Indian, announced Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”
“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said FBI SAC Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”
Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, is a citizen of India and a permanent U.S. resident. Singh pleaded guilty on Nov. 29, 2016.
According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. United States law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
The case was investigated by the FBI-led Joint Terrorism Task Force in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation. In addition, ATF, U.S. Citizenship and Immigration Services, and the Washoe County Sheriff’s Office provided assistance in the investigation.
Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.
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Professional Fishing Guide Fined $7,500 for Killing Wild Coho and Attempting to Pass Them Off as Hatchery FishRead the Press Release
A long-time professional fishing guide who attempted to conceal the fact that he had killed two protected wild salmon was fined $7,500 today in U.S. District Court in Tacoma for violating the Endangered Species Act, announced U.S. Attorney Annette L. Hayes. BILLY SWANN, 52, owner and operator of Swanny’s Guided Fishing service which operates on the Lower Columbia and Cowlitz rivers, pleaded guilty to the misdemeanor charge last year. At the sentencing hearing Magistrate Judge Karen Strombom described his conduct as “shocking” and told him, “You had a responsibility and you failed miserably at it.”
“With so many putting so much into bringing back our cherished wild salmon runs in the Pacific Northwest, this conduct is particularly offensive,” said U. S. Attorney Annette L. Hayes. “A salmon fishing guide who makes his living off our natural resources should have respected the rules that are meant to ensure those resources will always be there for all of us. The fact that he was willing to ignore those rules knowing others were watching makes his conduct all the more troubling.”
According to records filed in the case, on October 1, 2014 SWANN led a promotional fishing trip on the Cowlitz River with the top salespeople from a national fishing bait company. The trip was being broadcast over the internet. SWANN encouraged two men on the trip to catch two native Coho salmon. Native Coho on the Cowlitz are protected by the Endangered Species Act and Washington law, and may not be removed from the water. After the clients landed the fish, SWANN clubbed both of them and then cut off the adipose fins on each fish to make it appear they were hatchery fish and therefore legal to catch and keep. However, the catching and clubbing of the wild and protected fish was caught on the web broadcast, and the illegal conduct was reported to the Washington State Department of Fish and Wildlife. When contacted by authorities, SWANN first lied about the conduct saying the photos of the fish with the adipose fin still intact could have been ‘photo-shopped’.
“NOAA Fisheries has worked hard to rebuild the salmon population in the Pacific Northwest,” said Samuel D. Rauch III, acting assistant administrator for NOAA Fisheries. “This kind of illegal action by a guide, who should be setting an example, undermines the progress we’ve made in restoring salmon and squanders an invaluable resource that belongs to all of us.”
The case was investigated by the NOAA Fisheries Office of Law Enforcement with assistance from the Washington State Department of Fish and Wildlife - Police.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Presque Isle Man Sentenced to 73 Months for Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Nathan Brewer, 35, of Presque Isle, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 73 months in prison and three years of supervised release for conspiring to distribute bath salts. The defendant pled guilty on January 23, 2015.
According to court records, between about January 2012 and June 2014, Brewer conspired with others to obtain bath salts overseas via the internet and to distribute it in Aroostook County. Brewer raised money from other conspirators to place orders large enough to receive a bulk discount.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Department and the U.S. Postal Inspection Service.
Postal Employee Charged with Misappropriating Postal FundsRead the Press Release
JOHNSTOWN, Pa. – A resident of Somerset, Pa. was indicted today by a federal grand jury in Johnstown on a charge of misappropriation of postal funds by a postal service employee, Acting United States Attorney Soo C. Song announced today.
The indictment named Michael Reich, 57, of Somerset, Pa., as the sole defendant.
According to the indictment presented to the court, from May 18, 2016 to November 1, 2016, while an employee of the United States Postal Service, he unlawfully converted to his own use approximately $19,180, which had come into his possession or control as an employee of the United States Postal Service.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Postal Contract Employee Indicted for Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee who worked under a contract with the U.S. Postal Service was indicted by a federal grand jury today for stealing mail.
Kristen L. McIntyre, 37, of Trenton, Mo., was charged in an indictment returned by a federal grand jury in Kansas City, Mo.
According to today’s indictment, McIntyre was an employee for a trucking company under contract with the U.S. Postal Service. McIntyre worked as a highway contract route driver to transport mail to and from post offices in Trenton, Spickard, Princeton and Mercer, Mo., to the Chillicothe, Mo., post office.
McIntyre allegedly stole mail – including money and gift cards – between Aug. 18 and Sept. 15, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the U.S. Postal Service – Office of Inspector General.
Pawtucket Resident Sentenced for Operating Large-Scale Indoor Marijuana Growing OperationRead the Press Release
PROVIDENCE – Michael Watkins 35, of Pawtucket, was sentenced today to 60 months in federal prison for operating a large-scale marijuana growing operation inside a former mill building in Providence in August 2015, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The sophisticated growing operation was discovered during an ongoing FBI Safe Streets Task Force investigation into multiple large-scale marijuana growing operations inside a former mill building at 725 Branch Avenue.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Watkins to serve 3 years supervised release upon completion of his term of incarceration. Watkins pleaded guilty on January 27, 2017, to conspiracy to manufacture 100 or more marijuana plants and manufacturing more than 100 marijuana plants.
According to court documents and information presented to the court, on August 12, 2015, the FBI Safe Street Task Force, with the assistance of DEA and the Rhode Island State Police, executed multiple court authorized search warrants in and around the Branch Avenue former mill building. Among the discoveries, law enforcement discovered and seized from inside Unit 133, 157 adult marijuana plants and a large amount of equipment used to produce marijuana, using hydroponic techniques.
The investigation determined that the marijuana growing equipment and plants discovered inside Unit 133 belonged to Michael Watkins.
Watkins was arrested on a federal criminal complaint on January 11, 2016. A federal indictment was returned on February 16, 2016, charging Watkins with conspiracy to manufacture 100 or more marijuana plants and manufacturing more than 100 marijuana plants.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
United States Attorney Peter F. Neronha acknowledges and thanks the Providence Fire Department Arson Squad for their assistance in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Owner of Tax Business in Kewaskum, WI Charged with Tax FraudRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that Robert F. Spoerl (age 69), a resident of Campbellsport, Wisconsin, was charged in a 28-count indictment. The indictment charges Spoerl, who operated a tax return preparation business in Kewaskum, Wisconsin, under the name J&R Tax Service, with 10 counts of assisting in the filing of false federal income tax returns, 16 counts of theft of money from the United States by filing false claims for tax refunds, and two counts of aggravated identity theft.
Spoerl is alleged to have used clients’ personal information to file false tax returns with the IRS. To conceal his fraud, Spoerl provided his clients, who were unaware of Spoerl’s fraud, with an accurate copy of their tax return, which Spoerl did not file. The tax returns Spoerl did file fraudulently inflated the tax refunds claimed by the taxpayers by adding false claims for tax credits, deductions, and dependents. Spoerl then diverted the fraudulent portion of the refund to himself and paid the legitimate portion of the refund to his clients. The indictment alleges that during the years 2011- 2015, Spoerl filed more than 100 false tax returns seeking more than $150,000 in federal tax returns.
If convicted on all counts, Spoerl faces a minimum of two years in prison, up to three years in prison on each of the false tax return charges, and up to ten years in prison on each of the theft of government property charges, plus a fine of up to $250,000. Spoerl is scheduled to be arraigned in federal court in Milwaukee on March 15, 2017.
