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8 February 2017
Pittsburgh Man Charged with Three Robberies at Castle Shannon Dollar BankRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on February 7, named John Michael Boden, 30, of Pittsburgh, Pa.
According to the indictment, Boden robbed Dollar Bank, located at 400 Mount Lebanon Boulevard, Castle Shannon, Pa., on October 13, 2016, November 10, 2016, and November 16, 2016.
The law provides for a maximum total sentence of 20 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department, the Castle Shannon Police Department, and the Bethel Park Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Possessing Heroin and FentanylRead the Press Release
PITTSBURGH - An Allegheny County resident, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned yesterday, named Eric Clancy, 30, as the sole defendant.
According to the indictment, on May 13, 2015, Eric Clancy possessed with the intent to distribute a quantity of heroin and fentanyl.
On the sole count of the indictment, the law provides for a maximum total sentence of not more than 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government. This case is being prosecuted as part of 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 Mount Oliver Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Assisting in the Preparation of False 1040 FormsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, Acting United States Attorney Soo C. Song announced today.
The 31-count indictment, returned yesterday, named Jamar White as the sole defendant.
According to the indictment, for the calendar years 2010 through 2014, Jamar White willfully aided and assisted seven different taxpayers in the preparation of 31 IRS Forms 1040 which were false due to fraudulent Schedule A deductions for items such as medical and dental expenses, charitable contributions, various unreimbursed business expenses and tax preparation fees.
At each of the 31 counts, defendant faces a maximum penalty of three years imprisonment, a $250,000 fine, and 1 year of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged in Six Area Bank RobberiesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of armed bank robbery and bank robbery, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on February 7, named Gregory Magee, age 47.
According to the indictment, Magee robbed the following banks:
- On January 20, 2016, First Niagara Bank, 20111 Route 19, Cranberry Township, Pennsylvania 16066, of $5,526.00;
- On February 29, 2016, First Merit Bank, 2090 West State Street, New Castle, Pennsylvania 16101, of $10,126.00;
- On March 31, 2016, First Niagara Bank, 4073 Washington Road, McMurray, Pennsylvania 15317, of $9,133.00;
- On June 8, 2016, First Commonwealth Bank, 5847 Forbes Avenue, Pittsburgh, Pennsylvania 15217, of $3,709.00;
- On August 11, 2016, Citizens Bank, 2537 Constitution Boulevard, Beaver Falls, Pennsylvania 15010, of $12,559.00; and,
- On November 8, 2016, S&T Bank, 4580 Broadway Boulevard, Monroeville, Pennsylvania 15146, of $78,643.00.
With respect to armed bank robbery, the law provides for a maximum total sentence of not more than 25 years in prison, a fine of $250,000, or both. With respect to bank robbery, the law provides for a maximum total sentence of not more than 20 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 offenses and the prior criminal history, if any, of the defendant.Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, the Allegheny County Sheriff’s Office, the Monroeville Police Department, the Chippewa Township Police Department, and the Peters Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phoenix Man Sentenced to 30 years in Prison for Conspiracy to Support Isil and other Terrorism-Related OffensesRead the Press Release
PHOENIX – Abdul Malik Abdul Kareem, 45, of Phoenix, Ariz., was sentenced today to 360 months in prison. On March 17, 2016, Kareem was found guilty by a federal jury of conspiring to provide material support to the Islamic State of Iraq and the Levant (“ISIL”), a designated foreign terrorist organization; conspiring to transport firearms and ammunition in interstate commerce with the intent to commit murder and aggravated assault; transporting firearms and ammunition in interstate commerce with the intent to commit murder and aggravated assault; making false statements to the FBI; and being a felon in possession of a firearm.
“Today’s sentence, in the country’s first trial involving a homeland terrorist attack committed in the name of ISIL, demonstrates the commitment of the United States to hold accountable any person who participates in or aids in any way acts of terrorism against our citizens,” said Acting U.S. Attorney Elizabeth A. Strange. “I would like to recognize the heroic law enforcement officials in Garland whose quick action prevented a much larger tragedy, the FBI for the tremendous work on the underlying investigation, and our dedicated prosecutors who worked tirelessly to seek justice on behalf of the United States.”
“Following the first jury trial in the country involving a homeland attack committed in the name of ISIL, today’s sentence holds Abdul Kareem accountable for conspiring to provide material support to the foreign terrorist organization and other federal offenses,” said Acting Assistant Attorney General McCord. “The defendant conspired with Elton Simpson and Nadir Soofi to provide material support to ISIL and to transport firearms in interstate commerce with the intent to commit murder and aggravated assault. Thanks to the response of brave law enforcement officers at the scene, no innocent lives were lost when Simpson and Soofi attacked the Curtis Culwell Center in Garland, Texas. The National Security Division will continue to prosecute to the fullest extent of the law those who conspire with others to support foreign terrorist organizations and to commit acts of violence in our country.”
“The sentencing of Kareem is significant and sends a strong message to those who support terrorism,” said Michael DeLeon, Special Agent In Charge of the FBI Phoenix Field Office. “Unfortunately, some people who do not believe in the American way of life are plotting to do us harm. The protection of U.S. citizens and our communities remains the FBI's number one priority. This can only be accomplished through the joint and coordinated efforts of our law enforcement, our intelligence community, and our vigilant citizens. I would like to commend our federal, state, and local law enforcement partners, to include the Joint Terrorism Task Force, for their role in this case."
The evidence at trial showed that beginning around June 2014, Kareem and two friends, Elton Simpson and Nadir Soofi, began conspiring to support ISIL. Their conspiracy focused on supporting ISIL by attacking targets in the United States. Over the course of the conspiracy, Kareem, Simpson, and Soofi considered attacking military bases, individual military service members, shopping malls, the Super Bowl, and the “Muhammad Art Exhibit and Contest.” On May 3, 2015, the morning of the contest, Simpson and Soofi drove from Arizona to Texas, stopped their car near the contest, got out, and began firing assault rifles at security personnel and law enforcement officers. A security guard was injured by one of their bullets, and Simpson and Soofi were shot and killed by police officers in the firefight.
Additionally, the evidence at trial showed that Kareem’s role in the conspiracy included assisting the other two men with firearms training, providing money to purchase some of the weapons and ammunition used in the attack, instruction on how to care for and maintain their weapons, taking Simpson and Soofi shooting in the desert, hosting Simpson and Soofi in his home, and providing a meeting location to plan the attack. The evidence also showed that Kareem supported ISIL and knew Simpson and Soofi supported ISIL. Kareem did not travel to Texas and was not injured during the attack. During an interview with FBI agents soon after the attack, Kareem lied about having prior knowledge of the attack and the contest.
The case was investigated by the FBI, and the prosecution was handled by Assistant U.S. Attorneys Joseph Koehler and Kristen Brook of the District of Arizona, with assistance provided by Trial Attorney Rebecca Magnone and Deputy Chief Matthew Blue of the National Security Division’s Counterterrorism Section.
CASE NUMBER: CR-15-707-PHX-SRB
RELEASE NUMBER: 2017-011_Kareem
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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.
Pennsylvania man indicted for traveling to Ohio to have sex with 15-year-oldRead the Press Release
A Pennsylvania man was indicted on charges that he enticed and traveled with the intent of engaging in illicit sexual conduct with a child, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Carmen J. Sagnimeni, 38, of Mercer, Penn., knowingly used a cellular phone with Internet connectivity to attempt to persuade, induce, entice and coerce an underage girl to engage in illegal sexual activity with him. The indictment also charges on Dec. 15, 2016, Sagnimeni knowingly traveled from Pennsylvania to Ohio for the purpose of engaging in illicit sexual conduct with a 15 year‑old girl, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Ohio Internet Crimes Against Children Task Force and the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Omaha Woman Pleads Guilty to Misprision of a Felony for Involvement in an Income Tax SchemeRead the Press Release
United States Attorney Deborah R. Gilg announced that Kathy Hansen, 36, of Ralston, Nebraska, pleaded guilty on Monday, February 6, 2017 to misprision of a felony, relating to her concealment of an income tax scheme. The Honorable Chief Judge Laurie Smith Camp presided over the change of plea that was held in Federal District Court. Sentencing has been set for May 1, 2017. Hansen faces up to 3 years’ imprisonment as well as a $250,000 fine.
In 2014 Hansen opened bank accounts with financial institutions resulting in illegally obtained tax refunds, totaling approximately $11,557.00, being deposited into those bank accounts. The tax refunds were obtained as part of a tax refund fraud scheme being operated by individuals believed to be located outside the United States. The funds deposited into the accounts were then sent by Hansen to individuals in Nigeria. The charges allege that Hansen, knowing that a crime was being committed, failed to notify law enforcement of it.
The case was investigated by the Department of the Treasury, Criminal Investigations.
Ohio man pleads guilty to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Eric Alexander Young, 37, of Bridgeport, Ohio, was convicted of cocaine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Young pled guilty to one count of “Distribution of Cocaine.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge James E. Seibert presided.
Ohio Man Charged in Internet Fraud SchemeRead the Press Release
PITTSBURGH – An Ohio resident has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on February 7, named Atticus Sliter-Matias, 27, of South Euclid, Ohio.
According to the indictment presented to the court, from around June 2015 to on or about July 5, 2016, Sliter-Matias advertised electronic devices or other items for sale on numerous eBay accounts. However, Sliter-Matias mailed empty packages through the United States Postal Service to the purchasers instead of the purchased merchandise. Sliter-Matias often used the proceeds from these fraudulent sales to purchase gold or silver bars and coins.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Tonawanda Business Owner Sentenced for Tax FraudRead 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 David B. Schmitt, 65, of North Tonawanda, NY, who was convicted of tax evasion, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay restitution totaling $748,459.75.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant owned and operated delivery businesses known as Three Kids Trucking Inc. and 1553 Harlem Road Inc. Between February 2010 and June 2013, while Schmitt owned and operated these businesses, he willfully attempted to evade and defeat the payment of a large part of federal employment taxes owed by 1553 Harlem Road Inc. The defendant did so by filing false forms with the IRS, having nominees open bank accounts to conduct business for the corporation, and creating a fraudulent trust for one of the corporations. The total loss to the IRS exceeded $500,000.
