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Thursday 20 October 2016
Justice Department and Federal Trade Commission Release Guidance for Human Resource Professionals on How Antitrust Law Applies to Employee Hiring and CompensationRead the Press Release
Guidance Helps Protect Workers Against Anticompetitive Conduct and Puts Firms on Notice that DOJ Will Proceed Criminally Against Naked Wage Fixing and No-Poaching Agreements
Today, the Justice Department’s Antitrust Division and the Federal Trade Commission issued guidance for human resource (HR) professionals and others who are involved in hiring and compensation decisions. HR professionals are often in the best position to ensure their companies’ hiring practices comply with the law and this guidance will help educate and inform them about how the antitrust laws apply to the employment arena.
Workers are entitled to the benefits of a competitive market for their services. They are harmed if companies that would ordinarily compete against each other to recruit and retain employees agree to fix wages or other terms of employment or enter into so-called "no-poaching" agreements by agreeing not to recruit each other’s employees.
Going forward, the Justice Department intends to criminally investigate naked no-poaching or wage-fixing agreements that are unrelated or unnecessary to a larger legitimate collaboration between the employers. These types of agreements eliminate competition in the same irredeemable way as agreements to fix the prices of goods or allocate customers, which have traditionally been criminally investigated and prosecuted as hardcore cartel conduct. Agreements that do not constitute criminal violations may still lead to civil liability under statutes enforced by both agencies.
"Antitrust violations in the employment arena can greatly harm employees and impact earnings over the course of their entire careers," said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. "HR professionals need to understand that these violations can lead to severe consequences, including criminal prosecution. The newly released joint guidance provides HR professionals with information to prevent violations and report potentially unlawful activity, furthering the Justice Department’s commitment to protect workers from harmful conduct that stifles competition."
"Competition is essential to well-functioning markets, and job markets are no exception," said Chairwoman Edith Ramirez of the Federal Trade Commission. "These guidelines will help ensure that employers understand how to comply with the antitrust laws and will help employees reap the benefits of a competitive market for their services."
The guidance also discusses how the antitrust laws apply to firms’ decisions to share sensitive information, such as compensation information, with competing employers, either directly or through third party entities. Information sharing may violate antitrust law unless the information exchange is carefully designed to prevent harm to competition.
The agencies’ joint guidance includes a Q&A section that explains how antitrust law applies to various scenarios that HR professionals might encounter in their daily work lives. The agencies also urge HR professionals and others who have information about possible antitrust violations to contact the Justice Department Antitrust Division’s Citizen Complaint Center or the Federal Trade Commission’s Bureau of Competition.
The agencies have also issued a quick reference card that encapsulates some of this information in a convenient, index-card-sized format. The card provides a list of antitrust red flags that HR professionals should look out for during their day-to-day work. The listed situations are not exhaustive, and the existence of a red flag does not necessarily imply an antitrust violation. Still, HR professionals should proceed with particular caution if they are confronted with any of the scenarios listed on the card. By doing so, HR professionals can play an important role in protecting employees and consumers and ensuring the competitiveness of the employment marketplace.
Justice Department Sues to Stop Oregon Woman from Promoting Religious Non-Profit Corporation SchemeRead the Press Release
The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws. According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income. Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges. The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.
According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions. The complaint also alleges that the U.S. District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted. According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers.
According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations. The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws. The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.”
Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016. 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.
Justice Department Sues to Stop Oregon Woman from Promoting Religious Non-Profit Corporation SchemeRead the Press Release
WASHINGTON – The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws. According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income. Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges. The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.
According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions. The complaint also alleges that the U.S. District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted. According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers.
According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations. The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws. The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.”
Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016. 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.
Jonesville man sentenced to 12 months in prison for possessing unregistered silencerRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Jonesville man was sentenced Wednesday to one year and one day in prison for possessing a silencer.
John Wesley Smith, 40, of Jonesville, La., was sentenced by U.S. District Judge Dee D. Drell on one count of possessing an unregistered firearm (a firearm silencer, firearm muffler and suppressor). He was also sentenced to one year of supervised release. According to the June 30, 2016 guilty plea, Louisiana State Police officers were surveilling a house in a Jonesville neighborhood on September 1, 2015 while working another investigation. State police observed Smith enter the home and confronted him when he emerged. While accompanying Smith to his vehicle to retrieve his identification, the officer saw an M4 rifle with a scope, silencer and large capacity magazine placed barrel down in the front seat. When asked about the weapon, Smith told the officers he made the silencer from parts of an old boat. Silencers and silencer parts are defined as firearms according to federal law and are required to have serial numbers and be registered in the National Firearms Registration and Transfer Record. The illegal silencer Smith possessed was not registered and had no serial number. Officers seized the M4 rifle with the silencer, and they told Smith that silencers must be registered and have a serial number. When Smith was arrested on March 3, 2016 at his home, agents found methamphetamine and marijuana in Smith’s pants pocket along with a 22 caliber pistol strapped to his ankle. During a search of Smith’s property, agents also found three more homemade, illegal, unregistered silencers on a workbench in a shed.
The ATF and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Johnstown Man Pleads Guilty to Federal Drug OffensesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Vantroy Godboat, 45, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 27, Feb. 2, and Feb. 4, 2016, Godboat distributed less than 100 grams of heroin on each of those dates, and on Feb. 5, 2016, Godboat possessed with the intent to distribute less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Feb. 27, 2017, at 10:00 a.m. The law provides for a maximum sentence of 80 years in prison and a fine of $4,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Godboat.
Indiana Man Sentenced for Possessing Firearms as a FelonRead the Press Release
Rock Island, Ill. – Gregory F. Young, 37, of South Bend, Ind., was sentenced today for possessing firearms and ammunition as a felon, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Young to serve a term of 84 months in federal prison.
Young entered a plea of guilty on June 16, 2016, and admitted that on November 20, 2015, he and his girlfriend, while driving westbound on Interstate 80 in Henry County, Illinois, were pulled over by a trooper of the Illinois State Police for a traffic violation. Young, who was found to be the subject of an arrest warrant from Indiana for a parole violation, was arrested. A subsequent search of his car revealed a loaded .40 caliber semi-automatic pistol, an SKS semi-automatic assault rifle with nine magazines and over 200 rounds of 7.62mm ammunition, and quantities of marijuana and heroin. Young previously had been convicted of felony offenses in courts in the state of Indiana.
According to court documents, Young told police that he acquired the weapons for protection because there was “a hit out” on him related to a dispute over drug money.
The case was prosecuted by Assistant U.S. Attorney Don Allegro. The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Illinois State Police.
Independence Father, Son Plead Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., father and son pleaded guilty in federal court today to their roles in a conspiracy to distribute methamphetamine.
Jesse L. Davis, Jr., 27, and his father, Jesse L. Davis, Sr., 50, both of Independence, pleaded guilty in separate appearances before U.S. District Judge Brian C. Wimes to participating in a conspiracy to distribute methamphetamine from November 2013 to September 2014.
By pleading guilty today, Davis, Jr., admitted that he lived in the home of a co-conspirator, where drug transactions occurred, to act as a “strong hand” and provide protection. According to today’s plea agreement, Davis, Jr., is individually responsible for the purchase and redistribution of at least 1.5 kilograms of methamphetamine. Under the terms of the plea agreement, Davis, Jr., must forfeit to the government a money judgment of $52,500 (based upon a conservative street price of $35 per gram of methamphetamine).
Davis, Sr., admitted that he purchased methamphetamine from a co-conspirator and then redistributed the methamphetamine to others. According to the plea agreement, Davis, Sr., is individually responsible for the purchase and redistribution of approximately 340 grams of methamphetamine. Under the terms of today’s plea agreement, Davis, Sr., must forfeit to the government a money judgment of $11,900 (based upon a conservative street price of $35 per gram of methamphetamine).
Under federal statutes, Davis, Jr., is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Under the terms of today’s plea agreement, Davis, Sr., will be sentenced to 87 months in federal prison without parole. 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. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Jackson County Drug Task Force and the Independence, Mo., Police Department.
Hazleton Man Pleads Guilty to Pill Distribution ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion in Scranton, to conspiring with others to distribute and possess with intent to distribute oxycodone, hydrocodone, Tramadol, Diazepam, and other Schedule II and IV drugs.
