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21 February 2017
Hotel Developer Sentenced to Three Years in Prison for Exploiting U.S. Visa ProgramRead the Press Release
CHICAGO — A Chicago hotel developer was sentenced today to three years in prison for exploiting a federal visa program to fraudulently raise capital from Chinese nationals who were seeking residency in the United States.
ANSHOO SETHI, the founder of A Chicago Convention Center LLC, purported in 2011 to build a hotel and convention center near O’Hare International Airport in Chicago. Sethi solicited Chinese nationals to invest $500,000 apiece in the project, plus $41,500 in administrative fees to Sethi’s company. Each Chinese national who participated in the project also applied for an EB-5 visa, which allows foreign investors to obtain a temporary two-year visa that could later be converted to a permanent visa upon success of an employment-generating investment. While soliciting investors Sethi made several false statements, including lies about funding and tax credits from the State of Illinois and the City of Chicago, none of which materialized.
The $900 million project never got off the ground, and no EB-5 visas were ever granted to investors.
Sethi, 32, of Chicago, pleaded guilty last year to one count of wire fraud. In addition to the 36-month prison term, U.S. District Judge John Z. Lee also ordered Sethi to pay $8.85 million in restitution to the victim investors.
The prosecution represents the largest EB-5 criminal fraud case in the United States to date.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“Defendant Anshoo Sethi abused the EB-5 visa program and blatantly lied to investors and the United States government on a massive scale,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “Overseas investors spent much time and energy making the difficult decision to invest in the Sethi project, and processing their visa applications – not knowing that the project was built on a bed of lies and forged documents.”
According to his plea agreement, Sethi’s fraud scheme began in the summer of 2011 and continued until February 2013. Sethi told investors that he planned to build the hotel and convention center on a three-acre parcel of land in the 8200 block of West Higgins Road in Chicago, just east of O’Hare. Sethi falsely told investors that his company maintained relationships with large hotel chains that purportedly were interested in the project, including Hyatt, Starwood and Intercontinental Hotel Group. To bolster an additional false statement regarding City of Chicago funding, Sethi signed a “Redevelopment Agreement TIF” document that purported to convey a relationship between the city and Sethi’s company. The document, which contained a bogus city ordinance implying that the project had been approved for TIF funding, was provided to third party brokers who used it to solicit investors.
In all, Sethi raised approximately $158 million from more than 290 investors. The U.S. Securities and Exchange Commission brought a civil lawsuit against Sethi and was able to restore approximately $147 million to Chinese investors.
The government is represented in the criminal prosecution by Mr. Harjani.
Hoopeston Drug Trafficker Sentenced to Life in Prison for Distributing Crystal Meth, Cocaine in ChampaignRead the Press Release
URBANA, Ill. -- Jose Jaime Lopez, aka “JJ,” 37, of the 800 block of West Penn St., Hoopeston, Ill., has been ordered to serve the rest of his life in federal prison for trafficking crystal meth and cocaine in Champaign, as announced by Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois. Lopez has been in the custody of the U.S. Marshals Service since his federal arrest in January 2016. U.S. District Judge Colin S. Bruce sentenced Lopez on Feb. 17.
On Nov. 3, 2016, a jury found Lopez guilty of distribution of cocaine and methamphetamine, as well as attempted possession of methamphetamine with intent to distribute. During three days of trial, the government presented evidence to establish that in October 2014, Lopez arranged with a Mexican drug cartel member in Houston, to obtain approximately 10 ounces of crystal methamphetamine, also known as “ice.” Agents of the Drug Enforcement Administration intercepted phone calls between Lopez and the cartel member. On Oct. 3, 2014, agents of the DEA and Champaign Police Department seized 272.5 grams of nearly 100 percent pure crystal methamphetamine from a drug courier in Rantoul, Ill. The courier was transporting the crystal meth to Lopez in Hoopeston so Lopez could distribute it in Central Illinois. Later, in November and December 2015, agents used a confidential informant to purchase two ounces of powder cocaine, 18 grams of ice, and 30 grams of ice, respectively, from Lopez in the parking lots of businesses on North Prospect Street in Champaign. On January 6, 2016, agents executed a search warrant at Lopez’s Hoopeston residence and found numerous items associated with drug trafficking.
At the time the drug trafficking offenses occurred, Lopez was on federal supervised release for a 2002 federal drug trafficking conviction, as well as state bond for aggravated fleeing from a police officer. Lopez was also ordered to serve five years in prison, to be served concurrent with the life sentence, for violating federal supervised release. Lopez also has a prior felony drug conviction in Texas, as well as two Vermilion County, Illinois convictions for aggravated battery of a police officer and driving under the influence of alcohol.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The U.S. Drug Enforcement Administration and the Champaign Police Department investigated the case.
Greene County Drug Trafficker Sentenced to over 17 Years for Cocaine and Marijuana ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced AUGUSTO ESPINDOLA-PINEDA, 38, from Snow Hill, N.C., to 210 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. AUGUSTO ESPINDOLA-PINEDA pled guilty to these charges on May 11, 2016. A co-conspirator, HUBERTO ESPINDOLA-SOTO, was sentenced to 146 months in prison by Judge Flanagan on December 6, 2016. Both AUGUSTO ESPINDOLA-PINEDA and HUBERTO ESPINDOLA-SOTO are from Mexico and reentered the United States illegally.
On November 12, 2014, after a lengthy investigation, DEA Task Force Officers arrested co-conspirator HUBERTO ESPIDOLA-SOTO after he left a mobile home maintained by AUGUSTO ESPINDOLA-PINEDA in La Grange, N.C. During a search of the mobile home, officers found approximately 3 kilograms of crystal methamphetamine, 5 kilograms of cocaine, two assault rifles and a .22 caliber rifle. Officers arrested AUGUSTO ESPINDOLA-PINEDA on the same day. The investigation revealed that the conspiracy involved 335 kilograms of cocaine, 3 kilograms of crystal methamphetamine and 500 pounds of marijuana.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The case was investigated by the Drug Enforcement Administration, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Grape Street Crips Associate Pleads Guilty to Committing Murder During Home-Invasion RobberyRead the Press Release
NEWARK, N.J. – A Newark man today admitted his involvement in an August 2015 home invasion that left one person dead, U.S. Attorney Paul J. Fishman announced.
Jahad Lemons, a/k/a “JBird,” 26, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to all four counts of an indictment charging him with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
On Aug. 18, 2015, Lemons, Aaron Terrell, a/k/a “Push,” 27, and Papayaw Mack, a/k/a “GY,” 25, as well as two other individuals – referred to in the indictment as “CC-1” and “CC-2” – used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.
At the residential building, Lemons, Terrell, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3 who were already inside the apartment – of cash and personal affects. During the course of the robbery, Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.
All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on Oct. 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in and around Newark.
Under the terms of today’s plea agreement, Lemons will be sentenced to between 17 years and 22 years in prison and five years of supervised release. Sentencing is scheduled for June 12, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against Terrell and Mack are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Kathleen M. Theurer Esq., Jersey City, New Jersey
Grand Jury Returns Indictment in International Identify Theft and Tax Refund Fraud SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that a grand jury in the Western District of Michigan has returned a 22-count indictment charging Oghenevwakpo Igboba and Charles Aghogho Ejinyere with using hundreds of other people’s personally identifying information to access their tax information using an IRS website. Igboba and Ejinyere are alleged to have used that sensitive personal and tax information to file false federal income tax returns directing the IRS to pay fraudulent refunds to bank accounts they controlled.
Igboba was arrested in Lansing, Michigan on February 9, 2017. Ejinyere was arrested earlier today in London, England, and the United States will seek his extradition. The men are charged with conspiracy to defraud the United States, wire fraud, making false and fraudulent claims to the government, and aggravated identity theft.
The case is being investigated by the Treasury Inspector General for Tax Administration and IRS - Criminal Investigation. "It is the mission of the Treasury Inspector General for Tax Administration (TIGTA) to protect the integrity of the Internal Revenue Service (IRS) and promote the fair administration of our federal tax system," said J. Russell George, Treasury Inspector General for Tax Administration. "TIGTA continues to work closely with the United States Attorney’s Office and its law enforcement partners to hold individuals responsible for their illegal use of legitimate information provided to the IRS by taxpayers."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated, "Tax-related identity theft remains a high priority for the IRS. The IRS is combatting tax-related identity theft with an aggressive strategy of prevention, detection and victim assistance. We are committed to assisting victims in resolving their tax-related issues as quickly as possible. Victims can obtain more information at www.IRS.gov."
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
Gloucester County, New Jersey, Man Admits Enticing Children to Engage in Criminal Sexual ConductRead the Press Release
CAMDEN, N.J. – A Deptford, New Jersey, man today admitted using a fake Facebook profile to entice children to produce sexually explicit images, U.S. Attorney Paul J. Fishman announced.
Michael J. Mostovlyan, 33, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
Mostovlyan admitted that, between Jan. 1, 2016 and June 2, 2016, he communicated with children online in order to obtain sexually explicit images of those children. Using a fake female persona on Facebook in the name of “Amber Zee,” which he created using actual images of a girl, Mostovlyan was able to persuade the victims to send him sexually explicit photographs or videos.
The count to which Mostovlyan pleaded guilty carries a mandatory minimum term of 10 years in prison, a potential maximum term of life imprisonment, and a $250,000 fine. Mostovlyan must also register as a sex offender. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction Special Agent in Charge Michael Harpster in Philadelphia; the Monroe Township Police Department under the direction of Chief Michael E. Lloyd; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the Deptford Township Police Department, under the direction of Chief William Hanstein, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Jonathan Kessous, Esq.
Georgia Man Pleads Guilty in Odometer Fraud SchemeRead the Press Release
A Georgia man pleaded guilty today to operating an odometer fraud scheme involving over 100 vehicles, the Department of Justice announced today.
Paul Robinson, 37, of Lawrenceville, Georgia, pleaded guilty in U.S. District Court in Norfolk, Virginia, to one count of conspiracy to commit securities fraud and odometer tampering.
“We buy vehicles to help assist us in many aspects of our lives,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “No consumer makes such a significant purchase lightly and we have to be able to trust that a dealer is not selling one car and actually supplying a vastly inferior automobile paired with falsified title documents. We are committed to prosecuting individuals who break that trust by rolling back odometers and passing off phony title.”
Robinson owned and operated Affordable Auto Body Repair, a repair shop and licensed salvage vehicle dealer located in Chesapeake, Virginia. Robinson purchased older vehicles, many of which had been involved in accidents, from an automobile auction specializing in vehicles from insurance companies. On over 100 of these vehicles, Robinson altered or replaced the odometer to reflect a false, lower mileage. He then obtained fraudulent Virginia motor vehicle titles with mileage readings matching the false, lower mileage on the new odometer, and passed these falsified title documents on to the auto purchasers.
Robinson obtained many of these fraudulent titles from a former DMV Select clerk named Steven Bazemore. In many instances, Robinson asked Bazemore to return the documents used to procure the fraudulent titles rather than retaining the documents in the DMV file system. This made it more difficult for the DMV to detect the fraud. Bazemore previously pleaded guilty relating to his role in the conspiracy. On Sept. 22, 2016, Bazemore was sentenced to one year of home confinement and ordered to pay restitution to the ultimate purchasers of the vehicles. Robinson’s sentencing is scheduled for June 8.