This matter was investigated by special agents with the Internal Revenue Service-Criminal Investigation. The case has been assigned to Assistant United States Attorney Matthew L. Jacobs for prosecution.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Operator of South Jersey Tax Preparation Company Sentenced to One Year in Prison for $340,000 Tax Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, woman was sentenced today to 12 months in prison her role in a conspiracy to boost business at a tax preparation company she operated by preparing bogus income tax returns for her clients, U.S. Attorney Paul J. Fishman announced.
Noemi Pender, 58, of Rosenhayn, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Pender was a tax preparer who operated Pender Tax Services in Rosenhayn. For the tax years 2007 through 2011, Pender and Grace Garrett, 64, of Pittsgrove, New Jersey, sought to increase referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information. They used a number of fraudulent practices, including falsely claiming a filer was a “head of household,” inventing and inflating deductions, creating fictitious dependents, and creating false credits for education and childcare.
The bogus returns resulted in a tax loss to the government of more than $340,000.
In addition to the prison term, Judge Hillman ordered Pender to serve three years of supervised release and pay restitution of $341,439.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Jeffrey Zucker Esq., Camden
Omaha Woman Sentenced for Tax FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Lisa R. Holmes, age 42 of Omaha, Nebraska, was sentenced on March 6, 2017, by Chief Judge Laurie Smith Camp. On December 5, 2016, Ms. Holmes entered a plea of guilty to tax fraud. Ms. Holmes was sentenced to 18 months’ imprisonment, to be followed by a one-year term of supervised release, a $100 special assessment and ordered to pay restitution in the amount of $48,833.00.
Ms. Holmes was a tax preparer. She created false Schedules C for several clients over a several year time span. In the false Schedules C, Ms. Holmes provided information that the clients had business income that they did not truly have. As a result of the falsification, the clients received a higher tax refund than they would have otherwise been entitled to receive. “While most return preparers provide excellent service to their clients, a few dishonest tax preparers file false and fraudulent returns to defraud the government, the taxpaying public and their own clients,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information.”
The case was investigated by the Internal Revenue Service Criminal Investigations unit.
Oakland Man Pleads Guilty to Production of Child PornographyRead the Press Release
OAKLAND– D’mar Dwain Jennings Conway pleaded guilty today to sexual exploitation of a child, announced United States Attorney Brian J. Stretch and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The guilty plea follows the filing of a complaint and indictment in the spring of 2016.
According to his plea agreement, Conway, 29, of Oakland, admitted that on at least one occasion between 2007 and 2010, he induced a victim, for whom he was a caregiver, to engage in a sex act. Conway further admitted that the victim was under12 years old and that he induced the child to engage in sex acts so that Conway could produce visual depictions of the conduct. Also in the plea agreement, Conway acknowledged that law enforcement found and removed from his home a digital memory card containing numerous images depicting Conway engaging in different sexual acts with a child who was approximately three to six years old. Conway admitted that the images of the sexual abuse of the child were taken inside his residence.
A federal grand jury indicted Conway on June 16, 2016, charging him with one count of sexual exploitation of children, in violation of 18 U.S.C. §§ 2251(a) and (e); and one count of possession and access with intent to view child pornography, in violation of 18 U.S.C. §§ 2252(a) and (b). Pursuant to the plea agreement, Conway pleaded guilty to the first charge.
The Honorable Jeffrey S. White, U.S. District Judge, accepted Conway’s guilty plea and scheduled a sentencing hearing for June 6, 2017, at 1:00 pm. The maximum statutory sentence for violating 18 U.S.C. § 2251 is a 30-year prison term, and the minimum mandatory sentence for that crime is a 15-year prison term. Additional fines, victim restitution, and a term of supervised release also may be imposed by Judge White. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Christina McCall and Erin Cornell are prosecuting the case with the assistance of Vanessa Quant and Noble Hughes. The prosecution is the result of an investigation by HSI.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, they should contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing the online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
New York Man Sentenced to Prison for Federal Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Edward Lewis, 49, of Brooklyn, N.Y., was sentenced today in federal court in Albuquerque, N.M., to 46 months in prison followed by three years of supervised release for his conviction on a heroin trafficking charge.
Lewis was arrested on June 23, 2016, on a criminal complaint charging him with a heroin trafficking offense after the DEA seized approximately 523.50 grams of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was concealed in a bundle inside of Lewis’ pants. According to the complaint, Lewis was to be paid to transport the heroin from Los Angeles, Calif., to New York, N.Y. Lewis was subsequently indicted on July 12, 2016, and charged with possession of heroin with intent to distribute.
On Jan. 30, 2017, Lewis pled guilty to a felony information charging him with possession of heroin with intent to distribute, and admitted that on June 23, 2016, he possessed heroin with the intention of distributing it to others.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Special Assistant U.S. Attorney David P. Cowen as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
New York Man Charged with Two Bank Robberies in Bergen County, New JerseyRead the Press Release
NEWARK, N.J. – A man charged with robbing TD Banks in Fort Lee, New Jersey, and Hasbrouck Heights, New Jersey, made his initial court appearance today, U.S. Attorney Paul J. Fishman announced.
Eddy Cruz, 41, of Manhattan, New York, is charged by complaint with two counts of bank robbery. Cruz appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to the complaint:
On Feb. 13, 2017, Cruz allegedly entered a TD Bank in Fort Lee wearing a hat, sunglasses, and a tight-fitting mask. Cruz presented the teller with a note demanding cash and then left the bank with the stolen money.
On Feb. 18, 2017, Cruz entered another TD Bank in Hasbrouck Heights wearing a similar disguise. As in the previous robbery, Cruz presented a teller with a note demanding cash and then left with the stolen money.
On Feb. 24, 2017, law enforcement officers tracked his car, which had been spotted at one of the earlier bank robberies, to a location in Manhattan. Later that day, Cruz drove to yet another TD Bank in Englewood, New Jersey, where he was apprehended by FBI special agents outside the bank while wearing the same disguise that he allegedly used in the prior robberies.
Among the items recovered from Cruz following his arrest were latex gloves, a scarf, sunglasses, and the tight-fitting mask, all of which Cruz was wearing at the time of his arrest. In addition, law enforcement officers recovered a handwritten note demanding money from inside Cruz’s vehicle.
Cruz has been detained in the Bergan County Jail on state charges related to both bank robberies.
The bank robbery counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark and Acting Special Agent in Charge William Sweeney in New York; the Bergen County Prosecutor’s Office, under the direction of Bergen County Prosecutor Gurbir S. Grewal; the Fort Lee Police Department, under the direction of Police Chief Keith M. Bendul; the Hasbrouck Heights Police Department, under the direction of Police Chief Michael J. Colaneri; the Roxbury Police Department, under the direction of Chief Marc Palanchi; and the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg. He also thanked the Greenburgh, New York, the Mount Pleasant, New York, and Yonkers, New York, police departments, as well as the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Nevada Man Sentenced to 15 Years for Conspiracy to Provide Material Support to TerroristsRead the Press Release
Balwinder Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, 42, of Reno, Nevada, was sentenced today to 15 years in federal prison for conspiracy to provide material support and resources to terrorists.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division made the announcement.
“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”
“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said Special Agent in Charge Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”
Singh is a citizen of India and a U.S. permanent resident. Singh pleaded guilty on Nov. 29, 2016. He was charged on Dec. 18, 2013.
According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack. He had with him the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
This case was investigated by the FBI-led Joint Terrorism Task Force (JFFT) in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service and the Nevada Department of Investigation. The ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office in Nevada also provided assistance in the investigation.
Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan and Carla Higginbotham of the District of Nevada, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.
