Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 January 2017
Two More North Carolina Commercial Fishermen Plead Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, ELLIS LEON GIBBS, jR., 53, of Engelhard, and DWAYNE J. HOPKINS, 43, of Belhaven, pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina during 2010. GIBBS also pled guilty to obstructing a boarding by the United States Coast Guard.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic Striped Bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
When asked by the Boarding Team, GIBBS admitted that he was targeting Atlantic striped bass. When asked where he caught the fish, GIBBS showed the boarding team certain electronically-saved track lines from the vessel’s navigation computer. The track lines shown by GIBBS, however, were fishing tows he made in state waters (where the harvest of striped bass would have been lawful at the time) on February 13, 2009, almost a year prior to the February 9, 2010 boarding.
The Boarding Team counted 173 Atlantic striped bass, ranging in size from 36- to 41.5 inches in length, on the deck of the Lady Samaira. After completing its inspection, the Boarding Team allowed the Lady Samaira to proceed to port in Engelhard, North Carolina, where NOAA agents awaited to conduct the dockside investigation.
Once the vessel reached port, NOAA agents boarded. Agents, however, found only 99 striped bass aboard the vessel. The crew of the Lady Samaira had discarded 74 Atlantic striped bass prior to getting port. The conservative retail value of the missing fish, based upon fillet weight, was over $12,000.
When questioned by NOAA agents, GIBBS initially lied and told the agents that he had caught the fish within state waters. When confronted with the data from NOAA’s vessel monitoring system, GIBBS subsequently confessed to fishing nine miles offshore and signed a written statement of his admission.
A subsequent forensic analysis of the Lady Samaira’s vessel computer (which was seized during the investigation) identified that Gibbs had saved track lines on his computer indicating he fished for striped bass approximately 9 miles into the EEZ, which he then deleted from his system. Agents recovered the deleted evidence, as well as evidence from earlier trips where GIBBS had done the same – that is, harvesting striped bass from the EEZ and deleted his track lines.
Based on its investigation, NOAA determined that between January 27, 2009, and February 10, 2010, GIBBS, as Captain of the Lady Samaira, harvested more than 9,000 pounds of Atlantic Striped Bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The retail market value of the fish illegally harvested and sold by GIBBS exceeded $72,000. To conceal the illegal harvests, GIBBS submitted false statements, under penalty of perjury, to NOAA, claiming he caught the fish in state waters.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that between January 29, 2009, and February 10, 2010, HOPKINS, then Captain of the Lady Carolyn, a commercial trawler, harvested more than 7,000 pounds of Atlantic Striped Bass from the EEZ, which he sold to fish dealers in Wanchese, North Carolina. The retail market value of the fish illegally harvested and sold by HOPKINS exceeded $55,000. To conceal the illegal harvests, HOPKINS submitted false statements, under penalty of perjury, to NOAA, claiming he caught the fish in state waters.
Three other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, United States v. James Ralph Craddock, No. 2:15-CR-7-F, United States v. Joseph Howard Williams, No. 4:15-CR-2-F.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be prosecuted vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Our office was pleased to partner with DOJ’s Environment and Natural Resources Division, NOAA, and other law enforcement agencies on these important cases.”
"NOAA's Office of Law Enforcement is committed to ensuring a level playing field for the fishermen who play by the rules. When people cheat the system, it hurts those who follow the rules the most," said Eileen Sobeck, Assistant Administrator for NOAA Fisheries.
A sentencing hearing has been scheduled for the Court’s April 24th term of court, 2017. GIBBS faces a maximum sentence of 10 years imprisonment and/or a $500,000 fine. HOPKINS faces a maximum sentence of five years in prison and a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Assistant U.S. Attorney Banumathi Rangarajan and Trial Attorneys Shennie Patel and Shane Waller of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Sylacauga Woman Sentenced to Prison for Embezzling from Union LocalRead the Press Release
BIRMINGHAM – A federal judge last week sentenced a Sylacauga woman to three months in prison, followed by three month’s home detention for embezzling more than $23,000 from a construction trades union local based in Irondale, announced Acting U.S. Attorney Robert O. Posey and Department of Labor, Office of Labor-Management Standards, District Director Craig Neel.
U.S. District Judge R. David Proctor sentenced MICHELLE R. CLIFTON, 49, on one count of embezzling union assets. The judge ordered her to pay $23,014 in restitution to the union. Clifton pleaded guilty in August. She must report to prison Feb. 15.
Clifton stole from the International Association of Heat and Frost Insulators and Allied Workers, Local 78, where she worked as office manager and bookkeeper, according to court records. She carried out the theft between December 2012 and September 2013 by forging 17 checks drawn on four separate union accounts.
The Labor Department’s Office of Labor-Management Standards investigated the case, which Assistant U.S. Attorney J. Patton Meadows prosecuted.
###
St. Croix Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
St. Croix, USVI – Shawn McIntosh, 24, pleaded guilty today in federal court on St. Croix before United States Magistrate Judge George W. Cannon to being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, police officers encountered McIntosh on July 9, 2016, while searching for another individual at the Hidden Island Bar in St. Croix. Upon observing the police, McIntosh ran and was observing tossing an object, later determined to be a firearm. McIntosh was previously convicted of burglary third degree in 2012 in the Virgin Islands Superior Court.
McIntosh faces a maximum of 10 years of incarceration and a maximum fine of $250,000. A sentencing date has been set for May 24, 2017.
The case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigations. The case is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Spice Manufacturers Convicted for Selling Spice in Hampton RoadsRead the Press Release
NORFOLK, Va. – Charles Burton Ritchie, 46, Benjamin Galecki, 42, both of Pensacola, Florida, were convicted today by a federal jury on charges related to their respective roles in a $21 million spice manufacturing and distribution conspiracy.
“Spice is a dangerous mixture of ingredients that can be deadly,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Often it is our young people who fall victim to these illegal drugs, obtaining them at gas stations and convenience stores without any idea how dangerous they can be. I want to commend our trial team and investigative partners for their terrific work on this case.”
“Spice wreaks havoc on the lives of its users,” said Clark E. Settles, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, which oversees the Norfolk office that conducted this investigation. “Consumers ingest these toxic chemicals for a short-term high, all too often to have devastating effects on their bodies. Today’s verdict underscores the hard work our special agents and law enforcement partners do to protect the people of Hampton Roads.”
“Today’s verdict demonstrates the commitment of FDA and its law enforcement partners to aggressively pursue those who distribute potentially dangerous unapproved drugs, which poses a risk to the public health,” said Mark McCormack, Special Agent in Charge of the Food and Drug Administration’s Office of Criminal Investigations.
Ritchie and Galecki were indicted on Sept. 8, 2015. According to court records and evidence presented at trial, Ritchie and Galecki operated Zencense, a Pensacola-based company that manufactured smokable synthetic cannabinoids, commonly known as “spice,” throughout 2012. Ritchie and Galecki’s company gave their spice blends such names as Bizarro, Neutronium, Orgazmo, and Sonic Zero. Their products contained XLR-11 and UR-144, which at that time were analogues of JWH-018, a Schedule I controlled substance. In Dec. 2012, Ritchie and Galecki purported to sell their company to a third party in California, though they continued to exercise control over the company into 2013. The new company’s name was ZenBio.
Between August 2012 and April 2013, Zencense and ZenBio shipped a total of approximately 1,000 kilograms of spice to the Hampton Roads area. Zencense and ZenBio spice was sold at Hampton Pipe and Tobacco, a headshop in Hampton, as well as at the Red Barn, a convenience store in Newport News, among other locations.
Ritchie and Galecki each face a maximum penalty of 79 years in prison when sentenced on May 22. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of (HSI) Washington; Joseph Cronin, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark McCormack, Special Agent in Charge of Food and Drug Administration’s Office of Criminal Investigations; Terrance Salt, Chief of the Hampton Police Division; Richard W. Myers, Chief of the Newport News Police Department; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police, made the announcement after the verdict was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Eric Hurt and Kevin Hudson are prosecuting 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. 4:15-cr-18.
Six Mission, Texas Residents Plead Guilty to Participating in Drug Trafficking and Money Laundering SchemeRead the Press Release
In San Antonio today, six more individuals pleaded guilty to their roles in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; United States Attorney Kenneth Magidson, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Appearing before United States District Judge Xavier Rodriguez this afternoon, the following defendants pleaded guilty to conspiracy to commit money laundering: 47-year-old Norma Leticia Villarreal-Garcia (*two counts); 36-year-old Iza Corina Flores-Alanis; 24-year-old Juan Antonio Villarreal; 57-year-old Jose Luis Villarreal-Arelis (aka “El Cosas”); 47-year-old Nancy Isela Villarreal-Gonzalez; and, 27-year-old Gilberto Villarreal-Villarreal.
By pleading guilty, the defendants admittedly conspired since January 2000 to: (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
The defendants face up to 20 years in federal prison for the money laundering conspiracy charge. Sentencing is scheduled for May 24, 2017.
To date, 12 defendants have entered guilty pleas resulting from this investigation. Four defendants—45-year-old Reymundo Villarreal-Arelis (aka “Mundo”); 37-year-old Jesus Jaime Andrade of Mission; 66–year-old Sergio Guadalupe Adame-Ochoa of McAllen, TX; and, Gilberto Villarreal-Arelis (aka “Beto”, “Betito”)--remain under indictment in this case. Gilberto Villarreal-Arelis remains a fugitive. Jury selection and trial is set for March 13, 2017.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Police Department, Texas Department of Public Safety and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices and Homeland Security Investigations.
Schneider Charged with Federal Hate Crime Indictment Alleges Assault Based on Victim’s Sexual OrientationRead the Press Release
BOISE B Kelly Schneider, 23, of Nampa, Idaho, was indicted on January 10, 2017, by a federal grand jury sitting in Boise for willfully assaulting a person because of the person’s sexual orientation, U.S. Attorney Wendy J. Olson announced. The indictment, unsealed upon Schneider’s transfer into federal custody, alleges that Schneider’s actions resulted in the death of his victim, S.N. The U.S. Attorney’s Office does not identify victims by name in charging documents. Schneider’s arraignment is set for tomorrow, January 24, 2017, at 2:00 p.m. before Chief U.S. Magistrate Judge Ronald E. Bush. A trial date will be set at that time.