The sentencing is the result of an investigation by Internal Revenue Service, Criminal Investigation Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge.
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New York Man Sentenced to 15 Years in Federal Prison for Sex Trafficking Conspiracy and Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Raymond Idemudia Aigbekaen, age 29, of Amityville, New York, on February 7, 2017, to 15 years in prison, followed by five years of supervised release, for conspiracy to commit sex trafficking, sex trafficking of a minor and other charges related to the trafficking of a 16 year-old female for prostitution in Maryland, Virginia, and New York. Judge Bredar also ordered that upon his release from prison Aigbekaen will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence 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); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Harford County Sheriff Jeffrey R. Gahler and the Harford County Child Advocacy Center (HCCAC); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to information presented at his nine-day trial, from late February through April 12, 2015, Aigbekaen and his co-defendant, Marcell Greene, trafficked a 16 year-old girl for prostitution. On April 12, 2015, the victim called 911 from a hotel in Bel Air, Maryland. Members of the Harford County Child Advocacy Center responded and the victim eventually advised that she had been taken to Virginia and Maryland from New York by two men, one named Marcell and another named “Raymond” who was Nigerian. The victim advised that commercial sex ads of her were posted on a webpage, and that she engaged in commercial sex acts with prostitution dates. Law enforcement was able to identify Aigbekaen as the person who rented the hotel room where victim was staying.
Items, such as tissues and used condoms, were recovered from the trash cans of the hotel room used by Aigbekaen, Greene and the victim on April 11-12, 2015. Some of these items were found to contain DNA evidence, including DNA evidence that matched the co-defendant, Greene. The evidence also determined that Aigbekaen was a potential contributor to stains on the victim’s underwear. Hotel records show that Aigbekaen also rented rooms on March 30, 2015 to April 1, 2015 and from April 2, 2015 to April 4, 2015. Hotel records also showed that Aigbekaen rented rooms at other hotels in Maryland and Fredericksburg, Virginia and Virginia Beach, Virginia.
Law enforcement were able to locate internet prostitution advertisements advertising the victim for prostitution using Aigbekaen’s email accounts. These advertisements were posted in the Long Island, New York, Maryland, and Virginia areas in February and March 2015. At least some of these advertisements listed Aigbekaen’s phone number. Photos of the victim that were used in the ads were also found on Aigbekaen’s computer. Finally, historical cell site records for Aigbekaen’s phones showed him travelling in Maryland and Virginia and puts him in vicinity of Maryland and Virginia hotels that were used when the victim was engaging in commercial sex acts.
Aigbekaen remains detained.
Marcell Greene, age 28, of Wyandanch, New York, previously pleaded guilty to conspiracy to commit sex trafficking and sex trafficking of a minor, and is scheduled to be sentenced on February 10, 2017. Greene remains detained.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Harford County Sheriff’s Office, Harford County Child Advocacy Center, Maryland State Police, FBI, for their work in the investigation and thanked U.S. Customs and Border Protection – New York for its assistance. The HCCAC is a task force comprised of the Harford County Sheriff’s Office, Maryland State Police – Bel Air Barrack, Aberdeen, Bel Air, and Havre de Grace Police Departments, Harford County State’s Attorney’s Office, Harford County Department of Social Services – Child Protective Services, and Family and Children’s Services of Central Maryland, which investigates allegations of child maltreatment while also providing services and resources for the abused child and his/her family. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Matthew J. Maddox, who prosecuted the case.
New Town Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on February 6, 2017, Valentino William White, Jr., 33, New Town, ND, was sentenced before US District Chief Judge Daniel L. Hovland to serve four years and nine months in prison, followed by three years of supervised release, on a charge of domestic assault by a habitual offender. Judge Hovland also ordered White to pay a $100 special assessment to the Crime Victims’ Fund.
White pleaded guilty on November 2, 2016, to assaulting a woman by striking her across the face with a cellular phone and throwing her down the stairs in May 2016. White had demonstrated a pattern of violence towards women by having three previous convictions for domestic violence offenses by May 2016. Specifically, White had a domestic violence conviction in each of the following courts: Grand Forks County District Court, Bismarck Municipal Court, and Three Affiliated Tribes Tribal Court.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Three Affiliated Tribes Police Department.
Assistant US Attorney Jonathan O’Konek prosecuted the case.
Monroe County Man Indicted on Heroin Trafficking and Gun ChargesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Laurence Cadogan, age 32, of Stroudsburg, Pennsylvania, was indicted on February 7, 2017, by a federal grand jury on heroin trafficking and gun charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Cadogan possessed with intent to distribute heroin and unlawfully possessed firearms in furtherance of drug trafficking. The crimes allegedly occurred on October 26, 2016, in Tannersville. Police and agents seized more than 3,000 bags of heroin and two firearms, a Ruger .380 caliber handgun and a Smith and Wesson 9mm handgun, during the investigation. The indictment seeks the forfeiture of the two firearms.
The charges against the Cadogan resulted from an investigation by the Drug Enforcement Administration (DEA) and the Stroud Area Regional Police Department. Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the gun offense is life in prison, a term of supervised release following imprisonment, and a fine. That charge also carries a mandatory minimum penalty of five years in prison. The maximum penalty under federal law for the drug offense is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Moldovan Pleads Guilty to Distributing Bugat MalwareRead the Press Release
PITTSBURGH - A resident of Moldova pleaded guilty in federal court to charges of conspiracy and damaging a computer, Acting United States Attorney Soo C. Song announced today.
Andrey Ghinkul a/k/a “Andrei Ghincul” a/k/a “Smilex”, 31, of Moldova pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that the defendant was part of a criminal conspiracy that disseminated the Bugat malware, used malware to steal banking credentials, and then used the stolen credentials to initiate fraudulent electronic funds transfers of millions of dollars from the victims’ bank accounts.
This case involves a sophisticated international conspiracy that infects computers with the malware known as Bugat. Bugat, which is also referred to as Cridex and Dridex, is a multifunction malware package. It is specifically designed to automate the theft of confidential personal and financial information, such as online banking credentials, from infected computers through the use of keystroke logging and web injects.
Judge Bissoon scheduled sentencing for July 13, 2017. The law provides for a total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Mary McKeen Houghton and Shardul S. Desai are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Ghinkul.
Members of Camden, New Jersey, Drug Trafficking Organization Charged with Drug Conspiracy and Firearm OffensesRead the Press Release
CAMDEN, N.J. – Two Camden-area men were charged by a federal grand jury today in connection with their roles in a drug distribution organization, U.S. Attorney Paul J. Fishman announced.
Preston J. Thomas, 30, a/k/a “Boo,” of Camden, was charged in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. The superseding indictment also charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, with the same drug trafficking conspiracy offense.
According to documents filed in this case and statements made in court:
Thomas, Whitaker and others were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
Two conspirators identified in the indictment have already pleaded guilty to drug conspiracy and firearm offenses.
On Jan. 17, 2017, Jason Boyd, 36, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Boyd’s sentencing is scheduled for April 28, 2017.
On Dec. 8, 2016, Derek Stallworth, 20, a/k/a “AK” and a/k/a “A,” of Camden, also pleaded guilty before Judge Simandle to the same charges. His sentencing is scheduled for March 24, 2017.
The drug distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charge carries a mandatory minimum sentence of five years in prison to be served consecutively to the sentence for the conspiracy charge.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s indictment.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Thomas: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Whitaker: Mark Catanzaro Esq., Mt. Holly, New Jersey
Media Pharmacist Faces Additional Charges in Conspiracy to Distribute OxycodoneRead the Press Release
Mitesh Patel, 36, of Media, Pennsylvania, was charged today by Superseding Indictment with conspiracy to distribute oxycodone, money laundering conspiracy, and filing false tax returns, announced Acting United States Attorney Louis D. Lappen.
According to the Superseding Indictment, from 2008 through June 2013, Patel was a pharmacist, registered in Pennsylvania, who conspired with others to illegally distribute oxycodone, a Schedule II controlled substance. From 2009 through 2013, Patel owned three pharmacies, Dava Pharmacy, Dava #2 Pharmacy, and Drexel Hill Pharmacy, that he used to order sums of oxycodone which he then provided to his coconspirators for distribution. Patel provided sums of the ordered oxycodone to his coconspirators for distribution without prescription and in exchange for money. Patel then used various bank accounts associated with his pharmacies to launder the drug proceeds in a manner intended to conceal the unlawful origin of the money. Additionally, Patel filed false tax returns for the tax years of 2010, 2011, and 2012, for not reporting his actual taxable income.
If convicted the defendant faces a maximum of 49 years in prison, a special assessment of $500, a lifetime of supervised release, and a potential fine. The government is also seeking forfeiture of the proceeds of Patel’s unlawful activities including, but not limited to, a sum of $2,733,300.00.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Philadelphia Police Department as part of the Organized Crime Drug Enforcement Task Force program. The case is being prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and David E. Troyer.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mansfield couple indicted for sexual exploitation of a childRead the Press Release
A Mansfield couple was indicted on charges related to sexual exploitation of a child, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Gary L. Fisher, 43, and Amy E. Glaze, 41, both from Mansfield, were charged with sexual exploitation of a child and destruction of evidence. Fisher was also charged with committing a felony offense involving a minor while being a registered sex offender.
Fisher and Glaze, did use, persuade, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. This took place from Aug. 1, 2016, through Nov. 21, 2016, according to the indictment.
