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Friday 2 December 2016
New York Man Sentenced to 11½ Years for Distributing HeroinRead the Press Release
Contact: Julia M. Lipez
Jamie R. Guerrette
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Todd Rasberry, a/k/a “Champagne,” 35, of Brooklyn, New York, was sentenced today in U.S. District Court by Judge Jon D. Levy to 11½ years in prison and three years of supervised release for distributing heroin. The defendant pled guilty to the charge on June 15, 2016.
Court records reveal that on July 15, 2015, federal agents learned that an individual was delivering heroin to a location in Portland. Agents confronted the individual, seized heroin that was packaged for sale, and learned that the individual’s heroin source was located in a motel room in Scarborough, Maine. Agents went to the motel room, seized 51 grams of heroin, packaging material and a digital scale, and arrested the defendant.
This case was investigated the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Scarborough Police Department.
New Orleans Man Charged with Illegal Possession of Firearm and Making False Statements to Federal AgentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRION YOUNG, age 32, was indicted yesterday for being a felon in possession of a firearm and making false statements to federal agents.
According to the Indictment, YOUNG, who had previously been convicted of a felony in the United States District Court for the Eastern District of Louisiana, possessed a firearm on November 24, 2015. Moreover, after he was arrested, on two occasions, YOUNG made false statements to agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, during which he falsely accused a person of taking part in a shooting at the Bunny Friend Park on November 22, 2015. In fact, the person that YOUNG falsely accused was not in Louisiana on the date of the Bunny Friend Park shooting.
If convicted of being a felon in possession of a firearm, YOUNG faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment. For each count of making false statements, YOUNG faces a maximum term of imprisonment of five years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Milford Man Pleads Guilty to Federal Extortion ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HOWARD HAMMER, 45, of New Milford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a federal extortion charge.
According to court documents and statements made in court, in late December 2015 to early January 2016, a loan shark lent an individual approximately $1,500. The individual was required to pay the loan shark the $1,500, plus an additional $500 in interest, within four days of the initial loan. When the individual failed to pay the loan within four days, HAMMER, at the loan shark’s request, agreed to help the loan shark collect on the loan.
In pleading guilty, HAMMER admitted that he sent text messages to the victim that threatened harm to the victim if he failed to pay his debt. He then took screen shots of the threatening text messages and forwarded them to the loan shark. HAMMER and the loan shark also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.
On January 25, 2016, the victim suffered permanent bodily injury in connection with this conduct.
HAMMER pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
Judge Arterton scheduled sentencing for February 24, 2017.
HAMMER has been detained since his arrest on May 27, 2016.
This matter is being investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad. This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Minnesota Chiropractor Convicted of Tax EvasionRead the Press Release
A federal jury sitting in the District of Minnesota convicted a Minnesota chiropractor today of five counts of tax evasion and one count of presenting a fake financial instrument to the U.S. Department of Treasury, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Andrew Luger for the District of Minnesota.
Donald Gibson was convicted following a five-day trial before U.S. District Court Judge Patrick J. Schiltz. According to the evidence presented at trial, Gibson failed to file his 2004 through 2014 individual income tax returns and attempted to evade his income tax liabilities for these years by diverting money to a warehouse bank called MYICIS, cashing over $800,000 in business checks at a check-cashing facility, and submitting fake money orders and bogus financial instruments to the Internal Revenue Service (IRS). Gibson also formed Sovereign Christian Mission (SCM), a purported religious organization, as a way to further hide his chiropractic income and pay for his personal expenses. Gibson used SCM to pay for his groceries, entertainment, dinners, and car repairs. Evidence presented at trial established that while the IRS was auditing his tax returns, and later during the criminal investigation, Gibson presented a fake financial instrument purporting to be worth $300 million to the IRS and claimed that it paid off his income tax liabilities.
“Donald Gibson blatantly disregarded his federal tax obligations, leaving honest taxpayers to bear the burden of his crimes,” said Principal Deputy Assistant Attorney General Ciraolo. “Individuals who ignore their obligations and willfully evade taxes will find that the Department, along with its law enforcement partners at the IRS, is committed to holding them fully accountable for their criminal conduct.”
“This defendant abused the tax system for his own financial benefit,” said U.S. Attorney Luger. “Federal law enforcement will continue to hold accountable those who do not meet their tax obligations, instead shifting their responsibilities onto the backs of honest taxpayers.”
“Today’s guilty verdict of Donald Gibson emphasizes that the IRS and the Department of Justice will continue their aggressive pursuit of those who intentionally evade their taxes,” said IRS Criminal Investigation Special Agent in Charge Shea Jones. “This conviction sends a message that the IRS is working to make sure that all taxpayers file and pay their fair share of taxes.”
Sentencing will be scheduled at a later date. Gibson faces a statutory maximum sentence of 25 years in prison for presenting a fake financial instrument to the Department of Treasury and five years in prison for each of the tax evasion convictions. Gibson also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Luger commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ryan Raybould of the Tax Division and Assistant U.S. Attorney Joseph Thompson, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Michael DePalma of New Hampshire Sentenced to 72 Months for Conspiracy to Distribute Bath Salts Obtained from ChinaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael DePalma, 57, of Plainfield, New Hampshire was sentenced for his role in a conspiracy to distribute alpha-pyrrolidinopentiophenone (“a-PVP”), a synthetic drug commonly referred to as “bath salts.” DePalma was convicted of conspiring with Louis Turcio, 52, of Springfield, Vermont, Andrew Darling, 52, of North Walpole, New Hampshire, Michael Kline, 44, of Chester, Vermont, and Christine Spaulding, 37, of Bellows Falls, Vermont, to distribute a-PVP from March 2014 through June 2015. Chief United States District Judge Christina Reiss sentenced DePalma to 72 months’ imprisonment and three years of supervised release. Judge Reiss previously sentenced Turcio to 72 months’ imprisonment and three years of supervised release; Darling to 53 months’ imprisonment and three years of supervised release; Kline to 36 months’ imprisonment and three years of supervised release; and Spaulding to 24 months’ imprisonment and three years of supervised release. In a related a-PVP conspiracy, Chief Judge Reiss sentenced Jesse Emerson of Springfield to 55 months’ imprisonment and five years of supervised release, and Eugenia Emerson of Bellows Falls, Vermont to 49 months’ imprisonment and three years of supervised release.
According to court records, in 2011 DePalma located an on-line source for bath salts in China. Over the course of the conspiracy, DePalma and his co-conspirators imported kilogram quantities of a-PVP from China for distribution in Springfield, Vermont and neighboring areas. Among the evidence establishing the bath salts conspiracy, during the execution of a search warrant at Turcio’s Springfield residence in March 2015, law enforcement recovered $2,000 in currency, drug paraphernalia, and several handguns, two of which had serial numbers removed. Law enforcement also encountered Kline in a room with a pistol on the dresser. On April 14, 2015, law enforcement intercepted a package of a-PVP en route from China to Vermont, and conducted a controlled delivery of the package at the Springfield, Vermont Post Office. Turcio arrived at the post office to retrieve the package and was intercepted by federal agents. Also on April 14, 2015, Darling was arrested after the Springfield Police Department conducted a stop as Darling was driving DePalma’s car. At that time, law enforcement seized a quantity of bath salts and a 9mm pistol between the driver’s seat and the console. DePalma admitted to law enforcement that he possessed a 9mm handgun that he had received in trade for bath salts.
United States Attorney Eric Miller commended the collaborative efforts of the agencies involved in this investigation, which included the Federal Bureau of Investigation, the Vermont Drug Task Force, the Springfield, Vermont Police Department, the U.S. Postal Inspection Service, the New Hampshire Drug Task Force, Homeland Security Investigations, the Plainfield, New Hampshire Police Department.
The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. DePalma was represented by Jordana Levine, Esq., Darling was represented by Lisa B. Shelkrot, Esq., Turcio was represented by Frank J. Twarog, Esq., Kline was represented by Mark D. Oettinger, Esq., and Christine Spaulding was represented by Jason Sawyer, Esq.
Medical Device CEO Sentenced to One Year in Prison for Tax EvasionRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Briant Benson, 59, of El Dorado Hills, today to 12 months and one day in prison for tax evasion, U.S. Attorney Phillip A. Talbert announced.
According to court documents, during the years 2004 through 2006, Benson failed to file tax returns or pay any personal income tax to the Internal Revenue Service, despite receiving at least $2 million dollars in income as the President and CEO of multiple medical device companies. Further, Benson used corporate funds to support his lavish lifestyle. He used corporate funds to purchase multimillion dollar homes, buy hundreds of thousands of dollars in jewelry and furniture, and pay for lavish travel accommodations such as luxury hotels, private jets, and limousines. Benson also used corporate funds to pay over half a million dollars in gambling debt. Nevertheless, when confronted by IRS officers, Benson denied using corporate funds for his personal use.
Benson’s failure to report his personal income and pay taxes due and owing on that income resulted in a tax loss of at least $249,000.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal and Amy Schuller Hitchcock prosecuted the case.
McAllen Man Convicted of Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 26-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson.
Daniel Ramirez-Tobias came to the attention of law enforcement following an investigation which began on Aug. 1, 2016, into persons using the Internet to traffic in child pornography. A special agent with HSI was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On Oct. 6, 2016, authorities executed a federal search warrant at that residence, during which time they seized a desktop computer. A forensic examination on the computer revealed video files of child pornography involving clearly young children engaged in sexually explicit conduct. These videos include children under the age of 12 involved in sadistic conduct such as bondage, bestiality and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Ramirez-Tobias admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his computer. He further admitted to downloading and subsequently deleting approximately 100 videos of child pornography.
U.S. District Judge Randy Crane, who accepted the guilty plea today, has set sentencing for Feb. 9, 2017. At that time, Ramirez-Tobias faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mass. Resident Detained in RI on Sex Trafficking ChargeRead the Press Release
PROVIDENCE – Andy Joseph, 24, of Brockton, Mass., was ordered detained in federal custody in Rhode Island today on allegations that he sex trafficked a 15-year-old Rhode Island resident over a two-month period this past summer. Joseph, arrested by Homeland Security Investigations agents and Pawtucket Police on Thursday, was ordered detained following an initial appearance today before U.S. District Court Magistrate Judge Lincoln D. Almond.
United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Pawtucket Police Chief Paul King announced the arrest and detention of Andy Joseph on a federal criminal complaint charging him with sex trafficking of a child.
According to information presented to the court, it is alleged that on June 15, 2016, Joseph, who had been communicating with the Rhode Island teenager via an Internet web site, met the 15-year-old in Rhode Island and drove the minor to a hotel room in Seekonk, Mass. It is alleged that once in the hotel room, he photographed the 15-year-old, posting the photographs in advertisements on Backpage.com, offering the young teenager for commercial sexual activity.
It is alleged that between June 15 and August 13, 2016, Joseph arranged for sexual encounters involving the 15-year-old. It is alleged that following each commercial sexual encounter, most or all of the money was turned over to Joseph, at his insistence.
A criminal complaint is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams. The matter was investigated by Homeland Security Investigations and Pawtucket Police.
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Martinsburg man pleads guilty to failing to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dustin Andrew Parsons, 30 of Martinsburg, West Virginia, pled guilty to failing to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Parsons admitted to traveling in interstate commerce and failing to register and update his registration as a sex offender in Berkeley County, West Virginia. Parsons is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.
Parsons pled guilty to one count of “Failure to Register.” He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maritime Instructor Indicted for Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MAURICE GEORGE, age 45, of Napoleonville, was indicted yesterday by a federal grand jury for one count of Conspiracy to Commit Wire Fraud and eight counts of Wire Fraud.
According to the Indictment, GEORGE was employed by Beier Radio, L.L.C., located in Louisiana, which manufactured maritime electronics products including Dynamic Positioning Systems (“DPS”). DPS is a maritime vessel computer system that automatically maintains a vessel’s position and heading by using position reference sensors and the vessel’s propellers and thrusters. Beier operated a DPS training center in Gray, Louisiana under the name “The Marine Training Institute.” Beier’s Marine Training Institute provided technical and operational training courses for Beier DPS customers. In 2007, GEORGE began working as an instructor for Beier Radio’s Marine Training Institute and taught DPS courses at Beier’s Louisiana classroom facility. Typically, Beier charged tuition in the amount of $2,000 to $2,500 for their DPS courses.