The charges relate to an assault at Gott’s Point, near Lake Lowell, in Canyon County, in the early morning hours of April 29, 2016. Schneider is also charged in state court with first degree murder based on S.N.’s death.
The charge of willful assault based on sexual orientation, resulting in death, is punishable by up to life in prison, supervised release of not more than five years, and a $250,000 fine.
The Canyon County Sheriff’s Office, with assistance from the Treasure Valley Metro Violent Crime Task Force, conducted the investigation. The case is being investigated federally by the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Portsmouth Cocaine Dealer Sentenced to 12 Years in PrisonRead the Press Release
NORFOLK, Va. – Kenneth Ray Matthews, 44, of Portsmouth, was sentenced today to 12 years in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, possession of cocaine with intent to distribute, and transferring a firearm to a felon.
Matthews was found guilty by a federal jury on Sept. 29, 2016, following a three-day trial. According to court documents and evidence presented at trial, Matthews and his son, Kenneth Ray Meeks, 27, also of Portsmouth, distributed over 13 kilograms of cocaine in the Hampton Roads area between November 2013 and August 2015. On Aug. 13, 2015, law enforcement agents executed a search warrant at Matthews’ residence in Portsmouth and discovered 17 grams of cocaine, digital scales, 34 firearms, 3,288 rounds of ammunition and over $30,000 in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Col. K.L. Wright, Chesapeake Chief of Police; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-61.
Pocahontas County man pleads guilty to failing to update his sex offender registrationRead the Press Release
ELKINS, WEST VIRGINIA – Clifton R. Summerfield, 34, of Marlinton, West Virginia, pled guilty to failing to update his sex offender registration, Acting United States Attorney Betsy Steinfeld Jividen, announced.
From February 2016 through November 2016, Summerfield failed to register and update his registration as a sex offender in Pocahontas County, WV. Summerfield is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law. He pled guilty to one count of “Failure to Update Sex Offender Registration.”
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 Sarah W. Montoro prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 37 months’ imprisonment on his conviction of conspiracy to distribute cocaine, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Sidney Pinnix, 50, of Pittsburgh, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Sidney Pinnix was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Pinnix.
Pennsylvania Man Pleads Guilty in False Tax Refund SchemeRead the Press Release
A Pennsylvania man pleaded guilty today to conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Shamback Francois, 27, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false returns using stolen personal identifying information. At least one of Francois’s co-conspirators electronically filed the false tax returns, which directed that the fraudulently claimed refunds be deposited into a bank account in the name of Shamback Tax Service. Francois did not have a tax preparation service, but had opened up the account in order to facilitate the crime. Francois withdrew funds from this account to pay his co-conspirators. As part of the plea, Francois admitted to causing a loss of $425,841.14.
Francois is scheduled to be sentenced on April 18 before U.S. District Court Judge John R. Padova. Francois faces a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owners of West L.A. Pharmacy Found Guilty in Sweeping Scheme to Illegally Distribute Prescription NarcoticsRead the Press Release
LOS ANGELES – Two brothers who owned a West Los Angeles pharmacy were found guilty by a federal jury today of operating a years-long narcotic drug trafficking, money laundering and tax fraud conspiracy that illegally sold prescription narcotics to black market customers across the United States.
Brentwood residents Berry Kabov, 46, and his brother Dalibor “Dabo” Kabov, 33, who operated Global Compounding Pharmacy, were convicted of being at the center of a scheme that illegally sold oxycodone (best known by the brand name OxyContin, but also the main ingredient in Percocet and Percodan), hydromorphone (also known as Dilaudid), and hydrocodone (commonly known as Vicodin or Norco).
The Kabovs were found guilty of conspiracy to distribute narcotics, distribution of oxycodone, conspiracy to import narcotics, importation of anabolic steroids, money laundering and subscribing to false tax returns. As a result of the guilty verdicts, Berry Kabov faces a statutory maximum penalty of 309 years in federal prison, and Dalibor Kabov faces up to 315 years.
The brothers are scheduled to be sentenced on March 29 by United States District Judge Dolly M. Gee.
“These defendants used their pharmacy as a front for drug dealing, and they used multiple bank accounts to conceal their illicit proceeds,” said United States Attorney Eileen M. Decker. “Prescription drug abuse is an epidemic in this country that causes immense harm, and the use of the pharmacy allowed the defendants to increase greatly the volume of their business and distribute narcotics around the nation. In addition to operating as de facto drug dealers, these defendants cheated the U.S. tax system by failing to report approximately $1.5 million in income while living a life of luxury.”
According to court documents and evidence introduced during a three-week trial in United States District Court, the Kabov brothers used Global Compounding to sell bulk quantities of prescription drugs to customers across the country. During the investigation, authorities seized shipments that contained thousands of hidden oxycodone pills that the Kabov brothers had shipped to customers in and around Columbus, Ohio. These customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California.
To conceal those black market drug sales, the Kabovs used their pharmacy to generate records that falsely indicated that prescriptions had been filled in the names of identity theft victims.
From June 2012 through December 2014, the pharmacy ordered nearly 100,000 oxycodone pills, yet it reported only half of those pills to state authorities who track prescription drug sale. There was a 15-month period with no reporting at all, and there were shortfalls in the tens of thousands of pills when the pharmacy did file reports.
“These individuals engaged in one of the most egregious, fraudulent acts we’ve seen on the part of a DEA registrant. They completely exploited the system to acquire dangerous and addictive prescription drugs by legal means with the primary intent of selling them on the black market,” said DEA Special Agent in Charge Steve Comer. “This conviction should serve as a warning to others so inclined to abuse the system. In the midst of a nation-wide opioid epidemic that is taking 90 lives a day, we’re leveraging all of our resources to bring illicit prescription drug traffickers like these to justice.”
In addition to the charges related to oxycodone, the brothers were found guilty of illegally importing anabolic steroids purchased from a wholesale drug distributor located in Hubei, China. The indictment details how the brothers used the pharmacy to illegally order bulk quantities of testosterone, oxandrolone and nandrolone.
On federal tax returns, the Kabovs understated their income by approximately $1.5 million. They falsely claimed to have suffered net losses in 2011 and 2012, while they were flying in private jets, staying in penthouse suites, and purchasing new luxury cars, such as a $100,000 Corvette.
“After amassing large quantities of cash from the black market sale of prescription drugs, the Kabov brothers attempted to legitimize these ill-gotten profits through the use of their pharmacy and financial institutions,” said Aimee Schabilion, Acting Special Agent in Charge of the IRS Criminal Investigation. “IRS Criminal Investigation remains committed to the investigation and prosecution of those who launder and profit from the proceeds of illegal pharmaceuticals.”
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, IRS Criminal Investigation, the United States Postal Inspection Service, the Los Angeles Police Department, and the California Board of Pharmacy.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Ryan Weinstein of the Organized Crime Drug Enforcement Task Force, and Assistant United States Attorney Matthew O’Brien of the General Crimes Section.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Sentenced to Prison for Tax EvasionRead the Press Release
The owner of a St. Louis, Missouri tax return preparation business was sentenced to 27 months in prison Friday following his conviction on two counts of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court records, Semere Tsehaye, 39, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in Illinois, Kansas and Missouri from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
“As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the Internal Revenue Service (IRS), and yet ignored his responsibilities in an effort to cheat the system,” said Acting Deputy Assistant Attorney General Goldberg. “Tsehaye’s sentence makes clear that those who seek to evade paying their fair share will face severe consequences for their criminal conduct.”
“Mr. Tsehaye’s attempt to evade tax by hiding income and filing false returns was a theft from the American public,” said Special Agent in Charge Karl Stiften of IRS Criminal Investigation (CI), St. Louis Field Office. “Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished and Mr. Tsehaye will now pay the price for his crimes.”
Court records show that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the IRS. These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,895 in 2010 and $1.03 million in 2011, and resulted in Tsehaye evading a total of approximately $581,264 in tax due and owing.
On Oct. 4, Tsehaye was convicted of two counts of tax evasion by a federal jury sitting in St. Louis, Missouri. In addition to the term of prison imposed, Tsehaye was ordered to serve three years of supervised release and to pay $$298,178 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Sentenced for Tax EvasionRead the Press Release
WASHINGTON – The owner of a St. Louis, Missouri, tax return preparation business was sentenced to 27 months in prison Friday following his conviction on two counts of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court records, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in Illinois, Kansas and Missouri from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
"As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the Internal Revenue Service (IRS), and yet ignored his responsibilities in an effort to cheat the system," said Acting Deputy Assistant Attorney General Goldberg. "Tsehaye’s sentence makes clear that those who seek to evade paying their fair share will face severe consequences for their criminal conduct."
"Mr. Tsehaye’s attempt to evade tax by hiding income and filing false returns was a theft from the American public," said Special Agent in Charge Karl Stiften of IRS Criminal Investigation (CI), St. Louis Field Office. "Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished and Mr. Tsehaye will now pay the price for his crimes."
Court records show that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the IRS. These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,895 in 2010 and $1.03 million in 2011, and resulted in Tsehaye evading a total of approximately $581,264 in tax due and owing.
On Oct. 4, Tsehaye was convicted of two counts of tax evasion by a federal jury sitting in St. Louis, Missouri. In addition to the term of prison imposed, Tsehaye was ordered to serve three years of supervised release and to pay $298,178 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Overlake Medical Center Agrees to Settle Civil Rights ClaimsRead the Press Release
The U.S. Department of Justice and Overlake Medical Center have entered into a settlement agreement to remedy alleged violations of the Americans with Disabilities Act (“ADA”), announced United States Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began the investigation after a complainant, who is deaf, alleged that she requested an ASL interpreter in advance of a scheduled, induced delivery at the hospital in June 2014. Despite assurances that one would be provided, no interpreter was present as the labor escalated, eventually resulting in a cesarean section. In addition, the complainant’s partner, who is also deaf, was also not provided an interpreter. He also was excluded from the delivery room during the birth because complainant’s mother (who was attempting to provide basic ASL interpretation to her daughter) was counted as complainant’s choice of “companion” during the birth.
“The ability to communicate effectively with health care providers is essential – especially during a critical event like the birth of a child,” said U.S. Attorney Annette L. Hayes. “This resolution demonstrates our unwavering commitment to protect the civil rights of all Americans, including those who are deaf or hard of hearing. This settlement will not only resolve this particular case, but ensures that future patients who are treated at Overlake Medical Center will receive assistance so that they can communicate with their doctors and other caregivers.”