According to United States Attorney Bruce D. Brandler, the defendant, Franklin Tejeda, age 35, admitted to regularly orchestrating the delivery of parcels of Schedule II and IV pills to co-conspirators’ residences in Hazleton, and distributing the drugs to customers. The illegal conduct occurred between November 2014 and March 2016. The drugs were obtained from suppliers in India.
Tejeda was charged in a criminal information filed by the United States Attorney’s Office in April 2016. The charge stemmed from an investigation by agents of the Drug Enforcement Administration (DEA), U.S. Postal Inspectors, and Hazleton Police.
Judge Mannion ordered a presentence investigation to be completed and will schedule sentencing after the pre-sentence investigation is completed. Tejeda faces a potential maximum sentence of 20 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hampshire County man found guilty of possessing materials to manufacture methamphetamineRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal jury convicted Aaron Matthew Reed, 37, of Romney, West Virginia of possessing materials capable of manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at trial indicated that Reed was in possession of a pill grinder, wire cutters, Coleman fuel, Pure Lye, plastic tubing, lithium batteries, cold compress packs, and a pill bottle with salt, all of which may be used to manufacture methamphetamine.
Following a two day trial, a jury found Reed guilty of one count of “Possession of Material Used in the Manufacture of Methamphetamine.” He faces up to 10 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. Attorneys Anna Z. Krasinski and Shawn M. Adkins prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia Division of Natural Resource Criminal Investigation, and the Hampshire County Sheriff’s Office.
Chief U.S. District Judge Gina M. Groh presided.
Hammond Man Charged with Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER HUTTON, age 26, was indicted today for being a felon in possession of firearms.
According to the Indictment, HUTTON, who had previously been convicted of a felony in Tangipahoa Parish, possessed a total of eight firearms on June 6, 2016 and June 8, 2016.
If convicted, HUTTON faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Former director of Ohio County Schools Credit Union charged with embezzlementRead the Press Release
WHEELING, WEST VIRGINIA – The former executive director of the Ohio County Schools Public Credit Union was charged in federal court today with embezzlement, United States Attorney William J. Ihlenfeld, II, announced.
Kathleen Gramlich, 65, of Valley Grove, West Virginia, has been charged by Information with “Theft from a Credit Union.” It’s alleged that between June 2013 and March 2016, Gramlich stole more than $156,000 from the Credit Union and used the funds to pay personal debts. The embezzlement scheme was uncovered in March after a routine reconciliation of accounts by an employee of the credit union revealed possible wrongdoing.
Gramlich faces up to 30 years in prison if convicted. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The United States will also seek an order that Gramlich make full restitution.
“The member accounts at the Ohio County Public Schools Federal Credit Union are insured by the National Credit Union Administration Board,” said U.S. Attorney Ihlenfeld. “Because of this insurance, and because of the way that the scheme was perpetrated, the funds of account holders are not, and never were, in jeopardy.”
The Credit Union serves approximately one-thousand members, comprised of current, former, and retired employees of Ohio County Public Schools and their families.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The case was investigated by the Federal Bureau of Investigation and the West Virginia State Police.
An information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Former Watch Manufacturer Employee Gets A Year in Prison for Using False Invoicing Scheme to Steal Company MerchandiseRead the Press Release
TRENTON, N.J. –A former employee of a Bergen County, New Jersey, watch manufacturer was sentenced today to 12 months in prison for using phony documents and corporate records to defraud her employer out of hundreds of thousands of dollars of watches and watch parts, U.S. Attorney Paul J. Fishman announced.
Lissette Delarosa, 37, of Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging her with one count of mail fraud conspiracy. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Delarosa admitted that from May 2003 through July 2010, she and Cynthia Alvarez, a/k/a “Cynthia Espejo,” 51, of Kissimmee, Florida, abused their positions in the watch manufacturer’s Bergen County customer service department to fraudulently obtain merchandise. Alvarez and Delarosa created hundreds of fictitious invoices, records, and customer complaints for watches and watch parts in their employer’s invoicing system and directed the merchandise to be sent to addresses they controlled. The watch manufacturer received no payment related to these invoices and no legitimate basis existed for providing the parts free of charge.
In addition to the prison term, Judge Shipp sentenced Delarosa to three years of supervised release and ordered her to forfeit $126,460.81.
Alvarez pleaded guilty to the same offense and was sentenced on July 8, 2016 to two years of probation.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, Newark Division, with the investigation.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alan D. Bowman, Esq., Newark, New Jersey
Former United States Navy Contractor Sentenced on False Statement ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former U.S. Navy Contractor, Andrew Persaud, age 44, of North Potomac, Maryland, was sentenced today by United States District Court Judge Sylvia H. Rambo in Harrisburg to 21 months’ incarceration in connection with making a false statement to the government in connection with a $4.4 million contract to renovate warehouses at the Naval Support Facility in Mechanicsburg, PA.
According to United States Attorney Bruce D. Brandler, Persaud was indicted in October 2015 and charged with three counts of false statements to the Government and three counts of wire fraud. On February 23, 2016, Persaud pled guilty to one count of false statements before Judge Rambo.
Persaud was the President and Corporate Director of Persaud Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate several warehouses at the Naval Support Activity (NSA) facility in Mechanicsburg.
Persaud hired approximately 17 sub-contractors to work on the project which began in May of 2012. In June and July of 2012, Persaud submitted invoices to the Navy for progress payments. In the documents, Persaud attached signed certifications verifying that all of his subcontractors had been paid for their work. Relying on the verity of Persaud’s representations, the Navy paid Persaud $1,206,470 between June and August 2012.
However, by September 2012, most of the subcontractors had walked off the job site and the Navy terminated Persaud’s contract after it learned, contrary to Persaud’s certifications, that none of the subcontractors had received payment for their work on the project.
The Navy had required Persaud to purchase a materials/labor bond prior to his first contract draw, the premium for which cost Persuad $53,539. As a result, the subcontractors filed claims and eventually received payments from the bond carrier for their work totaling $1,281,753.
Under the terms of a plea agreement with the government Persaud agreed that the loss suffered by the victims was $1,206,470.
Judge Rambo ordered Persaud to pay restitution in the amount of $1,206,470 and entered a forfeiture against him in that same amount. Persaud was ordered to report to the Bureau of Prisons on November 21, 2016.
The case was investigated by the U.S. Naval Criminal Investigative Service and the Defense Criminal Investigative Service. The case was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former Office Manager of Baton Rouge Surgery Group Sentenced for Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge John W. deGravelles for defrauding $430,490 from the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children. Rogerson was ordered to serve 12 months in prison, 12 months of supervised release following prison, restitution to the victim of $430,490, a fine of $10,000, and asset forfeiture of $394,584. Rogerson was also ordered to repay $13,505 to the victim to reimburse the costs of investigating her offense.
PSL employed Rogerson to act as their office manager. Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources. In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account. Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs. Rogerson had access to all accounts and was familiar with PSL’s account information.
In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit. Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards. Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses.
Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015. In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.
U.S. Attorney Green stated: “Today’s sentencing is yet another example of the insider threat that businesses face. Such offenders must be held to account and should be reported to law enforcement immediately. Our office, together with the FBI and our other federal, state, and local partners, stand ready to aggressively pursue these important matters.”
FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL, and their accountants, Faulk and Winkler. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Former JPD Officer Sentenced to 27 Months in PrisonRead the Press Release
Jackson, Miss – Bryan Jones, 45, of Jackson, was sentenced by U.S. District Judge Dan Jordan to 27 months in federal prison followed by three years of supervised release for extortion by use of his position as a police officer, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
While working as a JPD officer, Jones violated the Hobbs Act by taking cash during a stop from undercover FBI agents and never recording or placing the money in Jackson Police Department evidence. At the time of the stop, Jones was carrying his service pistol holstered on his belt and driving his patrol car.
A confidential source called Jones in order to provide him with the location where he would find who Jones thought was a drug dealer but was really an undercover agent. Jones, acting in his capacity as a police officer, conducted illegal searches and seized $4,000 and $5,000, respectively. He later split the money with the confidential source and never recorded the money or turned it over to the Jackson Police Department.
This case was investigated by the FBI and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorneys Mary Helen Wall and Erin Chalk.
Former IRS Special Agent Charged with Filing False Tax Returns, Theft of Government Money and Obstructing a Federal InvestigationRead the Press Release
A federal grand jury in Sacramento, California returned an indictment today charging a former Internal Revenue Service–Criminal Investigation (IRS-CI) special agent with six counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration (TIGTA) and Acting Special Agent in Charge Darrell Waldon of IRS-CI.