This case was investigated by National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and the Virginia DMV. NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.This case is being prosecuted by Trial Attorneys John W. Burke and Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch with assistance from Assistant U.S. Attorney Alan Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia.
More information on odometer fraud is available at: http://www.nhtsa.gov/Odometer-Fraud. Tips on detecting and avoiding odometer fraud are available at: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Four Defendants Plead Guilty in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Four defendants including two sober home owners, the clinical director of a substance abuse treatment center, and a sales representative for multiple laboratories pled guilty last week for their participation in a health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Bryan Kummerlen, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Michael Bonds, 45, of Delray Beach, Stefan Gatt, 27, of Deerfield Beach, and Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. Davis also pled guilty to one count of managing, leasing, profiting from, and making available a place (one of her sober homes) for the purpose of for the purpose of the unlawful distribution and use of controlled substances, in violation of Title 21, United States Code, Section 856(a). Sentencing hearings are scheduled for April 24, 2017.
Trial is scheduled for March 20, 2017 for co-defendants Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, Joaquin Mendez, 52, of Miramar, Laura Chatman, 44, of Boynton Beach, and Donald Willems, 40, of Weston. The co-defendants are are charged by criminal complaint, a formal charging document notifying the defendants of the charges. All persons charged by criminal complaint are presumed innocent until proven guilty in a court of law.
In a separate but related case, Licensed Mental Health Counselor Dr. Barry Gregory (case no. 9:17-cr-80033-DMM), 62, of Wellington, pled guilty to one count of conspiracy to commit health care fraud and one count of knowingly falsifying a matter involving health care benefit programs, in violation of Title 18, United States Code, Section 1035(a)(1) and 2. Sentencing for Gregory is scheduled for April 26, 2017.
According to court documents, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., Total Recovery Sober Living LLC, and other sober homes, which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, Chatman, Davis, and Bonds permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth Chatman, Bonds, and Davis referred the sober homes’ residents who had insurance to treatment centers owned by Kenneth Chatman but titled in the name of Laura Chatman. These treatment centers purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. In most instances, defendant Kenneth Chatman knew that the sober home residents referred to the treatment centers, Journey to Recovery LLC, in Lake Worth, Florida, and Reflections Treatment Center, LLC, in Margate, Florida, were using drugs. Defendant Gregory was the Clinical Director of Reflections Treatment Center and Journey to Recovery, and was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees. Gregory was aware that Kenneth Chatman was the true owner of some of these sober homes, but they were placed in other people’s names in an attempt to hide Chatman’s true ownership and control over the businesses. Gregory also knew that Chatman was paying kickbacks and bribes to sober home owners for referring their residents to Reflections and Journey for treatment, and that these kickbacks and bribes were disguised as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” Bonds, Davis, and Gregory further admitted that bribes and kickbacks were paid to insured patients who attended treatment, in the forms of free or reduced rent and other items. Bonds and Davis also admitted that residents of their sober homes were continuing to use controlled substances and that their sober homes were not, in fact, places where persons abstained from the use of drugs and alcohol. Rather, the defendants allowed their sober homes to be used by residents to continue abusing drugs and alcohol while attending ineffective and improperly licensed treatment centers in exchange for free rent.
Defendant Kenneth Chatman hired doctors, including defendants Mendez and Willems, to serve as medical directors of his treatment centers. The doctors ordered drug treatment and drug testing for the sober home residents, specifically expensive urine and saliva drug screens and allergy testing, regardless of whether such treatment and testing were medically necessary. The defendants provided services meant solely to maximize insurance reimbursements. In some instances, defendants Kenneth Chatman and Davis submitted urine and saliva samples from employees instead of urine and saliva from patients. In other instances, defendant Kenneth Chatman caused confirmatory testing to be performed and billed for residents who left the sober homes and were no longer receiving treatment at the treatment centers. Defendants Mendez and Willems also falsely documented patient files to make it appear as though they reviewed the test results. Defendant Gatt admitted that he knew the bodily fluid samples that he collected from Reflections came from employees and that he paid kickbacks to Chatman for Chatman to continue referring lucrative lab testing to him. Defendant Gregory admitted that the drug testing was “useless” because it was not used to direct the patients’ treatment and that as many as 90% of patients were testing positive for the continued use of controlled substances while purportedly obtaining treatment. Gregory knew that Kenneth Chatman was advising patients that they were allowed to continue using controlled substances. On some occasions when Gregory recommended referring relapsed patients to detox or other facilities, Chatman, who had no medical or clinical training, would overrule Gregory’s recommendations because discharging the patients would end Chatman’s ability to bill the patients’ insurance plans.
Defendants Kenneth Chatman and Davis engaged in various tactics to keep patients from being able to leave Reflections and Journey, including threatening violence, and confiscating their belongings, such as car keys, telephones, medications, and food stamps, in order to maintain the ability to continue fraudulently billing their insurance companies.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers. Gregory, who also owned a consulting firm that assisted substance abuse treatment facilities in obtaining licensure, filed documents with the Florida Department of Children and Families and assisted with audits to help Chatman receive permanent DCF licenses for Reflections and Journey.
Potential victims should call (561) 822-5114 or submit complaints through the IC3 Complaint Form - https://www.ic3.gov/complaint/default.aspx and use the key word “Chatman Reflections” in the “Description of the Incident” field when submitting complaints related to this case.
Mr. Ferrer commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Montpelier Man Pleads Guilty in Fatal Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jonathan Zampieri, age 34, formerly of Montpelier, pleaded guilty today in the United States District Court in Burlington to arson and robbery charges stemming from the fatal arson that occurred in Northfield in December 2015. Zampieri, who has been detained since his arrest in December 2015, appeared before Chief Judge Christina Reiss and pled guilty to arson with death resulting and conspiracy to commit robbery.
As described during the change of plea proceedings, in the fall of 2015, Jonathan Zampieri, Howard Hoisington, Tammy Wilder, Kevin Atwood and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Three of these robberies involved dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs and cash. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.
Also according to the facts presented in the hearing, at approximately 12:00 a.m., on December 14, 2015, Zampieri, Howard, Tammy Wilder, Kim Hoisington and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. Zampieri, Howard and Atwood then drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, the men pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries but he survived. Brittany Burt could not escape the building and she died on the bedroom floor.
Zampieri faces a potential life sentence on the arson charge and up to twenty years of imprisonment on the robbery charge. Zampieri’s co-defendants, Howard Hoisington, Tammy Wilder, Kimberly Hoisington and Richard Hoisington, are still awaiting trial.
The case was investigated by the Vermont State Police, Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jonathan Zampieri is represented by Robert Katims. The United States is represented by Wendy Fuller.
Former Lake Cumberland Marina Owner Sentenced to 50 Months for Bank FraudRead the Press Release
LEXINGTON, Ky. – A Kentucky man, who operated a marina on Lake Cumberland, has been sentenced to 50 months in federal prison for bank fraud.
Today, Senior U.S. District Judge Joseph M. Hood sentenced John Guzman, 70, of Shelby County, Ky., for nine counts of bank fraud. In addition to his federal prison sentence, Guzman was sentenced to five years of supervised release. Under federal law, Guzman must serve at least 85 percent of his prison sentence.
Guzman was convicted last year, after a one-week trial in Lexington, by a jury who found him guilty of defrauding American Founders Bank of over $4,000,000. According to evidence presented at trial, Guzman bought the Grider Hill Marina, on Lake Cumberland, using money from nine fraudulent bank loans. Guzman submitted false paperwork in his bank loan applications, and claimed that the money would be used to buy boats and homes that did not actually exist. As part of his fraud, he falsified appraisal documents and insurance policies for the nonexistent collateral, and forged signatures of investors and acquaintances, as well as that of his deceased brother.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Amy S. Hess, Special Agent in Charge, FBI Louisville Division; and Joseph Moriarty, Special Agent in Charge, FDIC OIG Chicago Division, jointly made the announcement today. The case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Neeraj Gupta and Ken Taylor prosecuted this case on behalf of the federal government.
Former JPD Officer Pleads Guilty to BriberyRead the Press Release
Jackson, Miss. - Former Jackson Police Officer Melvin Williams, 48, pleaded guilty on February 17, 2017 to bribery, announced U.S. Attorney Gregory K. Davis.
The investigation in this case revealed that, in February 2016, Officer Williams contacted a local businessman and threatened to execute an arrest warrant if the businessman did not pay Officer Williams a sum of money. During the investigation, the FBI determined that the arrest warrant was not valid. The businessman agreed to cooperate with the FBI and Officer Williams was paid a total of $6,000 over three separate days.
Williams will be sentenced by U.S. District Judge Tom S. Lee on May 25, 2017, and faces a maximum penalty of ten years in prison and $250,000 fine.
The case is being prosecuted by Deputy Criminal Chief Patrick Lemon and was investigated by the Federal Bureau of Investigation.
Former Corrections Officer Pleads Guilty to Attempted ExtortionRead the Press Release
DAYTON – Michael Rose, 29, of New Carlisle, Ohio, pleaded guilty in U.S. District Court to attempted extortion under the color of law.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Montgomery County Sheriff Phil Plummer announced the plea entered into today before U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Rose began working as a corrections officer at the Montgomery County Jail in spring 2016. In September of that year, Rose agreed to bring contraband – namely, a cell phone – into the jail in exchange for cash from an inmate. Likewise, in November 2016, Rose smuggled in a second cell phone and met with an associate of an inmate near a Dayton retail store to receive $1,500 as payment. Rose provided the phone knowing that the inmate intended to use it to direct drug trafficking activities from jail.
“Corruption by a corrections officer harms not only the jail where he or she works, but it also undermines confidence in law enforcement and our system of justice generally,” U.S. Attorney Glassman said. “That’s why it’s so important for us to investigate and prosecute instances of public corruption like this one.”
Rose pleaded guilty to attempted extortion under color of official right, which is a crime punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Montgomery County Sheriff’s Office RANGE Task Force and the FBI, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
Former City of Norton Parks and Recreation Maintenance Supervisor Sentenced in Federal CourtRead the Press Release
Abingdon, VIRGINIA – The former Maintenance Supervisor of the City of Norton Parks and Recreation Department, who previously admitted to coercing women who were on state probation to perform sexual favors for him and lying in federal court, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced today.
Michael Todd Lintz, 52, of Norton, Va., previously pled guilty to one count of obstruction of justice and one count of using his authority to engage in coercive sexual relations with a female victim, willfully depriving her of her right to bodily integrity. Today in District Court, Lintz was sentenced to 30 months in federal prison and 3 years of supervised release thereafter. Lintz was also ordered to pay a fine of $10,000.
According to a written proffer of facts filed previously, Lintz supervised individuals assigned to perform community service pursuant to a court order, or by referral from a state probation and parole officer. During his employment with the City of Norton, Lintz ensured that he supervised primarily female workers assigned to Parks and Recreation. Lintz monitored the community service time worked by the individuals under his supervision, and reported the hours they worked to state probation and parole officers. If Lintz reported to a state probation officer that an individual did not perform the required number of community service hours, that individual could be violated on their probation conditions and could have to serve time in jail. Lintz used his authority and official position to coerce female community service workers into providing him with sexual favors, the exchange of which he either alluded or explicitly promised could result in favorable outcomes with their court-ordered supervision. Lintz knew that some of these female community service workers could be subjected to jail sentences for failing to perform community service and used that information to his advantage. Specific instances of this conduct are related in more detail below.