Under the settlement signed today, the hospital admits no law violation, wrongdoing or misconduct but agreed to: (1) adopt policies and procedures that ensure that individuals who are deaf or hard of hearing receive auxiliary aids and/or services (including sign language interpreters when necessary) that ensure effective communication; (2) train its staff on the ADA’s effective communication requirements; and (3) pay $200,000 in settlement. Under the terms of the agreement, $75,000 of the settlement will be paid to the complainant; $25,000 will be paid to her partner; $25,000 will be paid to her mother (for associational discrimination), and $75,000 will be paid in lieu of a civil penalty to the United States.
Complainant scheduled an induced labor at Overlake Medical Center, in part, so that she could be assured that an ASL interpreter would be available during her labor and delivery process. Complainant requested an ASL interpreter 10 days in advance of her induction, but when she arrived for the procedure was told an interpreter was not immediately available to assist. Although the hospital subsequently provided an interpreter for part of complainant’s labor, when that interpreter’s shift ended, the hospital (having failed to plan for any replacement) was unable to find another interpreter to assist. As a result, complainant and her partner were only able to communicate with hospital staff through handwritten notes while her labor increased and complications ensued. Eventually, complainant’s mother, who taught herself some ASL when complainant was young, arrived and attempted to provide basic interpretation for complex medical concepts and procedures, including interpreting during complainant’s cesarean surgery. Complainant subsequently notified the United States Attorney’s Office of the alleged ADA violation. The U.S. Attorney’s Office investigated and found that the hospital discriminated against complainant and her companions by failing to ensure effective communication and by engaging in associational discrimination. Overlake Medical Center fully cooperated with the investigation and settlement of this matter.
In a related matter, complainant also alleged that Overlake Obstetricians and Gynecologists, P.C., which provided her pre-natal care, similarly violated her rights under the ADA when it failed to provide an ASL interpreter for four of her nineteen office visits. The U.S. Attorney’s Office investigated this matter as well and confirmed the violation. That matter was resolved by a Letter of Resolution, under which the clinic agreed to make changes to its policies, procedures, and training and agreed to pay the complainant $3,500 in settlement.
These cases are part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on this critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY). ADA complaints may be filed by email to [email protected].
Both matters were handled by Assistant United States Attorney Christina Fogg in collaboration with Disability Rights Section of the Civil Rights Division of the United States Department of Justice.
New York Man Sentenced to 40 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 23, 2017, Kevin Tocker-Rose, 30, of Brooklyn, New York, was sentenced to 40 months in federal prison after his guilty plea to charges that he possessed with the intent to distribute heroin. U.S. District Court Judge William K. Sessions III also ordered that Tocker-Rose serve three years of supervised release after his prison term.
According to court records, Tocker-Rose transported significant quantities of heroin from the New York City area for re-distribution. On May 5, 2016, after an investigation involving the controlled purchases of heroin from Tocker-Rose, the Vermont State Police Drug Task Force and other law enforcement agencies arrested Tocker-Rose in Burlington after he departed a bus from New York City. From his person, law enforcement recovered approximately 30 grams of heroin.
For his crime, Tocker-Rose faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Tocker-Rose receive a prison term between 46-57 months. In determining that a more lenient sentence was appropriate, Judge Sessions considered Tocker-Rose’s difficult childhood and strong family support, among other factors.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, and the Burlington Police Department for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hutchins is represented by Assistant Federal Public Defender David McColgin.
New Jersey Man Sentenced on Heroin ChargeRead the Press Release
Roanoke, VIRGINIA – A New Jersey man, who was dealing heroin in the City of Roanoke, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on a federal drug charges, Acting United States Attorney Rick A. Mountcastle announced.
Duane A. Andrews, 37, of Jersey City, New Jersey, previously pled guilty to one count of distribution of heroin. Today in District Court, Andrews was sentenced to 136 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, Andrews was arrested and charged after selling heroin to a confidential law enforcement source.
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police Department, the Virginia State Police and the Roanoke HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Navy Sailor Sentenced for Murder-for-Hire Plot to Kill WifeRead the Press Release
NORFOLK, Va. – Chadwick Stanley Ghesquiere, 38, of Virginia Beach was sentenced today to 11 years in prison for his role in an attempted murder-for-hire plot to kill his wife.
“Violence is never the answer to ending a relationship,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Despite Ghesquiere’s best attempts to distance himself, law enforcement agents were able to uncover his murder-for-hire plot and potentially prevent a tragic loss of life. I want to thank our investigative partners at the ATF and NCIS for their terrific work on this case.”
Ghesquiere pleaded guilty on Oct. 11, 2016. According to court documents, in August 2016, Ghesquiere hired an undercover federal special agent to murder his estranged wife. Ghesquiere provided the undercover agent with $1,000 in cash, 80 Adderall pills, and a firearm to commit the murder. Ghesquiere also promised to pay the undercover $50,000 of his $100,000 life insurance policy for conducting the murder. After his arrest, Ghesquiere admitted that he tried to distance himself during the investigation by using a pre-paid burner phone to coordinate a meeting with the undercover agent. He also admitted to receiving Adderall from the military and then distributing the pills to another individual who resides in his neighborhood.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Maureen Evans, Acting Special Agent in Charge of NCIS Norfolk Field Office, made the announcement after sentencing by Senior Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Kevin M. Comstock prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-128.
National Slavery and Human Trafficking Prevention Month - JANUARY 2017Read the Press Release
Through Presidential Proclamation, Barack Obama recognized January 2017 as NATIONAL SLAVERY AND HUMAN TRAFFICKING PREVENTION MONTH. In recognition of this month, the Office of the United States Attorney for the District of Vermont and the Office of the Attorney General for the State of Vermont join together to shine a light on the modern-day slavery known as human trafficking, a crisis facing the nation and Vermont.
Human Trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion may be subtle and insidious, and traffickers often threaten serious physical and emotional harm. Human trafficking is a global, national and local problem. Vermont is not immune to this crisis. Drug addicts and other vulnerable people such as children, the disabled, and the undocumented are specifically targeted and recruited by traffickers for exploitation.
Vermont’s United States Attorney, Eric Miller, emphasized the link between human trafficking and the heroin scourge in Vermont, stating, “Human trafficking continues to be one of the most dangerous, but least understood, aspects of the heroin trade in Vermont. Drug dealers coerce addicts to perform commercial sex acts for the benefit of the dealers’ illegal organizations, deliberately perpetuating the victims’ addiction in order to exploit them for commercial gain. Trafficking in people compounds the damage that trafficking in heroin has caused our state. Our response to that epidemic must continue to bring the problem of human trafficking out of the shadows, get trafficking survivors the help and services they need, and prosecute the traffickers who prey on some of our most vulnerable Vermonters.”
Vermont’s Attorney General, T.J. Donovan, added, “We have seen, right here in Vermont, how human trafficking destroys lives. The physical and emotional scar survivors carry is immense. The only way to effectively combat this crime and to help those that have been victimized is for us, as a community, to bring this hidden scourge out in the open. As citizens we have a duty to be informed and to take action. That action may be contacting law enforcement with a concern, or reaching out to someone that you suspect may be being exploited. Remaining silent is no longer an option.”
Anyone can be a victim of human trafficking, regardless of race, age, gender, nationality, socio-economic status, or sexual orientation. Trafficking victims are often manipulated via false promises concerning relationships, employment, lifestyle, or drug availability, and victims are lured into situations where they are controlled by the trafficker. Human trafficking does not necessarily occur behind closed doors. In many cases, the trafficker’s control over the victim is so profound that the trafficker can control the victim even when he or she is out in the community, interacting with people on a daily basis.
Perpetrators of human trafficking crimes also come from all walks of life, and they can be family members, acquaintances, or strangers to their victims. They may act alone or as part of an organized effort; their main motive is to make a profit. The damage done by human trafficking is a violation of the victim’s basic human rights.
Vermont’s Human Trafficking Task Force brings together federal, state, and local law enforcement; social services; state agencies; and community based organizations to coordinate efforts to combat this crime and provide help to victims. The Vermont Human Trafficking Task Force continues to prioritize training and awareness for professionals and community members. Anyone interested in such a training or awareness event should contact the Vermont U.S. Attorney’s Office at (802) 951-6725.
To make a report to law enforcement, call The Vermont Human Trafficking Hotline: 1-888-98HUMAN (1-888-984-8626).
If you become aware of an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call: 211.
Information regarding the human trafficking of a youth (under the age of 18) should be reported to the Department for Children and Families by calling Vermont Centralized Intake: 1-(800) 649-5285.For more information about human trafficking, please visit https://humantraffickinghotline.org or www.justice.gov/humantrafficking.
Mother and son convicted of $7 million healthcare fraud schemeRead the Press Release
A mother and son were convicted of crimes related to a $7 million home healthcare fraud conspiracy in which they provided forged documents and fraudulent forms to bill for services that were not provided.
Delores L. Knight, 70, of Cleveland Heights and Isaac R. Knight, 29, of Macedonia were convicted following a trial of conspiracy to commit healthcare fraud and health care fraud. Delored Knight was also convicted of multiple counts of money laundering.
Delores Knight owned Just Like Familee II, Inc., and Just Like Familee III, Inc., which she incorporated in 2005 and 2006, respectively, to provide home health services for elderly and disabled clients. Isaac Knight served as manager. The companies had locations at various times in Cleveland Heights, Twinsburg and Mentor, according to court documents.
Together they defrauded Medicaid, Medicare and the Department of Veteran Affairs out of more than $7 million as a result of the conspiracy in which they prepared and submitted forged or false records in support of previously submitted and reimbursed billings for patients they did not actually provide face-to-face services, according to trial testimony and court documents.
“These defendants stole millions of dollars by billing for services they never provided,” said U.S. Attorney Carole S. Rendon. “We will do our best to get whatever assets they have and make sure they go to prison.”
The defendants are expected to be sentenced later this year.
Prosecutors are seeking to forfeit all money that was illegally obtained, as well as a home at 1048 Morning Glory Drive in Macedonia owned by Delores L. Knight.
This case was prosecuted by Assistant U.S. Attorneys Mark Bennett and James L. Morford and Special Assistant U.S. Attorney Maritsa Flaherty following an investigation by the Department of Health and Human Services, the FBI, the IRS, the Department of Veteran’s Affairs and the Ohio Attorney General’s Office.