According to the allegations in the indictment, Alena Aleykina, of Sacramento, a certified public accountant and former IRS-CI special agent, filed false individual income tax returns for the years 2009, 2010 and 2011, on which she claimed false filing statutes, dependents, deductions and losses and tax returns on behalf of two trusts. The indictment further alleges that, between 2008 and 2013, Aleykina attempted to obstruct the IRS by preparing false tax returns for herself, family members, trusts and partnerships and by making false statements to representatives of the Department of the Treasury and attempted to obstruct a federal investigation by destroying evidence on a government computer. Aleykina is also charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.
If convicted, Aleykina faces a statutory maximum sentence of three years in prison on each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for the charge of theft of government money and 20 years in prison for the destruction of evidence charge, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch, Special Agent in Charge Ammari and Acting Special Agent in Charge Waldon thanked agents of TIGTA and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman of the Northern District of California and Trial Attorneys Gregory Bernstein and Charles O’Reilly of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former IRS Special Agent Charged with Filing False Tax Returns, Theft of Government Money, and Obstructing A Federal InvestigationRead the Press Release
SAN FRANCISCO- A federal grand jury in Sacramento, California returned an indictment today charging a former Internal Revenue Service–Criminal Investigation (IRS-CI) special agent with six counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation, announced U.S. Attorney Brian J. Stretch, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration (TIGTA), and Acting Special Agent in Charge Darrell Waldon of IRS-CI.
According to the allegations in the superseding indictment, Alena Aleykina of Sacramento, a certified public accountant and former IRS-CI special agent, filed false individual income tax returns for the years 2009, 2010 and 2011, on which she claimed false filing statutes, dependents, deductions and losses and tax returns on behalf of two trusts. The indictment further alleges that, between 2008 and 2013, Aleykina attempted to obstruct the IRS by preparing false tax returns for herself, family members, trusts and partnerships and by making false statements to representatives of the Department of the Treasury and attempted to obstruct a federal investigation by destroying evidence on a government computer. Aleykina is also charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.
If convicted, Aleykina faces a statutory maximum sentence of three years in prison on each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for the charge of theft of government money and 20 years in prison for the destruction of evidence charge, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Stretch, Principal Deputy Assistant Attorney General Ciraolo, Special Agent in Charge Ammari, and Acting Special Agent in Charge Waldon thanked agents of TIGTA and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman of the Northern District of California and Trial Attorneys Gregory Bernstein and Charles O’Reilly of the Tax Division, who are prosecuting this case.
Former Government Employee Convicted of Defrauding Department of Veterans AffairsRead the Press Release
PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice was sentenced this week to probation for his theft of more than $56,000 from the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), and the U.S. Department of Health and Human Services (HHS). Bruce A. Endicott, 34, pled guilty last June to one count of theft of government funds from a six-count indictment. Endicott’s guilty plea was pursuant to a plea agreement, and included Endicott’s admissions to conduct over a course of three years that supported all six counts of the indictment. On Tuesday, U.S. District Court Judge Robert E. Jones sentenced Endicott to a three-year term of probation, 250 hours of community service, and payment of full restitution.
According to court records and the government’s sentencing memorandum which included a detailed timeline of events, Endicott began receiving service-connected disability benefits through the VA in 2005, following his three years of Navy service in San Diego, Calif. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability (IU) benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included mental and physical impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months, when in fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.
Endicott left the Oregon Department of Justice in December of 2013, and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.
After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (Oregon DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to Oregon DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, Oregon DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (also known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.
In February 2015, Endicott submitted a statement to the VA regarding his IU claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and falsely asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits. Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.
In their argument for jail, the government noted the ongoing and repeated nature of Endicott’s fraud, his purchase of a $65,000 truck instead of paying past-due child support and restitution, the burden of his repeated false claims on the VA and Oregon DHS systems, and the detrimental affect his fraud had on truly deserving veterans whose benefits were delayed due to his conduct. Judge Jones warned Endicott that despite receiving probation, further wrongdoing would result in a much harsher sentence. As a condition of his probation, Endicott was ordered to participate in a mental health treatment program.
The case was investigated by the Criminal Investigations Division of the VA Office of Inspector General, Oregon DHS, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney, as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.
Former Employee of Realty Company Indicted for $250K FraudRead the Press Release
NORFOLK, Va. – Lindsay Kneff, 36, of Virginia Beach, was indicted by a federal grand jury today on six counts of wire fraud, six counts of mail fraud, one count of falsely altering Postal Service money orders and three counts of engaging in monetary transactions in criminally derived property.
According to the indictment, Kneff was employed in the Virginia Beach office of Rose & Womble Realty Company in a managerial position and was responsible for overseeing the processing of commissions and accounts payable. Between January 2014 and August 2015, Kneff is alleged to have written checks on the Rose & Womble operating account to pay her personal expenses. Kneff made unauthorized wire transfers into her own accounts and altered Rose & Womble money orders by writing in her own name as the payee, resulting in a $255,147.20 loss for the company.
Kneff faces a maximum penalty of 20 years in prison on each of the wire and mail fraud counts, five years on the count charging false alteration of Postal Service money orders, and 10 years on each of the counts for engaging in monetary transactions in criminally derived property, if convicted. 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; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Kneff’s’s initial appearance before U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Alan M. Salsbury is 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. 2:16-cr-139.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former City of Chicago Building Inspector Pleads Guilty to Soliciting Bribe from Property Owner to Allow Renovations Without a PermitRead the Press Release
CHICAGO — A former building inspector for the City of Chicago admitted in federal court today that he solicited a $300 bribe from a property owner in exchange for allowing renovation work without a permit.
ROBERTO URIBE, 55, of Frankfort, demanded the bribe from an owner of a two-story building in Chicago, according to a written plea agreement. Unbeknownst to Uribe, the building owner was cooperating with federal authorities and had surreptitiously recorded the bribery demand.
In a recorded conversation on Nov. 9, 2015, Uribe boasted of his ability to shut down the renovation work unless the owner paid him $300. “So now, what’s happening now is you’re gonna give me some appreciation, and you’re gonna hurry up and get this done,” Uribe told the building owner, according to the plea agreement. “And that appreciation is gonna be $300. Now how quickly can you get me my money to keep my mouth shut?”
A few days later, the property owner paid $300 in cash to Uribe during a meeting at the property, the plea agreement states. The property owner was equipped with a recording device that recorded this meeting.
Uribe pleaded guilty to one count of attempted extortion under color of official right. The conviction is punishable by up to 20 years in prison and a maximum fine of $250,000. U.S. District Judge Jorge L. Alonso set sentencing for Feb. 2, 2017, at 11:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
The government is represented by Assistant U.S. Attorney Sarah Streicker.
Former Central Iowa Psychiatrist Pleads Guilty to Health Care FraudRead the Press Release
DES MOINES, IA – – On October 19, 2016, Richard Lee Hauser, M.D., 66, of North Liberty, Iowa, appeared before the Honorable Stephanie M. Rose, and pleaded guilty to two counts of health care fraud, announced United States Attorney Kevin E. VanderSchel.
According to the plea agreement, from about October 2008 until about August 2013, Dr. Hauser, a psychiatrist licensed to practice in Iowa, oversaw and personally provided services at a clinic in Grinnell, Iowa. The clinic operated under the name Prevention Systems, Inc. and did business as The Hauser Clinic. Beginning by at least November 8, 2011, and continuing to at least on or about December 31, 2012, Dr. Hauser devised, participated in and intended to devise a scheme to obtain, by means of materially false and fraudulent representations, money and property owned by and under the custody and control of the State of Iowa Medicaid program and Wellmark Blue Cross and Blue Shield of Iowa, in connection with the delivery of and payment for health care benefits and services. As part of this scheme, Dr. Hauser would "up code"—that is, submit and cause to be submitted claims to both Iowa Medicaid and Wellmark misrepresenting the service Hauser provided to certain patients by "coding" for a more expensive service, which was not, in fact, performed, for the purpose of increasing the amount of reimbursement The Hauser Clinic would receive from Iowa Medicaid and Wellmark.
Dr. Hauser is scheduled to be sentenced before The Honorable Stephanie M. Rose, United States District Court Judge, on February 16, 2017, at 10:00 a.m., at the Federal Courthouse in Des Moines. Health care fraud is a felony offense that is punishable by a maximum of ten years of imprisonment and a maximum $250,000 fine.