Fisher and Glaze also knowingly altered, destroyed, concealed, and covered up any record, document, or tangible object, to wit: LG smartphone S/N 601VTYK1346642, a SanDisk microSD card, and the digital files contained thereon, with the intent to impede, obstruct, and influence the investigation and proper administration of any matter within the jurisdiction of any department or agency of the United States. This took place between Dec. 31, 2016, through Jan. 9, 2017, according to the indictment
Fisher, being required by Ohio law to register as a sex offender, committed a felony offense involving a minor between Aug. 1, through Nov. 21, 2016, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Mansfield and Canton offices of the Federal Bureau of Investigation, the Mansfield and Canton Police Departments and the Pennsylvania State Police.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Sentenced for 2014 Convenience Store RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison for three convenience store robberies in 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Eddie Junior Rodriguez, 46, pleaded guilty on Aug. 2, 2016, to three counts of interference with commerce by robbery.
“The defendant was brazen and robbed three convenience stores in less than two hours,” said U.S. Attorney Bogden. “Working with the FBI and our law enforcement partners, the U.S. Attorney’s Office is committed to reducing violent crime in Nevada and keeping our communities safe.”
According to court documents, Rodriguez admitted that on Dec. 23, 2014, at approximately 3:30 a.m., he entered a Speedee Mart, pointed a knife at an employee and demanded money. Approximately 30 minutes later, at another Speedee Mart location, Rodriguez brandished a knife and demanded money. The third robbery occurred shortly before 5:00 a.m. at Snackers where he demanded money.
The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorney Alexandra Michael.
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Man Pleads Guilty to $3.2 Million Business Loan Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty Tuesday for his participation in a $3.2 million scheme to fraudulently obtain money from victims seeking business loans, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Ronald Gene Morgan, 62, was indicted on Oct. 8, 2014. He faces 20 years in prison and a $250,000 fine. Sentencing has been scheduled for May 23, 2017, before U.S. District Judge James. C. Mahan.
“The U.S. Attorney’s Office is committed to assisting victims who were preyed upon and who are paying the consequences of this defendant’s greed,” said U.S. Attorney Bogden. “Together with our law enforcement partners, we will continue to identify, apprehend and prosecute these fraudsters who devise schemes to cheat innocent victims out of their much needed money.”
According to the plea agreement, from March 2009 to April 2011, Morgan, along with others, operated Argent Asset Management and Argent Securities, an Illinois-incorporated company and a Florida-incorporated company, respectively. Morgan admitted that he falsely promised victims in Las Vegas and elsewhere that he would provide business loans by using Argent assets to acquire bank-issued bonds at a discount and re-sell the bonds at face value to an investor, thereby producing hundreds of millions of dollars. Morgan admitted he lulled the victims by creating and sending false communications and documents depicting escrow account balances containing millions of dollars held on behalf of the clients. He knew that no such funds were held in escrow. He required victims to pay substantial fees in advance of obtaining the loans and told the victims that their funds would be held in escrow, would be refunded if the loans were not obtained, and would be used to obtain the loans. He knew that Argent Securities had no assets. Morgan used the fees paid by victims for his own personal use and to recruit other victims, and to repay portions of other victims fees in order to conceal the scheme. Morgan admitted the fraudulent scheme caused victims to lose about $3.23 million. He admitted that he is responsible for more than $550,000 and less than $1.5 million in loss.
The case is being investigated by the FBI; and prosecuted by Assistant U.S. Attorney Kathryn Newman and Nicholas D. Dickinson.
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MEDIA ADVISORY-- U.S. Attorney and District Attorneys to Discuss Collaborative Efforts to Address New Mexico’s Violent Crime EpidemicRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Marco P. Serna, 2nd Judicial District Attorney Raul Torrez, 3rd Judicial District Attorney Mark D’Antonio, 5th Judicial District Attorney Dianna Luce, and 11th Judicial District Attorney Robert P. “Rick” Tedrow will hold a press conference at 10:00 A.M. on THURSDAY, FEBRUARY 9, 2017, to discuss their collaborative efforts to address New Mexico’s violent crime epidemic.
WHO:
U.S. Attorney Damon P. Martinez
1st Judicial District Attorney Marco P. Serna
2nd Judicial District Attorney Raul Torrez
3rd Judicial District Attorney Mark D’Antonio
5th Judicial District Attorney Dianna Luce
11th Judicial District Attorney Robert P. “Rick” Tedrow
WHEN:
THURSDAY, FEBRUARY 9, 2017
10:00 a.m. MDT
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 9:45 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected]. Media outlets outside the Albuquerque-metropolitan area that wish to participate by telephone conference line should contact Ms. Ferda by 9:00 a.m. MDT on February 9, 2017.
Louisville Felon Convicted of Engaging in Sexually Explicit Conduct with A Minor and Producing ImagesRead the Press Release
Defendant is currently serving a 210-month sentence for distribution and possession of child pornography
Defendant faces a mandatory term of life imprisonment
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty verdict, in United States District Court, before Chief Judge Joseph H. McKinley Jr., of a Louisville felon, currently serving a 210-month sentence, on all charges of coercing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction.
“Kniffley is a predator who abused innocent children repeatedly over the course of many years, children who must struggle with the effects of Kniffley’s unspeakable conduct for the rest of their lives,” stated U.S. Attorney Kuhn. “We hope these victims, their families and our community may find some solace in knowing that this defendant now faces a life behind bars.”
Arthur Wayne Kniffley, 43, was convicted on all three charges, in an August 18, 2015 federal grand jury indictment, following a three-day trail. The jury deliberated under one hour before reaching its unanimous verdict.
According to information and testimony presented at trial, on or about October 12, 2003, July 31, 2007, and August 1, 2007, in Louisville, Kniffley, molested and photographed a minor engaging in sexually explicit conduct with his Polaroid digital camera.
Kniffley was previously convicted in the Western District of Kentucky of distribution and
possession of child pornography in Criminal Action Number 3:08-CR-134-S on January 25, 2010.
For the prior case, Kniffley was sentenced to a period of 210 month’s incarceration.
During an interview with law enforcement in the previous case, Kniffley admitted to law enforcement that he viewed images of child pornography so he would not again harm children.
After the conclusion of the former prosecution the FBI and United States were contacted by a previously unidentified victim whose images had been discovered in forensic review of Kniffley’ s digital camera seized during a search warrant.
The victim explained that he/she had been sexually abused and photographed by Kniffley via digital camera when he/she was between 11 to 15 years’ old. The victim was interviewed by the FBI and confirmed the photographs contained his/her image. The victim said Kniffley would take pictures of him engaging in sexual activity with Kniffley’s digital camera.
Kniffley also sexually abused three minors in state criminal action number 95-CR-2158.
Kniffley provided a statement to a Detective that he used the children to perform sexual acts.
At sentencing, Kniffley faces a mandatory life term of imprisonment.
This case is being prosecuted by Assistant United States Attorney Joshua Judd, assisted by paralegal Lori Cracknell, and was investigated by the Federal Bureau of Investigation (FBI).
Long Island Man Charged with Distributing Heroin That Caused the Death of A 20-Year-Old College StudentRead the Press Release
A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Richard Jacobellis with distributing heroin that caused the death of 20-year-old Nicholas Weber, and conspiring with others to distribute heroin. Jacobellis was arrested earlier today in Ridge, New York, and his arraignment will be this afternoon before United States District Judge Joanna Seybert at the United States Courthouse in Central Islip, NY. If convicted, the defendant faces a statutory mandatory minimum sentence of 20 years’ imprisonment and a maximum sentence of life.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and Timothy D. Sini, Police Commissioner, Suffolk County Police Department (SCPD).
“As alleged, the defendant is a drug dealer who for years peddled poisonous heroin to Long Islanders,” stated United States Attorney Capers. “The heroin epidemic on Long Island has cut short far too many young lives, like Nicholas.’ To those heroin dealers who flood our streets with this highly addictive narcotic, be forewarned: if you sell heroin, my Office and our law enforcement partners will prosecute you.”
DEA Special Agent-in-Charge Hunt stated, “A life lost too soon paved law enforcement’s trail to a drug dealer’s door. investigates sources of supply worldwide as well as the local sources responsible for pushing heroin and fentanyl into our communities. Two months ago, DEA quickly turned an online tip into a high priority, joint investigation with the Suffolk County Police Department and the Eastern District of New York that identified the alleged drug dealer who caused the death of twenty-year-old Nicholas Weber. This arrest serves as a reminder to drug dealers that they will eventually face the consequences of their actions.”
Police Commissioner Sini stated, “As I’ve made clear on numerous occasions, we will stop at nothing to hold drug dealers accountable for their depraved indifference to human life. This prosecution is the culmination of a multi-jurisdictional investigation, which sends a clear message to dealers in Suffolk County: every time you sell heroin in this County, you risk spending the rest of your life in prison.”
As detailed in the indictment and court filings, Jacobellis distributed heroin on Long Island from 2012 to the present. Jacobellis’s heroin has caused the death of one young man and nearly killed another. Indeed, in March 2015, one of Jacobellis’s drug customers overdosed after using heroin that Jacobellis sold to him; fortunately, SCPD officers were able to quickly administer Naloxone, a nasal spray that reverses the effect of an opioid overdose, and save that young man’s life.
Undeterred, Jacobellis continued selling heroin to Long Island residents, according to the indictment. As charged, on May 17, 2016, Jacobellis drove from his home in Ridge to Kings Park and sold $100 of heroin to Weber. Weber used that heroin and died shortly thereafter. Nicholas Weber was a graduate of Kings Park High School. While in high school, he was the Suffolk County wrestling champion for his weight class, and upon graduation, he was attending Suffolk County Community College and had been accepted to Stony Brook University where he was going to study physics starting in the fall of 2016.
According to the indictment and court filings, despite learning that his heroin killed Weber, the defendant continued to sell heroin up until a few weeks ago. Indeed, in mid-January 2017, a confidential informant who was working with law enforcement contacted the defendant for the purpose of arranging a heroin transaction. The defendant agreed to sell heroin to the confidential informant. Shortly thereafter, the defendant met the confidential informant and consummated the transaction.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorney Christopher C. Caffarone is in charge of the prosecution.