Maryland MS-13 Member Sentenced to Life in Federal Prison for Racketeering Conspiracy, Including MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Miguel Angel Manjivar, aka “Masflow or “Garra,” age 25, of Hyattsville, Maryland, today to 30 years in federal prison for conspiracy to participate in a racketeering enterprise, and to life in prison for murder in aid of racketeering, in connection with his gang activities as a member of La Mara Salvatrucha, or MS-13. Judge Titus ordered that the sentences be served consecutively. Manjivar was convicted by a federal jury on September 30, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Kenneth Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to evidence presented at the three-week trial, from at least 2009 through October 2014, MS-13 members planned and committed numerous crimes, including murders, attempted murders, kidnappings, assaults, robberies, and witness tampering and retaliation in Prince George’s and Montgomery Counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Manjivar was a member of the MS-13 Peajes Locotes Salvatrucha clique.
Trial evidence showed that on September 16, 2010, Manjivar shot and killed an individual he believed to be a rival gang member on the footbridge of a park in Hyattsville. On January 10, 2011, Manjivar and other MS-13 members murdered a person they believed was a rival gang member, and attempted to murder another purported rival gang member, in the parking lot of a grocery store on University Boulevard in Hyattsville. Manjivar and others repeatedly punched, kicked, and stabbed the victims, one of whom survived the attack.
In addition, trial evidence demonstrated that on January 13, 2011, after attending a Peajes clique meeting at which he criticized other MS-13 members for not committing enough violent crimes, Manjivar and other MS-13 Peajes members got into a mini-van driven by a co-defendant. Near the Fort Totten Metro Station, they saw a person they believed was an associate of a rival gang. Manjivar and other MS-13 members attacked the victim and dragged him back into the mini-van. Manjivar and others continued to assault him, at times attempting to use a seat belt to strangle the victim. They eventually parked near a dead end in the vicinity of Chillum Manor Road. Manjivar and others kicked, stabbed and choked the victim. They forcefully stripped the victim of all of his heavy winter clothing in order to stab him. After assaulting the victim near the mini-van, they dragged the victim into the woods, where they left him for dead, and fled. The victim survived the attack.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section, who prosecuted the case. Former OCGS Trial Attorney Kevin Rosenberg assisted in the prosecution.
Maryland MS-13 Member Sentenced to Life in Federal Prison for Racketeering Conspiracy Including MurderRead the Press Release
A Hyattsville, Maryland, man was sentenced today to 30 years in federal prison for conspiracy to participate in a racketeering enterprise and to life in prison for murder in aid of racketeering, in connection with his gang activities as a member of La Mara Salvatrucha, or MS-13.
The sentence was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
In addition to today’s consecutive prison sentences, U.S. District Judge Roger W. Titus of the District of Maryland ordered Miguel Angel Manjivar, aka "Masflow" or "Garra," 25, to serve five years of supervised release. Manjivar was convicted by a federal jury on Sept. 30, 2016.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or "cliques" of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as "chavalas," whenever possible.
According to evidence presented at the three-week trial, from at least 2009 through October 2014, MS-13 members planned and committed numerous crimes, including murders, attempted murders, kidnappings, assaults, robberies, and witness tampering and retaliation in Prince George’s and Montgomery counties. Gang members also extorted brothel operators and owners of other illegal businesses and tampered with and retaliated against witnesses, among other crimes. Manjivar was a member of the MS-13 Peajes Locotes Salvatrucha clique.
Trial evidence showed that on Sept. 16, 2010, Manjivar shot and killed an individual he believed to be a rival gang member on the footbridge of a park in Hyattsville. On Jan. 10, 2011, Manjivar and other MS-13 members murdered a person they believed was a rival gang member, and attempted to murder another purported rival gang member in a parking lot in Hyattsville. Manjivar and others repeatedly punched, kicked, and stabbed the victims, one of whom survived the attack.
In addition, trial evidence demonstrated that on Jan. 13, 2011, Manjivar attended a Peajes Clique meeting, where he criticized other MS-13 members for not committing enough violent crimes. Manjivar then left in a mini-van driven by a co-defendant with other Peajes members as passengers, and as a group, they attacked a person they believed to be an associate of a rival gang and dragged him back into the vehicle. Manjivar and others continued to assault him, at times attempting to use a seat belt to strangle the victim, as well as kicked, stabbed and choked him. Trial evidence demonstrated that they forcefully stripped the victim of his heavy winter clothing in order to stab him, and then dragged him into the woods, where they left him for dead and fled. The victim survived the attack.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
HSI Baltimore, Prince George’s County and Montgomery County Police Departments, and Prince George’s County and Montgomery County State’s Attorney’s Offices investigated the case. The case is being prosecuted by Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section (OCGS). Former OCGS Trial Attorney Kevin Rosenberg assisted in the prosecution of this case.
Man Pleads Guilty to Bank Robbery He Blamed on a Fight with His WifeRead the Press Release
KANSAS CITY, KAN. B A Kansas City, Kan., man who told investigators he preferred jail to living with his wife pleaded guilty Monday to a federal bank robbery charge, U.S. Attorney Tom Beall said.
Lawrence John Ripple, 70, Kansas City, Kan., pleaded guilty to one count of bank robbery. A criminal complaint in the case alleged that on Sept. 2, 2016, Ripple sat down in the lobby and waited for police after robbing the Bank of Labor at 756 Minnesota Ave. in Kansas City, Kan. He told investigators that after an argument with his wife he felt he would rather be in prison than go back home.
Sentencing will be set for a later date. He faces up to 20 years in federal prison and a fine up to $250,000. Beall commended the FBI and Assistant U.S. Attorney Sheri Catania for their work on the case.
Leader of Chicago Street Gang Sentenced to 22 Years in Federal Prison for Dealing Guns and Drugs on West SideRead the Press Release
CHICAGO — A convicted felon who was a leader of the violent Gangster 2-6 Nation street gang has been sentenced to 22 years in prison on federal gun and drug charges.
A federal jury in 2015 convicted FRANCISCO MASIAS of selling cocaine and illegally possessing 16 handguns. Masias, who had previously been convicted of a felony, illegally acquired the guns from an associate. Masias then gave the guns to JOSE MALDONADO, a fellow gang member who in turn provided them to another gang member. Law enforcement seized the firearms before they could be further distributed.
Masias, Maldonado and more than 15 other defendants have been convicted as part of a joint federal, state and local investigation dubbed “Operation Shady Business.” The gang’s drug and gun activities were uncovered through the use of wiretaps, cooperating witnesses and surveillance. The probe was initiated by the Chicago Police Department and conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).
U.S. District Judge Rebecca R. Pallmeyer imposed the 264-month sentence for Masias on Friday in federal court in Chicago.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Eddie Johnson, Superintendent of the Chicago Police Department; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division. The Cook County State’s Attorney’s Office and the U.S. Marshals Service provided valuable assistance.
Masias, 38, of Berwyn, was a longtime leader of the Gangster 2-6 Nation, which operated a violent drug-trafficking organization on the West Side of Chicago, predominantly in the Little Village area. Evidence at trial revealed that the gang violently protected its distribution of cocaine. During the investigation officers searched a Nottingham Park residence that had been converted into a marijuana grow house and seized more than 100 marijuana plants, which had an estimated street value of $1 million. JASON HERRERA, who resided at the grow house and served as security, pleaded guilty to a drug charge and was sentenced to five years in prison.
A jury convicted Maldonado, of Chicago, on gun and drug charges, and he was sentenced to 22 years in prison.
The government is represented by Assistant U.S. Attorneys Matthew F. Madden and Ankur Srivastava.
Lawton Tax Return Preparer to Serve 18 Months in Prison for Earned Income Credit Tax Fraud SchemeRead the Press Release
Oklahoma City, Oklahoma – LAQUINTA Q. FISHER, a former tax return preparer from Lawton, Oklahoma, was sentenced to serve 18 months in federal prison for an earned income credit tax fraud scheme involving false reporting of income and dependents, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an indictment on August 17, 2016, Fisher was a self-taught tax return preparer who prepared federal tax returns for individuals in the Lawton, Oklahoma, area for tax years 2010 through 2014. She recruited clients by word of mouth and by distribution of flyers. Fisher advised her clients that all they needed was a dependent child in order to receive a refund from the government. She then falsified returns for clients by adding fictitious income to increase the earned income credit (EIC) and by adding false dependents to maximize the EIC, which resulted in false refund claims. Fisher prepared and submitted the returns for her clients electronically to the IRS.
Fisher pled guilty on October 5, 2016. Today, she was sentenced by United States District Judge David Russell to serve 18 months in federal prison, followed by three years of supervised release. She was also ordered to pay $133,955 in restitution to the IRS. Reference is made to court filings for further information.
This case is the result of an investigation by IRS-Criminal Investigations and was prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Justice Department Seeks to Stop Florida Tax Return Preparer from Preparing Federal Tax ReturnsRead the Press Release
A Broward County, Florida tax return preparer, Billy Philippe, unlawfully understates his customers’ income tax liabilities and overstates refunds by making deliberate misstatements on the tax returns, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Fort Lauderdale, asks the court to permanently bar Philippe from preparing federal tax returns for others. The suit also asks the court to order Philippe to turn over a list of all the tax returns he has prepared since Jan. 1, 2012.
The complaint alleges that Philippe, the majority owner of Advantage Tax Center Plus Inc., prepares federal income tax returns for customers that fraudulently overstate the amount of the refunds due by falsely claiming refundable credits, including the Earned Income Tax Credit (EITC) and credits for education expenses. The complaint further alleges that Philippe frequently claims fraudulently inflated wages or self-employment income in order to maximize the amount of EITC a customer claims. The IRS previously penalized Philippe over $24,000 for failure to exercise the due diligence required to claim the EITC for his customers and the failure to properly identify himself as the paid return preparer, according to the complaint.
From 2011 to 2015, Philippe prepared at least 899 returns, according to the complaint. The complaint alleges that audits of 44 returns prepared by Philippe in 2014 and 2015 revealed that he claimed credits his customers were not entitled to take and/or understated their correct tax liability by more than $300,000 in the aggregate.
The IRS is reminding taxpayers that the 2017 individual income tax return filing season begins today, Jan. 23, 2017, and there is information available on the IRS’s website. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2016 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
HSI Investigation Shuts Down Heroin Trafficking OperationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, today announced the five individuals were arrested over the weekend in Hartford and charged with federal heroin trafficking offenses.