This matter was investigated by the State of Iowa Medicaid Fraud Control Unit and the United States Postal Inspection Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former California-Based Global Vice President of International Technology Company and Two Others Indicted in Scheme to Commit Insider Trading and Money LaunderingRead the Press Release
A former Palo Alto, California, based global vice president of SAP SE and two other individuals were charged in a federal indictment for their roles in a scheme to commit insider trading and money laundering that allegedly resulted in hundreds of thousands of dollars in profits.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Regina L. Faulkerson of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Christopher G. Salis, 39, of San Mateo, California, a former SAP global vice president; Douglas M. Miller, 40, of Dyer, Indiana; and Edward M. Miller, 43, of Munster, Indiana, were charged in a 17-count indictment returned yesterday by a federal grand jury in the Northern District of Indiana.
The indictment charges all defendants with one count of conspiracy to commit wire fraud and securities fraud, one count of conspiracy to commit money laundering and one count of conspiracy to structure currency transactions involving a financial institution for the purpose of evading the reporting requirements. In addition, Salis is charged with four counts of wire fraud and five counts of securities fraud; Douglas Miller is charged with six counts of wire fraud, five counts of securities fraud and one count of making false statements; and Edward Miller is charged with one count of wire fraud, one count of securities fraud, one count of witness harassment and one count of obstruction of justice.
According to allegations in the indictment, while Salis was employed as a SAP global vice president, he obtained material, non-public information about SAP’s acquisition of Concur, which he disclosed to Douglas Miller in violation of a duty of confidentiality. Douglas Miller, Edward Miller and others then allegedly purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis. Following the acquisition, the indictment alleges that Douglas Miller and Edward Miller sold the securities and Douglas Miller made approximately $119,000 and Edward Miller made approximately $149,000. Other traders who allegedly used the information profited a total of approximately $237,000. In order to conceal the nature of the proceeds, the Millers allegedly used cash, money orders and checks to transfer some of their trading profits to Salis. In total, Salis allegedly received nearly $90,000 from his co-conspirators.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPIS investigated the case. Trial Attorneys L. Rush Atkinson, Jennifer G. Ballantyne and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission has provided substantial assistance in this matter.
Former Adams County Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Adams County man was sentenced today to 87 months’ imprisonment by United States District Court Judge Sylvia H. Rambo in Harrisburg for receipt of child pornography.
According to United States Attorney Bruce D. Brandler, Earl Greg Walker, age 53, pled guilty on June 13, 2016, to receiving child pornography at his home in Adams County between 2011-2012.
An examination of Walker’s computer revealed over 1,000 Skype chat messages with minor Russian females and three minor females between the ages of 13-15 years old in the United States. Also recovered from Walker’s computer were numerous video files containing minor females engaged in sexual acts and various stages of undress, to include full nudity.
“There is no greater satisfaction than an investigation culminating in a child predator facing justice. Minors here and abroad are safer with the defendant in custody,” said Brian A. Michael, Acting Special Agent in Charge of Homeland Security Investigation Philadelphia.
This case was investigated by Homeland Security Investigations and the Pennsylvania State Police and was prosecuted by Assistant United States Attorney Daryl F. Bloom.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Five people sentenced to prison for defrauding investors out of $17 millionRead the Press Release
Five people were sentenced to prison for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.
Kenneth Grant, of Copley, was sentenced to 92 months in prison.
Thomas Abdallah, of Brunswick, was sentenced to 82 months in prison.
Jerry Cicolani, formerly of Richfield, was sentenced to 57 months in prison.
Jeffrey Gainer, of Copley, was sentenced to 52 months in prison.
Mark George, of Independence, was sentenced to 21 months in prison.
Kelly Hood, formerly of Richfield, was sentenced to one year of home confinement followed by probation.
Collectively, the defendants were also ordered to repay more than $17 million in restitution.
All six previously pleaded guilty to charges related to the case.
“These defendants swindled people out of millions of dollars so they could live extravagant lifestyles,” U.S. Attorney Carole S. Rendon said. “This was flat-out fraud. The defendants knew fully that they were stealing from the investors.”
“These defendants callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “Fraudsters such as these remain a top priority of the FBI.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge of IRS Criminal Investigation.” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”
Abdallah and Kenneth Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to court documents.
KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to five percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to court documents.
Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel. Instead, the defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property, according to court documents.
The defendants defrauded the investors out of approximately $17 million as a result of the conspiracy.
This case was prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump following an investigation by the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigations.
Five Members of Portsmouth Based Heroin & Fentanyl Trafficking Organization Plead GuiltyRead the Press Release
NORFOLK, Va. – Nathaniel Powell, 33, Ernest Cross, 38, Detuan Gordon, 25, Valerie Wilson, 55, and Marque Wilson, 33, all of Portsmouth, have pleaded guilty to charges related to their role in a heroin and fentanyl drug trafficking conspiracy.
According to court records, from March 2012 through July 2016, members of this organization conspired to manufacture and distribute heroin in excess of 1,000 grams. The group’s primary source of supply for heroin and fentanyl came from Baltimore. The narcotics were transported to Hampton Roads and repackaged using a hydraulic press machine and gel capsules for retail sales. This organization further disseminated their drugs and served as a source of supply for other individuals in the Outer Banks of North Carolina.
On Dec. 22, 2015, police executed a search warrant on Gordon’s residence and recovered opiates, scales, drug paraphernalia, and firearms. During the conspiracy Gordon, a convicted felon, possessed an AK-47-style rifle as well as a Taurus handgun. When Gordon was arrested on June 8, police recovered nearly $50,000 in cash, a firearm, heroin, and fentanyl. Valerie Wilson was arrested on June 2, in Moyock, North Carolina, after selling five grams of heroin. Wilson’s six-year-old grandson was in her vehicle when she distributed the heroin.
Two members of the group led police on two separate vehicle pursuits. Marque Wilson, who was in possession of heroin and cocaine, was arrested on June 10, after attempting to elude police. Powell led police on a high speed chase through residential neighborhoods of Portsmouth before he crashed into another driver. Powell, who is a paraplegic from a gunshot wound, used a cane to drive during the pursuit. Police recovered seven grams of fentanyl from Powell. After Powell’s arrest, he threatened to kill an individual he believed was working with police.
Name
Date of Guilty Plea
Date of Sentencing
Nathaniel Powell
October 20
Feb. 17, 2017
Ernest Cross
September 23
Jan. 20, 2017
Detuan Gordon
September 20
Jan. 26, 2017
Valerie Wilson
September 16
Jan. 20, 2017
Marque Wilson
October 18
Jan. 27, 2017
A federal grand jury charged the Portsmouth based heroin and fentanyl drug trafficking group with a 20 count indictment on July 20. Charges included, but were not limited to, Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Heroin, Distribution of Heroin and Fentanyl, Felon in Possession of a Firearm, and Possession of Firearms in Furtherance of a Drug Trafficking Crime.
Gordon faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of life. Cross and Powell face mandatory minimum sentences of five years and a maximum penalty of 40 years in prison. The Wilsons face a maximum sentence of 20 years in prison. 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; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelvin L. Wright, Chief of the Chesapeake Police Department, and Tonya D. Chapman, Chief of the Portsmouth Police Department, made the announcement after Powell’s guilty plea was accepted by U.S. Magistrate Judge Lawrence Leonard. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse 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-97.
Federal Jury in Del Rio Convicts Mexico City Man for Importation of Cocaine and HeroinRead the Press Release
Guillermo Rodriguez-Sanchez, a 42-year-old resident of Mexico City, faces a mandatory minimum sentence of at least ten years and up to life in federal prison after a jury convicted him late yesterday afternoon of importation cocaine and heroin, announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.
Jurors convicted Rodriguez-Sanchez of one count of importation of cocaine and one count of importation of heroin. According to evidence presented during trial, on March 16, 2016, Rodriguez-Sanchez, a Mexican citizen and resident of Mexico City, attempted to enter the United States of America through the Eagle Pass Port of Entry Number One. CBP officers subsequently discovered four bricks of cocaine and one brick of heroin hidden inside of a secret compartment that was built into the air intake manifold of the 2007 Toyota Tundra the defendant was driving. The total weight of the cocaine was approximately four kilograms; the heroin, approximately 1.4 kilograms. Testimony at trial established that the value of the narcotics was approximately $200,000. At the time of his arrest, Rodriguez-Sanchez denied knowledge of the drugs.