Mount Pleasant Man Sentenced for Child PornographyRead the Press Release
Contact Person: Rhett DeHart (843) 266-1672
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Chandler Carter, age 60, of Mount Pleasant, South Carolina was sentenced yesterday in federal court in Charleston, South Carolina, for Possession of Child Pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Richard M. Gergel, of Charleston, sentenced Carter to 36-months imprisonment to be followed by Supervised Release for life during which Carter will be required to obtain sex offender treatment; register as a sex offender; participate in a computer monitoring program; not have any unsupervised contact with minors; and take random polygraph examinations.
Evidence presented in this case established that a federal search warrant was executed at Carter’s residence in Mt. Pleasant, South Carolina, on September 2, 2015. The search warrant was obtained after agents received information from authorities in Kent, England that Carter emailed an undercover officer in England and expressed an interest in trading child pornography. These emails were traced to Carter’s house in Mt. Pleasant, which triggered the search warrant.
During the search, agents seized two laptop computers and four thumb-drives from Carter’s residence. A forensic examination of his computers found approximately 25 videos and 80 images of child pornography. The videos and images depicted prepubescent girls having sex with adult men. Carter confessed to trading and possessing child pornography at the conclusion of the search.
The case was investigated by agents from ICE - Homeland Security Investigations. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Minnesota Business Owner Pleads Guilty to Stealing More Than $755,000 from Employee Pension PlanRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of WALLACE DAVID GREGERSON, 65, for operating an embezzlement scheme to defraud his employees and steal more than $755,000 from their pension plans. The defendant pleaded guilty on March 6, 2017, before United States District Judge Joan N. Ericksen in Minneapolis, Minn.
According to his guilty plea and documents filed in court, GREGERSON was the president and sole owner of Lighting Affiliates, Inc. (“Lighting Affiliates”), a Minnesota corporation that sold lighting fixtures and related products. The Lighting Affiliates 401(k) Profit Sharing Plan (the “Plan”) was established as an employee benefit for eligible employees’ retirement savings. The Plan was funded by three types of contributions: voluntary salary reduction 401(k) contributions the Lighting Affiliates’ employees had deducted from their paychecks; 401(k) matching contributions made by Lighting Affiliates; and profit sharing contributions made by Lighting Affiliates.
According to his guilty plea and documents filed in court, GREGERSON, who was the sole trustee of the Plan, used his position to withdraw funds from the Plan and deposit those funds into Lighting Affiliates’ bank accounts. Between February 2011 and July 2013, GREGERSON drained the profit sharing portion of the Plan by withdrawing a total of approximately $675,233.55. Between December 2014 and March 2015, after Lighting Affiliates had closed, GREGERSON drained his former employees’ individual 401(k) accounts by withdrawing a total of approximately $80,667.23.
According to his guilty plea and documents filed in court, as part of the scheme, GREGERSON persuaded the financial institutions holding the Plan’s assets to provide him with funds belonging to the Plan and its participants by making false representations. GREGERSON provided written statements falsely affirming that the funds would be re-invested in another qualified plan or that the withdrawals were made at employee requests.
According to his guilty plea and documents filed in court, GREGERSON used the majority of the funds to either pay for Lighting Affiliates’ expenses or for personal expenses such as country club membership dues, tickets for sporting events, clothing purchases, and tuition payments for his daughter.
The case is being prosecuted by Assistant United States Attorney Kimberly A. Svendsen.
This case is the result of an investigation conducted by the U.S. Department of Labor Employee Benefits Security Administration and the U.S. Department of Labor Office of the Inspector General.
Defendant Information:
WALLACE DAVID GREGERSON, 65
Plymouth, Minn.
Charges:
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Mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Mexican National Sentenced to Ten Years in Prison for Trafficking Methamphetamine on Navajo ReservationRead the Press Release
ALBUQUERQUE – Miguel Rangel Arce, 36, a Mexican national unlawfully in the United States, was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison for his methamphetamine trafficking conviction. Miguel Rangel Arce will be deported after he completes his prison sentence
Miguel Rangel Arce and his co-defendants Luis Rangel Arce, 45, and Rogelio Santiago Quiroa-Valdez also Mexican nationals, were amongst eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The three men were arrested in May 2016 during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area, and was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. investigation identified eight defendants, who were charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash, and a vehicle during the investigation.
Miguel Rangel Arce, Luis Rangel Arce and Quiroa-Valdez were charged with methamphetamine trafficking charges in a seven-count indictment filed in April 2016. The indictment charged the three men with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. According to the indictment, the defendants committed the crimes in San Juan County, N.M.
On Aug. 30, 2016, Miguel Rangel Arce pled guilty to participating in a methamphetamine trafficking conspiracy, and admitted that from Nov. 24, 2015 through March 17, 2016, he conspired to distribute between 500 grams and 1.5 kilograms of methamphetamine to an undercover officer.
Luis Rangel Arce pled guilty on Aug. 16, 2016, to distributing methamphetamine on Jan. 11 and 14, 2016. In entering the guilty plea, Luis Rangel Arce admitted distributing 63.17 grams of methamphetamine to an undercover officer on Jan. 11, 2016, and distributing 55.3 grams of methamphetamine to an undercover officer on Jan. 14, 2016. Luis Rangel Arce was sentenced on Jan. 5, 2017, to 87 months in prison and will be deported following his prison sentence.
Quiroa-Valdez pled guilty on Aug. 30, 2016, and admitted that on Feb. 24, 2016, he distributed 85.5 grams of methamphetamine to an undercover officer. At sentencing Quiroa-Valdez faces a statutory minimum penalty of five years and a maximum of 40 years in prison. Quiroa-Valdez remains in custody pending a sentencing hearing, which is currently scheduled for March 9, 2017. He too will be deported after completing his prison sentence.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Methamphetamine Trafficker Sentenced to 10 Years in PrisonRead the Press Release
SAN FRANCISCO – Kiet Ly was sentenced today to 120 months in prison for possessing more than 1.5 kilograms of methamphetamine, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentence follows a guilty plea entered September 21, 2016, in which Ly admitted he possessed with the intent to distribute 500 grams or more of methamphetamine.
Ly, 37, of San Francisco, was indicted on July 5, 2016, by a federal grand jury and charged with one count of possession with intent to distribute 500 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). Ly pleaded guilty to the charge.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. In addition to the prison term, Judge Breyer sentenced Ly to a 5-year period of supervised release. The defendant is in federal custody and will begin serving his sentence immediately.
Assistant U.S. Attorney Andrew F. Dawson is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the DEA and the San Francisco Police Department.
Memphis Man Convicted of Felony Possession of a FirearmRead the Press Release
Memphis, TN – A jury has convicted a Memphis man of illegally possessing a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented at trial, on December 25, 2015, officers with the Memphis Police Department responded to a domestic disturbance call at 779 Laurel. The defendant Jeremy Brown fired four rounds into the home with a stolen SCCY 9mm pistol, barely missing his girlfriend and her great-aunt, who were both inside. In an attempt to break into the home, Brown used the firearm to break the glass to the side door. This activated the home’s security system, alarming the defendant and causing him to drop the gun between the locked storm and wooden doors and flee the scene.
The defendant’s girlfriend reported the SCCY 9mm pistol stolen in 2014 by Brown. The loaded firearm was later recovered on the property by law enforcement.
According to the affidavit of complaint, Jeremy Brown was not on the scene when officers responded. However, he sent a text message to the victim once the police left the scene, which prompted her to call 911 and ask that law enforcement return. Three days later, on December 28, 2015, Brown turned himself in on the arrest warrant.