As alleged in the criminal complaint, on October 21, 2016, the Baldwin County Sheriff’s Office in Alabama conducted a motor vehicle stop of a car hauler that was carrying a 2012 Chevrolet Malibu. A search of the Malibu revealed that it contained a hidden compartment (“trap”), which is commonly used to conceal and transport illegal contraband, including narcotics, firearms and currency. The investigation revealed that the car was registered to ONEL ARANA-GERVACIO.
The complaint further alleges that law enforcement officials obtained court authorization to install tracking devices on the vehicle and, between October 2016 and January 2017, HSI agents observed it at various locations in Connecticut and Rhode Island. On January 17, agents located the vehicle at 1091 Maple Avenue in Hartford. On January 20, surveillance officers observed activity on another vehicle located at the Maple Avenue residence consistent with manipulating a mechanical hidden compartment. Officers then observed ARANA placing two duffel bags into that second vehicle and then driving off in the vehicle with MODESTO BARETT-MEDINA. At approximately 8:30 p.m., a Hartford Police cruiser pulled the car over. The vehicle also contained a hidden trap, but a search revealed no contraband.
ERISON PERALTA, LUZ CRUZ and her daughter, CAROL AMPARO, were then located inside of 1091 Maple Avenue. The complaint alleges that a search of the residence revealed at least six kilograms of heroin, approximately 500 grams of cocaine and a “finger press,” which is used to process bulk quantities of heroin into 10-gram-bags known as “fingers.” Agents also seized drug distribution materials, including sifters, grinders, scales, vacuum sealers and kilo wrappers, which were coated in heroin residue and field-tested positive for the presence of fentanyl. Agents then searched the Malibu, which was located in the garage of 1091 Maple Avenue, and recovered approximately $260,000 in cash from inside the trap.
The complaint charges ARANA, BARETT, PERALTA, CRUZ and AMPARO with possession with intent to distribute one kilogram or more of heroin, and conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin. Both offenses carry a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
CRUZ and AMPARO are also charged with maintaining a drug-involved premises, an offense that carries a maximum term of imprisonment of 20 years.
The five defendants appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford. ARANA, 39, a citizen of Mexico; BARETT, 47, a citizen of the Dominican Republic, and PERALTA, 39, a citizen of the Dominican Republic, were ordered detained.
CRUZ, 46, and AMPARO, 20, were released on $50,000 bonds.
U.S. Attorney Daly stressed that a criminal complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), the Hartford Police Department and the Connecticut State Police, with the assistance of the Baldwin County (Ala.) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Grant County Man Pleads Guilty to Unlawfully Possessing a .50 Caliber Machine GunRead the Press Release
EUGENE, Ore. – On Monday, January 23, 2017, Michael Ray Emry, 54, of John Day, Oregon, pleaded guilty before U.S. District Court Judge Ann Aiken to unlawful possession of a fully automatic .50 caliber machine gun that was not registered to him.
After accepting the guilty plea, Judge Aiken scheduled Emry’s sentencing hearing for April 3, 2017. Emry faces a maximum sentence of 10 years in prison, a $10,000 fine, and three years of supervised release.
According to court documents and statements made in court, on May 6, 2016, federal agents executed a search warrant on Emry’s trailer in John Day and recovered a Browning M2 machine gun with an obliterated serial number. Emry told agents that the firearm was fully automatic and could fire between 550 and 650 rounds per minute, that he had stolen it from a man in Idaho, and that he had removed the serial number prior to bringing it to Oregon.
The case was investigated by the FBI in close collaboration with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.
Fugitive Arrested in $200 Million Credit Card Fraud ScamRead the Press Release
NEWARK, N.J. – A New York man was arrested for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Habib Chaudhry, 49, of Valley Stream, New York, was initially charged by complaint in February 2013 and then by indictment in September 2013. Chaudhry has been a fugitive for nearly four years. He is expected to make his initial appearance later today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this case and statements made in court:
Chaudhry was indicted as part of a conspiracy – led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others – to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Since then, 19 people, have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrow or spend as much as they could without repaying the debts. The scheme caused more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal fraud enterprise required the conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading the charges. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, Newark Division, special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Former office manager of Mountain State Justice pleads guilty for embezzling over $1.5 millionRead the Press Release
CHARLESTON, W.Va. – A former office manager at Mountain State Justice who embezzled over $1.5 million pleaded guilty today, announced United States Attorney Carol Casto. Kim Cooper, 55, of St. Albans, entered her guilty plea to wire fraud and tax evasion.
Cooper began working in the late 1990’s in the Charleston office of Mountain State Justice, Inc., a non-profit organization that provides legal services for indigent and low-income West Virginia residents in civil cases. Cooper became the office manager and her duties included overseeing the daily operations of the Charleston office and making deposits of checks in Mountain State Justice’s bank accounts.
Cooper admitted that she opened a money market account at WesBanco Bank in the name of Mountain State Justice, which no one else at Mountain State Justice knew about. Cooper admitted that in late June 2004, she began stealing checks made out to Mountain State Justice that were payment for attorneys’ fees and depositing these checks in the secret bank account. Cooper also admitted that she wrote checks from the secret account to a close family member with notations that made the payments appear legitimate. Cooper additionally admitted that she endorsed those checks, deposited the checks in another account, and used the money to pay rent, make car payments, make credit card payments, and pay for personal expenses.
Cooper further admitted that she hid her crime by omitting these stolen checks from the cash log used to record all incoming monies and by hiding all incoming mail from WesBanco. Cooper perpetuated this fraud by sending false income statements to the board of directors of Mountain State Justice that underreported the income of the organization. Cooper also admitted that she attempted to evade income tax she owed on this embezzled money. Cooper’s scheme ended in late March 2016 when she was interviewed by federal law enforcement agents and her employment was terminated.
Cooper faces up to 25 years in federal prison when she is sentenced on April 20, 2017. As part of her plea agreement, Cooper agreed to pay restitution of $1,462,023.83 to Mountain State Justice and $377,776.89 to the United States.
The FBI and the IRS - Criminal Investigation division conducted the investigation. First Assistant United States Attorney Philip H. Wright is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
- Follow us on Twitter: SDWVNews
Former Greenwich Resident Who Stole More Than $700K in Fraud Scheme Sentenced to 4 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on January 20, DEBRA BIAGI, 50, of Fogelsville, Pa., formerly of Greenwich, was sentenced by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for stealing more than $700,000 from her employer and related companies and individuals.
According to court documents and statements made in court, BIAGI was employed by HB Nitkin Group of Greenwich, a privately owned business engaged in real estate management and development. BIAGI served as an assistant to the chairman of the company with responsibilities that included managing the accounts payable for the company.
From approximately February 2014 to December 2015, BIAGI defrauded the company, as well as key company individuals and members of their families who retained financial and banking information at the company. As part of the scheme, BIAGI created fraudulent invoices made out to fictitious companies detailing charges for items such as masonry, carpentry, electrical and plumbing work. She then used victims’ checkbooks to make checks out to the fictitious companies, purportedly to pay the fraudulent invoices. BIAGI then deposited the checks into her personal bank account, at times endorsing the check with an illegible signature to hide her misconduct, and subsequently withdrew the monies for her personal use.
To keep track of which invoices were fictitious and which checks were made to fictitious companies, BIAGI often included her initials “DB” in the fabricated company name listed on the invoice and check. BIAGI then noted the fictitious company as the payee in the relevant accounting records at the company and filed the fabricated invoices as business record. BIAGI also, as needed, misappropriated the signature stamp of the company’s chairman and used it to “sign” the misappropriated checks and to falsely suggest that the paid expenditure was both legitimate and authorized.
In addition, at different times during the scheme, BIAGI simply stole checks from employees of the company and either made the checks to cash, or endorsed to cash checks that already listed a payee.
In total, BIAGI stole $711,074.39 during the course of this scheme.
Judge Meyer ordered BIAGI to make full restitution.
On August 26, 2016, BIAGI pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and Greenwich Police Department, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Former Des Moines Man Sentenced to Prison for Bank RobberyRead the Press Release
DES MOINES, IA – On January 23, 2017, Robert Dwayne Humburd IIIheather Jean Reekr, age 38, formerly of Des Moines, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 96 months in prison for two counts of bank robbery, announced United States Attorney Kevin E. VanderSchel. Humburd is required to serve a three-year term of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $10,473 in restitution to the banks and a bank teller. The Court ordered the prison terms on each count are to be served at the same time.
On September 21, 2016, Humburd pleaded guilty to two counts of bank robbery. According to the plea agreement, Humburd entered a U.S. Bank branch in Des Moines on September 9, 2015, and gave a note to the teller demanding cash. Humburd fled the bank with a sum of cash. On November 6, 2015, Humburd entered a Bankers Trust Company branch in Des Moines and handed a note to the teller demanding cash. Again, Humburd fled the bank with a sum of cash.
This matter was investigated by the Des Moines Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by contacting Rachel Scherle at 515-473-9300, or by emailing her at [email protected]
Former Correctional Officer Pleads Guilty to Having Illegal Sexual Contact with an Inmate and is Sentenced to 60 Months of ProbationRead the Press Release
Oklahoma City, Oklahoma – AMANDA HOCK, 35, of Kingsland, Georgia, pled guilty today to having illegal sexual contact with an inmate at the Federal Correctional Institution in El Reno, Oklahoma ("FCI-El Reno"), announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. United States District Judge Stephen P. Friot also sentenced Hock to five years of probation.
Hock was a Correctional Officer at FCI-El Reno until her resignation in December 2015. She was charged on September 13, 2016, with knowingly engaging in sexual contact with B.C., an inmate at FCI-El Reno, in violation of 18 U.S.C. § 2244(a)(4). At the hearing before Judge Friot today, Hock admitted to engaging in the sexual contact with the inmate on December 23, 2015. Following her guilty plea, Judge Friot sentenced Hock to 60 months’ probation, with 180 days of that sentence to be served on home detention. She was also ordered to complete 104 hours of community service within her first year of probation.
Federal law criminalizes all sexual relations and sexual contact between prison staff and inmates. See 18 U.S.C. §§ 2241, 2243, and 2244. An incarcerated individual has the right to not be pressured by anyone to engage in sexual acts and does not have to tolerate sexually abusive behavior or pressure to engage in unwanted sexual behavior from another inmate or staff member. In addition to the harm it causes to inmates, staff sexual abuse of inmates can also threaten the safety and security of the prison.