Rodriguez-Sanchez remains in federal custody pending sentencing scheduled for 10:00 am on April 4, 2017, before United States District Judge Alia Moses in Del Rio.
This investigation was conducted by the Homeland Security Investigations (HSI), the United States Customs and Border Protection (CBP) and the Drug Enforcement Administration (DEA). Assistant United States Attorneys Goran Krnaich and Justin Chung are prosecuting this case on behalf of the Government.
Federal Jury Convicts Woman in Stolen Identity Refund Scheme - Some Stolen Identities Belonged to Incarcerated IndividualsRead the Press Release
DALLAS — Following a four-day trial before Chief U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted Latonya Carson, 42, of Dallas, on several federal offenses stemming from her role in a scheme to steal personal identifying information, use it to fraudulently obtain income tax refunds, and then launder those funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Carson was convicted on one count of conspiracy to commit theft of public funds, access device fraud and wire fraud; three counts of aggravated identity theft; one count of conspiracy to commit money laundering; four counts of money laundering; and four counts of wire fraud. The first conspiracy count carries a maximum statutory penalty of five years and a $250,000 fine. The statutory penalty for each aggravated identity theft count is two years and a $250,000 fine. The money laundering conspiracy count, each of the money laundering counts, and each wire fraud count carries a maximum statutory penalty of 20 years in federal prison and a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater. In addition, the superseding indictment includes a forfeiture allegation that would require Carson to forfeit eight pairs of Christian Louboutin shoes; one pair of Gucci booties, seven designer handbags, and more than $26,000 seized from two bank accounts.
The government presented evidence at trial that beginning in 2012, Carson and her coconspirators were involved in a scheme in which they filed false tax returns using stolen identities, some of which belonged to incarcerated individuals. Carson and her coconspirators converted the tax refunds from debit/Green Dot cards, using shell company bank accounts, into cash and cashier’s checks used to purchase luxury vehicles that they then shipped to Nigeria.
Between May 2012 and May 2014, the defendants and their conspirators paid $1,184,950 from these accounts to purchase used cars from wholesale dealer auctions in Dallas County, and between January 2012 and January 2015, the defendants and their conspirators exported approximately 204 used cars to Nigeria.
Five defendants were charged in the scheme. Segun Edomwonyi, a/k/a “Benny O. Prince,” and Titalayo Idowu Olukoya remain fugitives. Charges were dismissed against Ricardo Garth Solomon. Smith Olsola Akin, 33, pleaded guilty to one count of conspiracy to commit money laundering in May 2016, and is to be sentenced in January 2017.
The FBI, IRS Criminal Investigation, U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Secret Service and the Texas Department of Public Safety investigated. The case is being prosecuted by Assistant U.S. Attorneys Christopher Stokes and Camille Sparks.
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Federal Agent and Local Attorney Charged with Bribery, Fraud and Obstruction of JusticeRead the Press Release
A Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations and an attorney have been charged with bribery, conspiracy to defraud the United States and obstruction of justice, announced U.S. Attorney Barbara L. McQuade. The charging documents were unsealed today.
Joining in the announcement was Giovanni Tiano, Special Agent in Charge of the Detroit, Michigan office of the Department of Homeland Security – Office of Inspector General and Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations.
Charged in an Indictment was Clifton Divers, 48, of Detroit, Michigan. Divers was charged with misusing his position as a Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations to obtain numerous deferrals of deportation and other immigration benefits for non-citizen foreign nationals in return for over $5,000 in cash payments, free legal services and other things of value.
Special Agent Divers is also charged with conspiring to impair, obstruct and defeat the lawful function of the U.S. Department of Homeland Security by dishonest means. In addition, Agent Divers is charged with destruction and falsification of records to obstruct an official investigation by the Office of Inspector General of the U.S. Department of Homeland Security. The crimes are alleged to have occurred between 2009 and 2015. The six charged crimes carry maximum penalties of between five and twenty years.
Charged in an Information was attorney Charles T. Busse, 58, of Birmingham, Michigan. Busse was charged with paying bribes to a Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations to obtain numerous deferrals of deportation and other immigration benefits for his clients. Attorney Busse maintains law offices in Rochester Hills, Michigan and in Dearborn, Michigan.
Busse was also charged with conspiring to impair, obstruct and defeat the lawful function of the U.S. Department of Homeland Security by dishonest means. In addition, Busse was charged with criminal tax evasion and with violating the federal law that requires an attorney to report any cash payments of more than $10,000. The crimes are alleged to have occurred between 2009 and 2015. The four charged crimes carry maximum penalties of between five and fifteen years.
McQuade stated, “Anyone who abuses a federal law enforcement position for personal profit can expect to face serious penalties, including criminal prosecution.”
Special Agent in Charge Tianno stated, “Acts of corruption within the Department of Homeland Security represent a threat to our national security, and the Office of Inspector General is committed to doing everything possible to eradicate those who choose to place our country at risk. Homeland Security Investigations (HSI) have some of the finest agents in law enforcement and this arrest today is not indicative of the selfless work the fine men and women from HSI perform every day.”
“This case should serve to reassure the public that the IRS will continue to enforce our nation’s tax laws to protect the integrity of our tax systems and we will take particular interest in cases where someone, for their own personal benefit, attempts to profit from corruption,” said Manny Muriel, Special Agent in Charge. “For years, criminals have devised complex schemes in an attempt to conceal their illegal activities. Tax cheats should take note that they cannot evade their tax reporting obligations without consequences.”
U.S. Attorney McQuade commended the outstanding work of the Office of Inspector General of the U.S Department of Homeland Security and the Internal Revenue Service – Criminal Investigations in conducting a comprehensive criminal investigation into potential corruption activities involving a federal law enforcement official.
An indictment/information is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt
Essex County, New Jersey, Woman Sentenced to 92 Months in Prison for Leadership Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, woman was sentenced today to 92 months in prison for her role in leading a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Victoria Horvath, 44, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging her with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath as a senior member of the drug trafficking organization.
Horvath admitted that, between Feb. 5, 2014 and Aug. 13, 2014, she personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled by various pharmacies, and sold the pills to members of the conspiracy and others. Horvath also drove other conspirators to specific doctors to obtain oxycodone prescriptions, assisted them in getting the prescriptions filled, and helped them sell the pills.
For example, Horvath admitted that she, while working with multiple conspirators, sold 119 oxycodone pills to an undercover law enforcement officer in February 2014 in exchange for $2,020. Horvath also admitted to being an organizer and manager of the conspiracy.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Salas sentenced Horvath to three years of supervised release.
Of the individuals originally charged with Horvath, Alexis Horvath, 27, of Belleville, New Jersey, Rickie Horvath, 54, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, and Matthew Policarpio, 28, of Newark, and Sabrina Vajda, 32, of Brooklyn, New York, have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Daniel Horvath, 27, was sentenced to 27 months in prison in and Johnny Horvath, 46, was sentenced to 30 months in prison in April 2016. Monica Horvath, 22, was sentenced to 24 months in prison in August 2016. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014. The indictment remains pending against two other conspirators.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office in Newark.
Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey
Darren Sharper’s Co-Defendants SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced today’s sentencing of BRANDON LICCIARDI and ERIK J. NUNEZ, who were charged along with former New Orleans Saint DARREN SHARPER, in a conspiracy to drug and rape women.
U.S. District Judge Jane Triche Milazzo sentenced LICCIARDI to serve 17 years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, LICCIARDI will be required to register as a sex offender for life pursuant to the Sex Offender Registration Notification Act.
U.S. District Judge Milazzo also sentenced NUNEZ to serve 10 years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, NUNEZ will be required to register as a sex offender for 15 years pursuant to the Sex Offender Registration Notification Act.
LICCIARDI, a former St. Bernard Parish Deputy, previously pled guilty on July 15, 2016, to conspiracy to distribute Schedule IV controlled substances with the intent to commit crimes of violence, including rape.
NUNEZ previously pled guilty on July 11, 2016, to conspiracy to distribute controlled substances to victims without their knowledge and with the intent to commit sexual battery.
DARREN SHARPER was sentenced on August 18, 2016, to 18 years imprisonment.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. U.S. Attorney also thanked District Attorney Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable cooperation. Assistant United States Attorneys Michael E. McMahon, Theodore R. Carter, III, and Brandon Long were in charge of the prosecution.