For the one count, the maximum penalty is 10 years in prison and a $250,000 fine. Sentencing is set for June 22, 2017, before the Honorable U.S. Senior District Judge Samuel H. Mays, Jr.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Task Force. Assistant U.S. Attorneys Karen Hartridge and Marques Young prosecuted this case on the government’s behalf.
Member of Camden, New Jersey, Drug Trafficking Organization Admits Drug Conspiracy and Firearm OffensesRead the Press Release
CAMDEN, N.J. - A Camden, New Jersey, man today admitted his role in a crack cocaine distribution conspiracy, U.S. Attorney Paul J. Fishman announced.
Tony Wilson, a/k/a “Tony Langston,” a/k/a “Tone,” and a/k/a “H,” 25, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Wilson admitted that he was a member of an organization which sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden. Wilson also admitted that he possessed a .40 caliber handgun in connection with the organization’s drug trafficking activities.
Wilson, Jason Boyd, Joseph Boyd, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
Two other charged conspirators have also pleaded guilty to drug conspiracy and firearm offenses.
On Jan. 17, 2017, Jason Boyd, 36, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” pleaded guilty before Judge Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Boyd’s sentencing is scheduled for April 28, 2017.
On Dec. 8, 2016, Derek Stallworth, 20, a/k/a “AK” and a/k/a “A,” of Camden, also pleaded guilty before Judge Simandle to the same charges. Stallworth’s sentencing is scheduled for March 24, 2017.
On Feb. 8, 2017, a federal grand jury also charged Preston J. Thomas, 30, a/k/a “Boo,” of Camden, in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. In addition, the superseding indictment charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, with the same drug trafficking conspiracy offense.
Charges against Joseph Boyd, Nafeez Griffin, Julian Dickerson, Jeffrey Whitaker, and Preston Thomas remain pending.
The drug distribution conspiracy charges carry a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charges carry a mandatory minimum sentence of five years in prison to be served consecutively to the conspiracy charges. Sentencing is scheduled for June 16, 2017.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s guilty plea.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the above-referenced complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mauritanian Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Sid Ahmed Ould Denane Ould Sid Ahmed, age 43, formerly of New York, New York, was sentenced today to time served (70 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
In July 2016, Ahmed had left the United States while an order of removal was pending against him, making him ineligible to re-enter the country without the permission of the Department of Homeland Security. On December 27, 2016, Ahmed was arrested by United States Border Patrol Agents after he entered the United States without inspection in the area of Roxham Road in Champlain, New York.
Following his sentencing today, Ahmed was remanded to the custody of the Department of Homeland Security, which will place Ahmed into removal proceedings.
This case was investigated by the United States Border Patrol, Champlain Station, and prosecuted by Assistant United States Attorney Edward P. Grogan.
Maryland man indicted for selling heroinRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Windsor Mill, Maryland man has been indicted for distributing heroin in West Virginia, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Frank Eubanks, III, 26, was charged by a federal grand jury sitting in Clarksburg for one count of “Distribution of Heroin.” Eubanks is accused of selling heroin for $1,000 in Berkeley County on July 13, 2016.
Eubanks faces up to 20 years in prison and a fine of up to $1,000,000.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Sentenced to More Than 14 Years in Prison for Robbing Four Men and Then Shooting at Responding PoliceRead the Press Release
WASHINGTON – Luvell Alverson, 23, of Suitland, Md., was sentenced today to 14 years and four months in prison for robbing four people at gunpoint last summer in Southeast Washington and then firing a gun at police officers, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Alverson pled guilty in October 2016, in the Superior Court of the District of Columbia, to four counts of armed robbery and three counts of assaulting a police officer while armed. The plea, which was contingent upon the Court’s approval, called for a prison sentence of 10 to 16 years. The Honorable Danya A. Dayson accepted the plea today and sentenced the defendant accordingly. After his prison term, Alverson will be placed on five years of supervised release.
According to the government’s evidence, during the evening of July 11, 2016, and into the early morning hours of July 12, 2016, Alverson was with five other individuals; all arrived in a Lincoln Navigator that was parked behind Martin Luther King, Jr. Elementary School in the area of the 600 block of Alabama Avenue SE. While behind the school, Alverson retrieved a semi-automatic handgun and went to a nearby basketball court, where four men were playing basketball. Alverson brandished the gun, ordered the men to the ground, and took their cell phones and keys. Before leaving, he fired multiple shots at the ground.
After the robberies, Alverson returned to his group and they all entered the Lincoln Navigator, with Alverson in the rear. As the vehicle attempted to leave the school, it was met by a Metropolitan Police Department (MPD) vehicle containing three officers who were responding to a report of shots in the area. The Navigator’s path was blocked by the MPD vehicle, and the Navigator backed up and stopped. Alverson lowered the rear passenger window and fired multiple shots in the direction of the officers. Officers returned fire, and Alverson left the vehicle and fled. He was identified and arrested later on July 12, 2016, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of Assistant U.S. Attorney William E. Schurmann, who investigated and prosecuted the matter.
Maiden, N.C. Man Sentenced to More Than Six Years on Firearms OffenseRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees sentenced yesterday James Holland Helms, 21, of Maiden, N.C., to 75 months in prison, followed by three years of supervised release on a firearms offense, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Tracy Ledford of the Maiden Police Department join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and yesterday’s sentencing hearing, on October 12, 2015, Maiden Police officers responded to a residential address in Maiden in reference to a report of shots being fired at the residence. Court records indicate that Helms fired multiple shots at the residence as he drove past the house in his vehicle.
Court records indicate that earlier in the evening Helms had engaged in a verbal altercation with individuals at the residence. Helms later drove his vehicle by the residence and fired several shots at the residence while individuals were standing on the front porch. According to court records, one of the individuals stated that Helms fired the gun and a bullet struck the door. After firing multiple shots at the residence, Helms sped off the scene, and, while driving, he threw the firearm out of the window. The firearm was recovered hours later by law enforcement investigating the incident. Court records also indicate law enforcement investigators identified two bullet holes in the victim’s residence and one in a vehicle parked in the driveway that resulted from Helms’ shooting. Helms was identified as the shooter and was taken into custody the day of the shooting. Helms has a previous criminal offense and is prohibited from possessing a firearm.
In October 2016 Helms pleaded guilty to one count of possession of a firearm by a convicted felon. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI and the Maiden Police Department handled the investigation. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Luzerne County Woman Charged with Theft of Postal FundsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Carol Sosik, age 55, of Shavertown, Pennsylvania, was charged in a one-count criminal information with misappropriation of postal funds from the U.S. Post Office in Dallas, Pennsylvania.
According to U.S. Attorney Bruce D. Brandler, the information charges Sosik with stealing approximately $4,600 from the Dallas Post Office between June 2014 and May 2016. Sosik was employed at the Dallas Post Office as a distribution window clerk, with responsibility for sales of postage stamps.
The United States also filed a plea agreement, which is subject to the approval of the Court, wherein it is indicated that Sosik intends to pay restitution and plead guilty to the charges when she appears in federal court.
This case was investigated by the the Office of Inspector General, and the United States Postal Service. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Louisville Business Owners Sentenced for Defrauding A United States Department of Agriculture ProgramRead the Press Release
Ordered to pay $400,000 restitution
LOUISVILLE, Ky. – The owners of AP Deli Corporation were sentenced in United States District Court yesterday, by Chief Judge Joseph H. McKinley Jr., to twelve months and one day in prison and ordered to pay $400,000 restitution for defrauding a program administered by the United States Department of Agriculture, announced United States Attorney John E. Kuhn, Jr.