This case is the result of an investigation conducted by the U.S. Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Julia Barry.
Former Bangor Resident Sentenced to Five Years for Crack DistributionRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Wendell White, 52, of Rumford, Maine, and formerly of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to five years in prison and three years of supervised release for conspiring to distribute cocaine base, commonly known as “crack.”
According to court records, the defendant joined a conspiracy that operated between about January 2010 and August 2013 and that acquired crack in New Haven, Connecticut and distributed almost a kilogram of it in Penobscot County and elsewhere. The defendant distributed and sold half-gram and gram quantities of crack throughout the Bangor area for $50 and $100, respectively, for Christian Turner, a/k/a “P” and Rodrigo Ramirez, a/k/a “Rico.” He also allowed Turner, Ramirez and others to use his Sanford Street, Bangor apartment -- where he and his three-year old son lived -- as a place where crack could be sold and used. Members of the conspiracy from New Haven included members of the Red Side Guerilla Brims, a violent street gang affiliated with the Almighty Blood Nation, a national street gang.
The case was investigated by the Maine Drug Enforcement Agency and the New Haven, Connecticut Office of Bureau of Alcohol, Tobacco, Firearms and Explosives, and the City of New Haven Department of Police Services.
Fmr. RI House Finance Chairman to Plead Guilty to Fraud, Aggravated Identity Theft, Tax ChargesRead the Press Release
PROVIDENCE – According to signed documents filed in U.S. District Court in Providence today, Raymond E. Gallison, Jr., 64, of Bristol, R.I., a former member of the Rhode Island House of Representatives and House Finance Committee Chairman, has agreed to plead guilty to federal mail fraud, wire fraud, aggravated identity theft and filing false tax return charges.
According to signed court documents, Gallison will admit to wide-ranging fraudulent and deceptive conduct to steal private money and hide his misuse of public money, and covering his tracks while doing so. Gallison will admit to the theft of funds from the estate of a deceased individual to which he was appointed executor; theft of funds from a Special Needs Trust established to protect the long-term welfare of a disabled individual to which he was appointed trustee; providing false information on tax documents, including vastly inflating the number of students assisted by a non-profit organization funded by public money while failing to disclose amounts paid by that organization to him; and failure to pay taxes on income derived from his criminal actions.
United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin today announced the filing of a federal Information charging Raymond E. Gallison, Jr., with four (4) counts of mail fraud; one (1) count of wire fraud; one (1) count of aggravated identity theft; one (1) count of aiding the filing of a false tax document; and two (2) counts of filing a false tax return. According to a Plea Agreement filed in this matter, Gallison will serve, at a minimum, two years in federal prison.
According to signed documents filed with the Court, Gallison will admit that:
As executor of an estate of an individual from Barrington, R.I., who passed away in February 2012, he devised and executed various schemes to steal or transfer to his own name and bank accounts, cash, checks, stocks and real property belonging to the deceased person and/or his estate, valued at a total of $677,957.06. Gallison will admit that he fraudulently used the name and social security number of the deceased person to execute a scheme to cause the liquidation of certain stocks belonging to the deceased person;
He caused the filing of a false tax document on behalf of Alternative Education Programming (AEP), a non-profit organization which provided educational programs to students who may need assistance with course work, and/or minority and/or disadvantaged students who may need financial or other assistance to gain an education, and of which Gallison was listed as Assistant Director. The tax document listed that $77,957 in tuition and related fees and expenses were paid for 47 students from July 1, 2012, through June 30, 2013. In fact, on behalf of AEP, Gallison paid only $3,137.29 to assist 2 students during that year and paid approximately $64,575 to himself and another person in wages and consulting fees for no work undertaken on AEP’s behalf;
As trustee for a disabled person’s Special Needs Trust, he defrauded the Trust by writing a check from the Trust account for $8,900, which he deposited into an AEP account. Gallison then wrote a check for $8,800 from the AEP account to pay an outstanding bill at the Community College of Rhode Island; and
He failed to claim a total of $622,286.17 in income on joint IRS tax returns for tax years 2012 and 2013, and, as a result of his relevant conduct from 2012-2015, Gallison failed to pay a total of $226,332.31 in taxes.
An information 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.
Joining United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin in announcing the filing of an information and plea agreement in this matter are Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The matter was investigated by the United States Attorney’s Office, FBI, Internal Revenue Service Criminal Investigation, Rhode Island Department of the Attorney General, and the Rhode Island State Police.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Dulce Donovan and William J. Ferland, and Special Assistant U.S. Attorney James R. Baum of the Rhode Island Department of the Attorney General.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Essex County, New Jersey, Man Admits That He Exchanged over $840,000 in ‘Snap’/Food Stamp Benefits for CashRead the Press Release
TRENTON, N.J. – An Irvington, New Jersey, man today admitted that he stole more than $840,000 from the U.S. Government through a scheme to exchange food stamps for cash, U.S. Attorney Paul J. Fishman announced.
Miguel Antonio Azcona, a/k/a “Miguel A. Azcona-Peralta,” 38, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
Azcona was the owner of New Community Supermarket on Springfield Avenue in Newark, New Jersey. New Community Supermarket was a small grocery that was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). Azcona controlled a business bank account for New Community Supermarket to receive the reimbursements for SNAP benefits.
Azcona knew that as a SNAP retailer, he was not allowed to exchange food stamps for cash. Yet from August 2014 through Aug. 11, 2016, Azcona and others, including employees under his supervision, unlawfully redeemed SNAP benefits in exchange for cash rather than food. In return for exchanging SNAP benefits for cash, New Community Supermarket retained a portion of the transaction’s value for Azcona’s benefit.
At his plea hearing, Azcona admitted that his conduct resulted in losses of approximately $840,583.54.
The count of theft of government funds carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for May 3, 2017.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins in New York; and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Criminal Division in Newark.
Defense counsel: David R. Oakley, Esq.
Elyria man indicted for tampering with hearingRead the Press Release
An Elyria man was indicted on one count of tampering with an official proceeding, said U.S. Attorney Carole S. Rendon.
Micah Jackson, 20, attempted to influence two federal witnesses to retract their previously sworn testimony on Nov. 9, 2016, according to the indictment.
The witnesses’ testimony was given at a supervised release violation hearing before a U.S. District Court judge. The defendant in the supervised release hearing was related to Jackson. Jackson attempted to influence each witnesses’ testimony by posting their pictures on Facebook with rat emojis above the witnesses’ faces, with the intent that each witness would change their previously sworn testimony, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
EOIR Statement on Erroneous Public Release of Immigration Judge InformationRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review is a party to litigation related to the release of information regarding its immigration judge conduct and professionalism program. EOIR is committed to ensuring that any allegation of an immigration judge’s misconduct is investigated and resolved in a fair and expeditious manner, consistent with federal personnel and privacy laws and regulations that apply to non-supervisory, career civil servants.
During this still-active litigation, the plaintiff, the American Immigration Lawyers' Association, posted to the Internet the 16,000 documents that EOIR provided. These documents were released pursuant to a court order. A private attorney then took the time to manipulate some of the documents in order to uncover data not accessible on the face of the documents themselves, and post his personal assessment of the metadata contained therein.
EOIR believes the attorney, upon finding information was inadvertently provided, should have promptly notified the sender (EOIR) rather than taking steps to publish guesses. This unfortunate incident resulted in the attorney publishing a "key" to the documents. EOIR has determined that the “key” is inaccurate and does not correctly present the actual details associated with the documents. It is instead a representation of one person’s assumptions based on his own manipulations of the text, which resulted in the errors.
Individuals who file complaints about immigration judges are not bound to keep private the details of their complaint. EOIR will continue to defend its case in the referenced FOIA litigation, and remains committed to protecting the identities of the immigration judges against whom complaints, some substantiated and some unsubstantiated, have been filed.
It is unfortunate that some members of the agency’s highly talented and professional immigration judge corps have been negatively and falsely named in the private attorney’s action, and that he chose to publish his erroneous findings without any way of verifying his information.
Duncan Pharmacy to Pay $50,000 to Settle Claims Involving Violations of the Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma – R&S Drug Stores, Inc. ("R&S Drug"), an Oklahoma corporation which operates three retail pharmacies in Duncan, Oklahoma, has paid $50,000 in civil penalties to the United States to settle claims stemming from alleged violations of the Controlled Substances Act, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, whose mission is to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The United States alleged that between August 1, 2014, and August 31, 2016, R&S Drug violated federal law by transferring controlled substances between stores without the proper documentation, failed to conduct and maintain a biennial inventory, failed to execute powers of attorney authorizing pharmacists to issue orders for Schedule I and II controlled substances on behalf of R&S Drug (the registrant), and failed to dispense controlled substances under the correct practitioner’s name and DEA registration number.
In order to resolve the claims by the United States, R&S Drug paid $50,000 in civil penalties to the government. In reaching this settlement, R&S Drug did not admit liability and the government did not make any concession regarding the legitimacy of its claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration's Office of Diversion Control, Oklahoma City District Office Diversion Group, and was prosecuted by Assistant U.S. Attorney Ronald R. Gallegos.
Drug Conspiracy Leader Sentenced to More Than 25 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Alex Lenard McCoy, 32, of Gastonia, N.C. was sentenced today to 310 months in prison on a federal drug conspiracy charge and a supervised release violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Chief U.S. District Judge Frank D. Whitney also ordered McCoy to serve five years under court supervision after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearings, from 2011 to June 2015, McCoy and co-defendants Mickey Burris, Rodney Moore, and Eric Briggs operated as a drug conspiracy, selling crack cocaine in Gaston County and elsewhere. Court records indicate that McCoy was the leader of the drug conspiracy and engaged in drug trafficking activity while he was on federal supervision for a previous drug conviction. Court records also show that McCoy maintained a residence for purposes of drug trafficking and was responsible for the trafficking of more than a kilogram of crack cocaine. At the time of his arrest, law enforcement seized from McCoy $7,157 in drug proceeds. McCoy pleaded guilty in June 2016 to one count of drug trafficking conspiracy.
McCoy’s co-defendants were previously sentenced as follows: Mickey Burris was sentenced to 120 months in prison and five years of supervised release; Rodney Moore was sentenced to 51 months in prison and four years of supervised release; and Eric Briggs was sentenced to six months in prison and two years of supervised release.