The Defendant:
RICHARD JACOBELLIS
Age: 23
Ridge, New York
E.D.N.Y. Docket No. 17-CR-052 (JS)
Logan County man sentenced for accepting kickbacks as an employee of a subsidiary of Arch CoalRead the Press Release
Charleston, W.Va. – A Logan County man was sentenced today to five years of probation for his role in a kickback scheme, announced United States Attorney Carol Casto. Chadwick Lusk, 35, of Davin, previously pleaded guilty to honest services mail fraud. He was also ordered to pay $230,000 in restitution to Arch Coal.
Lusk admitted that while he was employed as a purchasing agent at the Mountain Laurel Mining Complex, he defrauded a wholly-owned subsidiary of Arch Coal, the Mingo Logan Coal Company, of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme. Crib blocks are used to provide roof support in an underground mine. Beginning around September 2009 and continuing until at least March 2014, Gary L. Roeher, who owned CM Supply, Co., paid Lusk a portion of the profits for the crib blocks that the Mingo Logan Coal Company purchased from CM Supply to use at Mountain Laurel. Roeher usually paid Lusk 7.5% of the crib block sales price. Roeher estimates he paid Lusk approximately $230,000 in cash kickbacks as part of the scheme.
The FBI, the United States Postal Inspection Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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Lancaster County Man Guilty of PerjuryRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angel Luis Carrasco-Rivera a/k/a Manuel Calcagno, age 54, of Lancaster, Pennsylvania, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner to committing perjury.
According to United States Attorney Bruce D. Brandler, Carrasco-Rivera was charged with perjury in connection with his recent prosecution and conviction for mail fraud. The fraud prosecution involved Carrasco-Rivera obtaining more than $102,000 by filing false claims for unemployment compensation benefits from 2008 through late 2012. He was sentenced in June 2016 to serve 18 months in prison for that offense.
After Carrasco-Rivera’s sentencing, it was learned that he purposely failed to correct inaccurate information in his presentence report regarding his criminal history. It was learned that Carrasco-Rivera was prosecuted and convicted of a drug trafficking crime in Massachusetts in 1991 under the name Manuel Calcagno and was sentenced to a 20-year prison term for that crime. That conviction was not included in Carrasco-Rivera’s criminal history in the presentence report, resulting in a lower advisory sentencing guideline range in his case. When he was ordered to appear before the court regarding the inaccuracy, Carrasco-Rivera lied under oath to the court when he explained how he became associated with the Calcagno name. A sentencing date will be set at a later time.
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the offense under federal law is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Kingston Man Indicted on Two Firearms ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Maurice Woods, age 33, of Kingston, Pennsylvania, was indicted by a federal grand jury for two firearms offenses.
According to United States Attorney Bruce D. Brandler, the indictment charges Woods with possessing a firearm with an obliterated serial number in June 2016. The firearm was a Glock 45mm semi-automatic pistol. The indictment also charges Woods with possession of that firearm after being convicted of a felony.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kingston Police Department. Assistant United States Attorney Evan Gotlob is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Woods faces a minimum of 15 years’ imprisonment and a maximum penalty of lifetime imprisonment, a term of supervised release following imprisonment, and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Justice Department Seeks to Shut Down New Orleans-Area Tax Return PreparerRead the Press Release
A New Orleans-area woman prepares fraudulent tax returns for her customers, and the government seeks a court order barring her from preparing tax returns for others, according to a new civil suit filed by the United States, the Justice Department announced.
According to the government’s civil complaint, filed in federal court in New Orleans, Louisiana, Tiga Bryant fraudulently reduced her customers’ tax liabilities by improperly claiming bogus deductions and false fuel tax credits. In particular, the complaint alleges that Bryant, who does business as “Denson’s Fast Tax Services,” claims false employee business expense deductions that improperly reduce her customers’ taxable income. In one example, the complaint alleges that Bryant falsely claimed that one of her customers incurred employee business expenses totaling more than the wages this customer earned.
In addition to claiming fraudulent deductions for her customers, Bryant also claims bogus fuel tax credits, according to the complaint. Fraud involving the fuel tax credit was one of the IRS’s Dirty Dozen Tax Scams for 2016. The fuel tax credit is generally limited to off-highway business use, and consequently, not available to most taxpayers. The complaint alleges several examples in which Bryant improperly claimed a fuel tax credit for her customers who, the United States alleges, were clearly not entitled to the fuel tax credit because they did not purchase fuel for off-highway business use. In one example, Bryant reported that a customer used 2,500 gallons of fuel for off-highway business use and yet the customer did not even own a vehicle, according to the complaint.
The complaint alleges that the IRS audited 197 returns prepared by Bryant and determined that Bryant claimed credits and/or deductions her customers were not entitled to take on 96 percent (189) of these returns and understated their tax liabilities by more than $800,000.
The Internal Revenue Service (IRS) is reminding taxpayers that the 2017 individual income tax return filing season began on Jan. 23, and there is information available on the IRS’s website. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Former Little Rock Doctors' Office Manager Lynn Espejo Guilty on 25 Federal ChargesRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Tracey D. Montaño, Internal Revenue Service (IRS) Special Agent in Charge, announced today that a federal jury found Lynn Alisa Espejo, 52, of Sherwood, guilty on 15 counts of wire fraud, 6 counts of money laundering, and 4 counts of willfully making and subscribing a false income tax return, all a result of a scheme in which Espejo stole more than $600,000 from her employer.
United States District Judge Kristine G. Baker presided over the seven-day trial, which concluded Wednesday with the jury verdict. Espejo will be sentenced by Judge Baker at a later date.
Espejo served as office manager for Practice Management Services, Inc. (PMSI) and Blanford Medical Services, Inc. (BMSI), corporations that administered business expenses for doctors in Little Rock, from March 2007 through October 2010. The United States presented evidence which proved that Espejo stole approximately $611,099 by wire transfer from PMSI and BMSI to her personal bank accounts while she was employed. Espejo misrepresented these transactions in the accounting software Quickbooks and concealed the wire transfers from the doctors and their accountant. Dr. Paul Zelnick, Dr. James Thrasher, Dr. Bruce Sanderson, and Dr. Scott Brown testified that Espejo was not authorized to take the money, which was consistent with the evidence and the verdict.
"The jury’s verdict is supported by the overwhelming evidence of guilt presented at trial through financial documents and the testimony of the victims of Ms. Espejo’s crimes," Thyer said. "Lynn Espejo lied and cheated her employers out of hundreds of thousands of dollars, and today’s verdict makes clear that people who lie and steal will be held accountable."
In addition to the money stolen by wire transfer, the United States also presented evidence that Espejo obtained a PMSI debit card and used it for personal purchases from Wal-Mart, including grocery items such as snow crab, bacon, and popcorn balls, video gaming devices, school supplies, and a trampoline. Espejo also used stolen money to make payments toward a vehicle, a pool, and new home construction expenses, which comprised the money laundering counts. From 2007 through 2010, Espejo had over $100,000 in legal expenses, over $479,000 in credit card payments, and went significantly over budget on the construction of her house in Sherwood, including the addition of a pool house.
The jury further found Espejo guilty of willfully making and subscribing false income tax returns for tax years 2007 through 2010 due to her failure to report the stolen money as income. Testimony established an additional tax due and owing of $207,941 for tax years 2007 through 2010.
"As this year’s tax filing deadline approaches, today’s conviction of Ms. Espejo is a powerful reminder that income from all sources, including fraud, is taxable," Montaño said. "Through our partnership with the US Attorney’s Office and other law enforcement agencies, IRS Criminal Investigation will continue their aggressive pursuit of those who victimize the public and defraud America's tax system for their own personal gain."
The statutory penalty for wire fraud, a violation of 18 U.S.C. § 1343, is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for money laundering, a violation of 18 U.S.C. § 1957, is not more than 10 years’ imprisonment, not more than a $250,000 fine or twice the amount of the criminally derived property involved in the transaction, and not more than three years supervised release. The statutory penalty for willfully making and subscribing false income tax returns, a violation of 26 U.S.C. § 7206(1), is not more than three years’ imprisonment, not more than a $100,000 fine, or both, together with the costs of prosecution, and not more than one year supervised release.
The investigation was conducted by the IRS—Criminal Investigations.
Indiana Man Sentenced to More Than 13 Years for Impersonating PsychiatristRead the Press Release
CHICAGO — An Indiana man was sentenced today to more than 13 years in federal prison for holding himself out as a psychiatrist and prescribing medications to a nine-year-old child and dozens of others.
SCOTT C. REDMAN, 37, of Hammond, Ind., used the identity of an Illinois physician to see patients and prescribe medications at a clinic on Chicago’s Near North Side. The real physician is employed by a different Illinois medical facility. Redman assumed the physician’s name to prescribe medications to more than 50 individuals from September 2015 to February 2016. The purported patients included a nine-year-old child, for whom Redman prescribed a 30-day supply of Vyvanse, a medication that treats attention deficit hyperactivity disorder.
A jury in November convicted Redman on three counts of wire fraud, one count of aggravated identity theft, one count of furnishing false information to the Drug Enforcement Administration, and five counts of distributing a controlled substance. U.S. District Judge Samuel Der-Yeghiayan imposed the 157-month sentence in federal court in Chicago.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the DEA.
“The defendant’s conduct was shameless,” Assistant U.S. Attorney Katie M. Durick argued in the government’s sentencing memorandum. “He preyed upon an already vulnerable population of patients, including a nine-year old little boy, who were seeking mental health treatment for a variety of psychiatric conditions.”
Evidence presented at trial revealed that Redman maintained office hours at the clinic to treat his supposed patients. A purported profile of Redman on the clinic’s website contained the name of the real physician, alongside a photograph of Redman and fraudulent biographical and educational information. In addition to the Vyvanse, Redman prescribed other controlled substances to his supposed patients, including Adderall, Clonazepam and Xanax.