Between 2007 and 2013, GEORGE devised a scheme to embezzle approximately $334,892 from Beier Radio. On approximately 225 occasions, GEORGE negotiated monetary payments of approximately $1,200 to $2,000 with “students,” which he kept for himself, in exchange for endorsing and certifying their log books and for issuing DPS certificates of training from Beier Radio. In order to conceal his activities, GEORGE failed to create invoices for his illegal transactions and failed to have DPS students complete registration materials
GEORGE instructed DPS students to pay him directly by check made payable to “MAURICE GEORGE.” GEORGE also forged the signatures of various employees of Beier Radio on the DPS training certificates. The Indictment alleges that GEORGE deposited the illegal payments into his personal checking account with ASI Federal Credit Union. It is important to note that the investigation determined the overwhelming majority of GEORGE’s students did actually attend the DPS courses.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, for each count GEORGE faces a maximum penalty of twenty years imprisonment, followed by up to three years of supervised release, and a $250,0000 fine.
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), as well as the U.S. Coast Guard Investigative Service who assisted HSI in this investigation. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Manhattan U.S. Attorney Announces Arrest of Pakistani Man for Heroin Importation OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James Schrant, Acting Special Agent in Charge of the United States Drug Enforcement Administration (“DEA”) Special Operations Division, announced today the arrest of SHAHBAZ KHAN for conspiring to import and attempting to import heroin into the United States. KHAN was taken into custody by Liberian authorities on December 1, 2016, and expelled to the United States later that same day. He was presented before United States Magistrate Judge James L. Cott today.
U.S. Attorney Preet Bharara stated: “Shahbaz Khan allegedly had designs on establishing an international narcotics smuggling empire. As alleged, Khan sought to arrange for five kilos of ‘100% pure’ heroin to be imported to New York from Asia, promising to supply hundreds of kilograms more. Thanks to the work of the DEA, Khan’s plans have changed dramatically, from arranging massive shipments of heroin to American cities to defending federal narcotics charges in a Manhattan courtroom.”
According to the allegations contained in the Complaint,[1] which was unsealed today:
Between at least in or about August 2016 and October 2016, KHAN participated in a series of telephone calls and in-person meetings in countries in Southwest Asia with individuals who KHAN believed were heroin traffickers interested in purchasing kilogram quantities of heroin for importation into the United States. Those individuals were, in fact, working at the direction of the DEA, including an undercover law enforcement officer (the “UC”). During those meetings and telephone calls, which were recorded, KHAN agreed to supply hundreds of kilograms of heroin from Southwest Asia for importation into the United States and distribution in New York City. KHAN represented that he could send heroin to the United States, Canada, and “anywhere else in the world,” and that he was able to send the narcotics by plane or ship.
In late September 2016, KHAN traveled to a country in Southwest Asia where KHAN met with the UC, among others. During the meeting, KHAN agreed to provide the UC with an initial shipment of five kilograms of heroin for importation into the United States. KHAN informed the UC that, once the five kilograms of heroin successfully arrived in New York City, KHAN would begin supplying the UC with larger quantities of heroin on a regular basis. KHAN further assured the UC that the heroin KHAN would provide was 100% pure.
In early October 2016, one of KHAN’s employees, acting at his direction, delivered the five-kilogram initial shipment of heroin in the same country in Southwest Asia. Through a series of recorded telephone calls, KHAN confirmed with the UC that the heroin his employee had provided was KHAN’s, that the heroin was to be transported to New York City, and that KHAN would be paid for the heroin once it arrived in the United States.
* * *
The Complaint charges KHAN, 68, a citizen of Pakistan, in two counts:
KHAN is charged with one count of conspiracy to import heroin into the United States, and one count of attempting to import heroin into the United States. If convicted of Count One or Count Two, the defendant faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding investigative efforts of the DEA Special Operations Division’s Bilateral Investigations Unit; the DEA Accra, Canberra, Dubai, Islamabad, Kabul, Nairobi, and New Delhi Country Offices; the DEA New York Organized Crime Drug Enforcement Strike Force Financial Investigative Team; the Government of Liberia; the Australian Criminal Intelligence Commission; and the Maldives Police Service. The defendant’s arrest and subsequent expulsion are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the Department of Justice’s Office of International Affairs.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley and Rebekah Donaleski are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Man Who Was a Fugitive for over 13 Years Sentenced to More than 15 Years in Federal PrisonRead the Press Release
A man who absconded from federal pretrial release in 2003 for a federal drug charge in Iowa was sentenced on December 1, 2016, to more than 15 years in federal prison.
Ismael Sanchez-Acevedo, age 39, most recently from Surrey, British Columbia, Canada, received the prison term after an August 18, 2016, guilty plea to one count of possession with intent to distribute 500 grams or more of methamphetamine.
At the guilty plea, Sanchez-Acevedo admitted that in February 2003 he drove from the state of Washington to Iowa with approximately 1 ½ pounds of methamphetamine for resale. Sanchez-Acevedo admitted he hired another man, Kyle Meinecke, to drive him from Washington to Cedar Rapids. Sanchez-Acevedo and Meinecke were found in a Cedar Rapids hotel room on February 3, 2003, after police received complaints of heavy foot traffic to their room. A search of the room revealed over 700 grams of methamphetamine and $2,640 in cash.
Court records reflect Sanchez-Acevedo was charged in federal court on February 7, 2003. He was released to pretrial release on February 17, 2003, and absconded about 10 days later. Court records reflect that Sanchez-Acevedo remained a fugitive until May 20, 2016, when he was arrested in Washington state by Border Patrol. At sentencing, Sanchez-Acevedo said he absconded because he was scared, and that he first fled to California, and then later to Canada. He stated he was returning to Washington in May 2016 to visit his ailing father.
Sanchez-Acevedo was sentenced in Cedar Rapids by Senior United States District Court Chief Judge Mark W. Bennett. Sanchez-Acevedo was sentenced to 188 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Sanchez-Acevedo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 03-CR-00009-MWB.
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Loomis Man Sentenced to 6.5 Years in Prison for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Petr Kuzmenko, 38, of Loomis, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six and a half years in prison and ordered to pay $573,332 in restitution to the IRS for conspiracy to defraud the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kuzmenko was engaged in a tax fraud scheme with four co-defendants, including his brother, who worked as a tax preparer at VK Tax Services in Citrus Heights in 2009. Between February 2009 and November 2009, Kuzmenko conspired with others to file approximately 90 fraudulent tax returns with the IRS. The tax returns fraudulently claimed the First-Time Homebuyer Credit, which was worth as much as $7,500. The refunds for the fraudulent claims were electronically deposited into various bank accounts controlled by Kuzmenko and his co-defendants. The fraudulent claims totaled approximately $695,724, of which the IRS paid approximately $573,000.
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “However, no one is entitled to defraud the government. Today’s sentencing sends a clear message to those who not only intentionally undermine our tax system, but help others so as well: You will not go undetected, and you will be held accountable.”
Kuzmenko was previously convicted in two mortgage fraud cases in this district and sentenced to a total of 21 years in prison for both cases. The sentence imposed in this case was ordered to run concurrent to those sentences.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Co-defendant Aleksandr Kuzmenko was sentenced to over two years in prison on October 28, 2016. Valeriy Nikitchuk pleaded guilty to conspiring to defraud the United States and is scheduled to be sentenced on December 16, 2016. Co-defendant Arsen Muhtarov has entered a plea of not guilty. The charges against him are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Local Senior Home Health Caregiver Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – De’Janay Noldon was indicted for a scheme to defraud three elderly victims of more than $30,000.
According to the indictment, Noldon was employed as a certified nurse’s assistant caregiver with SHC, a senior home health care company located in the Eastern District of Missouri. Noldon was assigned to provide in-home care to one of the victims during the period of her employment with SHC.
Noldon assumed the identity of one victim to obtain a credit card and used two other credit cards belonging to the same victim to make numerous personal purchases, obtain cash advances and pay bills. Noldon also accessed bank accounts belonging to all three of the victims.
Noldon, St. Louis County, was indicted by a federal grand jury late Thursday on multiple charges that include mail fraud, bank fraud, identity theft and social security fraud.
If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Bank fraud carries a maximum of 30 years in prison and/or fines up to $1 million. Identity theft carries a maximum of 15 years in prison and/or fines up to $250,000. Aggravated identity theft carries a two-year mandatory sentence consecutive to any other term of imprisonment. Social security fraud carries a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Anyone believing that they are a victim or having any information may contact the United States Postal Inspection Service at 314-539-9360.
The case was investigated by the U.S. Postal Inspection Service and the Shrewsbury Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Lake Worth Resident Sentenced for Distribution of Fentanyl Resulting in DeathRead the Press Release
Christopher Sharod Massena, 25, of Palm Beach County, was sentenced today to 360 months in prison to be followed by three years supervised release for the distribution of Fentanyl, resulting in the death of a 23 year old man.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
Massena was previously convicted for unlawfully distributing a controlled substance, Fentanyl, which resulted in death.
According to the court record, on February 18, 2016, Massena distributed Fentanyl, a Schedule II controlled substance, to a 23 year old man. The man died of acute Fentanyl toxicity shortly after ingesting the controlled substance. Thereafter, on four separate dates Massena distributed other controlled substance (heroin and heroin mixed with Fetanyl) to an undercover police officer. On the date of his arrest, Massena possessed with the intent to distribute heroin.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, WPBPD, and the Palm Beach Narcotics Task Force for their assistance in this matter. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lackawanna Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jerry Rolon-Alvarez, 37, of Lackawanna, NY, who was convicted of possession with intent to distribute cocaine and heroin, was sentenced to 18 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on November 29, 2014, members of the Lackawanna and Buffalo Police Departments executed a search warrant at 47 Colton Avenue and found Rolon-Alvarez on a bed in the living room. During the search of a cabinet in the kitchen, officers found a large plastic bag containing suspected cocaine, and two plastic wraps containing suspected heroin. There was also a digital scale with heroin residue and a box containing green glassine envelopes located in Rolon-Alvarez’s jacket. Additionally, $2,280 in U.S. currency was seized from the defendant’s pocket. Rolon-Alvarez was arrested by the Lackawanna Police Department.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Lackawanna Police Department, under the direction of Chief James L. Michel.
KC Man Sentenced for Stealing Pistol from Murder VictimRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for stealing a firearm from a murder victim.
Alfred C. Crater, Jr., 40, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to nine years and two months in federal prison without parole.
On Dec. 4, 2015, Crater pleaded guilty to possessing a stolen firearm. Crater admitted that he was in possession of a Hi-Point .40-caliber pistol, which he had stolen from a homicide scene on Feb. 19, 2012. Crater took the pistol from Anthony Wayne Van Buren, a murder victim, before the police arrived at the crime scene. Crater was later stopped by police in the area of Linwood and Indiana, Kansas City, Mo., and found to be in possession of the stolen pistol.
Crater has nine felony convictions, including a prior federal felony conviction for being a felon in possession of a firearm, and was on state probation at the time of the offense.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Kankakee County Man for Bank Fraud Related to Construction LoansRead the Press Release
PEORIA, Ill. – A federal jury deliberated for three hours today before returning guilty verdicts on all counts charged in the trial of Daniel Ballard, 57, of Bourbonnais, Ill., for bank fraud. Chief U.S. District Judge James E. Shadid presided over the trial in Peoria and scheduled sentencing for March 27, 2017. Ballard was allowed to remain on bond pending sentencing.
Evidence presented by the government during the trial, which began on Tuesday, Nov. 29, showed that Ballard obtained a construction loan in December 2009, in the amount of $280,000, to build a residence at 3013 Stone Fence Drive in Bourbonnais. As part of the fraud scheme, and to obtain money from the bank to build the residence, Ballard obtained additional construction loans to build or remodel buildings on other properties he owned in Bradley, Ill.: 411 N. Center; 248 N. Center; and 471 N. Grand. An explicit term of the construction loan disbursing agreement required that work for which Ballard was requesting payment be completed before the bank would disburse funds to the title company.
From December 2009 to May 2012, as part of the scheme to defraud, evidence showed that Ballard falsely stated or caused others to falsely state in documents submitted to the title company that costs had been incurred for labor and / or materials for construction at the Bradley, Ill., properties. In fact, the costs of labor and materials were substantially below the amount represented or were not furnished to the Bradley properties at all.
At sentencing, the maximum statutory penalty for each of the three counts of bank fraud, up to 30 years in prison and fines up to $250,000, is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Eugene M. Miller is prosecuting the case. The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General conducted the case investigation.
Jefferson County man pleads guilty to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Clark Corbin, 41, of Ranson, West Virginia, was convicted of heroin distribution today, United States Attorney William J. Ihlenfeld, II, announced.