McCoy will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentencings are served without the possibility of parole.
The prosecutions are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by FBI, HSI, and Gastonia PD. Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Detroit One Collaboration Leads to Five Guilty Pleas for Latin Count Gang Members on Racketeering ChargesRead the Press Release
Detroit One collaboration of local, state and federal law enforcement has led to the guilty pleas of five Latin Counts street gang members for racketeering conspiracy involving murder and drug trafficking, U.S. Attorney Barbara L. McQuade announced today.
The pleas were unsealed today and occurred during the past week in federal court in Ann Arbor. All five defendants pleaded guilty to racketeering conspiracy, and each faces 30 years in prison. The five gang members are:
- Devin Dantzler, 21, of Ecorse;
- Victor Vasquez, 26, of Detroit;
- Jonathan Estrada, 27, of Lincoln Park;
- Jesus Rodriguez, 25, of Lincoln Park; and
- Angel Rodriguez, 21, of Lincoln Park.
According to the racketeering indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleges that 11 defendants committed assaults, murder, trafficking in drugs and stolen firearms, robbery and breaking and entering homes and businesses. The indictment alleges that the gang uses violence to stake out its “turf” and to intimidate both rival gang members and the citizens of southwest Detroit.
As part of their guilty pleas, Dantzler and Victor Vasquez took responsibility for causing the death of Mustafa Al-Yasiry at the Big Apple Market in southwest Detroit on April 18, 2014. According to the indictment, several Latin Counts assaulted Al-Yasiry, and Dantzler shot and killed him. Three other gang members have already pleaded guilty for their roles in this murder. Similarly, as part of their pleas, Estrada and the two Rodriguez brothers took responsibility for participating in the killing of Terrence McClearen and the shooting of another victim on August 18, 2013.
Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and the FBI Violent Crime Task Force, which consists of representatives of Homeland Security Investigations, Detroit Police Department, Lincoln Park Police Department, Michigan Department of Corrections, and Michigan State Police, investigators were able to merge separate probes of various members of this organization and its activities into one encompassing investigation.
“By working together, the Detroit One partners are systematically dismantling the street gangs that cause violent crime in our neighborhoods,” McQuade said. “We want to take back our streets from violent gangs so that Detroit residents can enjoy the safe quality of life that we all deserve.”
“The success of the Detroit One initiative is evident in the continued disruption, arrest and prosecution of these violent gang members in our communities” said Chief James Craig. “The collaboration of law enforcement agencies certainly plays a key role in returning the neighborhoods back to the people.”
“These guilty pleas demonstrate law enforcement's resolve to stopping the escalating violence linked to gang activity”, stated HSI Acting Special Agent in Charge Steve Francis. "Removing criminal gang members from the streets will ensure that they are no longer in a position to wreak havoc in our neighborhoods and threaten the public's safety."
"Once again, the Detroit One Initiative and its ongoing dynamic law enforcement collaborations have proven highly effective in combating some of the most violent and heinous criminals in our community”, said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Success, in these cases, is a direct result of ongoing joint investigative efforts like this led by the FBI’s multi-agency Violent Gang Task Force, which is comprised of federal, state and local law enforcement agencies. It is through these joint ventures and the Detroit One Initiative we are routinely and effectively force multiplying by leveraging resources to help keep our neighborhoods and communities safe from the threats gang violence poses to our citizens”.
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working together, local, state, and federal law enforcement agencies strive to maximize their ability to identify and arrest individuals and groups initiating violence in Detroit. Since its launch in 2013, homicides are down 20% and non-fatal shootings are down 25% in the City of Detroit. A comparison between the four-year period since Detroit One began with the prior four-year period shows 174 fewer homicides in the city.
These pleas are the latest in a string of charges from the U.S. Attorney’s Office and Wayne County Prosecutor’s Office during the last four years involving violent street gangs in the city of Detroit, including:
-
19 members/associates of the Seven Mile Blood street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
14 members of the Phantom Outlaw Motorcycle Club/Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
Four Vice Lord members in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery;
-
Nine Vice Lords members for racketeering charges stemming from the shooting of four individuals at their family residence on Detroit’s northwest side;
-
Three members of the Band Crew street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band Crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
10 members of the RTM street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
11 members of the 6 Mile Chedda Grove street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
14 members of the Rollin’ 60s Crips street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
-
Four members of the Band Gang street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and three members of the Band Gang for federal access device fraud/ aggravated identity theft and one member of the same gang charged in federal court with being a felon in possession of a firearm;
-
24 individuals on drug conspiracy charges for their use of sixteen different houses in the east side Ravendale neighborhood of Detroit, many of them abandoned homes, for distributing heroin, cocaine, and crack cocaine between 2013 – 2015; and
-
14 individuals on federal charges of criminal enterprise, drug distribution or weapons offenses for drug distribution in the west side Warrendale neighborhood of Detroit.
-
Derry Man Pleads Guilty to Conspiracy Charges Related to Sales of Synthetic CannabinoidsRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Tony Aoude, 45, of Derry, New Hampshire pleaded guilty to conspiracy charges related to the sales of synthetic cannabinoid products.
Aoude pleaded guilty to Conspiracy to Violate the Travel Act and Conspiracy to Receive Misbranded Products. According to court documents and statements in court, in 2013 and 2014, Aoude sold synthetic cannabinoid products at stores that he operated in Londonderry and Hooksett, New Hampshire. These products contained XLR11 and AB-FUBINACA, which are illegal controlled substances. The products were sold in packages with false and misleading labels that stated that the products were “not for human consumption” or were “legal in 50 states.” Despite being aware that the products were intended for human consumption, he sold various forms of the product that bore multiple labels, including “Toxic Blue Magic” and “Caution Platinum.”
During the course of a law enforcement investigation, undercover officers asked to purchase quantities of these products for resale in Florida. Despite being told by a co-conspirator (Robert Costello) that the products were unlawful in Florida, Aoude arranged for the undercover officers to purchase the drugs at his store in Londonderry. He also received payments for facilitating the shipment of additional products to Florida.
Sentencing for Aoude has been scheduled for May 4, 2017.
This investigation led to the arrest and prosecution of multiple individuals. Costello, who provided synthetic cannabinoids to Aoude, is serving a 60-month federal prison sentence. Kyle Hurley, who arranged to manufacture and distribute these drugs, is serving a 114-month prison sentence.
Synthetic cannabinoids are green leafy materials that have been sprayed with chemicals. These products (commonly referred to as “spice” or “K2”) are often marketed as incense or potpourri. As in this case, the packaging materials often contain attractive logos that are designed to appeal to young people. Although the products are often identified as “not for human consumption,” the products are smoked in order to obtain a high. The chemicals that are sprayed on the products to produce the high are often illegal controlled substances or analogues of illegal controlled substances. The ingestion of these types of illegal products has caused some users to experience a variety of medical side effects and has led to numerous hospitalizations.
“There is a misconception that synthetic cannabinoids, known on the street as synthetic marijuana, K2, and spice, are safe. Synthetic cannabinoids are anything but safe,” said DEA Special Agent in Charge Michael J. Ferguson. “They are a toxic cocktail of lethal chemicals with serious health and safety risks. This investigation represents local, state and federal law enforcement’s efforts to combat this emerging public threat.”
U.S. Attorney Rice agreed, saying, “while we are in the midst of an opioid epidemic, some individuals may believe that synthetic cannabinoids are a safe alternative for those looking to get high. These products are far from safe. They are made in highly unsanitary conditions and users have no idea what potentially deadly chemical may be inside these glossy packages. This packaging can give consumers a false sense of security about using a product that could harm or kill them.”
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation in collaboration with the US Postal Inspection Service and Homeland Security Investigations. The investigators also received the invaluable assistance of DEA-NH/HIDTA and DEA’s Air Wing, the New Hampshire and Massachusetts State Police, the U.S. Marshals Service, Portsmouth Police Department, Somersworth Police Department, Kingston Police Department, the Dover Police Department, the Londonderry, Police Department and the York and Kittery, Maine Police Departments. It is being prosecuted by Assistant United States Attorneys John J. Farley and Charles Rombeau.
###
Defendant Sentenced to 46 Months for Sexual Abuse of a MinorRead the Press Release
Assistant U. S. Attorney Jennifer Gmitro (619) 546-9692
NEWS RELEASE SUMMARY – January 23, 2017
SAN DIEGO – Dylan Wayne Cowdrey was sentenced in federal court today to 46 months in prison for sexually abusing a 14-year-old old girl by coercing her through threatening text messages.
According to his October 2016 plea agreement, Cowdrey admitted to having sexual intercourse with the victim on a military base in the Southern District of California. He also admitted to engaging in undue influence to coerce her into the sexual acts. That is, between approximately June 5, 2016 and June 9, 2016, Cowdrey sent anonymous text messages to the victim threating to cause serious bodily harm to her family and loved ones if she did not perform sexual acts with him. Among other threats, Cowdrey stated that if the victim did not comply, she would “lose her love[d] ones and everyone else [she] knows.”
He also claimed that he was receiving threatening text messages from the same source. When the defendant met up with the victim and she told him she did not want to perform sex acts, he responded that he “didn’t want to die” as a result of her refusal. On the same day, the defendant engaged in sexual acts with the victim.
The defendant, then 22, admitted in his plea agreement he knew the victim was 14.
At sentencing, U.S. District Judge William Q. Hayes stated that the defendant’s conduct could only be described as “manipulative” and “diabolical.” Noting the youth of the victim, Judge Hayes added, “It is hard for me to understand the sense of betrayal” that the victim must feel, “to learn that all of it wasn’t true.”
“It is a despicable thing to deceive and abuse a child,” said Acting U.S. Attorney Alana W. Robinson. “This defendant will now pay a high price for striking fear in the heart of a child to the point where she believed she had to sacrifice herself to protect her family.”