In July 2015, Lintz began supervising the community service of Female Worker 1 (“FW1”), who was referred by a state probation and parole officer. FW1 had a significant number of community service hours to perform. When FW1 first started working with Lintz, she was told by other female workers that Lintz would be interested in trading sexual favors in exchange for community service hours. Lintz began contacting FW1 about personal matters outside of working hours, calling her and texting her while she was not at work. Lintz made sexual comments on a daily basis to FW1, and gave her a sexual nickname that he called her in front of other community service workers. Lintz showed FW1 pornography on his phone. Lintz took FW1 back to his home on several occasions, and displayed video pornography to her on the television in his home during working hours. Lintz used his authority and official position to coerce FW1 into providing him with sexual favors on three separate occasions, which are detailed below.
In or about August 2015, while he was supervising her on community service, Lintz approached FW1 shortly after 4:00 pm, after all other workers had left for the day, to ask her to perform oral sex on him. FW1 agreed, and she performed oral sex on Lintz in the back room of the Parks and Recreation Office. In exchange for this sexual act, FW1 believes Lintz allowed her to claim she had worked one week of community service during a time when she took off to care for an ill family member.
In or about August 2015 to September 2015, while he was supervising her on community service, Lintz took FW1 to his home during working hours. He brought her to his carport, closed the blinds, and asked her to perform oral sex on him. Lintz commented to FW1 that he was going to hate to see her finish her community service, as he wanted to engage in oral sex with FW1 every day. Lintz told FW1 that if she continued to engage in oral sex with him, she would finish her community service early.
September 16, 2015, FW1 appeared in federal court in Abingdon, Virginia, on charges of conspiring to distribute a controlled substance. At the request of FW1’s mother, Lintz testified as a witness at FW1’s detention hearing. Under oath before the United States Magistrate Court, Lintz stated that FW1 had worked all of her hours and testified from the time cards he had completed for FW1. Under oath, Lintz denied having any personal relationship with FW1, and represented himself to be only her community service supervisor. Lintz did not advise the court that he had previous sexual encounters with FW1 in the weeks leading up to his testimony. In releasing FW1 on bond, the Court noted that Lintz’s testimony had been particularly persuasive.
Within days, Lintz approached FW1 and told her that, if it had not been for his testimony, she would have been in jail. Lintz then asked FW1 for oral sex and FW1 complied, as she felt he was implying she “owed” him for his testimony on her behalf. Lintz did not give FW1 any additional community service hours beyond the 45 hours she initially received.
In August 2015, Lintz began supervising the community service of Female Worker 3 (“FW3”), who was referred by a state probation and parole officer. FW3 had a significant number of community service hours to perform. On one occasion in February 2016, while he was supervising her on community service, Lintz brought FW3 back to his home to watch a pornographic video on his television during working hours. Lintz told FW3 that he wanted to show that particular pornographic video to FW1. While at his home, Lintz told FW3 he would like to show her his genitals, and described what it would be like to have sex with him. Audio recordings captured Lintz making these comments to FW3. On a separate occasion in February 2016, while he was supervising her on community service, Lintz discussed an arrangement with FW3 to exchange sexual favors for falsifying community service hours. Audio recordings captured Lintz making these comments to FW3.
The defendant’s known course of relevant conduct spans more than seven years and involves at least seven victims targeted by defendant.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Felon Charged with Illegally Possessing FirearmRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a violation of federal firearms law, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Julian Crosby, age 33, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on December 8, 2016, Crosby illegally possessed a firearm. Crosby has previously been convicted of a felony and is prohibited from possessing a firearm.
For possessing a firearm as a convicted felon, the law provides for a maximum sentence of up to 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 of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Police Department, conducted the investigation leading to the indictment in this case. Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: A. Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that on February 15, 2017, a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Spartanburg Man Indicted for Threatening President and President-elect. Kipper Ken King, age 30, of Spartanburg, South Carolina, was charged in a two-count indictment with making threats on the lives of the President of the United States and the President-elect, a violation of Title 18, United States Code, Section 871. The maximum possible penalty King could receive is a maximum fine of $250,000.00 and/or imprisonment of 5 years. The case was investigated by agents of the United States Secret Service and the Spartanburg County Detention Center. The case is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Texas Resident Charged with Wire Fraud. Theresa Lopez Santos, age 65, of Lytle, Texas, was charged in a three-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343. The maximum penalty Santos could receive for each count is a maximum fine of $250,000.00 and/or imprisonment of 20 years. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Greenville Resident Indicted on VA Theft. Hughlyn Zimmerman, age 72, of Greenville, South Carolina, was charged in a one-count indictment with theft of government funds, a violation of Title 18, United States Code, Section 641. The maximum penalty Zimmerman could receive is a maximum fine of $250,000.00 and/or imprisonment of 10 years. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Easley Resident Indicted on Defrauding Local Company. Janna B. Shelby, age 54, of Easley, South Carolina, was charged in a four-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343, and mail fraud, a violation of Title 18, United States Code, Section 1341. The maximum penalty Shelby could receive is a maximum fine of $250,000.00 and/or imprisonment of 20 years. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Spartanburg Man Indicted on Federal Gun and Drug Charges. Xavier Lee Gist, age 22, of Spartanburg, South Carolina, was charged in a four-count indictment with two counts of possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute cocaine base (crack), a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Gist could face is a fine of $1,750,000.00 and/or imprisonment of 45 years. The case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Drug Charges. Damaris Ray Hill, age 27, of Spartanburg, South Carolina, was charged in a one-count indictment with possession with the intent to distribute cocaine base (crack), a violation of Title 21, United States Code, Section 841(a)(1). The maximum penalty Hill could face is a fine of $1,000,000.00 and/or imprisonment of 20 years. The case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Fountain Inn Man Indicted on Federal Gun and Drug Charges. Demetrice Ricole Fruster, age 39, of Fountain Inn, South Carolina, was charged in a three-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute cocaine base (crack) and a quantity of hydrocodone, a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Fruster could face is a fine of $1,500,000.00 and/or imprisonment of 35 years. The case was investigated by the Greer Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Rodney Juan Baker, age 56, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Baker could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Derrick Lorenzo Casey, age 37, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Casey could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Hector Tavoris Gonzalez, age 31, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm by a person after being convicted of a federal offense, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Gonzalez could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Marietta Man Indicted on Federal Gun Charge. Michael Wayne Capps, age 45, of Marietta, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Capps could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Oconee County Man Indicted on Federal Gun Charge. Howard Eugene Johnson, age 50, of Oconee County, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Johnson could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Oconee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Anderson Man Indicted on Federal Gun Charge and Destructive Device Charge. Timothy Garrett Holmes, age 22, of Anderson, South Carolina, was charged in a two-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1), and possession of destructive devices not registered to him in the National Firearms Registration and Transfer Record, a violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. The maximum penalty Holmes could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Anderson City Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Landrum Man Indicted on Federal Gun Charge. Joshua Shane Verdin, age 32, of Landrum, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Verdin could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Upstate Man Indicted on Federal Gun Charge. Steven Ray Garner, age 33, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Garner could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Greenville Man Indicted on Federal Gun Charge. Travius Isaiah Mayer, age 27, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Mayer could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Taylors Man Indicted on Hobbs Act Robbery and Federal Gun Charges. Delmar Deshion Jackson, age 39, of Taylors, South Carolina, was charged in a thirteen-count indictment with conspiracy to obstruct commerce by robbery and attempted robbery, a violation of Title 18, United States Code, Section1951(a); conspiracy to use and possess a firearm during a crime of violence, a violation of Title 18, United States Code, Section 924(o); obstruction of commerce by robbery, a violation of Title 18, United States Code, Section1951(a); and the use, carry, and possession of a firearm and aiding and abetting the brandishing of the firearm during a crime of violence, a violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). The maximum penalty Jackson could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Joe Brewer of the Greenville office.
Greer Man Indicted on Child Pornography Charges. Leslie Earle Alverson, age 50, of Greer, South Carolina, was charged in a three-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B); receipt of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(2); and advertising visual depictions of minors engaging in sexually explicit conduct, a violation of Title 18, United States Code, Section 2251(d)(1)(A). The maximum penalty Alverson could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joe Brewer of the Greenville office. This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ 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.
Greenville Man Indicted on Federal Gun Charge. Darius Jacoby Brown, age 27, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Brown could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Anderson Man Indicted on Federal Gun Charge. Matthew Gregory Aldrich, age 31, of Anderson, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Aldrich could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Anderson County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Simpsonville Man Indicted on Federal Gun Charge. Rico Mandreil Sweeney, age 39, of Simpsonville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Sweeney could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Simpsonville Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenwood Man Indicted on Federal Gun Charge. Justin Rashad Spencer, age 26, of Greenwood, South Carolina, was charged in a six-count indictment with possession of firearms by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute cocaine, methamphetamine, and marijuana, a violation of Title 21, United States Code, Section 841(a)(1); use and possession of a firearm during a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and possession with intent to distribute cocaine, a violation of Title 21, United States Code, Section 841(a)(1). The maximum penalty Spencer could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Greenwood County Sheriff’s Office and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenville Man Indicted on Federal Gun Charge. Napoleon Isaac Mansell, age 34, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Mansell could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.#####
Desoto Man Arrested for Distributing Kilogram Quantities of Heroin in Dallas MetroplexRead the Press Release
DALLAS, Texas — Jose Luis Martinez-Martinez, 41, of Desoto, Texas, made his initial appearance last week before U.S. Magistrate Judge Paul D. Stickney on a complaint, unsealed today, charging possession with intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Stickney ordered that Martinez remain in federal custody. A preliminary hearing will be set at a later date.
According to the affidavit filed with the criminal complaint, the investigation began when the Drug Enforcement Administration (DEA) received information that Martinez-Martinez was involved in the distribution of kilogram quantities of heroin in the Dallas metroplex. An undercover officer contacted Martinez-Martinez by cellular phone and placed an order for three kilograms of heroin. Martinez-Martinez agreed to supply the officer with the three kilograms of heroin and they agreed to meet at Flying J Truck stop located at 7425 Bonnie View Road, Dallas, Texas. Dallas County Sherriff’s officers performed a traffic stop on Martinez-Martinez as he arrived at the Flying J Truck stop. During the traffic stop officers observed a small gift style bag with an open top sitting in the front right passenger seat. Also observed in plain view was a black tar like substance inside the bag believed to be heroin. Martinez-Martinez was then placed under arrest. During an interview, Martinez-Martinez stated that he had an additional 2.5 kilograms of heroin concealed at his residence located at Desoto, Texas. During a search of the residence investigators recovered an additional 3,042.3 grams of heroin.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not less than 10 years or up to life in federal prison and a $10 million fine.
The matter is being investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Rachael Jones is in charge of the prosecution.
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Contractor at U.S. Military Bases Admits Paying Bribes and KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man who operated a construction company that did work at construction projects at two military bases in New Jersey today admitted paying bribes and kickbacks to get the contracts, U.S. Attorney Paul J. Fishman announced.
George Grassie, 54, of Covington Township, Pennsylvania, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to defraud the United States and commit bribery and one count of providing unlawful kickbacks.