Corbin pled guilty to one count of “Possession with Intent to Distribute Heroin.” 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 Paul T. Camilletti and Special Assistant U.S. Attorney Lara Omps-Botteicher, also of the West Virginia Assistant Attorney General’s Office, prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
International Arms Trafficker Sentenced to 10 Years in Prison for Conspiring to Kill Americans and Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
Virgil Flaviu Georgescu, a Dual U.S.-Romanian Citizen, Agreed to Provide Military-Grade Weapons to be Used to Shoot Down American Aircraft in Colombia
Virgil Flaviu Georgescu, 43, was sentenced to 10 years in prison for conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (FARC), a designated foreign terrorist organization, to be used to kill Americans in Colombia. Georgescu was sentenced today in Manhattan federal court by U.S. District Court Judge Ronnie Abrams.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney Preet Bharara for the Southern District of New York.
“Virgil Flaviu Georgescu was convicted by a unanimous jury of conspiring to sell the FARC military weapons, including anti-aircraft cannons and rocket propelled grenades, to be used against American personnel and aircraft,” said U.S. Attorney Bharara. “Having sought to profit from the murder of U.S. officers abroad, Georgescu will now spend years in a U.S. prison.”
According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
Between May 2014 and December 2014, Georgescu, a Romania-based weapons broker, conspired with his co-defendants, a former Romanian government official and a former member of the Italian Parliament, to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, to the FARC, with the understanding that the FARC would use the weapons against United States personnel in Colombia. During a series of recorded telephone calls and in-person meetings, Georgescu and his co-conspirators agreed to sell the weapons to three confidential sources (CSs), who represented that they were acquiring these weapons for the FARC but were, in fact, working with the Drug Enforcement Administration (DEA). Georgescu and his co-conspirators agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes.
Georgescu first spoke with a CS in May 2014. Thereafter, Georgescu recruited both of his co-conspirators to help obtain the weapons for the CSs, with the understanding that the former Romanian government official would provide weapons expertise and the former Italian member of Parliament would help secure fraudulent end-user certificates, in order to make the illegal sale of weapons look legitimate. Georgescu instructed his co-conspirators and others involved in the deal to use encrypted applications when communicating about the weapons deal to avoid detection by U.S. authorities.
Over the course of five consensually-recorded meetings with the CSs in Romania and Montenegro, Georgescu and his co-conspirators provided the CSs with catalogues of weapons that included anti-aircraft cannons, rocket propelled and thermobaric grenades and other high-powered weapons, as well as military-grade optical equipment. During these meetings, the CSs explained that the arms would be used to kill Americans and Georgescu offered his thoughts on what weapons would best suit the FARC’s needs.
Between September 2014 and December 2014, Georgescu and his co-conspirators traveled to Romania, Montenegro, Italy, Germany, Albania, Poland and Bulgaria to advance the weapons deal. During this period, the co-conspirators met with weapons suppliers, obtained sample fraudulent end-user certificates and test-fired military-grade rifles. In December 2014, Georgescu and his co-conspirators secured a signed contract from a European weapons supplier to provide more than $17 million dollars’ worth of weapons to a straw purchaser. After obtaining the signed contract, Georgescu and one of his co-conspirators secretly altered the document in order to increase the conspirators’ personal profits from the weapons sale. On Dec. 15, 2014, Georgescu met with the CSs, showed them the contract and discussed means of payment and transportation of the weapons to Colombia.
* * *
Georgescu was arrested by Montenegrin authorities on the charges in the indictment on Dec. 15, 2014, and extradited to the United States on Feb. 25, 2015. On May 25, following a 10-day jury trial in Manhattan federal court before Judge Abrams, Georgescu was convicted of one count of conspiracy to kill United States officers or employees and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization. In addition to the prison term, Georgescu was sentenced to three years of supervised release.
Acting Assistant Attorney General McCord and U.S Attorney Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities. U.S Attorney Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs.
This prosecution is being handled by the office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrea Surratt and Ilan Graff are in charge of the prosecution, with assistance from Trial Attorneys Josh Parecki and Benita Corlett of the Counterterrorism Section.
International Arms Trafficker Sentenced to 10 Years in Prison for Conspiring to Kill Americans and Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that VIRGIL FLAVIU GEORGESCU was sentenced to 10 years in prison for conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”) – a designated foreign terrorist organization – to be used to kill Americans in Colombia. GEORGESCU was sentenced today in Manhattan federal court by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “Virgil Flaviu Georgescu was convicted by a unanimous jury of conspiring to sell the FARC military weapons, including anti-aircraft cannons and rocket-propelled grenades, to be used against American personnel and aircraft. Having sought to profit from the murder of U.S. officers abroad, Georgescu will now spend years in a U.S. prison.”
According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
Between May 2014 and December 2014, GEORGESCU, a Romania-based weapons broker, conspired with his co-defendants, a former Romanian government official and a former member of the Italian Parliament, to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, to the FARC, with the understanding that the FARC would use the weapons against United States personnel in Colombia. During a series of recorded telephone calls and in-person meetings, GEORGESCU and his co-conspirators agreed to sell the weapons to three confidential sources (the “CSs”), who represented that they were acquiring these weapons for the FARC but were, in fact, working with the Drug Enforcement Administration (“DEA”). GEORGESCU and his co-conspirators agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes.
GEORGESCU first spoke with a CS in May 2014. Thereafter, GEORGESCU recruited both of his co-conspirators to help obtain the weapons for the CSs, with the understanding that the former Romanian government official would provide weapons expertise and the former Italian member of Parliament would help secure fraudulent end-user certificates, in order to make the illegal sale of weapons look legitimate. GEORGESCU instructed his co-conspirators and others involved in the deal to use encrypted applications when communicating about the weapons deal to avoid detection by U.S. authorities.
Over the course of five consensually recorded meetings with the CSs in Romania and Montenegro, GEORGESCU and his co-conspirators provided the CSs with catalogues of weapons that included anti-aircraft cannons, rocket-propelled and thermobaric grenades, and other high-powered weapons, as well as military-grade optical equipment. During these meetings, the CSs explained that the arms would be used to kill Americans and GEORGESCU offered his thoughts on what weapons would best suit the FARC’s needs.
Between September 2014 and December 2014, GEORGESCU and his co-conspirators traveled to Romania, Montenegro, Italy, Germany, Albania, Poland, and Bulgaria to advance the weapons deal. During this period, the co-conspirators met with weapons suppliers, obtained sample fraudulent end-user certificates, and test-fired military-grade rifles. In December 2014, GEORGESCU and his co-conspirators secured a signed contract from a European weapons supplier to provide more than $17 million dollars’ worth of weapons to a straw purchaser. After obtaining the signed contract, GEORGESCU and one of his co-conspirators secretly altered the document in order to increase the conspirators’ personal profits from the weapons sale. On December 15, 2014, GEORGESCU met with the CSs, showed them the contract, and discussed means of payment and transportation of the weapons to Colombia.
* * *
GEORGESCU, 43, was arrested by Montenegrin authorities on the charges in the Indictment on December 15, 2014, and extradited to the United States on February 25, 2015. On May 25, 2016, following a 10-day jury trial in Manhattan federal court before Judge Abrams, GEORGESCU was convicted of one count of conspiracy to kill United States officers or employees and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization. In addition to the prison term, GEORGESCU was sentenced to three years of supervised release.
Mr. Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrea Surratt and Ilan Graff are in charge of the prosecution, with assistance from Trial Attorneys Josh Parecki and Benita Corlett of the Counterterrorism Section.
Individual Arrested for Possession with Intent to Distribute Cocaine at the Luis Muñoz Marín International AirportRead the Press Release
San Juan, Puerto Rico– Today, U.S. Magistrate Judge Silvia Carreño-Coll authorized a complaint charging Abraham Moisés Pagán-Rola with drug trafficking at the Luis Muñoz Marín International Airport in Carolina, P.R. (LMMIA), announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The Drug Enforcement Administration is in charge of the investigation.
Today, at approximately 5:00 am, AirTAT agents were conducting random interdictions on JetBlue Flight #1504 departing San Juan LMMIA in Carolina, Puerto Rico destined to the John F. Kennedy International Airport in New York, NY. AirTAT agents encountered passenger Abraham Moises Pagán-Rola at the JetBlue A-4 gate, where the flight was scheduled to depart and interviewed him. Pagán-Rola was acting nervous and suspiciously when the agents asked if they could search his carry-on bag. The defendant gave consent and the agents found fifteen (15) bricks of cocaine inside Pagán-Rola’s carry-on bag weighing approximately 16.7 kilograms.
This case is being prosecuted by Assistant U.S. Attorney Stuart Zander. The case was investigated by the Airport Investigations and Tactical Team (AirTAT).
The maximum penalties for these offenses are at least 10 years but not more than 40 years of imprisonment. A criminal complaint is an accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.
Houston Couple Pleads Guilty in the Midst of Stolen Identity Tax Fraud TrialRead the Press Release
HOUSTON – A 31-year-old legal permanent resident from Nigeria and his 30-year-old Houston girlfriend have entered guilty pleas in a stolen identity tax fraud scheme after four days of trial and hearing the testimony of 21 witnesses, announced U.S. Attorney Kenneth Magidson.
Tom Emasealu pleaded guilty yesterday to all charges contained in the indictment - conspiracy, possession of at least 15 unauthorized access devices, access device fraud, wire fraud and aggravated identity theft. This morning, his co-defendant and girlfriend, Krystal Prophet, pleaded guilty to conspiracy, access device fraud, wire fraud and aggravated identity theft.
According to witness testimony and the evidence admitted during trial, the conspiracy began in January 2014 and continued through May 2015. Emasealu and Prophet conspired and worked together to obtain the identities of approximately 50,000 victims located nationwide which they used to apply for debit and credit cards with various banking institutions.
The evidence showed that Emasealu and Prophet applied for and obtained approximately 230 debit cards using identities of other individuals. These identities were then used to apply for fraudulent tax refunds. The monies were deposited onto the debit cards that were previously created using victim identities.
In total, the defendants attempted to obtain approximately $1.9 million in fraudulent tax refunds. The IRS was able to stop the majority of the transactions, but Emasealu and Prophet still managed to obtain approximately $250,000 in a four-month period.
The conspiracy conviction carries up to five years imprisonment, while the possession of 15 or more unauthorized access devices and trafficking in unauthorized access devices both carry possible maximum sentences of 10 years. They also face another possible 20 years for the conviction of wire fraud. Each count of aggravated identity theft carries a mandatory two-year-term of imprisonment which ust be served consecutively to any other sentence imposed.
U.S. District Judge Vanessa Gilmore accepted the pleas and set sentencing for March 6, 2017. Emasealu will remain in custody while Prophet was permitted to remain on bond pending that hearing.
The U.S. Postal Inspection Service, Secret Service and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
Governor’s Security Officer Pleads Guilty to Smuggling More Than 21 Kilograms of Cocaine Through St. Thomas AirportRead the Press Release
St. Thomas, USVI – On Thursday, December 1, 2016, Neal A. Chesterfield, 39, of St. Thomas, Virgin Islands, pleaded guilty before District Judge Curtis V. Gomez to possession with intent to distribute approximately 21½ kilograms of cocaine, United States Attorney Ronald W. Sharpe announced. His sentencing is scheduled for April 6, 2017.
According to the plea agreement filed with the court, on September 3, 2016, Chesterfield a Security Officer for Governor Kenneth Mapp, used his law enforcement credentials to bypass Transportation Security Administration screening and was about to board Spirit Airlines flight 212 destined for Fort Lauderdale, Florida, when he was approached by U.S. Customs and Border Protection (CBP) officers. When first questioned by CBP, Chesterfield claimed possession of a small black carry-on bag but later denied ownership after a CBP K-9 alerted to the presence of narcotics inside the bag. At secondary screening, CBP officers inspected the carry-on and discovered 18 plastic-wrapped packages, the contents of which tested positive for 21.44 kilograms of cocaine. CBP officers also discovered $26,025 in U.S. currency inside of a small computer bag also in Chesterfield’s possession.
Chesterfield faces a term of imprisonment of not less than 10 years and not more than life in prison, and a fine of up to $10,000,000. He was remanded to the custody of the United States Marshal Service pending sentencing.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Delia Smith
Government Contractor Indicted for Making False Claims and False StatementsRead the Press Release
Baltimore, Maryland – A federal grand jury has charged Shawn Penn, age 41, of Pasadena, with making false claims and false statements, for allegedly falsely representing to her employer that she was working as a security guard at a government facility, when she was actually elsewhere. The indictment was returned on December 1, 2016.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to the five-count indictment, Penn worked as a contract employee performing security guard services for the U.S. Department of Defense in Anne Arundel County, Maryland. In addition, Penn worked full-time, during regular business hours, as an active duty U.S. Army Intelligence Officer at Fort Meade, Maryland.