“The SNAP program is intended to alleviate hunger and malnutrition among lower income families by increasing their food-purchasing power,” stated U.S. Attorney John Kuhn. “When the program is defrauded, the government's capacity to assist is diminished and the public's confidence in the program can be compromised. This successful investigation and prosecution punishes those responsible, recovers the program loss, and should help restore our faith in accountability.”
Defendants San Chae Chon, age 73, and Yong Chae Chon, age 65, of Louisville, admitted that while operating AP Deli, located at 225 S. 5th Street in Louisville, they defrauded the Supplemental Nutrition Assistance Program (SNAP) by redeeming electronic benefit transfer cards (EBT), in exchange for cash, from customers. The charged period began in May of 2005, and continued through August of 2014.
SNAP is administered by the United States Department of Agriculture to provide food-purchasing assistance to low-income individuals through the issue of (EBT) cards to recipients.
The Chons, who are legally married, provided customers cash in amounts substantially less than the debited amount on the customers’ EBT cards. They would then process customers’ EBT cards to redeem the full amount debited on the card. When using the EBT card in a lawful manner, each transaction was for the exact dollar amount of the SNAP eligible items and thus no change was given back to the recipient.
The Chons fraudulently redeemed EBT cards in excess of $5,000. Their actions caused a loss to SNAP and the USDA in the amount of approximately $400,000.
The Chons pleaded guilty to a single charge of food stamp fraud, on June 3, 2016. At the time of sentencing, the United States agreed to dismiss two charges.
The case was prosecuted Assistant United States Attorney Bryan R. Calhoun and was investigated by U.S. Department of Agriculture, Office of Inspector General and the Kentucky Cabinet for Health and Family Services, Office of Inspector General.
Long Island Man Re-Sentenced to 135 Months in Prison for Defrauding Homeowners in Loan Modification SchemeRead the Press Release
Updated April 19, 2017
Earlier today, David Gotterup was re-sentenced at the federal courthouse in Brooklyn, New York, to 135 months in prison for leading a loan modification scheme that defrauded distressed homeowners. Gotterup pleaded guilty on June 16, 2016, to conspiring to commit wire, mail and bank fraud. In addition, as part of the sentence, the Court ordered Gotterup to pay $2,500,050 in forfeiture.[1]
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); David Montoya, Inspector General, U.S. Department of Housing and Urban Development (HUD); and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
According to public filings, from 2008 to 2012, Gotterup and his co-conspirators made a series of false promises to convince more than a thousand distressed homeowners seeking relief through government mortgage modification programs to pay thousands of dollars each in advance fees to numerous companies owned or controlled by Gotterup, including Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc., and JG Group. Among other things, Gotterup directed telemarketers and salespeople to lie to distressed homeowner victims by telling them that they were “preapproved” for loan modifications and that they were retaining a “law firm” and an “attorney” who would complete their mortgage relief applications and negotiate with the banks to modify the terms of their mortgages. Contrary to these representations, Gotterup and his co-conspirators did little or no work in connection with these fraudulently induced advanced fees. Gotterup was arrested in October 2015 and has been incarcerated since then.
Gotterup was originally sentenced to 15 years in prison on March 7, 2017. Today’s re-sentencing was held in response to Gotterup’s motion for reconsideration of his earlier sentence.
In announcing the sentence, Ms. Rohde extended her appreciation to the agencies that led the government’s investigation and thanked the U.S. Small Business Administration and the Staten Island District Attorney’s Office for its assistance in the case.
Today’s proceeding took place before United States District Judge Nicholas G. Garaufis.
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The government’s case is being prosecuted by the Office’s Business and Securities Fraud Unit. Assistant United States Attorneys Sylvia Shweder and Bonni Perlin are in charge of the prosecution.
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The Defendant:
DAVID GOTTERUP
Age: 37
Oceanside, NY
E.D.N.Y. Docket No. 15-CR-498 (NGG)
[1] Restitution pursuant to the Mandatory Victims Restitution Act will be determined at a later date.
Long Island Business-Owner Sentenced for Diverting over $1.6 Million from His Companies and Evading TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSEPH CICCARELLA was sentenced last Friday to 18 months in prison for evading taxes on over $1.6 million that he siphoned from construction-related companies he owned to use for personal purposes. Through the scheme, CICCARELLA evaded over $280,000 in personal income taxes owed to the Internal Revenue Service (“IRS”). CICCARELLA pled guilty on November 3, 2016, before United States District Judge Alvin K. Hellerstein, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Joseph Ciccarella used his companies and third party vendors as a means to funnel over $1.6 million for his own use without paying his proper share of taxes on that money. Ciccarella would issue checks from his companies claiming they were corporate expenses when in fact they were sham checks that would simply be cashed and be returned to him for his use. For his tax fraud scheme, Ciccrealla will now face 18 months in federal prison. We thank the IRS Criminal Investigation for the terrific work on this case.”
According to the allegations in the Information to which CICCARELLA pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
CICCARELLA was the owner of two New York companies involved in the heating, ventilation, and air conditioning business – BSI Consulting (“BSI”) and KMS Mechanical (“KMS”). During the period 2009-2012, CICCARELLA drew numerous checks on the bank accounts of BSI and KMS and made them payable to third party corporate entities, even though those third party companies performed no services for, and provided no goods to, CICCARELLA’s companies. Instead, CICCARELLA had entered into a corrupt arrangement with the owners of the payee companies that the checks he drew on the accounts of BSI and KMS would be cashed at check cashers in the New York metropolitan area and the cash returned to CICCARELLA, less a fee CICCARELLA paid to the third parties for cashing the checks.
Between 2009 and 2012, CICCARELLA siphoned over $1.6 million from BSI and KMS in this fashion, which monies he caused to be falsely listed on the books and tax returns of those companies as “cost of goods sold.” CICCARELLA did not pay taxes on the funds he siphoned from his companies even though he used those funds for personal purposes, such as to provide funding for a separate set of companies he owned, as well as to pay for personal expenses.
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In addition to his prison term, CICCARELLA, 54, of Glen Head, New York, was sentenced to three years of supervised release and ordered to pay a $100,000 fine. CICCARELLA had previously paid the $284,000 in restitution that was due the IRS.
Mr. Bharara praised the investigative work of the IRS, Criminal Investigations.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Stanley J. Okula Jr. is in charge of prosecution.
Lodi Man Pleads Guilty to Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jarod Perdichizzi, 30, of Lodi, pleaded guilty today to distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2016, Perdichizzi used the Kik messenger service to chat online with someone who, unbeknownst to Perdichizzi, was an undercover federal agent. Perdichizzi sought information about how he could become sexually active with a minor female and also emailed images of minors engaged in sexually explicit conduct to the undercover agent. After executing a federal search warrant at Perdichizzi’s residence, agents found a thumb drive containing 88 images and nine videos of child pornography. Perdichizzi has been in custody since his arrest on July 28, 2016.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew D. Segal is prosecuting the case.
Perdichizzi is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 13, 2017. Perdichizzi faces a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Lancaster Man Sentenced on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Lombardo, 25, of Lancaster, NY, who was convicted of possession and receipt of child pornography, was sentenced to 188 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in May, 2014, a 15-year-old female reported to Lancaster Police that three or four years earlier when she was 12 or 13 years old, she was contacted on the social media site “Kik” by an unknown male calling himself “Chris Richardson.” Victim 1 stated that “Chris Richardson” requested that she send him naked pictures. If she refused, Victim 1 said that “Chris Richardson” claimed he would post the pictures of her on the internet to exploit her. Victim 1 sent numerous naked pictures of herself to “Chris Richardson.” Victim 1 confided in another female who stated that “Chris Richardson” had also solicited pictures and was extorting her.