According to documents filed in this case and statements made in court:
Grassie owned a business that did construction, excavation and landscaping and did work as a subcontractor at Picattiny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix). He admitted that from December 2010 to December 2013, he paid bribes valued at $95,000 to $150,000 to an individual employed by the U.S. Army Contracting Command in New Jersey to obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. He also admitted that he paid kickbacks valued at $40,000 to $95,000 to Shawn Fuller and James Conway, who were then project managers for a prime contractor at PICA and Fort Dix.
Conway previously pleaded guilty to wire fraud and accepting unlawful kickbacks on August 2016. Fuller previously pleaded guilty to accepting unlawful kickbacks in November 2015.
The conspiracy charge to which Grassie pleaded guilty carries a maximum potential penalty of five years in prison. The charge for making unlawful kickbacks to which Grassie pleaded guilty carries a maximum potential penalty of 10 years in prison. Both charges carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for May 31, 2017.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Craig R.Rupert, Special Agent in Charge, DCIS Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with conducting the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the United States Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark
Columbia Man Charged with Attempting to Aid TerroristsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Acting Assistant Attorney General for National Security Mary B. McCord announced today that a Columbia, Mo., man has been charged in federal court for his role in making preparations to launch a terrorist attack with persons he believed were members of ISIS, but who were actually undercover law enforcement agents.
Robert Lorenzo Hester, Jr., 25, of Columbia, was charged in a criminal complaint filed in the U.S. District Court of Kansas City, Mo., with attempting to provide material support to a foreign terrorist organization. Hester, who remains in federal custody, was arrested on Friday, Feb. 17, 2017, when he arrived at an arranged meeting with an undercover law enforcement agent. The criminal complaint was signed on Sunday and made public today following Hester’s initial court appearance.
“First on social media, then during face-to-face meetings with an undercover FBI employee, this defendant repeatedly expressed his intent to engage in acts of violent jihad against the United States,” Dickinson said. “He believed he was part of an ISIS-sponsored terrorist attack that would result in the deaths and injuries of many innocent victims. He readily participated in the preparations for an attack, provided materials and resources for an attack, and voiced his intent to carry out an attack. I commend the FBI for protecting the public from a security threat.”
“Terrorism knows no demographic boundaries and remains the FBI’s top priority,” said FBI Special Agent in Charge of the Kansas City Field Office Eric Jackson. “The arrest of Hester is the culmination of an extensive FBI investigation and demonstrates the challenges law enforcement faces in identifying individuals intent on causing harm.”
“As alleged in the complaint, Robert Lorenzo Hester, Jr. attempted to provide material support to ISIS by participating in what he believed would be a deadly attack committed in the name of the foreign terrorist organization,” said Acting Assistant Attorney General McCord. “Countering terrorist threats remains the highest priority of the National Security Division, and we will continue our efforts to identify and hold accountable those who seek to commit acts of terrorism within our borders.”
According to an affidavit filed in support of the criminal complaint, Hester demonstrated through his statements and actions that he posed a security threat by his willingness to provide material support to a foreign terrorist organization and his willingness to assist in what he believed would be a murderous terrorist bombing and gunfire attack.
Hester is a U.S. citizen who was born in Missouri. He was enlisted in the U.S. Army for less than a year, receiving a general discharge from service in mid-2013.
FBI agents undertook a review of Hester’s publicly available posts on multiple social media accounts in September 2016. On Oct. 3, 2016, Hester was arrested by the Columbia, Mo., Police Department in an unrelated case and remained in state custody until he was released on bond on Oct. 13, 2016. His bond conditions included electronic monitoring. While Hester was being monitored, undercover federal agents maintained regular contact via an encrypted messaging app and text messages, and met with him on several occasions.
On Jan. 24, 2017, Hester pleaded guilty in state court to property damage and unlawful use of a weapon and was released on his own recognizance. Hester was no longer on electronic monitoring after that date. Undercover agents continued to meet in person with Hester and communicate via social media, texting and an encrypted message app.
Hester agreed to meet again with an undercover agent on Friday, Feb. 17, 2017. When Hester arrived for that meeting, he was arrested. Hester was the sole subject of this undercover investigation.
Undercover Investigation
According to the affidavit, the investigation began when the FBI became aware (through multiple confidential sources) of Hester’s social media posts, in which he expressed animus towards the United States and suggested an adherence to radical Islamic ideology and a propensity for violence. Hester used several online aliases, including “Mohammed Junaid Al Amreeki,” “Junaid Muhammad,” “Rabbani Junaid Muhammad,” “Rami Talib,” “Ali Talib Muhammad.”
On Oct. 3, 2016, Hester was arrested by Columbia police officers after an incident in the parking lot of a grocery store. Hester, who appeared to be in an argument with his wife, threw a folded pocket knife through a plate-glass window near the entrance of the store. When store employees confronted Hester, he assumed an aggressive stance and forcefully placed his hand into the diaper bag he was carrying in a manner that appeared to be reaching for a weapon. Police officers later recovered a 9mm handgun from the diaper bag. Hester was in custody until Oct. 13, 2016, when he was released on bond and placed on electronic monitoring.
On Oct. 15, 2016, two days after Hester’s release on bond, an FBI employee using an undercover identity contacted Hester by private message. The FBI employee had accepted a friend request from Hester the day before Hester was arrested for the grocery store incident. They continued to communicate via social media, text and an encrypted messaging app, the affidavit says, during which Hester presented himself as a security threat, stating, for example, that the U.S. government should be “overthrown,” and suggesting “hitting” the government “hard,” while noting that it would not be “a one man job.” Hester identified categories of potential targets for attack and said he wanted a “global jihad.” Hester stated that he was trying to find like-minded people to help. When the undercover employee mentioned “brothers,” Hester said he wanted to meet them.
Hester then established that he would act on the statements he made online. In early November, the affidavit says, Hester made arrangements with the undercover employee – whom he never met in person – to meet with “one of the brothers.” The undercover employee arranged this meeting with another undercover FBI employee.
During a Jan. 31, 2017, meeting, the undercover employee provided Hester with a list of items to purchase, including 9-volt batteries, duct tape, copper wire, and roofing nails. The undercover employee implied that these items would be used to make bombs, the affidavit says, stating that those materials are needed “to make … things … to bring some kind of destruction.” Hester allegedly responded by stating: “I’m just ready to help. I’m ready to help any way I can.” When the undercover employee stated that what they were planning was “going to bring them to their knees … and then they gonna know to fear Allah,” Hester expressed his anticipation by stating: “I can’t wait. I can’t wait.”
Hester and the undercover employee agreed to meet again at Hester’s residence the next day. When the undercover employee arrived, the affidavit says, Hester gave him the items he had purchased. The undercover employee told Hester they were planning something “10 times more” than the Boston Marathon bombing, and Hester expressed his approval. The undercover agent told Hester that they were planning on “killing a lot of people.” The undercover employee told Hester that he could “walk away,” the affidavit says, but Hester said, “I’m down.” The undercover employee told Hester they were going to “wage all kinda war,” and Hester again expressed his approval.
The undercover employee then pulled back blankets in the back of the SUV to show Hester three AK-47 style rifles and two .45-caliber handguns. The undercover agent told Hester that, while they had plenty of firearms, they needed more ammunition. Hester stated that he could not purchase ammunition because of his state charges, but that he had a friend that could get ammunition for him. Hester stated that he would have money to purchase ammunition after he received his tax refund and after he was paid in a couple of weeks.
The undercover employee also opened a backpack, which contained pipes and fuse, stating, “these are bombs right here.” The undercover employee explained that the duct tape Hester provided would be used to tape the bombs together, which Hester acknowledged, and that the nails Hester provided would “cut peoples’ heads off.” Hester responded: “Oh yeah. I know,” indicating that he understood the nails were to be used as shrapnel for bombs.
The undercover employee stated that they had more backpacks that they were going to put in different locations. Hester acknowledged that he understood, and stated that they had to be smarter than the Boston Marathon bombers. Hester again confirmed that he was “down,” the affidavit says, and that he understood they had to “lay low” and act in a manner to avoid detection.
The undercover employee stated that they were going to “strike fear in all these infidel hearts,” and Hester responded that he agreed and that he was ready.
According to the affidavit, Hester contacted the first undercover employee via text message on Feb. 2, 2017, and indicated he would “have some more stuff … in a couple of weeks when I get paid.” Hester asked the undercover employee, “When you talk to the brother again let him know I’ll have some more gifts in a couple of weeks.”
On Feb. 4, 6, 7, 11 and 16, 2017, Hester communicated with an undercover employee via an encrypted messaging app. Hester said that he was excited, that he was “happy to be part” of it, and that it was “time they answer for their atrocities.” Hester predicted that it was “going to be a good day for Muslims worldwide.” Hester asked how the “party plan” was coming along and reiterated that he would get more “supplies.” The undercover employee told Hester that the “party” would take place on Presidents’ Day and that the targets of the operation would include busses, trains and a train station in Kansas City, Mo. Hester said, according to the affidavit, that it felt “good to help strike back at the true terrorist.”
On Feb. 17, 2017, Hester met again with the second undercover employee and provided more roofing nails. Hester accompanied the undercover employee to a nearby storage facility, where the two examined the security cameras. Hester was arrested shortly thereafter.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and David Raskin and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section. It was investigated by the FBI.
Cary Man Charged with Transmitting a Threat in Interstate Commerce to Injure Another PersonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a Criminal Complaint was filed against GARRETT GRIMSLEY, age 27, of Cary, charging him with Transmitting a Threat in Interstate Commerce to Injure the Person of Another. GRIMSLEY appeared before U.S. Magistrate Judge Robert T. Numbers, II today for his initial appearance.
According to the affidavit filed with the Criminal Complaint, on February 19, 2017, GRIMSLEY posted an online public message stating “don’t go to Cary tomorrow.” In a subsequent private message conversation, GRIMSLEY told a cooperating witness: “For too long the kuffar [non-Muslims] have spit in our faces and trampled our rights. This cannot continue. I cannot speak of anything. Say your dua [prayers], sleep, and watch the news tomorrow. It will only be the beginning . . .”
According to the affidavit, law enforcement officers identified GRIMSLEY’s apartment in Cary as the location from which the messages were sent. A search warrant executed at the apartment resulted in the recovery of an AK-47 assault rifle, four 30-round magazines, and approximately 340 rounds of 7.62 millimeter ammunition.
If convicted, the maximum penalty for this offense is 5 years imprisonment and a $250,000 fine.
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the Cary Police Department, and the North Carolina State Bureau of Investigation.
Boerne Couple Sentenced in Federal Court for Bankruptcy FraudRead the Press Release
In San Antonio today, a federal judge sentenced 54–year-old Kathy Suzanne DeBerry to five years of federal probation and on Thursday of last week sentenced 56-year-old Curtis Harold DeBerry to 24 months in federal prison for bankruptcy fraud announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered Curtis DeBerry to pay $800,000 in restitution and to be placed on supervised release for a period of three years after completing his prison term.