Penn performed her security guard services for a sensitive compartmented information facility (SCIF), which required that she hold a Top Secret-Sensitive Compartmented Information security clearance, possess a gun permit, and carry a government issued duty cell phone while on duty. Penn’s work locations had surveillance cameras that monitored her work station area, and areas inside and outside the building. Penn’s duties included reviewing computer monitors with live video from security cameras, checking for alarms, monitoring the temperature in the facility and performing exterior security sweeps.
The indictment alleges that from September 2015 to August 2016, Penn regularly abandoned her work station and falsely represented to her employer that she had been working as a security guard when she was actually elsewhere. According to the indictment, Penn’s false claims regarding her security work hours caused the government to pay more than $40,000 to her employers to which they and Penn were not entitled.
Further, the indictment alleges that on October 6, 2016, Penn falsely stated to investigators from the Defense Criminal Investigative Service that she had not abandoned her security guard duties until January 2016, when in fact, she had been abandoning her duties since at least September 2015; and that she falsely claimed that she “sat in her car,” was “across the street,” or “drove around the parking lot,” during her guard shifts, when Penn knew she was elsewhere during those shifts.
Penn faces a maximum sentence of five years in prison for each of the four counts of making false claims, and for making false statements. Penn had an initial appearance and arraignment this afternoon in U.S. District Court in Baltimore and was released under the supervision of U.S. Pretrial Services.
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 commended the DCIS for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
Gonic Woman Sentenced in Connection with Drug Distribution Causing DeathRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Jazzmyn Rood, 42, of Gonic, New Hampshire, was sentenced to 24 months in federal prison and one year supervised release after pleading guilty to misprision of a felony in connection with the distribution of a controlled substance resulting in the death of her daughter Evangelique Tarmey.
According to documents that were filed in United States District Court and statements at the sentencing proceeding, the defendant was staying at the Riviera Motel with her boyfriend Mark Ross and Tarmey. On October 16, 2015, Ross traveled with Tarmey and another to Lawrence, Massachusetts, in order to obtain a quantity of heroin. Ross returned to the Riviera Motel and injected Rood with the drug and then injected himself with the drug. Ross provided a quantity of the drug to Tarmey and told Rood he had done so. The following morning, Tarmey was found dead in the motel room. The New Hampshire Medical Examiner later found that Ms. Tarmey died of acute fentanyl intoxication.
The Rochester Police responded to the motel on the morning of October 17, 2015. Rood was interviewed by the police and denied that Ross or she had used any controlled substances during the prior evening.
United States Attorney Rice said, “I want to thank the Rochester Police Department and the Drug Enforcement Administration for their work on this case. Fighting the opioid epidemic is a multi-pronged, team effort. One facet of our attack is to prosecute those who are criminally responsible for causing drug overdoses. We will continue to work with law enforcement agencies to identify and prosecute the individuals who distribute drugs that cause overdose deaths and those who provide the police with false information in those investigations.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so in this case given the young age of the victim,” said DEA Special Agent in Charge Michael J. Ferguson. “Those suffering from the disease of fentanyl and heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs like fentanyl and heroin to the citizens of New Hampshire and those who conceal or provide false information need to be held accountable for their actions. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
In April 2016, the United States Attorney’s Office and the New Hampshire Attorney General’s Office announced the formation of an inter-office team of prosecutors who will work together to prosecute individuals who cause opiate overdoses in New Hampshire. This prosecution, initiated before the creation of the joint team, is an example of the type of case that will be generated by the team.
The case was investigated by the Rochester Police Department and the Drug Enforcement Administration assisted in the investigation.
Fulton Woman Pleads Guilty to $2 Million Money Laundering Related to Distributing K2Read the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Fulton, Mo, woman has pleaded guilty in federal court to her role in a money-laundering conspiracy related to the distribution of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.
Dara Leanne Shirley, 30, of Fulton, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Thursday, Dec. 1, 2016, to the charge contained in an April 20, 2016, federal indictment. Shirley and others operated Inscentives Auto and Inscentives Resale, which sold synthetic cannabinoids at its Fulton and Auxvasse, Mo., locations.
By pleading guilty, Shirley admitted that she conspired to conduct financial transactions from Dec. 18, 2012, to July 16, 2015, which involved the proceeds of unlawful activity. These transactions were intended to promote the illegal distribution of synthetic cannabinoids and to conceal the nature and source of the proceeds. Shirley and her co-conspirators intended to defraud government authorities by packaging synthetic cannabinoids in such a way as to avoid government regulation over these drugs and to continue selling these drugs.
Shirley also admitted that she and other conspirators paid at least $1,986,442 for synthetic cannabinoids.
Shirley is the third defendant to plead guilty in this case.
Co-defendant Casey Dewayne Miller, 32, of Columbia, pleaded guilty on Nov. 16, 2016, to distributing synthetic cannabinoids. Miller admitted that he sold synthetic cannabinoids to an undercover law enforcement officer on July 16, 2015, while working at Inscentives Resale in Fulton. Miller told officers that he had been employed at the store for two years. Officers executed a search warrant at Inscentives Resale the same day and seized 148 packages of synthetic cannabinoids from behind the sales counter and a loaded Ruger .40-caliber handgun.
Co-defendant Billie L. Bruce, 36, of Jefferson City, pleaded guilty on Sept. 21, 2016, to distributing synthetic cannabinoids. Bruce admitted that he sold synthetic cannabinoids to an undercover law enforcement officer on July 16, 2015, while working at S&J Tobacco in Holts Summit. Bruce told officers that he had been employed at the store for three or four months. Officers executed a search warrant at S&J Tobacco the same day and seized 2,241.5 grams of synthetic cannabinoids and a Hi-Point .40-caliber handgun, which was located next to the cash register.
Under the terms of the plea agreement, the government and Shirley agree that a sentence of 63 to 78 months is appropriate. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.
Fraudster Sentenced to 95 Months for Bank Fraud and Aggravated Identity TheftRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Chief Judge Brian A. Jackson sentenced MARSHA COLE, also known as Sandra McPherson, age 57, of Metairie, Louisiana, to ninety-five (95) months in federal prison as a result of her bank fraud scheme across several states in which she attempted to embezzle over $137,000 from elderly victims’ bank accounts. COLE was ordered to pay restitution to her victims in the amount of $103,482, to pay a $200 special assessment, and to serve a five-year term of supervised release following her term of imprisonment.
On July 13, 2016, COLE pled guilty to one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
COLE stole the personal identifying information (PII) of her victims and used that information to create fraudulent identification cards. Armed with that information, she went to her victim’s banks and withdrew funds. In order to obtain the funds, COLE forged the signatures of her victims. COLE attempted over to withdraw over $137,000 through over thirty-one (31) attempted withdrawals from her victim’s accounts at twenty-one (21) different banks in Louisiana, Mississippi and Texas. She successfully withdrew over $103,482 from her victims’ accounts.
U.S. Attorney Green stated: “This sentence reflects the significant impact of identity theft and bank fraud on victims. Together with the FBI and our other federal, state, and local partners, we will continue to aggressively pursue these types of cases through federal criminal investigations and prosecutions.”
This matter was prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, and the Louisiana State Police. The matter was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Former Tax Preparer Sentenced to Prison for Fraud, ID TheftRead the Press Release
PROVIDENCE – A Cranston resident was sentenced to serve 36 months in prison today for aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Peter F. Neronha.
Belkis M. Guzman, 48, was a former employee of El Centro Multiservicios LLC, a tax preparation business located in Providence. Guzman was involved in two separate and distinct schemes. The first scheme involved the preparation and presentation of false individual income tax returns (Forms 1040) on behalf of El Centro clients for tax years 2009, 2010, and 2011, on which Guzman created, inflated and falsified dependents, exemptions, credits, deductions and expenses.
The second scheme involved the deposit of more than 100 U.S. Treasury checks into Guzman’s personal checking account. The Treasury checks were generated by the filing of fraudulent individual income tax returns containing stolen personal identifying information and fraudulent amounts of income, deductions and credits. Guzman aided the scheme by depositing more than $800,700 in fraudulently obtained refund checks into her bank account after signing many of the checks in place of the payees who were unknown to her, and then providing a majority of the proceeds to a third party in the form of cash and personal checks. Guzman received a percentage as payment for depositing the checks into her account.
Guzman previously pleaded guilty on Sept. 8, to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft. In addition to the prison term imposed, Guzman was also ordered to serve three years of supervised release and to pay $928,224.95 in restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney W. Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Former Supervisory Contracting Officer Sentenced to 72 Months in Prison as Part of Expanding Navy Bribery ScandalRead the Press Release
A former supervisory contracting officer was sentenced to 72 months in prison today for accepting bribe payments in exchange for steering U.S. Navy contracts to the president and chief executive officer of a defense contractor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) made the announcement.
Paul Simpkins, 62, of Haymarket, Virginia, was sentenced by U.S. District Judge Janis L. Sammartino of the Southern District of California for his role in steering contracts to Leonard Francis, the president and CEO of Glenn Defense Marine Asia (GDMA). Judge Sammartino also ordered Simpkins to pay $450,000 in restitution, to forfeit $150,000 and pay a $50,000 fine. Simpkins pleaded guilty on June 23 to conspiracy to commit bribery and bribery.
“Paul Simpkins abused his position as a Navy contracting officer to obtain cash, air travel, hotel rooms and prostitutes,” said Assistant Attorney General Caldwell. “Along with others convicted in this ongoing investigation, Simpkins tarnished the reputation earned by the U.S. Navy officers and enlisted and civilian personnel who honorably serve this nation every day.”
“With premeditation beyond that of many of the other defendants in this case, Simpkins methodically plotted to receive hundreds of thousands of dollars in bribe money and launder it through a secret foreign bank account in someone else’s name,” said U.S. Attorney Duffy. “We tip our hat to the investigators who discovered this crime and brought the perpetrator to justice. With the lengthy prison sentence imposed today, we take another step on this long journey toward deterring future misconduct and restoring the public’s trust in our most storied institutions.”
“Simpkins is yet another example of an individual forsaking his responsibility to American warfighters and taxpayers in favor of personal gain,” said Director Traver. “As the GDMA investigation moves forward, NCIS will continue to fulfill our responsibility of holding people like Simpkins accountable for their actions.”
“Today’s sentencing of Paul Simpkins is yet another example of the continued dedication by DCIS and our law enforcement partners to bring to justice those individuals who would abuse their positions of trust within the Department of Defense,” said Director O’Reilly. “Corrupt contracting practices damage the public trust and ultimately undermine the efforts of the Department of Defense to support our men and women in uniform.”
According to admissions made as part of his plea agreement, Simpkins held a number of managerial-level contracting positions throughout the federal government, including positions as a supervisory contract specialist at the U.S. Navy Regional Contracting Center in Singapore from April 2005 through June 2007; a contracting officer assistant director with the Executive Office of U.S. Attorneys in Washington from June 2007 to December 2007; and as a supervisory manager in the Department of Defense’s (DoD) Office of Small Business Programs beginning in December 2007. Simpkins admitted that from approximately May 2006 to September 2012, he participated in a bribery scheme with Francis in which he accepted travel and entertainment expenses, the services of prostitutes and at least $300,000 in exchange for helping to steer lucrative U.S. Navy contract to Francis and GDMA. Simpkins provided Francis with internal, proprietary U.S. Navy information and intervened on GDMA’s behalf in contract disputes, he admitted.
To conceal the true nature of wire transfers, Simpkins used an email account belonging to his mistress to advise Francis of the routing and account information for a bank account belonging to his wife. In another email, Simpkins asked Francis to provide “some clean, disease free” women and in another email Simpkins advised Francis that he “will arrive in Singapore on 11 September. Whats [sic] the plan to meet up and maybe do some honey’s? [sic]”
Simpkins used his influence within the U.S. Navy to benefit GDMA, including by helping GDMA to secure valuable ship husbanding contracts to service U.S. Navy vessels in Thailand and the Philippines, he admitted. In addition, Simpkins interceded on GDMA’s behalf in contract disputes with the U.S. Navy. In one incident in 2006, for example, Simpkins’s subordinate recommended that GDMA’s husbanding contract in Thailand not be extended due to “many exceedingly high cost” items and concluded that the contract should be re-opened to competitive bidding, which would have allowed other firms to bid on the contract. Simpkins overruled the subordinate and extended GDMA’s contract, he admitted. In another example, Simpkins instructed U.S. Navy officials in Hong Kong to discontinue the use of meters that monitored the volume of liquid waste that GDMA removed from U.S. Navy ships under its husbanding contracts. In June 2006, Simpkins instructed a U.S. Navy official not to review invoices that GDMA submitted in connection to a recent port call in Hong Kong after Francis complained that U.S. Navy personnel were asking questions, Simpkins admitted.