That female to Victim 1 about a male identified as “Dan” who would help her. Victim 1 was contacted by “Dan” who said she would help her if she hung out with him. Victim 1 agreed and chatted with “Dan” on a daily basis for several weeks. “Dan” also requested naked pictures and Victim 1 complied. Victim 1 and “Dan” eventually met in person and over the next few weeks had sexual contact several times. “Dan” asked Victim 1 for permission to record one of their sexual encounters which he would put on the internet and make money for her. Victim 1 is unsure if she was videotaped. Victim 1 stated that she told “Dan” her actual age.
On May 9, 2014, in a police photo array, Victim 1 identified the defendant as “Dan.” On that same day, police recovered several items, including a laptop, during the execution of a search warrant at Lomabardo’s Lancaster residence.During a forensic analysis of the contents of the laptop computer, officers discovered images of a 13-year-old female (Victim 2). The images were sent to the defendant by phone. In a subsequent interview with Victim 2, she indicated that she met Lombardo on meetme.com. Victim 2 also indicated that the defendant identified himself as “Chris Richardson.”
The forensic analysis also revealed pictures of a 16-year-old female (Victim 3) who told police she also met the defendant on meetme.com. Victim 3 had sexual contact with Lombardo and also sent 30 to 40 naked pictures of herself to the defendant.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-In-Charge; the Lancaster Police Department, under the direction of Chief Gerald Gill; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Lackawanna Man Pleads Guilty to Distribution of Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Theodore Hines, 32, of Lackawanna, NY, pleaded guilty to possession with intent to distribute, and distribution of, crack cocaine, before Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June and August, 2014, the defendant sold crack cocaine to a confidential informant working with law enforcement officers. The purchases occurred within 1000 feet of the Gates Housing Projects in Lackawanna.
Hines is one of 18 defendants arrested in a large scale drug trafficking operation that operated in and near the Gates Housing Project. To date, seven defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge.Sentencing is scheduled for June 21, 2017, at 9:00 a.m. before Judge Skretny.
Kiekert AG to Plead Guilty to Bid Rigging Involving Auto PartsRead the Press Release
Kiekert AG, an automotive parts manufacturer based in Heiligenhaus, Germany, has agreed to plead guilty and to pay a $6.1 million criminal fine for its role in a conspiracy to rig bids of side-door latches and latch minimodules installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan, Kiekert participated in a conspiracy to eliminate competition by agreeing to allocate sales, rig bids and fix prices for side-door latches and latch minimodules sold to Ford Motor Company and its subsidiaries in the United States and elsewhere between September 2008 and May 2013. In addition to Kiekert’s agreement to pay a $6.1 million criminal fine, the manufacturer has agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“The Antitrust Division has uncovered conspiracies involving more than 50 automotive parts,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Automobile manufacturers, and the American consumers who buy their cars, are entitled to prices set by competition, not secret cartels.”
“Americans expect corporations in the United States and overseas to conduct their business honestly. To do anything less, compromises consumer trust,” said Special Agent in Charge David P. Gelios of FBI’s Detroit Division. “Today’s plea agreement of Kiekert AG, demonstrates the resolve of the FBI and the Department of Justice to protect American consumers from price fixing and bid rigging schemes that ultimately harm the U.S. economy.”
Side-door latches secure car doors to the body. Latch minimodules include the side-door latch and all related mechanical operating components, including the electronic lock function.
According to the charges, Kiekert officials participated in meetings and communications with representatives of another major side-door latch producer, during which they agreed to allocate sales, rig bids and fix prices submitted to Ford. To effectuate those agreements, the conspirators exchanged information on bids and price quotations for submission to Ford.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Kiekert, 48 companies and 65 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.9 billion in criminal fines.
Kiekert AG Information
These charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Detroit Field Office with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/new case.html or call the FBI’s Detroit Field Office at (313) 965-2323.KC Man Sentenced to 19 Years in Prison for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for illegally possessing a firearm.
Keith R. Hardin, 58, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays on Monday, March 6, 2017, to 19 years and seven months in federal prison without parole. Hardin was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 2, 2016, Hardin was convicted at trial of being a felon in possession of a firearm.
Hardin was in possession of a Cobra .380-caliber semi-automatic handgun on Jan. 15, 2016. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hardin has multiple prior felony convictions, including for armed criminal action, stealing a motor vehicle, sodomy, robbery and burglary.
Hardin was stopped by Kansas City police officers at approximately 3:22 a.m. on Jan. 15, 2016, when officers saw him walking in the street near 35th Street and S. Benton Avenue. Officers arrested Hardin on outstanding warrants. While searching him during the arrest, they found a loaded Cobra .380-caliber semi-automatic handgun on his left hip.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for robbing Arvest Bank, after which he had his hair and beard shaved off at a nearby barber shop.
Joshua A. Hoover, 33, of Kansas City, was charged in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint against Hoover that was filed on Feb.23, 2017.
The federal indictment alleges that Hoover stole $5,800 from Arvest Bank, 8959 E. 40 Hwy., Kansas City, Mo., on Feb. 22, 2017.
According to an affidavit filed in support of the original criminal complaint, Hoover approached a teller at the bank and twice demanded, “Give me $5,800 or I’ll shoot you in the face.” Hoover allegedly instructed her to place the money in an envelope, then fled from the bank on foot.
Hoover then ran to Stadium Cuts, 3300 S. Blue Ridge Cut Off, Independence, Mo., the affidavit says. A barber told police that Hoover was out of breath when he came into the business; Hoover told the barber he just ran from work and wanted to get a haircut during his lunch hour. Hoover had most of his hair and his beard cut off, the affidavit says, then bought a hat for $20 and changed clothes in the business’s bathroom. According to the affidavit, Hoover later told investigators that he stopped an unknown person in the area of the barber shop and requested a ride to an area near his house; Hoover said he grabbed an unknown number of $100 bills from the proceeds of the bank robbery and gave them to the driver.
The FBI disseminated surveillance photographs of the bank robbery to local media outlets, the affidavit says, and almost immediately began receiving tips from both the public and law enforcement that identified the bank robber as Hoover. Hoover was located at Ameristar Casino, where he was preparing to attend a poker tournament, and he was arrested. Hoover had in his possession $2,115, $2,000 in poker chips, a $1,000 gaming voucher and a preferred member players card. Hoover allegedly told police officers he was afraid the serial numbers on the bills could be tracked and decided to exchange, or launder, the money at the casino to receive clean bills that were not directly related to the bank robbery.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Convicts Lancaster County Man of Tax FraudRead the Press Release
PHILADELPHIA - James Kerr Schlosser, 59, of Bird-in-Hand, Pennsylvania was convicted of engaging in corrupt endeavors to obstruct and impede the Internal Revenue Service and to willfully failing to file tax returns, announced Acting United States Attorney Lou Lappen. Schlosser, a manufacturer's representative for companies that sold medical equipment and surgical devices to various health care providers, stopped filing federal income tax returns in 1995.
To conceal the income that he had earned, Schlosser attempted to assign his income to multiple foreign business trusts and corporate entities which he created and registered with the Nevada Secretary of State. In order to obtain possession of the income, Schlosser entered into contracts with Nevada-based mailing forwarding services who caused the income, that had been sent to the foreign trusts and corporate entities, to be forwarded to Schlosser in Pennsylvania or other individuals who Schlosser had convinced to serve as trustees for one or more of the foreign business trusts.