DEA and Partners Hold Prescription Drug Take Back Day SaturdayRead the Press Release
Boston, MA – This weekend DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 22 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at one of 566 collection sites throughout New England, operated by 505 local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over—2.4 percent of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last month, more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
“The diversion of prescription pain killers contribute to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said DEA Special Agent in Charge Michael J. Ferguson. "Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
United States Attorney for the District of New Hampshire Emily Gray Rice stated: “Participation in the DEA’s Drug Take-Back Day is one of the most important things that the average person can do to prevent the misuse of prescription drugs. Removing these drugs from our homes insures that these powerful substances do not fall into the wrong hands or become the spark that ignites opioid addiction. I hope that everyone will take this opportunity to safely dispose of these drugs, and to encourage their friends and neighbors to do the same.”
Last April, during its 11th Take Back Day, the DEA New England Field Division (NEFD) participated in the Drug Take-Back Day and over the course of four hours 86,900 pounds of expired, unused, and unwanted prescription drugs were collected at 551 collection sites throughout New England. The following was the breakdown of collected weights for the six New England states:
Connecticut
8,815.50 lbs.
Massachusetts
25,028 lbs.
Maine
31,960 lbs.
New Hampshire
12,560 lbs.
Rhode Island
3,460 lbs.
Vermont
5,094.60 lbs.
Total for NEFD
86,918.1 lbs.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
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Cross-Border Human Smuggler Sentenced to 36 MonthsRead the Press Release
SYRACUSE, NEW YORK - Terri Ann Bush, age 43, of Hogansburg, New York, and St. Regis, Quebec, was sentenced yesterday to 36 months in prison for her role in a human smuggling conspiracy.
The announcement was made by U.S. Attorney Richard S. Hartunian and John C. Pfeifer, U.S. Border Patrol’s Chief Patrol Agent for the Swanton Sector. Senior U.S. District Judge Senior Frederick J. Scullin, Jr. imposed the sentence, which also included 2 years of post-imprisonment supervised release.
Bush pled guilty on June 21, 2016.
In the evening of November 17, 2015, a New York State Police (NYSP) Trooper in rural northern New York performed a traffic stop on a southbound vehicle. A male citizen of Israel, Bush, and the driver, also from Hogansburg, told the Trooper they were headed from the international border area to New York City. They were released after the Trooper issued a traffic ticket.
Later, the NYSP and Border Patrol determined that the Israeli man was known to immigration officials and not lawfully in the United States. The next morning, on November 18, 2015, Border Patrol agents stopped the same vehicle northbound, and the Israeli man was absent. After a search, federal agents found and arrested him in Philadelphia. He was brought back to the Northern District of New York for prosecution for illegal entry to the United States from Canada, and later pled guilty. The driver from Hogansburg also pled guilty to an alien smuggling charge.
This case was investigated by the U.S. Border Patrol Burke Station, aided by its Sector Intelligence Unit, and Immigration and Customs Enforcement Fugitive Alien investigators in Philadelphia. The New York State Police, the Massena Border Enforcement Security Task Force (BEST), and the Saint Regis Mohawk Tribal Police assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Elizabeth Horsman.Convicted Felon Sentenced to Federal Prison for Possession of Seven Firearms and AmmunitionRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges today sentenced Charles Lewis Madison, Jr. (35, Ocala) to six years and six months in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on August 11, 2016.
According to court documents, on May 11, 2016, law enforcement agents executed a search warrant at Madison’s residence. Upon seeing the agents, Madison unsuccessfully tried to flee on foot. The search of his residence and automobile revealed seven firearms (two of which were had been stolen), approximately 70 rounds of ammunition, baggies of cocaine, and drug paraphernalia. Madison admitted that the firearms, ammunition, and narcotics belonged to him. Madison has prior federal felony convictions for drug distribution and illegal possession of a firearm, and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Marion County Sheriff’s Office, the Ocala Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Chicago men indicted for credit card fraudRead the Press Release
Markeith L. Milton, 24, and Dominic L. Hudson, both of Chicago, was indicted for using other people's credit card numbers to obtain property, said U.S. Attorney Carole S. Rendon.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigating agency in this case is the United States Secret Service in Toledo. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cheektowaga Man Sentenced on Aggravated Identity Theft ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Paul Keener, a/k/a Aaron Silverman, a/k/a Paul Robison, a/k/a Scott Walker, 47, of Cheektowaga, NY, who was convicted of aggravated identity theft, was sentenced to two years in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that in 1996, the defendant escaped from state custody in Colorado. Soon thereafter, Keener purchased false identification documents associated with a confirmed missing person who has been missing from his family in Virginia since 1993. The defendant purchased the identification documents from a seller on Craigslist for $300.00.
From 1995 to the present, Keener maintained several aliases, supported by false identification documents including U.S. passports and driver’s licenses. Law enforcement officials learned of the defendant’s presence in Western New York in January 2016. Using his aliases and false identification documents, Keener has crossed into Canada, registered to vote, applied for and received federal financial student aid, and has obtained Social Security cards.
The sentencing is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari, the Social Security Administration, Office of Inspector General, under the direction of Edward J. Ryan, and the United States Marshals Service, under the direction Charles Salina.
Chalmette Man Sentenced for Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GREGORY GIBSON, age 33, of Chalmette, was sentenced today after previously pleading guilty to distribution of heroin.
U.S. District Judge Lance M. Africk sentenced GIBSON to 42 months imprisonment to be followed by 3 years of supervised release, and a $100 special assessment.
According to court documents, GIBSON distributed a quantity of heroin on or about October 8, 2013. GIBSON also admitted to dealing between 400 and 700 grams of heroin.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Canadian Couple Arrested While Attempting to Export Suspected Synthetic Drugs Shipped from China to United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Karl and Sorina Morrison, both 59, of Kitchener, Ontario, were arrested and charged by criminal complaint with conspiracy to import and export controlled substances and analogues and attempt to export controlled substances and analogues. Each charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that, according to the criminal complaint, on August 29, 2016, American law enforcement officers intercepted a package that was mailed from China and addressed to Karl Morrison at a UPS store in Niagara Falls, NY. Inside the package were four sample-sized packets of powder, two of which were tested and determined to contain 4-Methoxy Butyryl Fentanyl and Para-Fluoro Butyryl Fentanyl. If intended for human consumption, these synthetic substances are analogues of the Schedule II controlled substance fentanyl.
On October 15, 2016, Morrison and his wife Sorina entered the United States from Canada at the Lewiston Queenston Port of Entry. The couple retrieved four packages from a UPS store, bought shipping supplies, and repackaged the contents of the original packages into new envelopes that they paid to ship back to Canada, including one to their home address. Law enforcement officers recovered these packages. Two contained more sample-sized packets of powder, including one apparently labeled as furanyl fentanyl. The third was a two-pound package containing a bulk quantity of powder that Sorina Morrison falsely declared as cinnamon butter.
The couple discarded the Chinese shipping labels of the original packages in various garbage cans around Niagara County. They also obtained from a telephone book the name and address of an unsuspecting citizen in Niagara Falls to use as the return address on the packages they shipped to Canada. Karl and Sorina Morrison were arrested as they drove back across the Lewiston Bridge toward Canada.
The defendants made an initial appearance before the U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being detained pending a hearing scheduled for October 24, 2016, at 10:00 a.m.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, New York Field Division, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector in Charge Shelly A. Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Cambria County Man Sentenced on Firearms ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 68 months in prison and three years’ supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Montez Ricardo Holland, 54.
According to information presented to the court, on Jan. 4, 2013, Holland possessed a Sturm, Ruger & Company, Model P95DC, 9 mm semi-automatic pistol. On Apr. 27, 1998, Holland was convicted in Lycoming County, Pa., of a drug trafficking crime, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Holland.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
CVS Pharmacy Pays $600,000 to Settle Controlled Substances Act AllegationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CVS Pharmacy, Inc. (“CVS”) has agreed to pay the federal government a total of $600,000 to resolve alleged violations of civil provisions of the Controlled Substances Act at stores in Southington and New Britain.
The government alleges that, on at least 2,886 occasions, the CVS store located at 326 Main Street in Southington failed to keep paper Schedule III-V prescriptions either in a separate prescription file or readily retrievable location away from other prescription records in violation of the law. In addition, on 31 occasions, the store failed to keep Schedule III-V purchase invoices in a readily accessible location separate and apart from other records required to be kept under law.