On August 16, 2016, Curtis and Kathy DeBerry, residents of Boerne, TX, pled guilty to one count of bankruptcy fraud. By pleading guilty, the DeBerrys admitted that on or about February 10, 2014, Curtis DeBerry filed a Chapter 7 Bankruptcy in the Western District of Texas. They also admitted that between April 16, 2013, and continuing through August 18, 2014, the DeBerrys knowingly and fraudulently concealed 100,000 shares of stock valued at $200,000 from creditors and trustees charged with custody of such property.
This case was investigated by the FBI. Assistant U.S. Attorneys Erica Benites Giese and Christina Playton prosecuted this case on behalf of the Government.
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Berlin Man Pleads Guilty in Federal Court to Producing Child PornographyRead the Press Release
Baltimore, Maryland –David Edward Weatherholtz, age 57, of Berlin, Maryland, pleaded guilty today to two counts of producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Worcester County State’s Attorney Beau Oglesby; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least August 1990 through his arrest in 2015, Weatherholtz had sexual contact and/or sexual intercourse with at least four minors, including family members and a child whom he mentored and taught as owner of the theater business named “OC Jamboree” in Ocean City, Maryland.
On December 3, 2014, an undercover detective corporal with the Worcester County Sheriff’s Office responded to a sexually explicit ad placed on an internet website. Records obtained from the website identified Weatherholtz as the person who posted the advertisement and further indicated that the ad was one of many posted by Weatherholtz from 2009 to December 2014 for the purpose of meeting young males interested in sex.
Weatherholtz and the undercover detective exchanged emails and text messages, in which the detective identified himself as a thirteen-year-old deaf white male who lived with his aunt in Snow Hill. Weatherholtz sent the detective two video files by text messages. In the first video file Weatherholtz depicted himself greeting the purported thirteen-year-old deaf male, and in the second video file he pretended to be the 13-year-old deaf male greeting Weatherholtz.
Weatherholtz arranged to meet the purported 13-year-old male at a restaurant in Snow Hill on December 16, 2014, and indicated that he would bring the boy back to his residence. When Weatherholtz arrived at the meeting location, he was taken into custody. A search warrant was also executed at his home and law enforcement seized numerous computers, hard drives, and other media storage devices. Subsequent forensic analysis of those items recovered numerous still photographs and a video of Weatherholtz engaged in sexually explicit conduct with a minor male victim. The images and video indicate that the sexual abuse began when the victim was 12 years old and that Weatherholtz met the victim through his work as a musician, music teacher and owner of OC Jamboree.
At some point between January and August 2016, the commercial building formerly occupied by OC Jamboree was sold to a new owner. On August 17, 2016, an employee of the new owner found a box on the property that was address to “Aaron Weatherholtz” – the defendant’s dog – and that listed the sender as one of Weatherholtz’s relatives. Inside the box were photos of minor males engaged in sex acts; sheets of paper called “official progress charts” that depicted dated, hand-traced outlines of erect male penises; CDs and DVDs; and two VHS-compatible camcorder cassette tapes. A review of that material revealed three other minor male victims engaged in sexually explicit conduct, including video of Weatherholtz engaged in sexually explicit conduct with two minor family members.
Weatherholtz faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of the two counts of producing child pornography. According to his plea agreement, the government will recommend a sentence of 50 years in prison, followed by lifetime supervised release. U.S. District Judge Ellen L. Hollander scheduled sentencing for Weatherholtz on May 19, 2017, at 11:00 a.m. Weatherholtz has been detained since his arrest in December 2014.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland State Police, Worcester County Sheriff’s Office, Worcester County State’s Attorney’s Office and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao and Paul A. Riley, who are prosecuting the case.
Attorney Pleads Guilty to Role in Scheme That Targeted Distressed HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRADFORD BARNEYS, 51, of Odenton, Maryland, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to conspiring with Timothy W. Burke in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS is an attorney licensed to practice in Connecticut and has an office in Bridgeport.
According to court documents and statements made in court, between approximately 2010 and November 2015, Timothy W. Burke, formerly of Easton, engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents that Burke presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. Burke also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, Burke rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that Burke owned the property.
Burke or one of his agents then collected rent from tenants, and Burke used the funds for his own benefit. He also failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties Burke purportedly purchased were ultimately foreclosed upon by the mortgage lender.
Burke undertook extensive efforts to disguise his true identity, and hide his criminal past, from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds.
Between approximately 2011 to at least 2014, BARNEYS participated in dozens of meetings with Burke and with homeowners at BARNEYS’ law offices in Bridgeport. At the meetings, Burke represented to homeowners that he would purchase their properties and presented to the homeowners quitclaim deeds, management agreements, indemnification agreements, and third party authorizations.
At some point after BARNEYS began representing Burke in these meetings with homeowners, BARNEYS knew that Burke had no intention of buying the properties and paying the outstanding mortgages on the properties. Nevertheless, BARNEYS continued to participate in these meetings and represented that these transactions were legitimate. When questioned by homeowners about the status of their sales, BARNEYS would assure them that their sales to Burke or one of his companies were progressing as Burke promised. BARNEYS also knew that, once Burke obtained the properties from the homeowners, he would rent them out to tenants.
BARNEYS also represented Burke and his companies in eviction proceedings against tenants.
BARNEYS pleaded guilty to one count of conspiracy to commit mail and wire a fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Shea scheduled sentencing for June 13, 2017.
On January 24, 2017, Burke pleaded guilty to one count of mail fraud and one count of tax evasion. He also awaits sentencing.
This matter has been investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Postal Inspection Service, and Internal Revenue Service – Criminal Investigation Division, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Sarah P. Karwan.
Alna Man Sentenced to Two Years for Conspiring to Distribute Crack and HeroinRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Bradford Christopher, 36, of Alna, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock Jr. to two years in prison and three years of supervised release for conspiring to distribute cocaine base, commonly known as “crack,” and heroin. He pleaded guilty on October 13, 2016.
According to court records, between May 2015 and August 2016, Christopher conspired to distribute crack and heroin in central Maine. He supplied drugs to co-conspirators and drove them to “trap houses” where the drugs were sold.
In imposing sentence, Judge John Woodcock said that by engaging in this activity, the defendant was a “traitor” to his community and “affect[ed] how young people grow up” in central Maine.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Kennebec County Sheriff’s Office and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Albuquerque Man Sentenced to Seven Years for Brandishing Firearm During Attempted Bank RobberyRead the Press Release
ALBUQUERQUE – Darrel Salazar, 48, of Albuquerque, N.M., was sentenced today in federal court to seven years in prison followed by three years of supervised release for brandishing a firearm during an attempted armed bank robbery. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
Salazar was arrested on Jan. 12, 2016, by the FBI on a criminal complaint charging him with attempted bank robbery. According to the complaint, on Jan. 11, 2016, Salazar attempted unsuccessfully to rob the Bank of America branch located at 3101 Carlisle Blvd. NE in Albuquerque. Salazar entered the bank where he passed a note demanding cash to a bank teller and brandished a firearm at the teller.
Salazar subsequently was indicted on Feb. 9, 2016, and charged with robbing the Wells Fargo Bank branch located at 5555 Montgomery Blvd., on Jan. 11, 2016; attempting to rob the Bank of America branch located at 3101 Carlisle Blvd. on Jan. 11, 2016; and brandishing a firearm during the attempted bank robbery of the Bank of America on Jan. 11, 2016. According to the indictment, Salazar committed the crimes in Bernalillo County, N.M.
On Oct. 17, 2016, Salazar pled guilty to brandishing a firearm during a crime of violence. In entering the guilty plea, Salazar admitted that on Jan. 11, 2016, he entered the Bank of America branch at 3101 Carlisle Blvd. in Albuquerque, armed with a firearm. Salazar further admitted approaching a bank teller, passing a handwritten note demanding money to the teller, and brandishing the firearm at the teller when the teller failed to comply with his demand.
This case was investigated by the Albuquerque office of the FBI and APD. Assistant U.S. Attorney David M. Walsh prosecuted the case.
17 February 2017
Yankton Man Appears in Federal Court on Bank Robbery ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Yankton, South Dakota, man has been indicted by a federal grand jury for Bank Robbery.
David William Giese, age 26, was indicted on February 14, 2017. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 17, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that, Giese entered the Wells Fargo Bank in Yankton, on July 26, 2016, and demanded money from the teller.
The charge is merely an accusation and Giese is presumed innocent until and unless proven guilty.
“The charges today are the result of close collaboration by the FBI and our law enforcement partners.” said Special Agent in Charge Richard T. Thornton of the Minneapolis FBI office. “We will continue to work tirelessly to ensure those who commit crimes such as this will be brought to justice.”
The investigation is being conducted by the Federal Bureau of Investigation and the Yankton Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Giese was released on bond pending trial. A trial date has not been set.
Wisconsin Man Sentenced to 10 Years in Prison for Attempting to Provide Material Support to ISILRead the Press Release
Joshua Van Haften, 36, of Madison, Wisconsin, was sentenced today to 10 years in federal prison and lifetime supervised release for attempting to provide material support, namely himself as personnel, to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and Special Agent in Charge Justin Tolomeo of the FBI’s Milwaukee Division made the announcement. U.S. District Judge James D. Peterson handed down the sentence.
“With this sentence, Joshua Van Haften will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“Today’s sentence reflects the gravity of the defendant’s plan to betray the United States and to join terrorists dedicated to the murder of innocent individuals, both in the U.S. and abroad,” said U.S. Attorney Vaudreuil. “The U.S. Attorney’s Office and the FBI, working with our state and local partners on the Joint Terrorism Task Force, will continue to work to investigate, arrest, and vigorously prosecute all extremists who choose to aid ISIL, or any other terrorist organization, and to stop them before they harm the United States or our allies. We also remain committed to working with dedicated community members to bring this cycle to an end.”
“I commend the efforts of the FBI's Joint Terrorism Task Force which includes our local and state law enforcement partners who brought the defendant to justice,” said Special Agent in Charge Tolomeo. “Protecting Americans from terrorism remains our top priority.”
Van Haften admitted that in 2014, he attempted to provide material support to ISIL, knowing that the organization was a designated terrorist organization that has engaged and engages in terrorism.
According to the government’s evidence, Van Haften traveled to Turkey in 2014 and attempted to cross into Syria. He posted online that he had taken an oath of allegiance to the leader of ISIL, and that “The only thing that matters to me is joining my brothers for the war against America [sic] liars.”
In addition to traveling to Turkey in an attempt to fight with ISIL, Van Haften tried to assist another American, Leon Davis, in joining ISIL. He attempted to meet Davis in Istanbul upon Davis’s arrival – actually waiting for Davis at a bus stop in Istanbul – and planned to travel with Davis to Syria to join and fight with ISIL.
Leon Davis, of Augusta, Georgia, was sentenced to 15 years in federal prison in July 2015, following his conviction in the Southern District of Georgia for attempting to provide material support to a designated foreign terrorist organization, namely ISIL.
Van Haften was arrested at O’Hare Airport in Chicago, Illinois in April 2015, after his arrival in custody on an international flight from Turkey. He has been held in federal custody since his arrest.
The charge against Van Haften is the result of an investigation by members of the FBI-Joint Terrorism Task Force which include the FBI; the Wisconsin Department of Justice, Division of Criminal Investigation; the Dane County Sheriff’s Office in Wisconsin; and the University of Wisconsin Police Department. Assistance was also provided by the Department of Homeland Security.