To date, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Francis has pleaded guilty and awaits sentencing. As part of his plea agreement, Francis admitted to over-billing the U.S. Navy for over $35 million on ship husbanding contracts by, among other means, reporting that GMDA had removed more liquid waste from ships than it actually did. Four other GDMA executives have also been charged, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Wisidagama has pleaded guilty and was sentenced on March 18 to 63 months in prison and $34.8 million in restitution to the Navy. Aruffo has pleaded guilty and awaits sentencing; Peterson’s and Raja’s cases are pending.
The remaining 11 of the 16 individuals charged are current or former U.S. Navy officials, including Admiral Robert Gilbeau, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, former NCIS Supervisory Special Agent John Beliveau II, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.
Gilbeau, Debord, Dusek, Misiewicz, Malaki, Beliveau, Sanchez and Layug have also pleaded guilty in connection with the scheme. On Jan. 21, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; on April 29, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy; and on Oct. 14, 2015, Beliveau was sentenced to serve 144 months in prison and ordered to pay $20 million in restitution to the Navy. Gilbeau and Sanchez await sentencing. Pitts was charged in May 2016 and his case remains pending.
NCIS, DCIS and DCAA investigated the case. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Former Rhode Island Tax Return Preparer Sentenced to Prison for Tax Preparation Fraud Scheme and Aggravated Identity TheftRead the Press Release
A Cranston, Rhode Island resident was sentenced to serve 36 months in prison today for aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Peter F. Neronha for the District of Rhode Island.
Belkis M. Guzman, 48, was a former employee of El Centro Multiservicios LLC, a tax preparation business located in Providence, Rhode Island. Guzman was involved in two separate and distinct schemes. The first scheme involved the preparation and presentation of false individual income tax returns (Forms 1040) on behalf of El Centro clients for tax years 2009, 2010, and 2011, on which Guzman created, inflated and falsified dependents, exemptions, credits, deductions and expenses.
The second scheme involved the deposit of more than 100 U.S. Treasury checks into Guzman’s personal checking account. The Treasury checks were generated by the filing of fraudulent individual income tax returns containing stolen personal identifying information and fraudulent amounts of income, deductions and credits. Guzman aided the scheme by depositing more than $800,700 in fraudulently obtained refund checks into her bank account after signing many of the checks in place of the payees who were unknown to her, and then providing a majority of the proceeds to a third party in the form of cash and personal checks. Guzman received a percentage as payment for depositing the checks into her account.
Guzman previously pleaded guilty on Sept. 8, to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft. In addition to the prison term imposed, Guzman was also ordered to serve three years of supervised release and to pay $928,224.95 in restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Property Management Company to Pay $1.6 Million for Defrauding Military Housing ProjectsRead the Press Release
ALEXANDRIA, Va. – American Management Services LLC, based in Seattle, agreed to pay approximately than $1.6 million pursuant to a deferred prosecution agreement to resolve criminal charges that the company defrauded the U.S. Army and Virginia-based Clark Realty Capital LLC (Clark) while performing property management services for military housing at Fort Belvoir, Virginia; Fort Benning, Georgia; Fort Irwin, California; and the Presidio at Monterey, California.
In connection with today’s resolution, American Management Services (also known as AMS or Pinnacle) admitted that from 2004 to 2011, it fraudulently obtained approximately $1 million by skimming and concealing undisclosed fees from insurance premiums paid by entities that oversaw privatized housing at the four bases.
According to factual stipulations agreed to by AMS, beginning in or about 2003, the U.S. Army entered into a series of agreements with AMS and Clark to implement the Military Housing Privatization Initiative, which was established to improve housing conditions for members of the armed forces. At each base, a Clark-affiliated entity was given responsibility for developing new housing and general oversight, and an AMS-affiliated entity was given responsible for routine property management services, including obtaining property and general liability insurance.
Also according to the factual stipulation, AMS was paid a fee pursuant to the agreement at each base for its services, which was the sole compensation AMS was permitted to receive. Any excess funds not spent under the agreements were obligated to be used, at least in part, to renovate and construct new military housing. Among the services it provided, AMS arranged for property and general liability insurance for each military base through an insurance broker that would invoice the premiums to Clark and the Army. Unbeknownst to the Army or Clark, however, that broker kicked back to AMS a “risk management fee” taken from the premiums paid by Clark, the Army and various joint AMS-Clark entities, which AMS concealed in invoices to the Army and Clark.
Under the terms of the agreement entered into between AMS and the United States, the United States agreed to defer prosecution of AMS for a period of three years on a pending criminal information, which charges AMS with major government fraud. In exchange, AMS admitted its criminal conduct, agreed to pay a fine of $1,625,124.80 and agreed to be subject to other terms and conditions for the period of the agreement. The United States may seek to prosecute AMS for the scheme if the company violates the terms of the agreement or commits other criminal conduct as outlined in the agreement.
Two individuals previously pleaded guilty and were sentenced as part of the government’s investigation: Eddie T. Hudspeth III, a former AMS maintenance director at Fort Belvoir, was sentenced in May 2015 to two years in prison and fined $15,000 for soliciting and accepting more than $27,000 in kickbacks from a heating, ventilation and air-conditioning company based in Lorton, Virginia, from December 2008 through February 2011; and Philip Robrahn, a partial owner of that company, was sentenced to probation and ordered to pay a $10,000 fine for his role in the kickback scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; Director Frank Robey of U.S. Army Criminal Investigation Command (CID); Special Agent in Charge Robert E. Craig of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; and Director Anita Bales of the Defense Contract Audit Agency (DCAA) made the announcement after U.S. District Judge Claude M. Hilton entered an order approving the agreement. Assistant U.S. Attorney Ryan S. Faulconer and Trial Attorney Jennifer Ballantyne are prosecuting the case.
The Defense Contract Audit Agency assisted in the investigation.
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 Nos. 1:16-cr-249, 1:15-cr-45, and 1:15-cr-46.
Former Property Management Company Agrees to Pay More Than $1.6 Million for Defrauding Military Housing ProjectsRead the Press Release
American Management Services LLC, based in Seattle, agreed to pay more than $1.6 million pursuant to a deferred prosecution agreement to resolve criminal charges that the company defrauded the U.S. Army and Virginia-based Clark Realty Capital LLC (Clark) while performing property management services for military housing at Fort Belvoir, Virginia; Fort Benning, Georgia; Fort Irwin, California; and the Presidio at Monterey, California.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; Director Frank Robey of U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit; Special Agent in Charge Robert E. Craig of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; and Director Anita Bales of the Defense Contract Audit Agency (DCAA) made the announcement after U.S. District Judge Claude M. Hilton of the Eastern District of Virginia entered an order approving the agreement.
In connection with today’s resolution, American Management Services (also known as AMS or Pinnacle) admitted that from 2004 to 2011, it fraudulently obtained approximately $1 million by skimming and concealing undisclosed fees from insurance premiums paid by entities that oversaw privatized housing at the four bases.
According to factual stipulations agreed to by AMS, beginning in or about 2003, the U.S. Army entered into a series of agreements with AMS and Clark to implement the Military Housing Privatization Initiative, which was established to improve housing conditions for members of the armed forces. At each base, a Clark-affiliated entity was given responsibility for developing new housing and general oversight, and an AMS-affiliated entity was given responsible for routine property management services, including obtaining property and general liability insurance.
Also according to the factual stipulation, AMS was paid a fee pursuant to the agreement at each base for its services, which was the sole compensation AMS was permitted to receive. Any excess funds not spent under the agreements were obligated to be used, at least in part, to renovate and construct new military housing. Among the services it provided, AMS arranged for property and general liability insurance for each military base through an insurance broker that would invoice the premiums to Clark and the Army. Unbeknownst to the Army or Clark, however, that broker kicked back to AMS a “risk management fee” taken from the premiums paid by Clark, the Army and various joint AMS-Clark entities, which AMS concealed in invoices to the Army and Clark.
Under the terms of the agreement entered into between AMS and the United States, the United States agreed to defer prosecution of AMS for a period of three years on a pending criminal information, which charges AMS with major government fraud. In exchange, AMS admitted its criminal conduct, agreed to pay a fine of $1,625,124.80 and agreed to be subject to other terms and conditions for the period of the agreement. The United States may seek to prosecute AMS for the scheme if the company violates the terms of the agreement or commits other criminal conduct as outlined in the agreement.
Two individuals previously pleaded guilty and were sentenced as part of the government’s investigation: Eddie T. Hudspeth III, a former AMS maintenance director at Fort Belvoir, was sentenced in May 2015 to two years in prison and fined $15,000 for soliciting and accepting more than $27,000 in kickbacks from a heating, ventilation and air-conditioning company based in Lorton, Virginia, from December 2008 through February 2011; and Philip Robrahn, a partial owner of that company, was sentenced to probation and ordered to pay a $10,000 fine for his role in the kickback scheme.
Army CID, DCIS, FBI and DCAA investigated the case. Trial Attorney Jennifer Ballantyne of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan Faulconer of the Eastern District of Virginia are prosecuting the case.
Former Police Officer Sentenced in White Plains Federal Court to 8 Years in Prison for Selling Date Rape DrugRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT SMUTEK was sentenced today to eight years in prison for selling 1,4 butanediol, an illegal analogue of the date rape drug gamma hydroxybutyric acid, or GHB. SMUTEK, a former police officer and resident of Sleepy Hollow, New York, sold 1,4 butanediol in a product called Potion 9 through his Internet website called Online Coral Calcium. SMUTEK was sentenced yesterday in White Plains federal court by the Honorable Kenneth M. Karas.
U.S. Attorney Preet Bharara stated: “Smutek, a former police officer, was peddling a date rape drug over the Internet from his suburban home. The sentence imposed on him by the Court properly reflects the callous nature of his years-long drug dealing.”
According to the allegations contained in the Indictment as well as the evidence presented during trial and at sentencing:
SMUTEK sold Potion 9, which was packaged in a one-ounce plastic bottle containing a pink liquid, between 2009 and 2014, advertising it on his website as a “mood enhancer” that supposedly made the user feel euphoric. According to the label, Potion 9 contained yohimbe, a derivation of a tree root found in South Africa, as well as other natural ingredients. But according to the evidence at trial, Potion 9 actually contained 1,4 butanediol, an industrial solvent that converted to GHB in the body when ingested. At sentencing, SMUTEK was held responsible for distributing 200,000 bottles of Potion 9 over five years and ordered to forfeit $1.2 million in proceeds from the scheme.
In addition to his prison term SMUTEK, 53, of Sleepy Hollow, New York, was sentenced to three years of supervised release.
Mr. Bharara praised the outstanding investigative work of the Rhode Island Task Force of the Office of Criminal Investigations, Food & Drug Administration. Mr. Bharara also thanked the Internal Revenue Service, Criminal Investigation Division, and the U.S. Postal Inspection Service for their assistance in the investigation.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, James McMahon, and Douglas Zolkind are in charge of the case.
Former KC Man Sentenced for Conspiring with Postal Carrier to Distribute PCP Through the MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City-area man who conspired with a former Kansas City, Mo., postal carrier to distribute multi-kilogram quantities of PCP through the mail was sentenced in federal court today.
Michael Garrett, 57, of Victorville, Calif., formerly of the Kansas City area, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
Garrett pleaded guilty on Sept. 1, 2016, to his role in the drug-trafficking conspiracy and to using a telephone to distribute PCP. Co-defendant Carol Barfield, 65, pleaded guilty her role in the conspiracy on Nov. 14, 2016, and awaits sentencing.
Garrett and Barfield participated in a conspiracy to distribute PCP from Nov. 2, 2015, to March 4, 2016. Garrett mailed bottles of PCP from California to separate addresses on Barfield’s Kansas City, Mo., postal route. Barfield, at Garrett’s instruction, would then deliver the packages to their intended recipients rather than to the false addresses provided on the labeling.
At the time of the offense, Garrett was on federal supervised release after being incarcerated for conspiracy to possess crack cocaine with the intent to distribute and attempted possession of crack cocaine with the intent to distribute in a 1991 conviction in the Western District of Missouri.
Garrett mailed a total of 15 parcels to separate addresses on Barfield’s carrier route from Nov. 2 to Dec. 16, 2015. Each of the parcels weighed in excess of 10 pounds. Barfield scanned all of the suspicious mailings as “delivered” on her route.
On March 1, 2016, surveillance video identified Garrett mailing four parcels at the Victorville post office. The four parcels, which listed a false name and address for the sender, were mailed to separate addresses on Barfield’s postal route, but were addressed to individuals who did not reside at those addresses. On March 4, 2016, federal agents set up surveillance on Barfield’s postal route. Barfield loaded the parcels into her postal vehicle. She scanned the first parcel as delivered, but she did not actually deliver the parcel.