The government further alleges that, on at least 4,936 occasions, the CVS store located at 713 Main Street in New Britain failed to keep paper Schedule III-V prescriptions either in a separate prescription file or readily retrievable location away from other prescription records in violation of the law. In addition, on six occasions, the store failed to keep Schedule III-V purchase invoices in a readily accessible location separate and apart from other records required to be kept under law.
Congress, with the passage of the Controlled Substances Act, took steps to attempt to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States. Accurate record keeping at retail pharmacies helps ensure that investigators can keep track of how many controlled substances a pharmacy should have and does have on hand.
As part of the settlement agreement, CVS has agreed that certain pharmacy supervisors, district managers, regional managers and loss prevention managers will attend a training session where the U.S. Attorney’s Office and Drug Enforcement Administration will provide information concerning federal regulatory obligations related to controlled substances. CVS will share that information to all active pharmacists and pharmacy technicians, and will continue to provide recurring controlled substances training to its pharmacy staff.
This matter was investigated by the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill and the Connecticut Department of Consumer Protection, Drug Control Division, and was prosecuted by Assistant U.S. Attorney Alan M. Soloway.
Baton Rouge Businessman Sentenced to Prison for Bank Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that United States District Chief Judge Brian A. Jackson sentenced JASON CHRISTOPHER DEVILLIER, age 45, for his convictions in connection with a scheme to defraud Whitney Bank. This summer, DEVILLIER pled guilty to bank fraud and fraudulent receipt of bank funds.
Chief Judge Jackson sentenced DEVILLIER to a term of 33 months in the Bureau of Prisons, to be followed by a term of 3 years supervised release. DEVILLIER was also sentenced to pay total restitution of $474,410.74 to Whitney Bank. Additionally, DEVILLIER was ordered to forfeit assets of $474,410.74 and pay a $25,000 fine.
These convictions arose from DEVILLIER’s ownership and operation of ABC123, L.L.C. (“ABC123”), a payment processing company for private and parochial primary and secondary schools located in Baton Rouge, Louisiana. In order for ABC123 to perform its payment processing services for the schools, parents established accounts through ABC123’s website, which enabled parents to send money electronically to the schools for tuition, cafeteria fees, and other school-related fees. ABC123 collected the funds paid by parents and transmitted them to financial institutions designated by each respective school. As a result, DEVILLIER had access to the schools’ bank account information, including routing and account numbers.
DEVILLIER accomplished his scheme to defraud Whitney Bank through his use of the Automated Clearing House (“ACH”) network. DEVILLIER previously admitted that, from November of 2012 through July of 2013, he diverted funds from ABC123’s Whitney Bank account (“the ABC123 account”) into his personal account and other accounts, in amounts ranging from $30 to $50,000, through inappropriate ACH batch transactions. For each fraudulent transaction, DEVILLIER posted numerous and substantial false and fraudulent credits to the ABC123 account, which he falsely represented as authorized withdrawals from accounts belonging to the schools. In effect, these false and fraudulent ACH credits posted by DEVILLIER made it appear as though the ABC123 account had sufficient funds for withdrawals from said account. Before Whitney Bank was able to detect and reverse the false and fraudulent ACH credits, Devillier transferred funds through ACH debits from the ABC123 account to various personal and business accounts belonging to him and others. As a result of DEVILLIER’s fraudulent conduct, Whitney Bank suffered substantial losses.
U.S. Attorney Walt Green stated: “Mr. Devillier was sentenced to a significant sentence for his criminal conduct. In lining his own pockets, Mr. Devillier violated the trust of not only Whitney Bank, but also the trust of the schools, students, and families his business was supposed to serve. I also wish to convey my appreciation to the FBI and the prosecutor for their excellent work, as well as to Whitney Bank and the schools for their cooperation and support during the investigation and prosecution of this important matter.”
SAC Jeffrey S. Sallet stated: “I would like to recognize the outstanding work done by the assigned FBI Special Agent and Assistant U.S. Attorney in unraveling this complex bank fraud scheme. The New Orleans Division of the FBI remains committed to working with our law enforcement partners to identify, investigate and prosecute those who would attempt to fraudulently utilize the banking system for personal gain.”
The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Cam T. Le.
Assistant U.S. Attorney Recognized for Work on Carson Helicopters Crash InvestigationRead the Press Release
WASHINGTON – On October 20, 2016, Byron Chatfield, Assistant United States Attorney for the District of Oregon, received an Award of Excellence in Investigation from the Council of Inspectors General on Integrity and Efficiency (CIGIE) for his work on the investigation and prosecution of two corporate executives linked to a fatal 2008 wildland fire helicopter crash in the Shasta-Trinity National Forest near Weatherville, Calif.
On August 5, 2008, in the midst of the Iron Complex Fire, deteriorating weather conditions made it necessary to evacuate backcountry firefighters to safety. A helicopter owned and operated by Carson Helicopters, Inc. of Medford, Ore. was dispatched to the location. On a third pick-up attempt, the aircraft, overweight with fuel and passengers, crashed, killing nine and injuring four others. The crash was the deadliest wildland fire aviation disaster in United States history.
Assistant U.S. Attorney Chatfield, along with five other federal investigators, embarked on a seven-year investigation of the crash that led to the conviction and sentencing of two Carson Helicopter executives. The investigation proved that the executives had falsified documents detailing weight capacities and balance charts of their aircraft in order to win more $51 million in Forest Service contracts. All told, the investigation team conducted 246 witness interviews in five different countries, issued 84 trial subpoenas, executed 3 computer forensic exams, and amassed over 129,000 pages of evidentiary discovery.
“I applaud Byron and his colleagues’ extraordinary efforts to investigate, prosecute, and convict those responsible for this unthinkable tragedy” said Billy J. Williams, United States Attorney for the District of Oregon. “The work of Byron and team” continued U.S. Attorney Williams, “demonstrates the tremendous lengths those in our law enforcement community will go to bring justice to individuals responsible for similar acts of fraud.”
To learn more about the investigation and prosecution of this case, please visit: go.usa.gov/xk49g.
CIGIE is an independent entity established within the United States Executive Branch to address integrity, economy, and effectiveness issues that transcend individual government agencies and aid in the establishment of a professional, well-trained, and highly-skilled workforce in the Offices of Inspectors General. To learn more about CIGIE, please visit www.ignet.gov.
American Sports Marketing Executive Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Aaron Davidson pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his involvement in schemes involving the payment of bribes to a high-ranking soccer official in exchange for media and marketing rights to international soccer tournaments and matches. Davidson agreed to and paid these bribes on behalf of Traffic Sports USA, Inc. (Traffic USA), the Miami sports marketing company for which he served as president at the time of his arrest on May 27, 2015. As part of his plea, Davidson also agreed to forfeit $507,906.84. At sentencing, Davidson faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Davidson, a U.S. citizen, joined Traffic USA in 2003, initially working in sales and ultimately rising to the position of president of the company. During his time at Traffic USA, Davidson was involved in multiple criminal schemes including, among others, schemes involving the agreement to pay and payment of bribes to a high-ranking official of FIFA, CONCACAF, the Caribbean Football Union, and one of FIFA’s national member associations in order to obtain lucrative media and marketing rights to international soccer tournaments and matches for Traffic USA and its business partners. Those tournaments and matches included FIFA World Cup qualifiers, the CONCACAF Gold Cup, the CONCACAF Champions League, and the Copa América Centenario, a tournament jointly organized by CONCACAF and CONMEBOL, the South American soccer confederation. In total, Davidson negotiated and agreed to bribe payments totaling more than $14 million.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
AARON DAVIDSON
Age: 45
Nationality: United StatesE.D.N.Y. Docket No. 15 CR 252 (S-1)
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Reydecel Lopez-Ordonez, 23, of Albuquerque, N.M., pled guilty yesterday in federal court to heroin trafficking charges.
Lopez-Ordonez and his co-defendants Gonzalo Montenegro-Coronel, 31, a Mexican national, Esther Ordonez, 48, and Miguel Ordonez, 23, both of Albuquerque, and Fernando Gomez-Campos, 21, of El Paso, Texas, were charged in a 13-count indictment that was filed on Dec. 2, 2015. The indictment charged the five defendants with participating in a heroin trafficking conspiracy between Nov. 2014 and Sept. 2015. The indictment also included charged certain defendants with distributing heroin on eight occasions between Nov. 2014 and Sept. 2015, and with using telephones to facilitate drug trafficking crimes. Additionally, it charged Esther Ordonez, Miguel Ordonez and Montenegro-Coronel with maintaining a residence for the purpose of manufacturing and distributing heroin between Nov. 2014 and Sept. 2015. According to the indictment, the defendants committed the crimes in Bernalillo County, N.M.