The case was prosecuted by First Assistant U.S. Attorney Jeffrey Anderson for the Western District of Wisconsin and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Virginia Man Sentenced to 102 Months in Prison for Attempting to Provide Material Support to ISILRead the Press Release
Haris Qamar, 26, of Burke, Virginia, was sentenced today to 102 months in prison for attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Qamar was also sentenced to 20 years of supervised release to be completed after his released from prison.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Division made the announcement after the sentencing by U.S. District Judge Leonie M. Brinkema.
Qamar pleaded guilty on Oct. 17, 2016. According to court documents, in May 2016, Qamar and an FBI Confidential Witness (CW) discussed ISIL’s need for photographs of possible targets in and around Washington, D.C., for use in a video that ISIL purportedly was making to encourage lone-wolf attacks in the Washington, D.C., area. Qamar offered the CW ideas of what to photograph, including the Pentagon and numerous landmarks in Arlington, Virginia, and Washington, D.C., which could be targeted for terrorist attacks. On June 3, 2016, a conversation was audio and video recorded when the CW picked up Qamar in a vehicle and drove to area landmarks on the list Qamar previously developed. Qamar said “bye bye DC, stupid ass kufar, kill’em all.” Qamar and the CW met again on June 10, 2016, and drove to a location in Arlington to take additional photographs for the purported ISIL video.
According to the statement of facts, during numerous conversations with the CW, Qamar expressed his interest and excitement in the extreme violence associated with ISIL. Qamar said he loved the bodies, blood, and beheadings. He recalled watching a video of a Kurdish individual being slaughtered and he liked the cracking sound made when the individual’s spinal cord was torn. On several occasions, Qamar said he could slaughter someone and described how he would do it. Qamar also stated he admired lone-wolf attackers because they love Islam so much that they are willing to die as martyrs for Islam. In the same conversation, Qamar and the CW also discussed suicide bombings. The CW said the CW did not believe in suicide bombings, but Qamar responded, “I believe in it 100 percent.”
According to the statement of facts, on Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar told CW that the residences of several service members who appeared on the “kill list” were near Qamar’s home, and Qamar observed undercover police cars near those residences. On Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
Moreover, according to the statement of facts, on Sept. 25, 2015, Qamar told the CW that he tried to join ISIL in 2014, and purchased a plane ticket from Newark, New Jersey, to Istanbul, Turkey. Qamar, however, did not show up for the flight because his parents prevented him from doing so; Qamar’s parents took his passport. Qamar said his parents threatened to notify law enforcement and said he fought with his father and called his father a traitor to Islam. On Nov. 18, 2015, the CW asked Qamar if his father gave him back his passport, would Qamar travel overseas and join ISIL. In response, Qamar said if that happened, “I’m done, I leave.”
In a related matter, Soufian Amri, 32, of Falls Church, Virginia, and Michael Queen, 28, of Woodbridge, Virginia, acquaintances of Qamar, were arrested on Wednesday and charged with obstructing justice and conspiring to provide material false statements to law-enforcement officers who were investigating Qamar.
Assistant U.S. Attorney Gordon D. Kromberg of the Eastern District of Virginia prosecuted the case with assistance from Trial Attorneys Justin Sher and Andrew Sigler of the National Security Division’s Counterterrorism Section.
Two Rapid City Men Sentenced on Firearm ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that two Rapid City men convicted of illegally possessing and selling a firearm were sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Daniel Joseph Newingham, 42, was sentenced on February 10, 2017, to 30 months of imprisonment and 3 years of supervised release and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Joseph Huddleston, 43, was sentenced on February 13, 2017, to 16 months of imprisonment and 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Huddleston and Newingham were charged on June 21, 2016. The charges relate to Newingham, a person prohibited from possessing a firearm, stealing and possessing a Smith and Wesson .38 caliber revolver and Huddleston possessing and selling a stolen Glock 9mm pistol.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Both defendants were immediately turned over to the custody of the U.S. Marshals Service.
Two Chicago People Plead Guilty in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Two individuals charged with the November 26, 2016, robbery at Plaza Frontenac have entered guilty pleas to interstate transportation of stolen property. They appeared in federal court today in St. Louis.
According to court documents, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process. The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40. The Frontenac, Missouri, police department pursued the vehicles, but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.
Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags. The defendants were taken into custody.
Darius Bowdry, and Keyshyala Thomas, both of Chicago, IL, pled guilty to one felony count each of interstate transportation of stolen property before United States District Judge Audrey G. Fleissig. Sentencing has been set for May 30, 2017.
Co-defendants Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Terrence Bell, and Julian Campbell, all of Chicago, Illinois, were each indicted by a federal grand jury last December on the same charge and are facing trial.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (IL) County Sheriff’s Department, the Montgomery (IL) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendants are presumed to be innocent unless and until proven guilty.
Troy Man Sentenced to 10 Years for Crack Cocaine ConvictionRead the Press Release
ALBANY, NEW YORK – Alikubar Shaw, age 34, of Troy, New York, was sentenced today to 10 years in prison for possessing more than 28 grams of crack cocaine with the intent to sell it.
The announcement was made by U.S. Attorney Richard S. Hartunian; James Jewell, Acting Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation; and New York State Police Superintendent George P. Beach II.
United States District Judge Mae A. D’Agostino also ordered Shaw to serve 8 years of post-imprisonment supervised release.
As part of his August 11, 2016 guilty plea, Shaw admitted that on January 7, 2014, he was the passenger in a car that was stopped for a traffic violation in Albany County. The driver of the car had a suspended license, and New York State Police Troopers smelled burnt marijuana coming from the car. As Shaw exited the car to speak with one Trooper, the Trooper noticed Shaw touch his rear waist area, and the Trooper then found 263 grams of crack cocaine there. As part of his plea, Shaw admitted that he intended to sell the crack.
This case was investigated by the Federal Bureau of Investigation and the New York State Police, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Tonawanda Man Indicted on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Michael Elder, 36, of Tonawanda, NY, with possession with intent to distribute 28 grams or more of crack cocaine and fentanyl, and maintaining a drug-involved premises. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the indictment, on November 3, 2016, the United States Probation Department and the Drug Enforcement Administration executed a search warrant at the defendant’s residence at 143 Edgewood Avenue in Tonawanda, NY. Officers recovered crack cocaine and fentanyl. The defendant was on parole for a previous federal conviction.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The indictment is the culmination of an investigation on the part of the United States Probation Department, under the direction of Chief Probation Officer Anthony SanGiacomo, and Drug Enforcement Administration, under the direction of Special Agent- in-Charge James J. Hunt, New York Field Division.
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.
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Tohono O’odham Man Sentenced to 30 Years in Prison for Sexual Abuse of Two GirlsRead the Press Release
TUCSON, Ariz. – Today, Anthony Ray Shirley, 29, of Tucson, Ariz., was sentenced by Chief District Judge Raner C. Collins to 360 months in prison. Shirley, a member of the Tohono O’Odham Nation, was convicted by a federal jury on Oct. 28, 2016 of four counts of aggravated sexual abuse and two counts of abusive sexual contact. Shirley’s imprisonment will be followed by lifetime federal supervised release and he will be required to register as a sex offender.
The evidence at trial was that Shirley had molested two young victims, who are members of the Pascua Yaqui Tribe.
The investigation in this case was conducted by both the Pascua Yaqui Tribe Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit and Carolyn Nedder, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-13-0622-TUC-RCC
RELEASE NUMBER: 2017-015_Shirley
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three People Found Guilty of Taking Part in Scheme That Used Stolen Identifying Information to Fraudulently Seek Millions in Tax RefundsRead the Press Release
Three people were found guilty today by a jury in the U.S. District Court for the District of Columbia of federal charges for participating in a scheme to file false federal income tax returns in order to fraudulently obtain tax refunds to which they were not entitled, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Channing D. Phillips for the District of Columbia, Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Washington Division; and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Approximately two dozen other participants in this scheme have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $20 million.
The jury’s verdicts were returned against Tony Bryant, 55, of Clinton, Maryland; his son, Brian Bryant, 29, also of Clinton, and Tarkara Cooper, 34, of Washington, D.C.
All three defendants were found guilty of one count of conspiracy to commit theft of government funds and to defraud the United States. Tony Bryant was found guilty of five counts each of theft of public money and aggravated identity theft. Brian Bryant also was found guilty of three counts of theft of public money and two counts of aggravated identify theft. Tarkara Cooper also was found guilty of five counts of theft of public money. Judge Rosemary M. Collyer scheduled sentencing for Tony Bryant and Brian Bryant for April 28. She set a sentencing date of May 26 for Tarkara Cooper.
According to the government’s evidence, members of the conspiracy participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
The participants played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
According to the government’s evidence, the Bryants and Cooper took part in the conspiracy from approximately April 2010 through June 2012. Cooper agreed to have her residence used for the delivery of tax refund checks, and received payment from a co-conspirator when she provided the tax refund checks to him. The Bryants used bank accounts under their control for the deposit of tax refund checks, which were fraudulently obtained by others. According to the evidence at trial, the Bryants and Cooper had roles in refund claims fraudulently seeking $4,959,310; these claims led to the negotiation of refund checks totaling $2,285,717, representing the actual losses to the U.S. Treasury.
In announcing the verdicts, Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Phillips, Acting Special Agent in Charge Holloman, Inspector in Charge Cronin and Assistant Inspector General Phillips commended special agents, who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Aisha Keys, Donna Galindo, Julie Dailey, and Jessica Mundi. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who also worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three People Found Guilty of Taking Part in Scheme That Used Stolen Identifying Information to Fraudulently Seek Millions in Tax RefundsRead the Press Release
WASHINGTON – Three people were found guilty by a jury today of federal charges for participating in a scheme to file false federal income tax returns in order to fraudulently obtain tax refunds to which they were not entitled.
The verdicts, in the U.S. District Court for the District of Columbia, were announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Channing D. Phillips for the District of Columbia; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Approximately two dozen other participants in this scheme have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $20 million.
The jury’s verdicts were returned against Tony Bryant, 55, of Clinton, Md.; his son, Brian Bryant, 29, also of Clinton, Md., and Tarkara Cooper, 34, of Washington, D.C.
All three defendants were found guilty of one count of conspiracy to commit theft of government funds and to defraud the United States. Tony Bryant also was found guilty of five counts each of theft of public money and aggravated identity theft. Brian Bryant also was found guilty of three counts of theft of public money and two of aggravated identify theft. Tarkara Cooper also was found guilty of five counts of theft of public money. Judge Rosemary M. Collyer scheduled sentencing for Tony Bryant and Brian Bryant for April 28, 2017. She set a sentencing date of May 26, 2017 for Tarkara Cooper.
According to the government’s evidence, members of the conspiracy participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
The participants played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited; and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
According to the government’s evidence, the Bryants and Cooper took part in the conspiracy from approximately April 2010 through June 2012. Cooper agreed to have her residence used for the delivery of tax refund checks, and received payment from a co-conspirator when she provided the tax refund checks to him. The Bryants used bank accounts under their control for the deposit of tax refund checks which were fraudulently obtained by others. According to the evidence at trial, the Bryants and Cooper participated along with others in claiming fraudulent refunds of $4,959,310; these claims led to the negotiation of refund checks totaling $2,285,717, representing the actual losses to the United States treasury.