The government is represented by Ms. Durick and Assistant U.S. Attorney Matthew F. Madden.
Illinois Man Admits to Filing Fraudulent Tax Returns Using Stolen ID InformationRead the Press Release
A Harvey, Illinois man pleaded guilty today to wire fraud and aggravated identity theft charges related to a scheme to obtain fraudulent tax refunds using stolen ID information, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
According to the plea agreement, from November 2014 through March 2015, Jonathan Herring, 34, working with at least two others, prepared and filed income tax returns using stolen names and social security numbers, and deposited the fraudulently obtained tax refunds into bank accounts that he controlled. In total, Herring filed approximately 225 fraudulent returns claiming approximately $845,979 in tax refunds.
Herring was charged in February 2016 with wire fraud, aggravated identity theft and access device fraud. According to the indictment, some of the victims of his scheme were members of the U.S. Air Force.
Sentencing is scheduled for July 25. Herring faces a statutory maximum sentence of 20 years in prison for the wire fraud count and a mandatory sentence of two years in prison for the aggravated identity theft count, which will run consecutive to any other prison term he receives. Herring also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked agents of the Internal Revenue Service Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Michael C. Boteler and Timothy M. Russo, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Houston Man Guilty in Prison Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 54-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Alvin Lee Turner pleaded guilty to conspiracy to commit wire fraud today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on Sep. 30, 2016, federal and local agents arrested three individuals in the Houston area involved in a nationwide six-year scheme which defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality the indictment alleges the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony. Separate indictments in the scheme were handed down by federal grand juries in the Eastern District of Texas, Beaumont Division, and the Southern District of Florida, Miami Division. The Texas indictment alleged a wire fraud and conspiracy to commit wire fraud involving six individuals: Alvin James Warrick, 41, Colitha Patrice Bush, 36, Ronald B. Shepherd, 33, and Alvin Turner, 54, all of Houston, Texas; and Larry Lee Stephenson, 48, of Port Arthur, Texas. Additionally, Alvin James Warrick, Colitha Patrice Bush, Ronald B. Shepherd were also the subject of the indictment from the Southern District of Florida also alleging a wire fraud and conspiracy to commit wire fraud. The indictments allege different victims in and around each district. The scheme resulted in losses to inmate families of over $4 million. Turner was arrested in October and Stephenson surrendered in October. One defendant remains at large and is being sought by authorities. Warrick is detained pending trial in Miami. Bush, Shepherd, Turner, and Stephenson are released on conditions.
Under federal statutes, the defendants face up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation; Department of Justice, Office of Inspector General, in Miami and New York region; U.S. Marshals Service; Houston Police Department- Major Offenders Division; United States Attorney’s Offices in the Eastern District of Texas, Southern District of Florida, and Eastern District of New York. The case is being prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OLVIN CASTILLO-CRUZ, age 34, was sentenced today after previously pleading guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
U.S. District Judge Martin Feldman sentenced CASTILLO-CRUZ to time served and ordered him to pay a $2,000 fine. CASTILLO-CRUZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, CASTILLO-CRUZ reentered the United States after he was previously deported on January 19, 2011.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGEL GUZMAN-RODRIGUEZ age 28, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the Indictment, GUZMAN-RODRIGUEZ reentered the United States after having been previously deported on March 9, 2012.
If convicted, GUZMAN-RODRIGUEZ faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for May 3, 2017.
U.S. Attorney Polite praised the work of the United States Department of Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Homewood Man Charged with Stealing Sears Delivery Truck and ContentsRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of stealing and possessing stolen goods from an interstate shipment, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned yesterday, named Anthony Bailey, age 37, of Pittsburgh.
According to the indictment, on April 13, 2016, Bailey stole a Sears delivery truck worth approximately $20,000.00. He also stole the merchandise inside of the truck, which was worth approximately $30,000.00. At the time, the truck and the merchandise were moving in interstate commerce.
The law provides for a maximum total sentence of not more than ten (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 offenses 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. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Healthcare Sales Representative Sentenced for Obstructing Federal InvestigationRead the Press Release
BOSTON – A sales representative for multiple healthcare companies was sentenced today in U.S. District Court in Boston in connection with obstructing an investigation into kickbacks paid to medical professionals.
Terrence Kyle Tackett, 50, of Florence, Ky., was sentenced by U.S. District Court Judge Allison D. Burroughs to three years of probation, with the first six months in community confinement and then six months on home detention, 100 hours of community service to be completed during the last two years of probation, and a fine of $15,000. In May 2016, Tackett pleaded guilty to one count of obstruction of a criminal investigation of health care offenses.
From 2012 to 2013, Tackett worked as a sales representative in Kentucky for California-based healthcare company Cardio Dx, and from August 2013 to February 2015, he worked for Aegerion Pharmaceuticals, Inc., a Cambridge-based pharmaceutical company. From 2012 through February 2015, Tackett gave medical professionals gift cards and personal checks in exchange for ordering or prescribing the products he promoted and to get access to private patient information protected by HIPAA. During a January 2015 meeting with investigators, Tackett falsely denied and attempted to conceal the kickbacks he had been paying to physicians and their staffs for years in Kentucky and southern Ohio.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General, Office of Investigations; Mark McCormack, Special Agent in Charge of U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office; and Susan Hensley, Director of U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office, made the announcement today. Assistant U.S. Attorneys Kriss Basil and Young Paik of Weinreb’s Office prosecuted the case with assistance from the Justice Department’s Consumer Protection Branch.
Health Services Contractor Agrees to Pay $3.818 Million to Settle False Claims Act Allegations for Double-Charging and Mischarging Medical Services on Internal Revenue Service ContractRead the Press Release
Baltimore, Maryland – Comprehensive Health Services, Inc. has agreed to pay the United States $3,818,881 to settle allegations under the False Claims Act that it submitted false claims to the United States by double-billing and mischarging for medical services in connection with work performed on an Internal Revenue Service (“IRS”) contract.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, and Acting Special Agent in Charge Paul Desautels of the Treasury Inspector General for Tax Administration’s Procurement Fraud Division.
“Businesses that knowingly overcharge the government should be held accountable and penalized,” said U.S. Attorney Rod J. Rosenstein. “Whistleblower lawsuits are a valuable tool to deter fraud and punish perpetrators.”
“The settlement strongly demonstrates TIGTA’s continued efforts to protect the integrity of the federal acquisition process, as well as IRS contracts and financial expenditures,” said Acting Special Agent in Charge Paul Desautels. “It serves as a reminder that all government contractors need to be good stewards of taxpayer money, and those who seek to defraud the Federal government through contracts will be prosecuted to the fullest extent.”
Comprehensive Health Services, Inc. (“CHSi”) is a Florida-based company that is one of the United States’ largest providers of workforce medical services. CHSi implements and manages for the United States government and commercial companies customized medical programs for large workforces that range from pre-placement, pre-deployment, and fitness-for-duty medical examinations to medical surveillance and health wellness programs. In February 2009, CHSi was awarded an IRS contract, under which it was required to provide medical services to IRS-Criminal Investigation special agent applicants and incumbent special agent personnel. Among other things, the IRS contract required CHSi to provide pre-placement medical examinations to evaluate special agent applicants’ medical qualifications. The pre-placement medical examinations included a range of tests, including resting electrocardiograms and vision tests, that were required to be billed as part of a bundled fee. The IRS contract also required that CHSi conduct certain medical tests to determine incumbent agents’ ability to participate in physical fitness programs and their fitness for duty. Such medical services included physical fitness examinations which were to be billed only if such examinations were medically necessary, and blood specimen collection, which was to be billed as part of a bundled fee.
The settlement agreement resolves allegations that from April 2009 through April 2014, CHSi knowingly double-charged the United States for vision screenings, resting electrocardiograms, and for the collection of blood specimens provided to IRS agents when those costs were already included in the bundled price for the IRS new applicant pre-placement exam. The civil settlement also disposes of the allegation that CHSi charged the United States for annual full physical exams for IRS agents despite the IRS specification that the exam was to be administered only if it was determined to have been medically indicated and no such determination occurred and the exams were never actually performed.
The civil settlement resolves a lawsuit filed by James J. Kerr, Jr. under the whistleblower provision of the False Claims Act in United States ex rel. James J. Kerr, Jr. v. Comprehensive Health Services, Inc., Civ. No. RDB-14-1769 (D.Md.). The Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the United States’ recovery. As part of the civil resolution, Mr. Kerr will receive approximately $645,391. The claims resolved by this settlement are allegations; there has been no determination of liability and CHSi cooperated in the investigation.
United States Attorney Rod J. Rosenstein commended the Treasury Inspector General for Tax Administration for their work in the investigation and thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
Government Contractor Facing Federal Indictment for Willful Retention of National Defense InformationRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment today charging Harold Thomas Martin III, age 52, of Glen Burnie, Maryland, with willful retention of national defense information.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for National Security Mary McCord; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
“The indictment alleges that for as long as two decades, Harold Martin flagrantly abused the trust placed in him by the government by stealing documents containing highly classified information, “said U.S. Attorney Rod J. Rosenstein.
“As a private contractor who worked on classified programs at various U.S. government agencies, the defendant was entrusted with access to sensitive government materials," said Acting Assistant Attorney General McCord. “Martin allegedly violated the trust our nation put in him by stealing and retaining classified documents and other material relating to the national defense. Insider threats are a significant danger to our national security and we will continue to work relentlessly with our law enforcement and intelligence partners to identify, pursue and prosecute such individuals.”
“The FBI investigation and this indictment reveal a broken trust from a security clearance holder,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “Willfully retaining highly classified national defense information in a vulnerable setting is a violation of the security policy and the law, which weakens our national security and cannot be tolerated. The FBI is vigilant against such abuses of trust, and will vigorously investigate cases whenever classified information is not maintained in accordance with the law.”