DEFENDANT Criminal Case: 16CR1929-WQH
Dylan Wayne Cowdrey Age 23 San Diego, California
SUMMARY OF CHARGES
Sexual Abuse of a Minor within Maritime and Territorial Jurisdiction (18 U.S.C. § 2243(a))
Maximum penalty: 15 years in prison and $250,000 fine
AGENCY
Naval Criminal Investigative Service
Davenport Man Sentenced to Prison for Receiving Child PornographyRead the Press Release
DAVENPORT, IA – On January 23, 2017, Jacob Scott Watters, 24, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 240 months in prison for receipt of child pornography, announced United States Attorney Kevin E. VanderSchel. Watters was ordered to serve ten years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Watters pleaded guilty to receipt of child pornography on August 25, 2016. According to the plea agreement, on August 18, 2014, Davenport Police Department was notified of an investigation in Merced County, California, that concluded Watters was engaging in sexual chats and sending and receiving nude pictures with a 15-year-old female. A search warrant executed at Watters’ residence led to the recovery of multiple electronic devices.
During the examination of the recovered devices, it was determined Watters was communicating with six other minor females, many of whom with he was having sexual conversations and exchanging pornographic pictures. At the time of the communications, Watters was a registered sex offender and on state probation for lascivious acts with a minor.
This matter was investigated by the Davenport Police Department and the Iowa Division of Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood Initiative.
-END-
Learn more about this release by contacting Rachel Scherle at 515-473-9300, or by emailing her at [email protected]
Davenport Man Sentenced for Felon in Possession of Ammunition ChargeRead the Press Release
DAVENPORT, IA - On January 23, 2017, Marcus Anthony Brown, age 27, of Davenport, Iowa, was sentenced by Chief District Court Judge John A. Jarvey to five years in prison after pleading guilty to felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Brown was ordered to serve three years of supervised release and pay $100 to the Crime Victims’ Fund.
On September 9, 2016, an off-duty Davenport police officer observed a fight in a parking lot. A man, later identified as Brown, fired two shots into the air from what appeared to be a handgun. As the officer approached the scene, he observed Brown get in and out of a vehicle; the vehicle left before back-up officers arrived. Officers were unable to locate a firearm, but did find and seize several rounds of .380 caliber ammunition and Brown was arrested. Brown has two prior 2005 felony convictions.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by contacting Rachel Scherle at 515-473-9300, or by emailing her at [email protected]
Court Shuts Down Illinois Tax Return PreparerRead the Press Release
Today a federal court in Illinois permanently enjoined Daria Emma Valdivia, individually and doing business under the name Emma’s Agency, from preparing federal tax returns for others. Valdivia agreed to the civil injunction order entered against her, which requires her to turn over to the United States a list of all persons for whom she prepared federal tax returns since 2012. The court also authorized the United States to monitor Valdivia’s compliance with the terms of the injunction.
According to the government’s complaint, Valdivia, of Sterling, Illinois, routinely prepared federal tax returns, from her business Emma’s agency, for customers that falsely claimed unqualified individuals as dependents, such as persons who did not live in the United States or a country contiguous to the United States. The complaint alleges that Valdivia also improperly reported her customers’ filing status as Head of Household when the customers were ineligible for that status, according to the complaint. The complaint alleges that these two types of return preparer misconduct allowed Valdivia to understate her customers’ tax liabilities and claim undeserved refunds for them. According to the complaint, Valdivia continued to engage in this conduct despite the fact the Internal Revenue Service (IRS) assessed her with $132,000 in penalties for similar violations of the Internal Revenue Code. The complaint alleges that IRS audits of 65 returns prepared by Valdivia show that she underreported her customers’ tax liabilities on 89 percent (58) of them by more than $285,000, collectively.
The IRS is reminding taxpayers that the 2017 individual income tax return filing season begins Jan. 23, 2017, and there is information available on the IRS’s website. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2016 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Couple Sentenced for Wire Fraud and Identity TheftRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that sentences were imposed upon Tamara Andreatta, age 45, and Stacy Rix, 47, both of Albany, on January 19, 2017, in Albany, GA, by the Honorable Leslie J. Abrams, District Judge for the Middle District of Georgia. Following a jury trial in September 2016, both defendants were convicted of conspiracy to commit wire fraud and seven counts of wire fraud. Ms. Andreatta was also convicted of two counts of aggravated identity theft. Ms. Andreatta was sentenced on Friday to a term of 61 months imprisonment to be followed by a term of three years supervised release. Mr. Rix was sentenced to a term of 24 months imprisonment to be followed by a term of three years supervised release. In addition, both defendants were ordered to pay restitution in the amount of $466,692.41.
The evidence at trial showed that the defendants, who lived together, were both employed at Industrial Manufacturing, an Albany business that manufactures machine parts and equipment. Ms. Andreatta was employed as a bookkeeper and Mr. Rix worked as a mechanic. During a seven-year period beginning in November 2006, Ms. Andreatta used Mr. Rix’s company credit card and the company credit cards of two other employees who had left the company, to obtain over $450,000 in goods, services, and cash for her and Mr. Rix’s personal benefit. The cards were used to purchase groceries and other household items, pay car payments and other bills, pay for vacations, including a Caribbean cruise, and for various other purposes.
“Theft from an employer, who trusted you enough to both give you a job and to put you in a position where you had access to company accounts, believing you to be honest, is as ungrateful an act as it is illegal. These defendants fully deserve the sentences they received in this case,” said United States Attorney Peterman.
The case was investigated by agents with the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney K. Alan Dasher.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Cleveland man indicted for making illegal straw purchases of 24 firearms over two daysRead the Press Release
A Cleveland man was indicted for making illegal straw purchases of 24 firearms over two days, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Carlton H. Nunn, 36, was indicted on one count of making false and fictitious statements regarding the sale of firearms.
Nunn purchased two dozen firearms from four dealers on Sept. 10 and 11, 2016, according to the indictment.
Nunn knowingly and unlawfully made false and fictitious statements, intended to deceive dealers, that he was the actual buyer of said firearms when, in fact, he was not the actual buyer of said firearms, according to the indictment.
“This defendant illegally bought two dozen firearms to provide to people with felony convictions,” Rendon said.
“ATF is committed to combating gun violence in our communities, including the individuals who provide firearms to people who are prohibited from having them,” Velinor said. “We will continue to work to make our communities safer by investigating and bringing to prosecution the individuals who enable violent criminals.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Megan R. Miller following an investigation by the ATF.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Budget Finance Company Owner Sentenced to 121 Months for $31 Million Ponzi SchemeRead the Press Release
WHEELING, W. Va. – Donna S. Brown, 65, of Clarington, Ohio, was sentenced by Senior Judge Frederick P. Stamp in U.S. District Court for the Northern District of West Virginia today to 121 months in prison for defrauding investors of more than 800 investment accounts totaling more than $31 million. Brown, who owned Budget Finance Company in New Martinsville, W. Va., was sentenced for charges of wire fraud, mail fraud and money laundering, to which she had entered pleas of guilty on October 24, 2016.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Raymond P. Duda, Assistant Special Agent in Charge, Federal Bureau of Investigation (FBI), Pittsburgh Field Division; Thomas J. Holloman, Interim Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office; Tommy Coke, Inspector in Charge, U.S. Postal Inspection Service; West Virginia Attorney General Patrick Morrisey, West Virginia State Auditor and Securities Commissioner Lisa Hopkins; Commissioner Andrea Seidt of the Ohio Division of Securities; Acting Commissioner Dawn Holstein of the West Virginia Division of Financial Institutions; and Wetzel County Prosecutor Tim Haught announced the sentence handed down today.
According to court documents, Brown owned and operated Budget Finance company which was both a licensed consumer loan company and an unlicensed investment company. Between 2005 and 2015, she lured potential investors into investing funds with Budget Finance by promising annual returns of between eight and 12 percent.
Brown mailed checks to investors who requested periodic payments and sent them fraudulent quarterly investment statements reflecting their account balances and interest paid. She also mailed investors IRS 1099 forms, but never sent those forms to the IRS.
Brown abruptly closed the doors of Budget Finance without warning in November 2015.
The actual losses in this case currently are estimated to be somewhere between $9.5 million and $25 million, and the crimes resulted in substantial financial hardship to many of the investor/victims.
U.S. Attorney Glassman commended the investigation of this case by the agencies and Assistant United States Attorney Daniel A. Brown and Deputy Criminal Chief Brenda Shoemaker, who are representing the United States in this case.
Brunswick Resident Sentenced in “21 Jump Street” InvestigationRead the Press Release
Brunswick, GA- Joseph Mincey, 28, of Brunswick, Georgia, was sentenced today in federal court by Chief U.S. District Court Judge Lisa Godbey Wood to 6 years in prison on drug trafficking and firearms related charges. Mincey previously pleaded guilty to possessing cocaine and marijuana with intent to distribute and to possessing firearms in furtherance of a drug trafficking crime.
According to evidence presented during Mincey’s guilty plea and sentencing hearings, investigators of the Glynn-Brunswick Narcotics Enforcement Team (GBNET) initiated an investigation to identify individuals dealing drugs at a local public high school. As part of the investigation, a young looking undercover police officer was introduced into the high school, posing as a student. Mincey was later identified as a dealer of cocaine and marijuana. In November and December of 2015, Mincey sold the undercover officer cocaine, believing the officer to be a high school student. Mincey’s grandmother, who faced State drug charges, assisted in several of the drug transactions. On the date of Mincey’s arrest in January of 2016, law enforcement seized 2 loaded firearms, $2,300 in cash, several pounds of marijuana, cocaine, and other drug trafficking supplies.
U.S. Attorney Edward Tarver said, “It can’t get any worse than a drug dealer and his grandmother selling poison in our schools. It is unfortunate that the life lessons learned by this Defendant led him to a 7-year federal prison sentence.” Tarver mentioned that there is no parole in the federal system.
The investigation of this case was conducted by the GBNET and the ATF. Assistant United States Attorney E. Gregory Gilluly prosecuted the case on behalf of the United States. For questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Albuquerque Resident Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Ramon Quezada, 32, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge.
Quezada and his co-defendant Joshua Sedillo, 30, also of Albuquerque, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Quezada and Sedillo were arrested in July 2016, on an indictment charging them with conspiracy to distribute methamphetamine on May 11, 2016, and Sedillo individually with distribution of methamphetamine on May 25, 2016. According to the indictment, the offenses took place in Bernalillo County, N.M.
During today’s proceedings, Quezada pled guilty to a felony information charging him with distribution of methamphetamine. In entering the guilty plea, Quezada admitted that on May 11, 2016, he possessed approximately 90 grams of methamphetamine which he intended to transfer to another person. At sentencing, Quezada faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 22 of the 104 defendants have entered guilty pleas and one been sentenced. The remaining defendants including Sedillo, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.