Evidence offered during the trial established that Schlosser failed to file tax returns for approximately 20 years even though he realized gross receipts of approximately $2.3 million from 1994 through 2014. Testifying in his own defense, Schlosser told the jury that he refused to file tax returns because he concluded that the use of a social security number represented the "mark of the beast" alluding to a passage in the Bible.
"The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld these laws. Convictions, like the one returned against James K. Schlosser, send a loud and clear message that regardless of their opinions, people who willfully defy the tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions," said Internal Revenue Service Criminal Investigation Acting SAC Gregory Floyd.
Schlosser is scheduled for sentencing before United States District Judge Jeffrey L. Schmehl on June 10, 2017. He faces a maximum of 5 years imprisonment, a fine of $450,000 and the cost of prosecution.
The case was investigated by Internal Revenue Service Criminal Investigations and prosecuted by Assistant United States Attorney Floyd J. Miller and DOJ Trial Attorney Derek Ettinger.Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The indictment named Arvell D. Brandon, 38, of Johnstown, Pa.
According to the indictment presented to the court, on May 10, 2016, Brandon distributed less than 100 grams of heroin.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Brandon.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inland Empire Man Sentenced to 14 Years in Federal Prison for Possessing Child Pornography while on Probation in a Similar CaseRead the Press Release
LOS ANGELES – A Murietta man has been sentenced to 14 years in federal prison for possession of child pornography, an offense he committed while on probation after being convicted of similar conduct in a state case.
Anthony Michael Scotti, 21, of Murrieta, yesterday received the 168-month sentence from United States District Judge Philip S. Gutierrez.
Scotti pleaded guilty in the federal case last April, admitting he had more than 1,000 images and videos of child pornography on an iPod and that he used the KIK messaging app to distribute images of children engaged in sex acts with adults.
In the plea agreement filed in this case, Scotti also admitted that he used text messages to convince a 15-year-old girl in another state to take sexually explicit pictures and send them to him.
Scotti committed the federal offense while on probation after being convicted in Riverside Superior Court about six months earlier of distribution/exhibition of lewd material to a minor.
“In addition to his repeated criminal conduct and the online solicitation of a victim in another state, which is the offense charged in this case, this defendant admitted to engaging in other conduct involving the exploitation of children,” said United States Attorney Eileen M. Decker. “We recommended this lengthy prison sentence after concluding that this defendant poses a serious danger to the safety and well-being of children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), which received substantial assistance from the Riverside County District Attorney’s Office, Sexual Assault Felony Enforcement (SAFE) Team.
“This lengthy sentence assures the defendant won’t pose a threat to other youths for years to come, but the case serves as a sobering reminder to parents about the importance of monitoring their children's online activity,” said Edward Owens, deputy special agent in charge for HSI Los Angeles. “The internet has become the preferred hunting ground for child sex predators seeking innocent young victims. For parents, keeping their children safe means keeping a close eye on their interactions online and on social media. You’d never allow your child to walk down a dark alley alone at night. Well, figuratively speaking, the internet is today’s dark alley.”
This case was prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham.
Harris County Residents Arrested on East Texas Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas – Acting U.S. Attorney Brit Featherston announced today that four individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.
A federal grand jury returned an indictment, which was unsealed on Mar. 1, 2017, charging the following individuals with conspiracy to distribute heroin and conspiracy to money launder. These men appeared today before U.S. Magistrate Judge Keith Giblin for arraignments:
Jeihka Angelica Cuero, 24, of Colombia;
Carlos Ivan Calderon Rosado, 52, of Puerto Rico;
Alexander Ramirez Valencia, 43, of Colombia; and
Harry Martinez, 41, of Colombia.
According to the indictment, from about 2014 until February 2017, the defendants conspired to distribute heroin through Southeast Texas to the New Orleans area. During the investigation, law enforcement officers seized 10 kilograms of heroin and $386,000 cash.
All four men were currently residing in Houston. Martinez and Ramirez were pending final deportation hearings at the time of their arrests. Defendants face up to 20 years in federal prison if convicted of these crimes.
“Heroin use in the United States has reached a 20 year high according to the 2016 World Drug Report issued by the United Nations Office on Drugs and Crime, said Acting U.S. Attorney Featherston. “2016 saw the number of overdose drug deaths exceeded 50,000. This number is more than violent gun deaths, and more than car crash related fatalities reported in 2016.”
- case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case is being investigated by DEA, HSI-OHS, Texas Department of Public Safety, Houston Police Department and Beaumont Police Department and prosecuted by Assistant U.S. Attorney John A. Craft.
Gainesville Man Charged with Sex Trafficking CrimesRead the Press Release
GAINESVILLE, FLORIDA – Arthur Larange Lee Jr., 33, of Gainesville, was arraigned today in the U.S. District Court in Gainesville after a federal grand jury returned an indictment charging him with sex trafficking by force and use of a facility of interstate commerce to promote prostitution. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between August 4 and 5, 2016, Lee transported, maintained, and advertised a victim, knowing that the victim would be forced to engage in a commercial sex act. The indictment further alleges that Lee used the internet and a cellular telephone to promote a prostitution offense. The trial is scheduled for April 25, 2017, at 8:00 a.m.
The case is being investigated by the Alachua County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Frank Williams.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Former Treasurer of Mahopac Volunteer Fire Department Pleads Guilty to Fraud, Tax, Obstruction of Justice, and False Statement Charges Arising from His Embezzlement of More Than $5.6 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL KLEIN, the former treasurer of the Mahopac Volunteer Fire Department (“MVFD”), pled guilty today to wire fraud, subscription to false tax returns, obstruction of the grand jury, and false statement charges before U.S. District Judge Cathy Seibel.
U.S. Attorney Preet Bharara stated: “Michael Klein admitted today what we alleged – for over a decade, he violated the trust of his fellow volunteer fire fighters and used the Mahopac Volunteer Fire Department funds as his own slush fund. Klein took advantage of his position as the fire department’s treasurer and spent department money on himself, including paying for a yacht, a Florida home, jewelry, and an antique fire truck.”
According to the allegations contained in the Indictment filed against KLEIN and statements made in related court filings and proceedings:
MICHAEL KLEIN was first elected treasurer of the MVFD in 2001. From January 2002 to September 2015, KLEIN embezzled MVFD funds under his control by writing checks to the two businesses he owned, Abbie Graphic Services, Ltd. (“Abbie Graphic”), and Buckshollow Emergency Equipment Corp. (“BEEC”). KLEIN then deposited the checks to bank accounts held by Abbie Graphic or BEEC. He entered these checks into the MVFD’s books as having been made payable to various vendors, other than Abbie Graphic or BEEC, that sold firefighting equipment or services used by fire departments.
KLEIN embezzled more than $5.6 million by writing approximately 275 checks over a period of more than 13 years. He used the money to purchase, among other things, a 55’ Neptunus motor yacht named “K’Bam,” a second residence in Palm City, Florida, an antique fire truck, and jewelry. He also used the money to support Abbie Graphic and BEEC. KLEIN also failed to report most of this income on his personal tax returns for the period from 2009 through 2014, thereby subscribing to false tax returns for each of those years.
Following law enforcement’s discovery of KLEIN’s embezzlement in September 2015, KLEIN obstructed the grand jury’s investigation of his conduct by making false statements regarding his finances and by concealing and dissipating assets. For example, KLEIN sold K’Bam for $138,868 even though he had purchased it for $260,000, listed it for sale for $229,000, and rejected an offer he received for $175,000. KLEIN also gave the United States Attorney a financial statement in which he falsely claimed, among other things, that BEEC had a delinquent loan of $275,000, and that, as a result of that loan, a lien was filed against KLEIN’s Florida property. KLEIN also concealed the proceeds he received from the sale of a Corvette by giving the money to a relative for deposit to her bank account and then arranging for the relative to pay his household bills. KLEIN also concealed an antique fire truck to prevent law enforcement from seizing it.