Barfield became suspicious that she might be under surveillance, so she scanned another parcel as undeliverable. Barfield delivered one of the parcels as addressed and left it at the front steps of the residence. However, shortly after delivery, the actual homeowner arrived. Noticing he was not the listed recipient on the package, the homeowner picked up the package and, upon finding Barfield still in the neighborhood, returned it to her. For the last parcel, Barfield scanned the package as “no secure location” and left a delivery notice receipt at the listed address. Barfield subsequently rescanned the first parcel as “undeliverable as addressed,” returning all four packages to the post office.
Agents opened the suspicious parcels, which each contained two 64-ounce plastic Welch’s Grape Juice bottles of PCP. The total weight of the liquid from the eight bottles was approximately 13.45 kilograms.
Barfield told investigators that Garrett had mailed packages to her route five or six different times, and that it was usually three packages each time. Barfield stated that on some occasions Garrett would fly into Kansas City after mailing the packages and she would hand them directly to him. Other times, she would give them to an acquaintance of Garrett. If she did not give the packages to Garrett or his acquaintance, she would leave them at the address on the package, knowing Garrett or one of his people would come by and pick it up.
Barfield told investigators that, in exchange, Garrett bought her clothes, fixed her car, and provided her with spending money. She stated Garrett basically took care of her and gave her money to help out. Barfield said that the most money Garrett gave her at one time was $500, but she did not know how much total cash she had received from him.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
Former GM of Local Car Dealership Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – William Cafarella was indicted on multiple fraud charges involving his scheme to obtain in excess of $395,000 in fraudulent proceeds from West County Honda, causing more than $1.8 million in losses to the dealership.
According to the indictment, Cafarella was employed as the General Manager of West County Honda in Ellisville, MO. As part of his contract, Cafarella received monthly bonuses equal to 10% of the profits earned by West County Honda.
Between September 2011 through June 2013, it is alleged that Cafarella caused fictitious entries to be made in the books of account of West County Honda, misrepresenting to the ownership the profitability of the dealership in order to increase his bonuses. According to the indictment, Cafarella caused West County Honda to report 308 cars having been sold that in actuality had not been sold, causing the manufacturer’s warranty to begin running on each of those cars and decreasing the value of those vehicles to the dealership. The indictment alleges that Cafarella also pocketed more than $50,000 in bribes and kickbacks from third parties that did business with West County Honda, which deprived West County Honda of Cafarella’s honest services.
Cafarella, Davie, Florida, was indicted by a federal grand jury late Thursday December 1, on four felony counts of wire fraud and one felony count of mail fraud.
If convicted each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Fargo Resident Has Been Sentenced in Connection with Income Tax EvasionRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on December 2, 2016, Gary Spencer Smith, 61, Becker County, Minn. (formerly of Fargo, ND), was sentenced before U.S. District Judge Ralph R. Erickson after pleading guilty in August 2016 to an Information charging him with Attempting to Evade and Defeat the Payment of Tax. Judge Erickson sentenced Smith to 5 years of probation with conditions, including that he serve 12 months of home confinement with work release, and ordered him to pay restitution to the United States for the tax loss in the amount of $243,488.00, with credit for any tax payments he has made since May 2012.
“Tax crimes have mistakenly been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system”, stated IRS Criminal Investigation Special Agent in Charge Shea Jones. "Gary Spencer Smith’s attempt to evade tax by failing to report his income, failing to file tax returns for 13 years, and failing to pay his taxes was an outright theft from the American taxpayers.” From calendar years 1999 through 2010, Smith willfully attempted to evade and defeat the payment of a large part of his federal income tax due and owing to the United States, in the approximate total amount of $243,488.00, by failing to pay his taxes and concealing and attempting to conceal from the Internal Revenue Service his assets and their location, in violation of law. Smith’s acts of evasion of the payment of his taxes included placing funds and property in the names of nominees and beyond the reach of process to collect the tax due and owing to the United States.
This case was investigated by the Internal Revenue Service’s Criminal Investigation Division.
Assistant U.S. Attorney Scott J. Schneider prosecuted the case.
Former Evidence Custodian Sentenced to Prison for Embezzling $109,623 from North Slope Borough Police DepartmentRead the Press Release
Fairbanks, Alaska – U.S. Attorney Karen L. Loeffler announced that a Fairbanks woman was sentenced in federal court today for one count of interstate transportation of stolen property between 2011 and July 2012 related to her theft of over $100,000 from the evidence room at the North Slope Borough Police Department (NSBPD) in Barrow, Alaska.
Margaret Ann Solomon, 48, of Fairbanks, Alaska, was sentenced by U.S. District Judge Ralph R. Beistline to eight months in prison, three years supervised release, and ordered to pay restitution of $109,623 to the NSBPD.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, court documents show that Solomon worked for the NSBPD from November 2006 until July 16, 2012. Between approximately January 2011 and June 2012, Solomon was one of three Evidence Custodians assigned to work in the evidence room in Barrow. As a result, Solomon was responsible for and had control over the evidence room approximately every three weeks. As an evidence custodian, Solomon knew which evidence items contained cash and, during the weeks that she was assigned to work in the evidence room, Solomon stole cash from evidence items. Solomon did so by retrieving evidence envelopes when she was by herself in the evidence room and removing money from them. Solomon also took steps to conceal her thefts by, at times destroying envelopes and files.
During the time Solomon stole money from the evidence room, she deposited some of the money she stole into her account at Wells Fargo in Barrow to gamble online. For example, Solomon linked her Wells Fargo account to her Paypal account, and then used Paypal to electronically transfer the stolen funds from her Wells Fargo account to Facebook.
A 2014 audit of the evidence room conducted at the direction of the North Slope Borough determined that a minimum of $207,563.96 was missing from the evidence room at that time, and that 82 individual evidence items were missing money or were unaccounted for altogether. The audit, however, could not discern when the unaccounted for evidence items went missing or were removed from the evidence room. Furthermore, the precise amount of money that Solomon took from the evidence room is unknown. This is so for at least two reasons. First, Solomon did not keep track of either the amount of cash that she stole, or the evidence items from which she thieved. Second, NSBPD had poor controls for tracking evidence. For example, during business hours, the evidence room was often left open and unattended. The court concluded that the loss amount attributable to Solomon was $109,623 based on bank records showing that amount of unaccounted for cash deposits into Solomon’s bank account during her tenure with the NSBPD.
In sentencing Solomon, Judge Beistline emphasized the need to deter others from committing public corruption offenses, promote respect for the law, and to impose just punishment, noting that the sentence needed to carry consequences beyond Solomon simply “paying back the money.” Judge Beistline also noted that Solomon’s abuse of her position of public trust had spanned 18 months and had “hurt the police department, hurt the community, and potentially hurt victims.”
U.S. Attorney Loeffler commended the actions of the Federal Bureau of Investigation. She noted that “corruption within the criminal justice system will not be tolerated at any level.” This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Andrea Hattan.
Former Chesterfield Township Supervisor Indicted on Conspiracy and Bribery ChargesRead the Press Release
The former elected Supervisor of Chesterfield Township was indicted by a grand jury yesterday on four counts of conspiracy and demanding bribes in exchange for corruptly influencing his decisions as a supervisor in connection with the township’s business United States Attorney Barbara McQuade announced.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Michael Lovelock, 57, of New Baltimore, is charged with engaging in a pattern of corrupt activity, including demanding and accepting money and other things of value, in exchange for official acts as the township supervisor. The indictment of Lovelock is part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County.
The indictment charges that over the course of six years while he served as Supervisor, Lovelock conspired with a representative of a company having business with Chesterfield Township, and that Lovelock accepted bribes on multiple occasions from that company representative and an undercover FBI agent. Lovelock accepted bribes amounting to $30,000 in cash between 2010 and 2016. In exchange, Lovelock voted in favor of a contract for the company, and he agreed to put past due amounts owed to the company by township residents on the township tax bills of those residents in order to assist the company in collecting money. In addition, Lovelock sought reimbursement from Macomb County for the company’s work cleaning up following a flood in Chesterfield. In 2016, Lovelock accepted a $1,500 cash bribe from an undercover FBI agent. Lovelock also is charged with accepting an additional $2,500 cash bribe from the company representative after that individual began cooperating with the FBI.
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Lovelock faces a maximum of ten years in prison and a fine of up to $250,000 on each of the three counts of bribery in the indictment. Upon conviction for a violation of Title 18, United States Code, Section 371, conspiracy, Lovelock faces a maximum of five years in prison and a fine of up to $250,000 on this count of the indictment.
An indictment is only a charge and is not evidence of guilt.
The FBI requests that anyone having information regarding public officials accepting bribes is encouraged to contact the Detroit Division of the FBI at 313-965-2222.
Former American Airlines Employee Sentenced to 72 months in Federal Prison for Role in Conspiracy to Transport, or Assist in Transporting, a Substance Represented to be Cocaine on Flights from DFW Airport as Part of an Undercover Law Enforcement OperationRead the Press Release
DALLAS — A former American Airlines employee who admitted to her role in transporting a substance that was represented to be cocaine on flights from Dallas-Fort Worth International Airport (DFW) was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Janelle Isaacs, 42, was sentenced by U.S. District Judge Jane J. Boyle to 72 months in federal prison following her guilty plea in June 2016 to one count of conspiracy to possess with intent to distribute and distribute at least five kilograms or more of cocaine. Isaacs has been in custody since mid-July 2015 following a law enforcement operation, led by the Federal Bureau of Investigation, the Dallas Police Department and Internal Revenue Service Criminal Investigation, in which numerous defendants were arrested on drug distribution conspiracy and related charges outlined in a federal superseding indictment returned by a federal grand jury in Dallas the previous month.
That superseding indictment charged Janelle Isaacs, Funaki Falahola, 35, Moniteveti Katoa, 53, Molitoni Katoa, 34, with the cocaine distribution conspiracy offense. All four defendants pleaded guilty to the offense. In September 2016, Moniteveti Katoa was sentenced to 188 months and Molitoni Katoa was sentenced to 90 months in federal prison. In November 2016, Funaki Falahola was sentenced to 240 months in federal prison.
According to documents filed in the case, the four used their positions of employment at DFW, or contacted a person or persons who had a position or positions of employment at DFW, to bypass security in order to transport kilogram quantities of a substance that was represented to be cocaine, in what they did not know was an undercover law enforcement operation. As part of the conspiracy, that ran from approximately April 18, 2013, through July 14, 2015, the substance that was represented to be cocaine was transported on commercial airlines flying from DFW to destinations in Las Vegas, Nevada; Newark, New Jersey; Phoenix, Arizona; Chicago, Illinois; Wichita Kansas; and San Francisco, California.
Isaacs admits she became suspicious that Moniteveti Katoa, her husband, was transporting some sort of controlled substance via commercial airlines around 2013 when he asked her if she could provide him information on where law enforcement officers were seated on airplanes. Despite Isaacs’ suspicion she admits to helping Moniteveti Katoa with his flight arrangements and air travel.
Moniteveti Katoa asked Isaacs to perform a “dry run” with a legal substance called “kava” so that she could build up her courage to cross a bag that contained what she believed to be cocaine. Isaacs performed at least one dry run in order to prepare her to bypass security.
On December 8, 2014, Moniteveti Katoa went to DFW Airport and met with Isaacs. Isaacs took a backpack that was provided by Moniteveti Katoa towards the TSA checkpoint, walked towards the employee portal, bypassed security, and then later provided that same backpack to Moniteveti Katoa so that he could fly, what she and Moniteveti Katoa believed was 3 kilograms of something illegal, to a destination in Kansas and deliver it for payment.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Executive Office for Immigration Review Announces New Administrative Law JudgeRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the appointment of James McHenry as an administrative law judge (ALJ) in EOIR’s Office of the Chief Administrative Hearing Officer (OCAHO), effective Nov. 14, 2016.
“We are excited to welcome Administrative Law Judge James McHenry to our team,” said Chief Administrative Hearing Officer Robin M. Stutman. “His arrival will greatly increase OCAHO’s capacity to adjudicate cases of illegal hiring and employment eligibility verification violations, complaints of discrimination based on an individual’s citizenship status or national origin or over-documentation in the employment eligibility verification process, and allegations of immigration-related document fraud.”
Biographical information follows.