According to the indictment, from December 1993 through August 27, 2016, Martin was employed by at least seven different private companies and assigned as a contractor to work at a number of government agencies. Martin was required to receive and maintain a security clearance in order to work at each of the government agencies to which he was assigned. Martin held security clearances up to Top Secret and Sensitive Compartmented Information (SCI) at various times, and worked on a number of highly classified, specialized projects where he had access to government computer systems, programs, and information, including classified information. Over his many years of holding a security clearance, Martin received training regarding classified information and his duty to protect classified materials from unauthorized disclosure.
The indictment alleges that beginning no earlier than 1996 and continuing through August 27, 2016, Martin stole and retained U.S. government property, including documents that bore markings indicating that they were property of the United States and contained highly classified information of the United States, including TOP SECRET/SCI. A Top Secret classification means that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States.
Martin allegedly retained stolen documents containing classified information relating to the national defense at his residence and in his vehicle. The indictment alleges that Martin knew that the stolen documents contained classified information that related to the national defense and that he was never authorized to retain these documents at his residence or in his vehicle.
If convicted, Martin faces a maximum sentence of 10 years in prison for each of 20 counts of willful retention of national defense information. Martin’s initial appearance is scheduled for 11:00 a.m. on Tuesday, February 14, 2017, before U.S. Magistrate Judge A. David Copperthite in U.S. District Court in Baltimore. Martin remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein and Acting Assistant Attorney General for National Security Mary McCord commended the FBI for its work in the investigation. Mr. Rosenstein and Ms. McCord thanked Assistant U.S. Attorneys Zachary A. Myers, Nicolas A. Mitchell, and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who are prosecuting the case.
Government Contractor Facing Federal Indictment for Willful Retention of National Defense InformationRead the Press Release
A federal grand jury returned an indictment today charging Harold Thomas Martin III, 52, of Glen Burnie, Maryland, with willful retention of national defense information.
The indictment was announced by Acting Assistant Attorney General for National Security Mary McCord, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office.
“As a private contractor who worked on classified programs at various U.S. government agencies, the defendant was entrusted with access to sensitive government materials," said Acting Assistant Attorney General McCord. “Martin allegedly violated the trust our nation put in him by stealing and retaining classified documents and other material relating to the national defense. Insider threats are a significant danger to our national security and we will continue to work relentlessly with our law enforcement and intelligence partners to identify, pursue and prosecute such individuals.”
“The indictment alleges that for as long as two decades, Harold Martin flagrantly abused the trust placed in him by the government by stealing documents containing highly classified information,” said U.S. Attorney Rosenstein.
"The FBI investigation and this indictment reveal a broken trust from a security clearance holder," said Special Agent Johnson. "Willfully retaining highly classified national defense information in a vulnerable setting is a violation of the security policy and the law, which weakens our national security and cannot be tolerated. The FBI is vigilant against such abuses of trust, and will vigorously investigate cases whenever classified information is not maintained in accordance with the law."
According to the indictment, from December 1993 through Aug. 27, 2016, Martin was employed by at least seven different private companies and assigned as a contractor to work at a number of government agencies. Martin was required to receive and maintain a security clearance in order to work at each of the government agencies to which he was assigned. Martin held security clearances up to Top Secret and Sensitive Compartmented Information (SCI) at various times, and worked on a number of highly classified, specialized projects where he had access to government computer systems, programs and information, including classified information. Over his many years of holding a security clearance, Martin received training regarding classified information and his duty to protect classified materials from unauthorized disclosure.
The indictment alleges that beginning no earlier than 1996 and continuing through Aug. 27, 2016, Martin stole and retained U.S. government property, including documents that bore markings indicating that they were property of the U.S. and contained highly classified information, including TOP SECRET/SCI. A Top Secret classification means that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the U.S.
Martin allegedly retained stolen documents containing classified information relating to the national defense at his residence and in his vehicle. Martin knew that the stolen documents contained classified information that related to national defense and that he was never authorized to retain these documents at his residence or in his vehicle.
If convicted, Martin faces a maximum sentence of 10 years in prison for each of the 20 counts of willful retention of national defense information. Martin’s initial appearance is scheduled for 11:00 a.m. on Tuesday, February 14, before U.S. Magistrate Judge A. David Copperthite in U.S. District Court in Baltimore. Martin remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting Assistant Attorney General for National Security McCord and U.S. Attorney Rosenstein commended the FBI for its work in the investigation and thanked the Maryland State Police for its assistance. Ms. McCord and Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers, Nicolas A. Mitchell and Harvey E. Eisenberg for the District of Maryland and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who are prosecuting the case.
Martin Harold IndictmentFormer President & CEO of Monarch Mortgage Sentenced to PrisonRead the Press Release
NORFOLK, Va. – Edward O. Yoder, 50, of Virginia Beach, the former president and chief executive officer of Monarch Mortgage, which is a part of Monarch Bank in Virginia Beach, was sentenced today to two years in prison for concealing approximately $350,000 in bankruptcy assets. Yoder was also ordered to pay $364,660 in criminal restitution.
Yoder pleaded guilty on Oct. 12, 2016. According to court documents, in 2008 and 2009, Yoder obtained two loans totaling $3 million for a planned residential community in North Carolina. Yoder filed for Chapter 11 bankruptcy protection in July 2011, as he was facing two lawsuits in Virginia Beach Circuit Court. Yoder lost his lawsuits and the Bank of Hampton Roads sought to recover the loans that Yoder personally guaranteed. The initial Chapter 11 bankruptcy filing listed $2.74 million in assets, which included approximately 133,000 shares of stock in Sirius XM Radio, worth a few hundred thousand dollars. Yoder’s initial Chapter 11 petition was dismissed in early 2012, and in December 2012, Yoder again filed a Chapter 7 bankruptcy petition and a chapter 7 trustee was appointed. During the course of the second bankruptcy petition, Yoder failed to disclose the sale of his Sirius stock, which he discreetly sold in October 2012 for approximately $350,000. On the same day of the sale of Sirius stock, Yoder wired the $350,000 to his Monarch bank account and then transferred the same approximate amount money to girlfriend and co-conspirator Susan Spearman’s Monarch account. Spearman concealed the $350,000 in her account until after Yoder filed his Chapter 7 petition on December 5, 2012. Two weeks later, on December 19, 2012, Spearman, at the behest of Yoder, transferred the $350,000 from her account to her brokerage account with Infinex Financial Group, Virginia Asset Group. Thereafter, from December 19, 2012, to January 24, 2014, Yoder caused Spearman to disburse with bank checks from her brokerage account over $310,000 from Spearman’s brokerage account, for his own benefit and for the benefit of his parents and children.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Stephen W. Haynie prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-83.
Former DEA Agent Sentenced for Making False Statements Regarding Employment at Adult Entertainment EstablishmentRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that DAVID POLOS, formerly an Assistant Special Agent-in-Charge with the Drug Enforcement Administration (“DEA”), was sentenced to one year of probation, 250 hours of community service, and $5,300 in financial penalties for conspiracy and making false statements to the government regarding his and a DEA colleague’s employment at an adult entertainment establishment. POLOS, who was convicted at trial along with co-conspirator and former DEA colleague Glen Glover on June 9, 2016, was sentenced today by U.S. District Judge Paul G. Gardephe. In sentencing POLOS, Judge Gardephe said that POLOS’s behavior was “truly shocking” for a law enforcement official who held “a great deal of responsibility.”
Manhattan U.S. Attorney Bharara said: “David Polos, a former supervisory DEA agent, was sentenced today for lying on his national security forms. Even more so than others, federal agents, sworn to enforce the law, must first obey it themselves. Polos violated his oath and broke the law. He now stands a convicted felon.”
According to the evidence established at trial:
POLOS, who supervised the Organized Crime and Drug Enforcement Strike Force as an Assistant Special Agent-in-Charge, and Glover lied about his employment at, and ownership interests in, an adult entertainment establishment (the “Club”) in Northern New Jersey in connection with a background check that was specifically designed to determine their suitability as employees of a federal law enforcement agency with access to classified information. POLOS also failed to disclose, in response to a question about his relationships with foreign nationals, his intimate relationship with a Brazilian national who danced at the Club. The national security forms POLOS and Glover submitted in connection with the background check required disclosure of outside employment in part due to concerns attendant to certain types of employment, including proximity to crime and persons involved in crime and the risk of employee blackmail.
Glover and POLOS submitted national security forms in August and September 2011, respectively, that stated, among other things, that they did not have employment other than their DEA jobs within the previous seven years, and that POLOS had not had any close, continuing contact with foreign nationals during that same period of time. In fact, Glover was the part owner of, and POLOS had a convertible ownership interest in, the Club. POLOS had, at the time he submitted his form, begun an intimate relationship with a foreign national from Brazil who worked as a dancer at the Club. POLOS and Glover had been warned by others, including Club employees, that at times drug use, drug sales, and illicit sexual activity appeared to be taking place at and outside the Club, which also operated as an all-cash business and did not pay required taxes during its first year in operation.
POLOS and Glover both worked regular managerial shifts at the Club in the months prior to and following their submission of the national security forms. They also hired, fired, and paid bartenders, dancers, and bouncers; supervised the Club’s renovation, advertised the Club in local periodicals; manned a back office available only to employees; remotely monitored video camera feed from the Club when not present; and generally tended to various Club-related matters. POLOS and Glover at times attended to Club matters during DEA work hours.
Had POLOS and Glover truthfully disclosed their employment at the Club, their ownership and involvement in the affairs of the Club would have been investigated as part of their background checks, and the security clearances that they were required to maintain as federal law enforcement employees likely would have been denied.
* * *
POLOS, 51, of West Nyack, New York, and Glover, 45, of Lyndhurst, New Jersey, were convicted of one count of conspiracy to make false statements, and were each convicted of one count of making false statements, in connection with their work at the Club. POLOS was convicted of an additional count of false statements in connection with his failure to disclose his relationship with a foreign national. Glover is due to be sentenced on February 10, 2017.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. He also thanked the Internal Revenue Service-Criminal Investigation Division for its assistance.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin S. Bell, Andrew D. Goldstein, and Paul M. Monteleoni are in charge of the prosecution.