KLEIN, 48, of Mahopac, New York, and Palm City, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison; six counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison; one count of obstructing the grand jury’s investigation, which carries a maximum sentence of 20 years in prison; and one count of making false statements to the United States Attorney, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentence will be determined by the court.
In pleading guilty, KLEIN agreed to forfeit to the United States a sum of $5,675,360.49, his residence in Palm City, Florida, his equity in his yacht club in Palm City, Florida, cash held in various bank accounts, a 1931 American LaFrance antique fire engine, proceeds of a life insurance policy, a 2000 13' Nautica vessel with an outboard motor, and a 2005 Eliminator trailer.
Klein is scheduled to be sentenced by Judge Cathy Seibel on June 21, 2017, at 2:30 p.m.
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigations, the Federal Bureau of Investigation, the New York State Comptroller, and the New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Andrew Dember, Maurene Comey, Michael Maimin, James McMahon, Lauren Schorr, and Olga Zverovich are in charge of the prosecution.
Former Postal Employee Convicted of Soliciting Bribes During ElectionRead the Press Release
McALLEN, Texas – A former U.S. Postal Service (USPS) carrier has entered a guilty plea to receiving bribe money in exchange for providing addresses of postal ballot recipients, announced U.S. Attorney Kenneth Magidson
Noe Olvera, a 43-year-old resident of Mission, admitted he accepted $1,000 for providing the addresses in relation to the Hidalgo County Sheriff’s race in 2014.
It is a violation of law and official duty for Postal Service employee to provide a list of postal patrons names and/or addresses to another person.
On or about Oct. 15, 2014, Olvera provided a list of names and addresses of postal patrons on his route in Mission who received ballots during the Democratic primary. He accepted the $1,000 payment while on duty in his official vehicle and in his postal carrier uniform.
U.S. District Judge Micaela Alvarez accepted the plea today and has set sentencing for May 25, 2017. At that time, he faces a maximum sentence of 15 years in prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The USPS-Office of Inspector General conducted the investigation with assistance of the FBI. Assistant U.S. Attorneys David A. Lindenmuth and Roberto “Bobby” Lopez are prosecuting the case.
Former Ponchatoula Housing Authority Executive Director Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WANDA WELLS CORNISH, age 46, of Ponchatoula, pled guilty today to theft of government funds.
According to court documents, beginning in 2011 and continuing until 2015, CORNISH served as the Executive Director of the Ponchatoula Housing Authority (“PHA”). CORNISH functioned as the chief administrator responsible for the overall operations of the PHA and had authority to make purchases on behalf of PHA and manage PHA bank accounts for the benefit of the PHA. CORNISH possessed a PHA credit card and used that credit card to purchase items for her own personal use (rather than for the benefit of the PHA) in the amount of approximately $27,000.
CORNISH faces a maximum of ten years in prison, a $250,000 fine and three years of supervised release. U.S. District Judge Nannette Jolivette Brown set sentencing for June 29, 2017.
U.S. Attorney Polite praised the work of the U.S. Housing and Urban Development in investigating this matter. Assistant Attorney Sean Toomey is in charge of the prosecution.
Former Lansing Community College Professor and Wife Plead Guilty to Federal Tax FraudRead the Press Release
Couple and their business illegally received over $3,600,000 in federal tax refunds in a single year.
GRAND RAPIDS, MICHIGAN — Tapera Albert Chiwocha, Sr., Callista Suzena Chiwocha, and Human Services Associates, LLC pled guilty yesterday in U.S. District Court to conspiring to defraud the government by filing false tax returns, announced Acting U.S. Attorney Andrew Birge. Tapera and Callista Chiwocha each face up to ten years in prison. As part of their plea agreements, the Chiwochas and Human Services Associates will forfeit over $1.4 million dollars in federal tax refund money, which was seized pursuant to federal seizure warrants in 2011 and is the subject of two pending federal civil forfeiture actions.
During 2011, Tapera Albert Chiwocha, Sr., age 75, a former Lansing Community College professor, and his wife, Callista Suzena Chiwocha, age 63, requested over $4.5 million in federal tax refunds from the United States Treasury by causing false tax returns to be filed on behalf of others with the Internal Revenue Service. Citizens were tricked into providing their personal identification information after being promised "free stimulus money" by the Chiwochas and those who worked for them. The tax returns typically contained false reporting of undocumented income and abusive use of the earned income credit. The Chiwocha tax scam primarily exploited the poorest and most vulnerable citizens of the district. The Chiwochas created the Michigan-based limited liability company Human Services Associates, LLC to facilitate and conceal their criminal activities.
Acting U.S. Attorney Birge advised that "Our tax system relies on honest compliance. The Chiwochas and Human Services Associates took advantage of that system of honest compliance and committed a costly crime against the tax paying public." Birge encouraged tax filers to exercise caution when providing their personal information to others, especially to tax preparers who promise guaranteed tax refunds and make other questionable promises.
Complaints by local citizens prompted the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation to open an investigation, which included executing multiple search warrants to seize evidence of the tax fraud scheme. During the multi-year investigation, over one hundred subpoenas were issued to track down the tax refunds, which had been paid into multiple bank accounts owned by Human Services Associates and controlled by the Chiwochas.
Tapera A. Chiwocha, Sr., obtained his doctoral degree in philosophy from Michigan State University in 1977. Callista Suzena Chiwocha obtained an undergraduate business degree in accounting from the University of Michigan in 1978 and received training in preparing federal tax returns from a national tax preparation company in 2009. Investigative records show that shortly before starting the tax fraud scheme, the Chiwochas were delinquent on their home mortgage payments. In earlier prosecutions, other Chiwocha-related family members pled guilty to similar tax offenses: daughter Taka Chiwocha-Crowell pled guilty to filing false tax returns and was sentenced to forty-two months’ incarceration; daughter Tsiidzoyedu Callista Chiwocha pled guilty to filing false tax returns and was sentenced to one year and one day of incarceration; grandson Qasim Ibn-Ishaq Verser pled guilty to filing false tax returns and was sentenced to thirty-six months’ incarceration; grandson Imran Dawood Ibn-Abdurrahim pled guilty to filing false tax returns and was sentenced to fifty-four months’ incarceration; and, granddaughter Ruqayya Aida Abdul-Hakim pled guilty to filing false tax returns and was sentenced to seventy-two months’ incarceration. Sentencing of Tapera and Callista Chiwocha will take place on July 31, 2017.
"Defendants Tapera and Callista Chiwocha, who operated this large tax fraud scheme, were motivated by greed, resulting in the theft of millions of taxpayer dollars," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Today’s plea agreement is the result of our strong investigative partnerships which leveraged resources and expertise to dismantle this complex tax fraud criminal enterprise."
Special Agent in Charge Manny Muriel, IRS-Criminal Investigation stated, "The Chiwochas have demonstrated a blatant disregard of the integrity of the United States tax system. They stole from the system that is designed to provide vital government services including services to the poorest and most vulnerable citizens; the same group the Chiwochas exploited. Individuals who commit refund fraud of this magnitude deserve to be punished to the fullest extent of the law."
The prosecution of this case was handled by Assistant U.S. Attorneys Joel S. Fauson and Michael A. MacDonald.
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