James McHenry, Administrative Law Judge
James McHenry was appointed as an administrative law judge (ALJ) for the Office of the Chief Administrative Hearing Officer (OCAHO), Executive Office for Immigration Review (EOIR), Department of Justice (DOJ), in November 2016. Judge McHenry earned a Bachelor of Science degree in 1997 from the Georgetown University School of Foreign Service, a Master of Arts degree in 2003 from the Vanderbilt University Graduate School, and a Juris Doctor in 2003 from the Vanderbilt University Law School. From February to November 2016, he served as an ALJ for the Office of Disability Adjudication and Review, Social Security Administration, in Baltimore, and previously from 2014 to February 2016, in Greenville, S.C. From 2010 through 2014 he served as a senior attorney for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in Atlanta. From 2010 through 2011, he served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Northern District of Georgia, DOJ, in Atlanta. From 2005 through 2010, he served as an assistant chief counsel for OPLA, ICE, DHS, in Atlanta. From 2004 through 2005, he served as an attorney advisor for the Office of the Chief Immigration Judge (OCIJ), EOIR, DOJ, in Baltimore. From 2003 through 2004, he served as a judicial law clerk for OCIJ, EOIR, DOJ, in Buffalo, entering on duty through the Attorney General’s Honors Program. Judge McHenry is a member of the Tennessee State Bar.
Everett Software Salesman Pleads Guilty to Selling ‘Tax Zapper’ Software to Enable Cheating on State and Federal TaxesRead the Press Release
An Everett, Washington man who worked for a Canadian company that sells point of sale computer software, pleaded guilty today to wire fraud and conspiracy to defraud the government for his role in a scheme to sell ‘Tax Zapper’ software, announced U.S. Attorney Annette L. Hayes. JOHN YIN, 66, pleaded guilty in U.S. District Court in Seattle, admitting that he promoted and sold a revenue suppression software that allowed restaurants to underreport their sales and illegally lower their tax bills. The software – sometimes called a “Zapper” program - resulted in a loss amount of more than $3.4 million.
“This defendant sold businesses a high tech tool that had only one purpose – to give businesses a leg up by cheating the taxman,” said U. S. Attorney Annette L. Hayes. “In addition, by not paying their fair share of taxes, they cheated state and federal programs, and victimized workers whose employment and social security taxes went unpaid as well. Partnering with the Washington State Attorney General’s Office, we will ensure that those who are responsible for this conduct will be held to account.”
“Using illegal software to avoid tax obligations harms both taxpayers and businesses that compete fairly and play by the rules,” said Attorney General Bob Ferguson. “I’m proud to work with U.S. Attorney Hayes to stamp out this fraud.” Ferguson’s office is pursuing a separate criminal case against a Bellevue restauranteur accused of using zapper software to pocket nearly $400,000 in state sales taxes.
According to the charging information and the plea agreement, YIN was a salesman for Profitek, a British Columbia, Canada company selling point of sale (POS) systems for hospitality and retail industries. In addition to its Canadian headquarters, the Company has offices in China and a growing dealership network across North America. The Company designed, or had designed, and marketed, sold and supported revenue suppression software (RSS) as an add-on to its Profitek point of sale software. This RSS functioned only with the Profitek POS software.
Point of Sale software creates a database of transactions that is used to calculate a business’s tax obligations. Revenue suppression software (RSS) is used to modify a business’ POS database for the purpose of tax evasion. When executed, the RSS program deletes all or some of the business’s cash transactions, and then reconciles the books of the business. The result is business records that appear to be complete and accurate but, in fact, are false and fraudulent in that they show less than total income earned.
JOHN YIN successfully sold the POS software, and assisted in the widespread distribution of the Zapper software, to dozens of customers over the course of several years.
Between 2010 and 2013, eight different restaurants in the Seattle area used the software and underpaid their state and federal taxes by amounts ranging from a low of just over $145,000 to more than $910,000. When the restaurant owner who underpaid taxes by more than $900,000 was confronted about using the tax zapper software she admitted she used the unreported cash to pay some employees in cash. In addition, she did not withhold mandatory social security or Medicare taxes for these employees.
“Revenue Suppression Software represents the modern iteration of old-fashioned skimming,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “The IRS has always pursued those who attempt to circumvent their tax obligations, and this case is no exception. These so-called Zapper programs have caught the eye of diligent IRS Special Agents and our law enforcement partners, and together we will continue to prosecute those who threaten the integrity and equity of our nation’s tax system.”
“The publicity around “zapper” software cases sends the clear message that state and federal agencies are serious about this type of fraud,” said Vikki Smith, director of the Washington State Department of Revenue. “We will continue our work with the IRS and the state Attorney General’s office to make sure retail sales tax dollars stolen in this type of scheme are recovered and used as intended – to fund public services.”
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Conspiracy to defraud the government is punishable by up to five years in prison and a $250,000 fine. YIN has agreed to pay $3,445,589 in restitution to the United States and Washington State and also agreed to pay for the costs of prosecution. Sentencing is scheduled in front of U. S. District Judge Richard A. Jones on February 24, 2017.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the Washington State Department of Revenue with special assistance from the Washington State Attorney General’s Office.
The case is being prosecuted by Assistant United States Attorney Susan Roe.
El Dorado Hills Woman Sentenced to 3.5 Years in Prison for Tax Refund Scheme Involving More than $1.8 Million in Illegitimate RefundsRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Barbara Antonucci, an unlicensed tax preparer, today to three years and six months in prison and ordered to pay $1,895,833 in restitution for conspiring to file false claims and filing false claims, United States Attorney Phillip A. Talbert announced.
According to court documents, Antonucci and her co-conspirator, Sherry Taggart, 56, of El Dorado Hills, prepared tax returns for clients seeking to maximize their refunds from the Internal Revenue Service. In 2008, Antonucci began a scheme to obtain false refunds by preparing and filing false claims on behalf of clients with the IRS. After May 2010, Taggart joined Antonucci’s scheme and together the two conspired to prepare and file hundreds of false claims with the IRS between June 2012 and March 2014, seeking refunds totaling approximately $1.4 million. As a result of the conspiracy, the IRS issued more than $757,000 in illegitimate refunds. In total, including the period in which Antonucci operated the scheme by herself, the IRS issued more than $1.8 million in illegitimate refunds from more than $2.5 million illegitimate claims filed during the scheme. On August 19, 2016, Antonucci pleaded guilty to conspiracy to file false claims and filing false claims.
The fraudulent returns Taggart and Antonucci prepared and caused to be filed reported false wages and dependents for their clients and, in many cases, qualified the clients for the refundable Earned Income Credit (EIC) when the client’s true wages or family situation would have qualified the client for no credit or a lower credit. Most of the fraudulent returns listed wages associated with self-employment not documented by a Form W-2, such as “housekeeper.” The defendants obtained the names, social security numbers, and other personal identifying information of minors and falsely listed those minors as dependents on tax returns for clients who were unrelated to those minors. Taggart and Antonucci also filed false claims on their own behalf. They filed the false federal tax returns with the IRS through the mail and via the internet from Sacramento, Yuba and Placer Counties.
“As we approach tax filing season next month it is important that this sentence represents adverse consequences for those tax return preparers who file false tax returns for their clients,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “It is important for tax return preparers to follow the law and guidance set forth by IRS on preparing tax returns. It is also very important for taxpayers to review their tax return with their tax return preparer to verify it has been prepared correctly before it is filed with the IRS and ask questions when they do not understand what has been prepared.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex Identity Fraud Schemes and to protect the public and their personal information from theft.”
Antonucci was ordered to surrender to begin serving her sentence on February 17, 2017. Taggart is scheduled to be sentenced on December 9, 2016.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation, the United States Postal Inspection Service, and the Sacramento County Sheriff’s Office. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Edinburg Man Convicted of Multiple Child Pornography ChargesRead the Press Release
McALLEN, Texas – A 28-year-old Edinburg man has pleaded guilty to a three-count indictment charging him with production, receipt and distribution of child pornography, announced U.S. Attorney Kenneth Magidson.
Carlos Benjamin Martinez admitted to downloading and receiving child pornography and to sending emails which contained child pornography. He also admitted to performing a sexual act on a minor child while recording the incident with his cellular phone.
In March 2015, authorities were investigating an individual suspected of possessing child pornography in Massachusetts. During that time, authorities discovered that Martinez had emailed several images of child pornography to that suspect. The FBI executed a federal search warrant at the Martinez residence in September 2015 and seized various electronic devices. A search warrant was also executed on an email account belonging to Martinez. A forensic analysis on those devices and email account led to the discovery of thousands of images and multiple videos of child pornography involving clearly young children engaged in sexually explicit conduct.
A subsequent search of his cell phone revealed a video of Martinez performing sexual intercourse on a minor child approximately 12 years of age.
U.S. District Judge Randy Crane, who accepted the guilty plea today, has set sentencing for February 9, 2017. At that time, Martinez faces a minimum of 15 and up to 30 years for the production of child pornography. As to the counts of receipt and distribution of child pornography, Martinez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Dumfries Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Francis Joseph Douglas, 33, of Dumfries, was sentenced today to 120 months in prison for conspiracy to distribute 500 grams or more of cocaine and the use and carry of a firearm during a drug trafficking crime.
Douglas pleaded guilty on September 7. According to court documents, Douglas sold cocaine from October 2014 until his initial arrest in August 2015. During this time, Douglas made bi-weekly trips to New York to obtain between $5,000 and $8,000 worth of cocaine, which Douglas redistributed in Prince William County. While distributing cocaine, Douglas was regularly armed with a Glock .40 caliber pistol with an extended magazine. Further, despite being convicted of multiple felonies, Douglas aided and abetted his wife in providing false statements during the purchase of four firearms for him, including an AK-47 and AR-15 rifle. On Nov. 12, 2015, Douglas also aided and abetted McGary Dean Williams in providing false statements during the purchase of two firearms from a federal firearms dealer located in Woodbridge.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, Special Agent in Charge, Washington Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Carina A. Cuellar 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. 1:16-cr-200.
Doctor Charged in Manhattan Federal Court for Illegal Distribution of Millions of Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Maria T. Vullo, Superintendent of the New York State Department of Financial Services, announced the arrest of Dr. EMMANUEL LAMBRAKIS, a state licensed doctor who wrote thousands of medically unnecessary prescriptions for oxycodone, totaling nearly 2.4 million pills, over a five-year period. LAMBRAKIS was arrested yesterday in connection with the charge and is expected to be presented before U.S. Magistrate Judge James L. Cott later today.
U.S. Attorney Preet Bharara said: “Although licensed as a doctor, as alleged, Emmanuel Lambrakis was a prolific and dangerous drug dealer. He allegedly pumped medically unnecessary oxycodone pills into our communities, feeding the addiction of countless people. This arrest is a critical part of our overall fight against the devastating opioid abuse epidemic.”
Special Agent in Charge James C. Hunt said: “Drug dealers selling scripts for money give doctors a bad name. The dismantling of a modern day opium den masquerading as a medical clinic in the heart of Queens shows the result of law enforcement collaboration. The investigation identified that Emmanuel Lambrakis allegedly diverted oxycodone pills to New York City streets enabling the one thing law enforcement, communities, and health professionals are trying to avoid – opioid addiction and overdose deaths.”
Superintendent Maria T. Vullo said: “New York is a safer place because law enforcement authorities worked together to shut down the criminal activities this defendant pursued to enrich himself while endangering the public. The Department of Financial Services appreciates the opportunity to have worked on this case with the office of U.S. Attorney Bharara and the Drug Enforcement Administration.”
The following allegations are based on the Complaint and other documents filed in Manhattan federal court[1]:
Oxycodone is a highly addictive, narcotic opioid that is used to treat severe and chronic pain conditions. Oxycodone prescriptions are in high demand and have significant cash value to drug dealers. In fact, oxycodone tablets can be resold on the street for thousands of dollars. For example, 30-milligram oxycodone tablets have a current street value of approximately $20 to $30 per tablet in New York City, with street prices even higher in other parts of the country. A single prescription for 120 30-milligram tablets of oxycodone can net an illicit distributor $2,400 in cash or more.
From at least approximately January 2011 until December 2016, EMMANUEL LAMBRAKIS operated two medical clinics in Queens, New York, where LAMBRAKIS wrote thousands upon thousands of prescriptions for large quantities of oxycodone in exchange for cash payments. LAMBRAKIS typically charged $150 in cash for “patient visits,” and these visits often involved numerous “patients” being seen by LAMBRAKIS at the same time in the same examination room. During these “patient visits,” LAMBRAKIS would perform simple, perfunctory body manipulations (such as rotating the patient’s arm or leg) and engage in little or no conversation with the alleged “patient.” Nonetheless, LAMBRAKIS would then cause the patient to receive a prescription for a large quantity of oxycodone, most often 120 30-milligram tablets or more.