In announcing the verdicts, Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Phillips, Acting Special Agent in Charge Holloman, Inspector in Charge Cronin and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Aisha Keys, Donna Galindo, and Jessica Mundi; former Paralegal Specialist Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Advocate Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Thibodaux Resident Pleads Guilty to Theft of Social Security Disability BenefitsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLINT A. SCHWAB, age 42, of Thibodaux, pled guilty yesterday to theft of Social Security benefits.
According to court documents, SCHWAB began receiving Social Security disability benefits in 1998. In or around 2008, SCHWAB returned to work, but did not inform the Social Security Administration (SSA) as required by law. In January 2016, SCHWAB was interviewed by the SSA and falsely informed the agency that he had never worked as a disabled claimant. However, SCHWAB failed to inform the SSA that he was working while also receiving monthly disability payments. SCHWAB collected Social Security disability payments to which he was not entitled from 2008 until early 2016.
The maximum penalty for theft of government funds is ten years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. U.S. District Judge Eldon E. Fallon set sentencing for May 25, 2017.
U.S. Attorney Polite praised the work of the Social Security Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Texas Man Sentenced to Prison for Child Sex TraffickingRead the Press Release
A Houston man was sentenced to 220 months in prison today for sex trafficking of a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Deangelo Tate, 27, pleaded guilty to one count of sex trafficking of children on Dec. 16, 2016. Today, U.S. District Judge Gray H. Miller of the Southern District of Texas in Houston sentenced Tate and also ordered him to serve 10 years of supervised release and to pay $20,000 in restitution.
According to admissions made in connection with his guilty plea, between Jan. 13, 2015, and March 16, 2015, Tate posted classified advertisements on backpage.com promoting the prostitution of a 17-year-old minor female. Tate admitted that he also rented hotel rooms in Corpus Christi, Texas, and Houston to serve as the location for commercial sex acts between the minor female and male customers. Tate transported the minor female to the hotels, collected all of the money from the completed sex acts and became physically violent with the minor female if she did not follow Tate’s orders, he admitted. Tate was aware that the victim was a minor and stated in a conversation recorded by law enforcement that the girl had no credibility because of her age.
The FBI investigated this case with assistance from the Houston Police Department and the Corpus Christi Police Department. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri L. Zack of the Southern District of Texas prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Man Sentenced for Child Sex TraffickingRead the Press Release
HOUSTON – A Houston man was sentenced to more than 18 years in prison today for sex trafficking of a minor, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Deangelo Tate, 27, pleaded guilty to one count of sex trafficking of children on Dec. 16, 2016. Today, U.S. District Judge Gray H. Miller of the Southern District of Texas in Houston sentenced Tate to 220 months in prison and also ordered him to serve 10 years of supervised release and pay $20,000 in restitution.
According to admissions made in connection with his guilty plea, between Jan. 13, 2015, and March 16, 2015, Tate posted classified advertisements on backpage.com promoting the prostitution of a 17-year-old minor female. Tate admitted he also rented hotel rooms in Corpus Christi and Houston to serve as the location for commercial sex acts between the minor female and male customers. Tate transported the minor female to the hotels, collected all of the money from the completed sex acts and became physically violent with the minor female if she did not follow Tate’s orders. He was aware that the victim was a minor and stated in a conversation recorded by law enforcement that the girl had no credibility because of her age.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated this case with assistance of police departments in Houston and Corpus Christi. Assistant U.S. Attorney Sherri L. Zack and Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Woman Pleads Guilty to Role in Tax Refund Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Nejah Prince (31, Tampa) has pleaded guilty to access device (credit card) fraud and making a false claim against the United States. She faces a maximum penalty of 15 years in federal prison on the access device fraud count and 5 years’ imprisonment on the false claims charge. A sentencing date has not yet been set.
According to the plea agreement, in February 2013, officers from the Tampa Police Department conducted a search at the home where Prince resided. During the search, they found copies of confidential Veterans Affairs (VA) medical records, notebooks with the personal identification information of more than 200 persons, printed tax returns, and several computers. Further investigation revealed that Prince had used the identity of one person whose name was on a VA medical record to open a credit account at Montgomery Ward. She then made more than $1,300 in purchases using that account.
In addition, IRS agents discovered that Prince had been involved in the use of the identification information relating to another person in one of the VA medical forms to file a fraudulent income tax return seeking a refund of over $8,200. The IRS subsequently identified numerous fraudulent federal income tax returns that had been filed on behalf of many of the individuals whose identification information had been found at Prince’s residence. The total loss to the IRS from this scheme exceeds $173,000.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the Tampa Police Department, the United States Department of Veterans Affairs, and the United States Secret service. It is being prosecuted by Assistant United States Attorneys Jay L. Hoffer and Sara Sweeney.
Tampa Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Walter Fambro to 3 years and 10 months’ imprisonment for his role in committing stolen identity refund fraud. As part of his sentence, the Court also ordered him to pay restitution to the IRS in the amount of $326,133. Fambro pleaded guilty on November 28, 2016.
According to court documents, Fambro filed false and fraudulent income tax returns in the names of living and deceased individuals. In these fraudulent returns, he and others represented that they were entitled to the refunds for those persons and requested that the IRS deposit the refunds into accounts that had been established in the names of the victims. As a result of their scheme, Fambro received $326,133 in fraudulent income tax refund payments.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stuart Resident Sentenced to 794 Months in Prison for His Involvement in Armed Robberies in Florida and KentuckyRead the Press Release
Todd Erling Becker, 46, of Stuart, Florida, was sentenced today to 794 months in prison, by U.S. District Judge Donald L. Graham, after having been convicted at trial for committing and conspiring to commit fives robberies with a firearm at business located in Stuart, Vero Beach, and Orlando, Florida and Lexington, Kentucky.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge for the Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff’s Office, William Snyder, Sheriff, Martin County Sheriff’s Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, Jerry Demings, Sheriff, Orange County Sheriff’s Office, and Mark Barnard, Police Chief, Lexington Police Department, Kentucky, made the announcement.
On November 21, 2016, a federal jury in the Southern District of Florida convicted Becker of one count of conspiracy to commit robbery affecting interstate and foreign commerce, three counts of robbery affecting interstate commerce, and three counts of using a firearm in the furtherance of a crime of violence.
According to the court record, including evidence presented at trial, between August 13, 2013 and August 21, 2014, Becker and various accomplices robbed four convenience stores catering to Latin communities in Stuart and Vero Beach, Florida and Lexington, Kentucky. Additionally, Becker and an accomplice robbed a cash exchange business in Orlando, Florida. On all five occasions, a disguised gunman entered the stores with a semi-automatic handgun and demanded money from the store clerks. For four of the five robberies, Becker served as the lookout and the driver of the vehicle used to flee from the crime scenes. During the robbery in Vero Beach, Florida Becker entered the store with the gunman and bound the store clerk before fleeing.
During the robbery in Lexington, Kentucky, during business hours, the gunman entered the Latin market and demanded money while pointing his semi-automatic handgun at multiple customers, including young children. The gunman fired two shots at employees. Shortly after the shots were fired, Becker drove to the location, picked up the gunman, and fled back to Florida.
Mr. Ferrer commended the investigative efforts of the FBI, St. Lucie County Sheriff’s Office, Martin County Sheriff’s Office, Indian River County Sheriff’s Office, Orange County Sheriff’s Office, and Lexington Police Department in Kentucky. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Funk and Special Assistant U.S. Attorney Ryan Butler.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Croix Man Pleads Guilty to Conspiracy to Possess a Controlled Substance with Intent to Distribute with Intent to DistributeRead the Press Release
St. Croix, USVI – On Friday, February 17, 2017, Ray Harris, Jr., 23, of St. Croix, Virgin Islands, pleaded guilty in District Court to conspiracy to possess a controlled substance with intent to distribute, United States Attorney Ronald W. Sharpe announced. Harris’ sentencing is scheduled for June 21, 2017.
According to the plea agreement filed with the court, on May 4, 2016, Harris, who was employed by Worldwide Flight Services at the Rohlsen Airport, entered the Transportation Security Administration screening area before his scheduled shift. As Harris attempted to pass through the screening area, the metal detector was triggered. A search of Harris revealed a brick-like package wrapped with gray duct tape and strapped to one of his legs. The package field-tested positive for cocaine. Harris admitted he knew the package contained cocaine and was planning to put the package in a checked bag headed to Puerto Rico. Laboratory tests confirmed the substance was cocaine. The net weight of the cocaine that Harris possessed was 473.4 grams.
Harris faces a maximum term of imprisonment of 20 years, a $1 million fine, a term of supervised release of not more than three years, and a $100 special assessment.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Springfield Man Sentenced for Hobbs Act RobberiesRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Javon A. Young, 18, of Rosaria Road, has been ordered to serve a total of 51 months (4 years, 3 months) in federal prison for robberies at the Casey’s General Store and Taco Gringo in Springfield that occurred in June 2016.
Young appeared today before U.S. District Judge Sue E. Myerscough, in Springfield. Judge Myerscough ordered that Young serve 51 months in prison, followed by three years supervised release, for the robbery of the Casey’s General Store, 1133 West Jefferson St., on June 8, 2016, and of Taco Gringo, 975 Clock Tower Drive, on June 11, 2016.
In October 2016, Young pled guilty to the robberies under the federal statute known as the Hobbs Act, for interference with interstate commerce by threats or violence. Young was charged with using a black air rifle handgun to commit the robberies of the two businesses.
Young was also ordered to pay a $200 special assessment and to pay restitution in the total amount of $605 to Casey’s General Store.
Assistant U.S. Attorney Gregory M. Gilmore prosecuted the case in the Central District of Illinois, Springfield Division. The charges were investigated by the FBI and the Springfield Police Department.
Young has remained in the custody of the U.S. Marshals Service since his arrest on Sept. 21, 2016.
Springdale Man Sentenced to 15 Years in Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Thanousorn Kongmanivong, age 45, of Springdale, was sentenced today to 180 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute More than 50 Grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in the spring and summer of 2016, Kongmanivong was being investigated by the 4th Judicial Drug Task Force for trafficking methamphetamines in the Northwest Arkansas area. Detectives received information in July of 2016 that Kongmanivong had a large quantity of methamphetamine in a locked tool box in his garage. After obtaining a federal search warrant, a search was made on his residence, where officers located approximately 268 grams of methamphetamines in 12 separate packages inside the toolbox. The substance was sent to the Arkansas State Crime Lab where it was confirmed to contain at least 150 grams of actual methamphetamines. Kongmanivong was indicted by a federal grand jury in August, 2016 and pleaded guilty in October, 2016.
This case was investigated by the 4th Judicial Drug Task Force and the Fayetteville Police Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
South Dartmouth Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A South Dartmouth man pleaded guilty today in U.S. District Court in Boston to child pornography offenses.
Jack L. Bean, Jr., 29, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. Bean was charged in a criminal complaint and arrested in April 2016. U.S. District Court Judge Dennis Saylor IV scheduled sentencing for May 22, 2017.