Former Chief of Staff to Member of Congress Pleads Guilty to Fraud and Theft ChargesRead the Press Release
A former Congressional chief of staff pleaded guilty today for his role in a conspiracy and fraud scheme involving a fraudulent scholarship charity, and for stealing tens of thousands of dollars in congressional salary payments disbursed to a close relative who performed no known work.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Special Agent in Charge Mary Hammond of the Internal Revenue Service-Criminal Investigation (IRS-CI) Tampa, Florida, Field Office made the announcement.
Elias "Ronnie" Simmons, 51, of Laurel, Maryland, pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of theft of government property before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida. A sentencing hearing has not yet been set.
In connection with his guilty plea, Simmons admitted that, between late 2012 and early 2016, he and a co-defendant, former Congresswoman Corrine Brown, 70, of Jacksonville, Florida, participated in a fraudulent scheme involving the One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the two defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other things. As part of the scheme, Simmons admitted that he and Brown solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives, many of which the defendants led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Simmons further admitted that, contrary to his and Brown’s misrepresentations, Brown, Simmons, One Door president Carla Wiley, and others, used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts. Simmons admitted that he engaged in such cash transactions involving funds from the One Door bank account at Brown’s direction. In one instance, Simmons admitted depositing $2,100 in One Door funds into Brown’s personal bank account the same day that Brown wrote a check for a similar amount to pay taxes to the IRS. Likewise, Simmons admitted that he and Brown also used the outside consulting company of one of Brown’s employees to funnel One Door and other funds to Brown and others for their personal use. Further, Simmons acknowledged that more than $200,000 in One Door funds also were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a Beyoncé concert in Washington, D.C.; and the use of a luxury box during an NFL game between the Washington Redskins and the Jacksonville Jaguars in the Washington, D.C. area.
Despite raising over $800,000 in donations, Simmons admitted that One Door was associated with only two scholarships, totaling $1,200, awarded to students to cover expenses related to attending a college or university.
In connection with his guilty plea, Simmons also admitted that he misused his position as Brown’s chief of staff to obtain congressional employment for a close relative, who received over $735,000 in government salary payments between 2001 and early 2016 despite performing no known work for the U.S. House of Representatives. Between 2009 and late 2015, Simmons admitted that he diverted over $80,000 of the relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
Simmons and Brown originally were indicted in July 2016. Brown’s trial has been set for April 24, 2017. The charges and allegations against Brown are merely accusations, and she is presumed innocent until and unless proven guilty. Wiley, the president of One Door, pleaded guilty to wire fraud conspiracy on March 3, 2016, and will be sentenced on June 12, 2017.
The FBI’s Jacksonville Division and IRS-CI investigated the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida are prosecuting the case.
Simmons Plea AgreementFormer Chief of Staff to Member of Congress Pleads Guilty to Fraud and Theft ChargesRead the Press Release
Jacksonville, FL - A former Congressional chief of staff pleaded guilty today for his role in a conspiracy and fraud scheme involving a fraudulent scholarship charity, and for stealing tens of thousands of dollars in congressional salary payments disbursed to a close relative who performed no known work.
U.S. Attorney A. Lee Bentley, III of the Middle District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division, and Special Agent in Charge Mary Hammond of the Internal Revenue Service-Criminal Investigation (IRS-CI) Tampa, Florida, Field Office made the announcement.
Elias “Ronnie” Simmons, 51, of Laurel, Maryland, pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of theft of government property before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida. A sentencing hearing has not yet been set.
In connection with his guilty plea, Simmons admitted that, between late 2012 and early 2016, he and a co-defendant, former Congresswoman Corrine Brown, 70, of Jacksonville, Florida, participated in fraudulent scheme involving the One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the two defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other things. As part of the scheme, Simmons admitted that he and Brown solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives, many of which the defendants led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Simmons further admitted that, contrary to his and Brown’s misrepresentations, Brown, Simmons, One Door president Carla Wiley, and others, used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts. Simmons admitted that he engaged in such cash transactions involving funds from the One Door bank account at Brown’s direction. In one instance, Simmons admitted depositing $2,100 in One Door funds into Brown’s personal bank account the same day that Brown wrote a check for a similar amount to pay taxes to the IRS. Likewise, Simmons admitted that he and Brown also used the outside consulting company of one of Brown’s employees to funnel One Door and other funds to Brown and others for their personal use. Further, Simmons acknowledged that more than $200,000 in One Door funds also were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a Beyoncé concert in Washington, D.C.; and the use of a luxury box during an NFL game between the Washington Redskins and the Jacksonville Jaguars in the Washington, D.C. area.
Despite raising over $800,000 in donations, Simmons admitted that One Door was associated with only two scholarships, totaling $1,200, awarded to students to cover expenses related to attending a college or university.
In connection with his guilty plea, Simmons also admitted that he misused his position as Brown’s chief of staff to obtain congressional employment for a close relative, who received over $735,000 in government salary payments between 2001 and early 2016 despite performing no known work for the U.S. House of Representatives. Between 2009 and late 2015, Simmons admitted that he diverted over $80,000 of the relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
Simmons and Brown originally were indicted in July 2016. Brown’s trial has been set for April 24, 2017. The charges and allegations against Brown are merely accusations, and she is presumed innocent until and unless proven guilty. Wiley, the president of One Door, pleaded guilty to wire fraud conspiracy on March 3, 2016, and will be sentenced on June 12, 2017.
The FBI’s Jacksonville Division and IRS-CI investigated the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida are prosecuting the case.
Former Catholic Priest Sentenced to 30 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
WILMINGTON, Del. – A former U.S. Navy Lt. Commander and ordained Catholic priest was sentenced to 30 years in prison today for charges involving the sexual exploitation of children, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.
John Thomas Matthew Lee, 51, of Millsboro, Delaware, was sentenced by U.S. District Court Judge Leonard P. Stark of the District of Delaware, who also ordered Lee to serve a lifetime term of supervised release. On Nov. 16, 2015, Lee pleaded guilty to one count of production of child pornography and one count of distribution of child pornography. He became a registered sex offender following his 2007 conviction in a general court martial of sexually assaulting another Naval officer while serving as a Chaplain at the U.S. Naval Academy. Lee has been in custody since his arrest on Nov. 3, 2014.
According to admissions made in connection with the plea agreement, following a series of CyberTipline reports from the National Center for Missing and Exploited Children, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) special agents connected Lee with accounts that were being used to upload images of child pornography to several social networking sites. In executing a search warrant at Lee’s Millsboro residence, agents found tens of thousands of child-pornography images on several of Lee’s electronic devices, including his phone. Using online messenger applications and text messages from his cellular phone, Lee also induced several juveniles to send him pornographic images of themselves. Lee uploaded at least one of these images to a publicly-accessible social media site. He also traded other images of child pornography online with other adults.
HSI Resident in Charge Wilmington, Delaware investigated the case with assistance from several other HSI regional offices in locating and interviewing the juvenile victims. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware 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.
Former Catholic Priest Sentenced to 30 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
A former U.S. Navy Lt. Commander and ordained Catholic priest was sentenced to 30 years in prison today for charges involving the sexual exploitation of children, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
John Thomas Matthew Lee, 51, of Millsboro, Delaware, was sentenced by U.S. District Court Judge Leonard P. Stark of the District of Delaware, who also ordered Lee to serve a lifetime term of supervised release. On Nov. 16, 2015, Lee pleaded guilty to one count of production of child pornography and one count of distribution of child pornography. He became a registered sex offender following his 2007 conviction in a general court martial of sexually assaulting another Naval officer while serving as a Chaplain at the U.S. Naval Academy. Lee has been in custody since his arrest on Nov. 3, 2014.
According to admissions made in connection with the plea agreement, following a series of CyberTipline reports from the National Center for Missing and Exploited Children, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) special agents connected Lee with accounts that were being used to upload images of child pornography to several social networking sites. In executing a search warrant at Lee’s Millsboro residence, agents found tens of thousands of child-pornography images on several of Lee’s electronic devices, including his phone. Using online messenger applications and text messages from his cellular phone, Lee also induced several juveniles to send him pornographic images of themselves. Lee uploaded at least one of these images to a publicly-accessible social media site. He also traded other images of child pornography online with other adults.
HSI Resident in Charge Wilmington, Delaware investigated the case with assistance from several other HSI regional offices in locating and interviewing the juvenile victims. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware 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.
Florida Man Pleads Guilty to Hate Crimes for Threatening Muslim Grocery Store OwnersRead the Press Release
James Benjamin Jones, 35, pleaded guilty today to two federal hate crimes for threatening two Muslim grocery stores in Fort Myers, Florida, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and U.S. Attorney A. Lee Bentley III for the Middle District of Florida.
During the plea proceedings, Jones admitted that he threatened the owners of two Muslim grocery stores last year. In June, he threatened to harm the owner of Halal Meat and Grocery, if he did not close down his business. Specifically, Jones threatened the owner “to shut down the business” and said that “four people will come with guns and they will blow up [the owner]” if the store was not closed in one month. The defendant further stated that he and others would be “keeping an eye” on the owner to ensure that the owner was closing the business, as Jones and others “will blow up all Muslims and get this land back.” Later in July, Jones threatened the owner of Sahara Mediterranean Market to close his business down. Jones told the owner of this grocery store that he (Jones) was from “the good temple” and that “we decided whatever happened in Orlando is not gonna (sic) happen again. We don’t need no halal business in the area either you or the other guys (referring to the Halal Meat and Grocery Store) back there.” Jones then told the owner, “so for your safety and your family’s safety, you got two months to go, to leave.”“The defendant made violent threats in an attempt to extinguish people’s economic livelihood simply because of their religion,” said Acting Assistant Attorney General Wheeler. “The Justice Department is committed to vigorously prosecuting the federal laws that prohibit such conduct.”