Between January 2011 and the present, LAMBRAKIS wrote approximately 17,000 oxycodone prescriptions at one of his clinics, resulting in the distribution of nearly 2.4 million oxycodone tablets, which have a street value of at least $48 million. On over 200 occasions, LAMBRAKIS wrote 30 or more prescriptions for 30-milligram oxycodone pills in a single day. As a result of LAMBRAKIS’s actions, it is estimated that LAMBRAKIS collected at least $2.5 million in fees from his “patients.”
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LAMBRAKIS, 69, of Manhattan, is charged with one count of conspiring to distribute and possess with intent to distribute oxycodone. This offense carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s Tactical Diversion Squad, which comprises agents and officers from the DEA, the NYPD, the New York State Police, Town of Orangetown Police Department, Rockland County Drug Task Force, Westchester County Police Department, and New York City Department of Investigation. He also acknowledged the assistance of Health & Human Services, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, New York City Human Resources Administration, and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kimberly J. Ravener and Jessica K. Fender are in charge of the prosecution.
US v. Emmanuel Lambrakis complaint.pdf The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Defendant Sentenced to Two Life Sentences for Role in May 2013 Murder of Southlake, Texas, ManRead the Press Release
FORT WORTH, Texas —Jose Luis Cepeda Cortes, 60, one of the Mexican citizens convicted for his role in the May 2013 murder of Juan Jesus Guerrero Chapa in Southlake, Texas, was sentenced yesterday, announced U.S. Attorney John Parker of the Northern District of Texas.
Cepeda Cortes was sentenced by Senior U.S. District Judge Terry R. Means to two life sentences plus 240 months to run concurrent. Cepeda Cortes was convicted at trial in May 2016 on one count of interstate stalking, one count of conspiracy to commit murder for hire and one count of tampering with documents or proceedings.
Co-defendant Jesus Gerardo Ledezma-Cepeda, a/k/a “Chuy” and “Juan Ramos,” 60, also a Mexican citizen, was also convicted at trial in May 2016 on one count of interstate stalking and one count of conspiracy to commit murder for hire. Each offense carries a maximum statutory penalty of life in federal prison and a $250,000 fine. Sentencing is scheduled for December 6, 2016.
Ledezma-Cepeda’s son, Jesus Gerardo Ledezma-Campano, 33, was sentenced by Senior U.S. District Judge Terry R. Means to 20 years in federal prison on August 18, 2016. Ledezma-Campano pleaded guilty in March 2016 to one count of interstate stalking and testified for the government at trial.
On May 22, 2013, at approximately 6:47 p.m., Juan Jesus Guerrero Chapa was ambushed and shot multiple times with a 9mm pistol while seated in his Range Rover that was parked at Southlake Town Square. A Toyota Sequoia pulled up behind the Range Rover, a gunman got out of that vehicle, walked up to the Range Rover, and fired several times through the window at Mr. Chapa, who died at the scene. Nearby, Mr. Chapa’s wife was not harmed.
According to evidence presented at trial and documents filed in the case, from approximately March 1, 2011, until May 22, 2013, the three defendants traveled in interstate and foreign commerce from Mexico to Southlake, and elsewhere, with the intent to kill, injure, harass and intimidate Mr. Chapa, and as a result of that travel, Mr. Chapa was killed. In addition, from approximately May 23, 2013, until September 5, 2014, Cepeda-Cortes took steps to destroy evidence on his computer related to the investigation.
The defendants were acting on orders from a man in Mexico, Rodolfo Villarreal Hernandez, known as “El Gato,” or “the Cat,” who wanted Mr. Chapa killed as revenge for his father’s murder. Over the course of the conspiracy, Ledezma-Campano and Ledezma-Cortes received money from Ledezma-Cepeda to pay for their expenses. Ledezma-Cepeda was paid by “El Gato.”
Ledezma-Cepeda asked his son, Ledezma-Campano, to assist in the search. Ledezma-Campano used his skill with electronic devices to assist in the search, and he created email accounts for Ledezma-Cepeda and “El Gato” to communicate with each other.
The defendants exchanged information via email to locate Mr. Chapa – exchanging personal information about Mr. Chapa and his family as well as information regarding vehicles associated with them and photographs of the Chapa residence in Southlake.
The defendants used various means to locate and track Mr. Chapa and members of his family. Cepeda-Cortes purchased surveillance cameras that were placed in various locations in Mr. Chapa’s neighborhood. In addition, while in the area, the defendants purchased and rented several vehicles that allowed them to frequently change vehicles and use non-descript rental vehicles to avoid detection by Mr. Chapa and his family. They placed automobile tracking devices not only on their own vehicles, but on vehicles owned and operated by Mr. Chapa and his relatives, including the Range Rover Mr. Chapa was in when he was murdered.
After the defendants located Mr. Chapa, “El Gato” sent two assassins from Mexico to Southlake to kill him. Ledezma-Campano met the two, whom he identified as “Clorox” and “Captain,” and concluded they were sent to kill Mr. Chapa. One of the men was, in fact, the gunman who killed the victim on May 22, 2013, and the other drove the Toyota Sequoia.
On the day of the murder, Ledezma-Campano and Ledezma-Cepeda followed the victim around Southlake, and that afternoon, while the victim’s Range Rover was parked in a Walmart parking lot, Ledezma-Campano and Ledezma-Cepeda switched the tracking device on the Range Rover.
At approximately 6:00 p.m. on May 22, 2013, Mr. Chapa and his wife drove to Southlake Town Square. Ledezma-Campano and Ledezma-Cepeda, who had been parked near Chapa’s home, followed them. Mr. Chapa parked in his regular parking spot near a yogurt store, and Ledezma-Campano and Ledezma-Cepeda parked directly across from them and used binoculars to watch them.
As they waited, Ledezma-Cepeda was in regular contact, via Blackberry Messenger, with “El Gato.” Ledezma-Campano saw “Clorox” and “Captain” drive by in a Toyota Sequoia. Ledezma-Campano went into a coffee shop in Town Square and while inside he heard a commotion outside. He returned to Ledezma-Cepeda who told him “they shot him”
Ledezma-Campano and Ledezma-Cepeda waited several minutes as law enforcement responded before leaving the scene. “El Gato” told both of them to stop using the tracking device they carried in their vehicle. The next morning, they returned the rental car and drove directly into Mexico, along the way destroying the phones they had used.
The investigation was led by the FBI and the Drug Enforcement Administration, with assistance from the Southlake Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, US. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, Texas Department of Public Safety, Tarrant County Sheriff’s Office, Tarrant County District Attorney’s Office, Fort Worth Police Department and Grapevine Police Department.
Assistant U.S. Attorneys Joshua Burgess and Aisha Saleem are prosecuting the case.
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Customs Officer Convicted by Federal Jury of Stealing Checks and Money Orders from International Mail Facility in TorranceRead the Press Release
LOS ANGELES – A longtime U.S. Customs and Border Protection (CBP) officer has been convicted of federal charges for theft of mail from the International Mail Facility (IMF) in Torrance and arranging to have an accomplice deposit checks obtained from the stolen mail.
Carlos Canjura, 54, of Van Nuys, was convicted in federal court on Wednesday afternoon of all nine counts alleged in the superseding indictment, including conspiracy to commit bank fraud, bank fraud and possession of stolen mail.
According to court records, Canjura was a CBP Officer assigned to the IMF, where his duties included examining mail and parcels coming into the United States for contraband, counterfeit goods, and possible fraudulent financial checks or credit cards. The IMF is operated by the United States Postal Service and serves as a location where international mail is processed by CBP officers and other personnel to ensure compliance with federal law before delivery to addresses in the United States.
During the three-day trial, federal prosecutors proved that the defendant stole personal checks, traveler's checks and money orders from international mail. Canjura then informed his co-conspirator about the stolen checks using messages with coded language like “centurions,” “troops,” “projects” and “cases” to refer to the checks. Canjura gave the stolen checks to his co-conspirator, who fraudulently endorsed the checks or altered them before depositing the checks at ATMs or through mobile phone applications. Canjura stole well over 100 checks with a cumulative value of at least $65,000.
“The public is entitled to use the mail system without fear that officials charged with safeguarding the mail are abusing it for their own benefit,” said United States Attorney Eileen M. Decker. “This defendant not only abused his position as a federal officer by stealing international mail, he also used the stolen mail in an elaborate scheme to defraud banks. In so doing, he violated the public trust he swore to serve.”
Canjura is scheduled to be sentenced on March 6 by United States District Judge Beverly Reid O’Connell. At sentencing, Canjura will face a statutory maximum sentence of 145 years.
The investigation of this case was conducted by the Federal Bureau of Investigation, which received assistance from U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and CBP’s Office of Professional Responsibility.
The case was prosecuted by Assistant United States Attorney Bryant Yang and Special Assistant United States Attorney Ashwin Janakiram of the General Crimes Section.
Crow Agency Man Sentenced to 9 Years for Sexually Abusing a ChildRead the Press Release
BILLINGS – The United States Attorney’s Office announced that on Wednesday, November 30, 2016, in U.S. District Court in Billings, George Chad Deputee was sentenced to 9 years for sexually abusing a child in the 1990s. Deputee, 42, of Crow Agency, was sentenced by U.S. District Judge Susan Watters to 108 months in custody followed by 5 years of supervised release after a trial jury found him guilty of aggravated sexual abuse and abusive sexual contact of a child.
Deputee was initially indicted in March 2015 for aggravated sexual abuse and abusive sexual contact of a child. A superseding indictment was returned by a grand jury in November 2015. It alleged that the sexual abuse occurred between April 1992—when Deputee turned 18 years old—and December 1997.
At trial, the government introduced evidence that Deputee sexually abused two girls starting in 1989. In August of 2012, the victim’s sister reported to BIA law enforcement that Deputee molested her in the late-1980s when she was approximately five years old. She told authorities the abuse had occurred frequently, both day and night, while Deputee was living with her family in Lodge Grass. Deputee was approximately 18 years old at the time. The victim’s mother remembered waking up to hear someone running out of her children’s room.
The victim’s sister also informed the BIA that Deputee had sexually abused her younger sister (the victim) sometime later. Both women testified at trial. They explained how Deputee had sexually abused and molested them when they were young girls. All of the instances of abuse occurred in Lodge Grass, Montana on the Crow Indian Reservation, where Deputee and both victims were living during the relevant time period.
The FBI interviewed Deputee in October 2012. Deputee denied that he had ever abused anyone. During his interview, Deputee initially omitted any account of having lived with the victim’s family during the time the abuse took place. When challenged, Deputee ultimately admitted that he had lived with the victim’s family but stated that the victim had not yet been born at the time. Later in the interview, however, he drew a diagram of the residence, marking one of the bedrooms with the victim’s name on it.
Deputee also testified at trial. On the witness stand, he claimed that he was living in North Dakota when the abuse occurred. He stated under oath that he only returned to Montana on two occasions between 1989 and 1993 – the relevant time frame. To rebut this alibi, the prosecution introduced a number of documents that placed Deputee in Lodge Grass for medical appointments on far more than two occasions during that time period.
At trial, the United States also moved to introduce evidence of other sexual assaults committed by Deputee, namely on the victim’s older sister. Both girls (now grown) recounted nearly identical, and protracted, periods of abuse by Deputee. Deputee consistently and repeatedly molested both girls from the time they were about five years old until they were nine or ten. The type and frequency of abuse reported by both girls was substantially the same. Deputee began abusing the victim referenced in the Indictment shortly after he stopped abusing her older sister. The government successfully argued that introduction of this evidence was necessary to corroborate the victim’s account, given the long period of time since the abuse had taken place.
The case was investigated by the FBI and BIA and prosecuted by Assistant U.S. Attorneys John Sullivan and Adam Duerk.
Calumet Township Level II Assessor, Pamela Frizzelle, SentencedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that Pamela Griffin Frizzelle, 54, of Merrillville, Indiana was sentenced before Chief Judge Philip Simon for three counts of Hobbs Act Extortion.
Frizzelle was sentenced to 12 months’ and 1-day imprisonment and ordered to pay restitution to the Lake County Assessor’s Office in the amount $7,128.
According to documents filed in the case, Frizzelle, an employee of the Calumet Township Assessor’s Office, solicited money from business owners in exchange for reducing or attempting to reduce tax assessments for personal and real property. Frizzelle pled guilty to three counts and admitted to receiving cash from owners including $800 to assist a laundry mat owner illegally obtain a refund for prior years. Frizzelle backdated documents and convinced her supervisors that the appeal was legitimate, which resulted in a refund of more than $7,000. Frizzelle also accepted money from other business owners in exchange for promises to reduce owed taxes.
This case was investigated by the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Gary T. Bell.
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