In September 2015, a law enforcement investigation identified an internet-based bulletin board dedicated to the advertisement, distribution and production of child pornography with over 1,500 users who actively post new content and engage in online discussions involving the sexual exploitation of minors. Bean was identified as a user on the bulletin board. During a search executed by law enforcement, Bean admitted that he downloaded and saved child pornography from the internet, and that he had a sexual preference for girls approximately 14 years old. Agents identified 40 images and 29 videos of children engaged in sexually explicit conduct on Bean’s laptop and forensic analysis later revealed that the majority of the children depicted in the sexually explicit images and videos were between the ages of one and eight years old.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Dartmouth Police Chief Robert W. Szala, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Schuele Boys Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. — Acting U.S. Attorney James P. Kennedy, Jr. announced today that Andre Jackson, 29, of Buffalo, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Jackson conspired with other Schuele Boys associates and gang members, including Michael Robertson, to distribute cocaine in the City of Buffalo.
The Schuele Boys refers to a gang that operated in the Schuele Street area of the East Side of Buffalo and is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
Jackson is one of 28 individuals arrested as part of the Schuele Boys investigation. To date, 21 of those 28 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.
Today’s plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen,
Jackson will be sentenced on May 25, 2017, at 11:30 a.m. before Judge Vilardo.
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Saratoga Springs Man Pleads Guilty to Testifying Falsely in Arson-Homicide InvestigationRead the Press Release
ALBANY, NEW YORK – Richard Ramsey, age 48, of Saratoga Springs, New York, pled guilty today to two counts of providing false testimony to a federal grand jury investigating a fire that killed four people in Schenectady and seriously injured another.
The announcement was made by United States Attorney Richard S. Hartunian and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his guilty plea, Ramsey admitted that he made irreconcilably contradictory statements under oath before a grand jury conducting an investigation into the May 2, 2013 arson at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside. Ramsey admitted that, on October 11, 2013 and January 10, 2014, he testified regarding specific events that occurred on May 1-2, 2013. On May 5, 2016, Ramsey gave irreconcilably contradictory testimony about those events. The events included declarations that Ramsey had allowed another man, Robert Butler, to use Ramsey’s car to drive from Saratoga Springs to Schenectady in the early morning hours of May 2, 2013.
United States Richard S. Hartunian said: “Perjury cannot, and will not, be tolerated. Ramsey’s decision to lie to a federal grand jury reflects a shocking disregard for the law and the victims of this horrific crime. My office and our law enforcement partners remain fully committed to securing justice for the victims and their families. And let there be no doubt: this remains an active investigation.”
ATF Special Agent in Charge Ashan M. Benedict said: "Richard Ramsey’s repeated lies to ATF Special Agents and the grand jury served only to hinder the investigation of the Hulett Street fire, and to further victimize those who have already suffered so much because of that heinous crime."
In pleading guilty, Ramsey admitted that:
- On October 11, 2013, Ramsey’s testimony about the events of May 2, 2013 included the following:
On May 1, 2013, at approximately noon, Butler and Ramsey met in person in Saratoga Springs. At that time, Butler asked to borrow Ramsey’s car, and Ramsey agreed. Ramsey was awakened on May 2, 2013 at approximately 3 a.m. to the sound of his car starting, looked outside his window, and saw that it was gone from its parking space. Ramsey assumed Robert Butler had taken the car, as they had discussed on May 1, 2013, and went back to bed. At 7 a.m., Ramsey woke and the car was back in its parking spot. Ramsey inspected the car and discovered that the spare key, which he normally kept in the glove compartment, was still in the ignition. Ramsey had, on an earlier occasion, told Robert Butler he kept a spare key in the glove compartment of the car.
- On January 10, 2014, Ramsey’s testimony about the events of May 2, 2013 included the following:
On May 1, 2013, between 11:30 a.m. and noon, Butler called Ramsey and asked to borrow Ramsey’s car. Ramsey agreed and told Butler that he would drive the car to Jefferson Terrace in Saratoga Springs, park it there, and leave the keys on the floorboard. On May 1, 2013, Ramsey drove the car to Jefferson Terrace, parked it, and left the keys on the floorboard. A third party who lived at Jefferson Terrace drove Ramsey back to work. The following morning, May 2, 2013, Ramsey returned to pick up the car and saw that it was not parked in the same spot and had only a half tank of gas instead of a full tank of gas.
- On May 5, 2016, Ramsey’s testimony about the events of May 2, 2013 included the following:
Ramsey’s testimony on October 11, 2013, about the events of May 1-2, 2013, was untrue. Butler did not ask to borrow Ramsey’s car on May 1, 2013. Ramsey did not wake up at 3 a.m. on May 2, 2013 and hear his car being driven off. Ramsey did not find his spare key in the ignition of his car on the morning of May 2, 2013.
Ramsey’s testimony on January 10, 2014, about the events of May 1-2, 2013, was untrue. Ramsey did not drive his car and park it at Jefferson Terrace on May 1, 2013. Ramsey did not pick up his car at Jefferson Terrace on May 2, 2013 and did not discover that it had a half tank of gas instead of a full tank of gas.
Ramsey faces up to 5 years in prison, and a maximum $250,000 fine, on each count of conviction, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for June 13, 2017 at 10 a.m. before Senior United States District Court Judge Gary L. Sharpe.
The charges resulted from an ongoing investigation being conducted by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
The ATF notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information is encouraged to call ATF at 1-888-ATF-FIRE (1-888-283-3473), or email [email protected], or contact ATF through its web site at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF through the “report it” app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.
Santa Fe Cardiologist Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Roy G. Heilbron, 53, a cardiologist practicing in Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a health care fraud charge, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. Under the terms of the plea agreement, Heilbron will be sentenced to two years in federal prison followed by a term of supervised release to be determined by the court.
Heilbron was charged with health care fraud and wire fraud charges in a 24-count indictment that was filed in June 2015. The indictment alleged that Heilbron, a physician licensed to practice medicine in New Mexico who specializes in cardiology, executed a scheme to defraud Medicare and other health care benefit programs between Jan. 2010 and May 2011 by submitting false and fraudulent claims. According to the indictment, Heilbron executed his fraudulent scheme by:
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Performing and billing for a wide array of unnecessary tests on every new patient and submitting false diagnoses with the billing claims to justify the tests to the insurance plans;
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Inserting false symptoms, observations, and diagnoses into patients’ medical charts to provide written support for the tests he ordered or performed;
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Inserting photocopied clinical notes, diagnostic test results, and ultrasound images in patients’ medical charts to create a written record of procedures that were either not performed or that had not been sufficiently documented to support the billing;
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Submitting the photocopied notes, results, and images to the insurance plans when the plans requested documentation to support the claims submitted;
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Submitting claims to health plans for procedures that were never performed;
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Submitting claims for procedures performed on two consecutive dates to increase the amount paid for services that were actually rendered together on one single date; and
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Misusing billing codes and modifiers in order to increase his rate of reimbursement.
Counts 1 through 9 of the indictment charged Heilbron with committing health care fraud by submitting false claims for medical services rendered to health care benefit programs on nine dates between July 13, 2010 and Feb. 10, 2011. 10-21 charged Heilbron with committing health care fraud by submitting falsified medical records for medical services to health care benefit programs on twelve occasions between Jan. 20, 2010 and May 5, 2011. 22 through 24 charged Heilbron with committing wire fraud by using wire communications to obtain payments from health care benefit programs.
During a change of plea hearing today, Heilbron pled guilty to Count 4 of the Indictment, a health care fraud charge. In his plea agreement, Heilbron acknowledged that at all times relevant to the crimes charged in the indictment, he was a doctor involved in the private practice of medicine. Heilbron further admitted from Dec. 2009 through Dec. 2011, he provided medical services as A Well for Health Church, Inc., a medical clinic in Santa Fe, where he contracted with several health care benefit programs including Blue Cross and Blue Shield of New Mexico and Medicare. Under the terms of those contracts, Heilbron would bill the programs for medical services he provided to patients covered by those programs and included his medical diagnosis or other justifications for the services for which he requested compensation. In his plea agreement, Heilbron admitted devising and executing a scheme to deceive and obtain money from health care programs that covered his patients by misrepresenting his patients’ diagnoses.
Although Heilbron pled guilty to only one count of the indictment, in his plea agreement, Heilbron agreed to pay restitution based on all of the criminal conduct charged in the indictment. The amount of restitution will be determined by the court after the presentation of evidence and argument by the parties.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and is being prosecuted by Assistant U.S. Attorneys Jeremy Pena, George C. Kraehe and C. Paige Messec.
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Roseville Man Sentenced to over 21 Years in Prison for Soliciting Minors for Sex Using Phone Chat ApplicationRead the Press Release
SACRAMENTO, Calif. — Jacob Anthony Mora, 33, of Roseville, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 21 years and 10 months in prison and lifetime supervision upon release, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mora used the online application, Kik Messenger, to encourage girls between the ages of 14 and 17 to send him sexually explicit photographs, engage in sexually explicit conversations, and to meet him to have sex. Mora would also send obscene images of himself to underage girls he met online. In some cases, Mora represented that he was younger than his actual age, claiming to be 19 years old, when exchanging messages with his victims. When arrested, Mora admitted that he had met four underage girls for sex, and that he liked chatting with minor girls since they were easy to get and naive.
This case was the product of an investigation by the Federal Bureau of Investigation and the Rocklin and Roseville Police Departments. Assistant U.S. Attorney Michael D. Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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.
Rapid City Man Charged with Tax FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man was charged in federal district court for Wire Fraud and Making and Subscribing a False Tax Return.
Mike Lundy, a/k/a Barkley J.W. Lundy, was charged on February 7, 2017. Lundy appeared before U.S. Magistrate Judge Daneta Wollmann on February 14, 2017, and pleaded not guilty to the charges. The maximum penalty upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Lundy soliciting money from individuals for investments purposes and then using a portion of the solicited funds for his own personal expenses and failing to report the investment income for tax purposes. The charges are merely an accusation and Lundy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Lundy was released for the pendency of the proceedings.
President of Maryland Tax and Financial Management Companies Sentenced to Federal Prison for Defrauding a Client of over $526,000Read the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Paul Randolph Beeks, Jr., age 59, of Mt. Airy, Maryland, on February 16, 2017, to 15 months in prison, followed by three years of supervised release, for wire fraud arising from a scheme to defraud one of his clients of at least $526,000. Judge Russell also entered an order requiring Beeks to pay a money judgment of $180,515, the amount of the loss that Beeks has not yet repaid.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from January 2008 to the present, Beeks was the President of various Maryland tax and financial management companies including PRB Tax & Accounting Services, Inc. (hereafter “PRB”) and Elite Financial Services, LLC (hereafter “Elite Financial”). In 2008, at the request of the physician who owned and operated Mid Atlantic Radiology Services, LLC (MARS), Beeks incorporated MARS in Maryland, and was entrusted with all of MARS’ accounting, tax, and financial responsibilities. Beeks also conducted payroll on behalf of MARS, paid MARS’ vendors and paid malpractice insurance for MARS’ physicians. MARS was the exclusive radiology service provider to a hospital in Clinton, Maryland.
Starting in November 2009 and continuing to August 2015, Beeks, in his capacity as MARS’ accountant and financial planner, caused approximately 24 wire transfers from MARS accounts to bank accounts associated with Beeks’ various companies. In order to disguise the theft of funds, Beeks falsely claimed that some of these wire transfers were for management fees and bonuses. However, no management fees or bonuses were authorized by any MARS representative and the remaining wire transfers were not for legitimate purposes.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Philip A. Selden, who is prosecuting the case.