“Our Office is committed to prosecuting those who threaten others on the basis of their national origin or religious beliefs,” said U.S. Attorney Bentley.
A sentencing hearing has not yet been set.The FBI and the Fort Myers Police Department investigated this matter. Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.
Florida Man Pleads Guilty to Hate Crimes for Threatening Muslim Grocery Store OwnersRead the Press Release
Fort Myers, FL – James Benjamin Jones (34, Fort Myers) pleaded guilty today to two federal hate crimes for threatening two Muslim grocery stores in Fort Myers announced U.S. Attorney A. Lee Bentley, III and Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights.
During the plea proceedings, Jones admitted that he threatened the owners of two Muslim grocery stores last year. In June, he threatened to harm the owner of Halal Meat and Grocery, if he did not close down his business. Specifically, Jones threatened the owner “to shut down the business” and said that “four people will come with guns and they will blow up [the owner]” if the store was not closed in one month. The defendant further stated that he and others would be “keeping an eye” on the owner to ensure that the owner was closing the business, as Jones and others “will blow up all Muslims and get this land back.” Later in July, Jones threatened the owner of Sahara Mediterranean Market to close his business down. Jones told the owner of this grocery store that he (Jones) was from “the good temple” and that “we decided whatever happened in Orlando is not gonna (sic) happen again. We don’t need no halal business in the area either you or the other guys (referring to the Halal Meat and Grocery Store) back there.” Jones then told the owner, “so for your safety and your family’s safety, you got two months to go, to leave.”
“The defendant made violent threats in an attempt to extinguish people’s economic livelihood simply because of their religion,” said Acting Assistant Attorney General Wheeler. “The Justice Department is committed to vigorously prosecuting the federal laws that prohibit such conduct.”
“Our Office is committed to prosecuting those who threaten others on the basis of their national origin or religious beliefs,” said U.S. Attorney Bentley.
A sentencing hearing has not yet been set.
The FBI and the Fort Myers Police Department investigated this matter. Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.
Five Individuals Charged with Fraud Targeting Elderly Victims Throughout the United StatesRead the Press Release
Carlos Rodriguez, Michael Marcov, Stephanie Marcov, and Cody Richey, all from Dubuque or surrounding areas, have been charged with wire fraud. The charges are contained in an Indictment filed today in United States District Court in Cedar Rapids. Another individual, Shawn Vaassen, has been charged in a separate Information with wire fraud relating to the same scheme.
The Indictment and Information allege that, from December 2015 through September 2016, the defendants participated in a scheme to defraud people throughout the United States and that the fraud was primarily targeted towards the elderly. The charges allege that participants in the fraud would call a person on the phone and tell that person that a relative was in jail. The caller would then ask the victim to wire money via Western Union or Money Gram as bail money to get the relative released. The charges allege that the money was being wired to various participants in the fraud who would pick up the wire transfers and eventually the money would be sent overseas.
Rodriguez, Michael Marcov, and Vaassen are being held without bond. Stephanie Marcov remains released subject to conditions of release. Vaassen is scheduled to next appear in court on February 27, 2017, at 9:30 A.M. for a change of plea hearing. Rodriguez, Michael Marcov, and Stephanie Marcov will next appear in court for arraignment on February 9, 2017, at 2:00 P.M.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The prosecution is part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice
Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Homeland Security Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers 17-CR-1001 and 17-CR-1004.
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Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, was indicted yesterday by a federal grand jury in Pittsburgh on a charge of being a felon in possession of a firearm, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Andre Charles Hall, 20, of Pittsburgh, Pennsylvania.
According to the indictment, on or about October 5, 2016, Hall, a convicted felon, was in possession of a firearm.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco and Firearms and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. 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.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts A Jacksonville Gang Founder for Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Maurice Phillip Mitchell (32, Jacksonville) guilty of unlawfully possessing a firearm after having been convicted of a felony. Due to his status as an Armed Career Criminal, he faces a mandatory minimum penalty of 15 years, up to life, in federal prison. A sentencing date has not yet been set. Mitchell has been identified as the founder of a violent gang (“Cut Throat Committee”) operating within Florida’s prison system.
Mitchell was indicted on April 28, 2016.
According to evidence presented at trial, Mitchell was operating a minivan in the Lackawanna area of Jacksonville on February 29, 2016, when he was encountered by a patrol officer with the Jacksonville Sheriff’s Office (JSO). The officer observed signs of intoxication and pursued Mitchell, who led the officer on a high-speed chase and ultimately crashed the minivan into a tree. Mitchell then exited the vehicle and fled on foot. A second JSO patrol officer, who had responded to assist, apprehended Mitchell a short time later, after finding him hiding under an SUV in a nearby parking lot. Upon returning to the scene of the crash, officers found a firearm on the dashboard of the crashed minivan. As a previously convicted felon, Mitchell was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Federal Judge Finds Rwandan Refugee Actively Participated in the Rwandan GenocideRead the Press Release
Chief United States District Court Judge Linda R. Reade has issued a written sentencing memorandum finding that Gervais (“Ken”) Ngombwa, 56, from Cedar Rapids, Iowa, and formerly of Rwanda, “actively participated in the Rwandan genocide.”
Following a jury trial in January 2016, Ngombwa was convicted of one count of unlawfully procuring or attempting to procure naturalization or citizenship, one count of procuring citizenship to which he was not entitled, one count of conspiracy to unlawfully procure citizenship, and one count of making a materially false statement to agents of the Department of Homeland Security. The evidence at trial showed Ngombwa knowingly made several material false statements to gain entry into the United States as a refugee from Rwanda in 1998. Notably, Ngombwa falsely claimed to be the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda, who lives in exile in Belgium. Following the trial, the district court vacated one of Ngombwa’s counts of conviction.
On September 22 and 23, 2016, the court held a two-day sentencing hearing at which it received evidence. At that hearing, the government presented the testimony of multiple witnesses, including agents from the Department of Homeland Security. Much of the testimony pertained to defendant’s conduct in Rwanda in the 1990s. The government presented testimony about the 1994 Rwandan genocide, in which hundreds of thousands of people from the Tutsi ethnic group were killed. The evidence showed that defendant was charged and convicted in two Gacaca courts in Rwanda for his involvement in the Rwandan genocide.
The court then took the contested sentencing issues under advisement. In a 48-page order filed on February 7, 2017, the court found that Ngombwa “actively participated in the genocide.” The court also made other factual findings, including that:
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Ngombwa made several false statements in the course of the refugee resettlement process, including:
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Falsely claiming to be the brother of a moderate Hutu leader;
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Falsely claiming to be related to other adult refugees;
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Failing to disclose the names of numerous relatives living in Rwanda;
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Falsely claiming certain children were his own biological children with his wife Antoinette Mukakabanda;
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Falsely claiming he had not been married to anyone other than Mukakabanda;
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Falsely denying he had relatives in the military; and
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Falsely claiming he, his wife, and his mother-in-law had been beaten by government forces in 1990 before the genocide began.
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Ngombwa was a leader of MDR-Power, a staunchly anti-Tutsi political party;
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Ngombwa’s brother, a member of the military, guarded Ngombwa’s home after the genocide began;
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Witnesses in Rwanda credibly stated Ngombwa personally killed numerous Tutsi, transported and directed the youth militia to kill Tutsi, looted Tutsi property, and led brutal attacks on groups of Tutsi seeking refuge in locations such as a local church and a priest’s compound;
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Ngombwa provided false statements to Department of Homeland Security agents during an April 2014 interview;
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Ngombwa committed perjury at trial and obstructed justice;
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Ngombwa’s prior genocide convictions in the local “gacaca” courts in Rwanda could be relied upon for sentencing; and
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Ngombwa, intentionally set fire to his home in Cedar Rapids and submitted a false insurance claim in 2013.
As a result of its findings, the court determined the appropriate advisory sentencing range under the United States Sentencing Guidelines is 100-125 months’ imprisonment. The court will announce Ngombwa’s sentence at 9:00 a.m. on March 2, 2017, at the United States Courthouse in Cedar Rapids, Iowa. When the court reconvenes on that date, the parties will be free to argue that the court should impose a sentence greater or lesser than that contemplated by the advisory Guidelines range. Chief Judge Reade has already revoked Ngombwa’s United States citizenship.
The case was originally referred to the Department of Homeland Security in 2011 by the Prosecutor General of Rwanda. The case is being prosecuted by Assistant United States Attorneys Richard L. Murphy and Ravi T. Narayan and was investigated by the Department of Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00123.
Follow the office on Twitter @USAO_NDIA.
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Federal Firearms Charges Filed Against Five Men in TopekaRead the Press Release
TOPEKA, KAN. – Five Topeka men were indicted Wednesday in separate cases on federal firearms charges, U. S. Attorney Tom Beall said.
The defendants are:
Amir Antwan Torenze Peppers, 24, who is in custody in the Shawnee County Jail, one count of unlawful possession of a firearm following a felony conviction.
Mason Cameron Reves, 27, Topeka, Kan., one count of unlawful possession of a firearm following a felony conviction, and one count of unlawful possession of a sawed off shotgun.
Bruce Mayo Nichols II, 34, Topeka, Kan., one count of unlawful possession of a firearm following a felony conviction.
Oscar D. Rangel, 28, who is in custody in the Shawnee County Jail, one count of unlawful possession of a firearm following a felony conviction, and one count of possession of a stolen firearm.
Chad C. Ramage, 46, Topeka, Kan., one count of unlawful possession of a firearm following a felony conviction.
Under federal law it is illegal for convicted felons to possess firearms. If convicted, the defendants face up to 10 years in federal prison and a fine up to $250,000. Investigating agencies included the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The cases are being prosecuted by Assistant U.S. Attorney Jared Maag, Assistant U.S. Attorney Greg Hough, and Assistant U.S. Attorney Duston Slinkard.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.