The indictment included forfeiture provisions requiring the defendants to forfeit $53,760 and a residence located in southwest Albuquerque to the United States.
During today’s proceedings, Lopez-Ordonez pled guilty to one count of distributing heroin and two counts of using a communication device to further the commission of a drug trafficking crime. In entering the guilty plea, Lopez-Ordonez admitted that on March 19, 2015 and June 10, 2015, he used a telephone to arrange heroin sales. Lopez-Ordonez further admitted that on July 9 and 10, 2015, he sold 568 grams of heroin to an undercover law enforcement agent in exchange for $26,000.
At sentencing, Lopez-Ordonez faces a statutory minimum penalty of five years and a maximum of 40 years in prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Lopez-Ordonez will forfeit more than $10,000 in drug proceeds to the United States. He also agrees to forfeit any right, title or interest he may have in a residence in southwest Albuquerque.
Lopez-Ordonez’s co-defendants have entered not guilty pleas to the indictment and are pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Drug Task Force as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The HIDTA Region I Drug Task Force is comprised of officers from the Albuquerque Police Department, Rio Rancho Police Department, Valencia County Sheriff’s Office, Pueblo of Pojoaque Tribal Police Department and DEA. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys Shaheen P. Torgoley and Stephen R. Kotz are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Albuquerque Couple Sentenced on Wire Fraud Convictions Arising Out of Scheme to Defraud Office Supply BusinessRead the Press Release
ALBUQUERQUE – Matthew Channon, 39, and his wife Brandi Channon, 37, both of Albuquerque, N.M., were sentenced today for their convictions on conspiracy and wire fraud charges arising out of a sophisticated scheme to defraud an office supply business out of more than $100,000. Matthew Channon was sentenced to a year and a day of imprisonment to be followed by two years of supervised release. Brandi Channon was sentenced to three years of probation, including six months of home confinement and 200 hours of community service. The Channons also were ordered jointly to forfeit $105,191 to the United States, and to pay $96,000 in restitution to Office Max/Office Depot, the business that was the victim of the Channons’ criminal conduct.
The Channons were charged with conspiracy and wire fraud charges in a seven-count indictment filed in March 2013. In addition to the conspiracy charge, the indictment charged Matthew Channon with four counts of wire fraud and Brandi Channon with two counts of wire fraud. According to the indictment, the Channons perpetuated a scheme to defraud OfficeMax by using interstate wire communications to create numerous MaxPerk Rewards accounts in fictitious names to avoid OfficeMax’s policy of issuing only one account per person. The couple then used the accounts to fraudulently claim rewards from OfficeMax to which they were not entitled. The indictment alleged that the scheme continued from Aug. 2009 through June 2011, during which time the Channons fraudulently obtained MaxPerk Rewards certificates valued at more than $105,000.00.
The Channons were convicted on all seven counts in the indictment on Jan. 22, 2016, after a seven-day jury trial. The evidence at trial established that the Channons conspired to defraud OfficeMax by fraudulently creating more than 5000 MaxPerk Rewards accounts in the names of fictitious people. The couple went online and used the fraudulent accounts to falsely claim rewards-program credit for purchases that other customers had in fact made. The Channons falsely claimed that they engaged in more than 60,000 transactions with OfficeMax involving almost $2,000,000.00 worth of purchases, in over 300 stores located in over 20 states. As a result of their fraudulent conduct, the Channons defrauded OfficeMax of more than $100,000 worth of property.
The case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorneys Margaret M. Vierbuchen, Holland S. Kastrin and C. Paige Messec.
Alabama Man Indicted for Kidnapping Four-Year-Old GirlRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging West Wild Hogs (31, Searle, Alabama) with kidnapping. If convicted, he faces a maximum penalty of life in federal prison.
According to the indictment, on October 8, 2016, Hogs kidnapped a four-year-old girl from her home in Lakeland, Florida. He is not related to, nor did he have legal custody of the child. Hogs traveled across state lines to commit the offense and transported the child out of the State of Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Natalie Hirt Adams.
Wednesday 19 October 2016
Worley Woman Pleads Guilty to Mail TheftRead the Press Release
COEUR D’ALENE – Twilla Marie St. Pierre, 39, of Worley, Idaho, pleaded guilty yesterday to theft or receipt of stolen mail matter, U.S. Attorney Wendy J. Olson announced. St. Pierre was indicted by a federal grand jury in Coeur d'Alene on April 19, 2016.
According to the plea agreement, St. Pierre admitted that on or about May 28, 2015, she and co-defendant Delbert Lee stole mail belonging to another from a post office box at the U.S. Post Office in Worley, Idaho. The stolen mail consisted of checks payable to the victim. St. Pierre knew the mail was stolen because either she and or her co-defendant Lee stole the mail directly from the victim’s post office box.
The charge of theft or receipt of mail matter is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for January 18, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by the Coeur d’Alene Tribal Police and Federal Bureau of Investigation (FBI).
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Woman Who Embezzled $852,041 from St. Luke’s Sentenced to 27 Months in PrisonRead the Press Release
BOISE – Sara Curnow, 44, of Portland, Oregon, was sentenced today to 27 months in prison, followed by three years of supervised release, a condition of which is home confinement for 6 months, for the crime of wire fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Curnow to forfeit and pay restitution of $852,041 to St. Luke’s Health System. Curnow pleaded guilty to one count of wire fraud on March 29, 2016.
According to the plea agreement, from approximately 2008 through 2015, Curnow was an employee of Pinnacle Pension Services (“Pinnacle”), headquartered in Boise, Idaho. As part of its business, Pinnacle administered health care and dependent care Flexible Spending Accounts (“FSAs”) for employees of client firms. Employees of client firms who elected to participate in an FSA program had pre-tax funds withheld from their paycheck and deposited into a bank account from which they can make claims for disbursement for health care and dependent care expenses throughout the year. At the end of the year, if the employee had not exhausted his or her FSA deposits, they were forfeited to the employer. In approximately 2009, Curnow assumed the job of FSA Administrator at Pinnacle. In that role, Curnow had responsibility for reviewing and approving payment of FSA disbursement claims.
St. Luke’s Health System (“St. Luke’s”) was a client of Pinnacle. St. Luke’s maintained bank accounts at Wells Fargo Bank into which withholdings of pre-tax FSA funds from participating employees were deposited and from which disbursements were made to these employees after they were approved by Pinnacle.
The plea agreement provided that beginning in April of 2009 and continuing until October of 2015, Curnow embezzled $852,041 from St. Luke’s FSA accounts at Wells Fargo Bank. On the internal Pinnacle computer system, Curnow saw which St. Luke’s employees left forfeitures at plan year end and in what amounts. These amounts were supposed to be forfeited to St. Luke’s at plan year end. Instead, Curnow manipulated the Pinnacle claims system to create dummy elections and claims payments for St. Luke’s employees. Rather than directing the claims payments to the bank accounts of the St. Luke’s employees, Curnow directed these claims payments to be sent by interstate wire transfer from St. Luke’s FSA account at Wells Fargo Bank to Pinnacle’s trust account at Wells Fargo Bank, and then, to Curnow’s bank accounts at Ally Bank, Mountain America Federal Credit Union, and Navy Federal Credit Union. She did so on approximately 294 separate occasions in denominations ranging from approximately $600 to $9,100. Because St. Luke’s had between 5,000 and 11,000 employees from 2009 through 2015, St. Luke’s did not discover the fraudulent transfers of forfeited funds that belonged to it.
The case was investigated by the U.S. Department of Labor, Employee Benefits Security Administration and the Boise Police Department.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Williamsburg Man Pleads Guilty to Child Pornography ChargesRead the Press Release
NEWPORT NEWS, Va. – Edward Joseph Matish III, 25, of Williamsburg, pleaded guilty yesterday to charges of accessing with intent to view child pornography involving a prepubescent minor.
According to the statement of facts filed with the plea agreement, Matish was a member of Playpen, a hidden website dedicated to the sharing of child pornography that operated on the Tor network from August 2014 until March 2015. Between October 2014 and March 2015, Matish logged into Playpen and viewed content depicting the sexual exploitation of children. In December 2014, Matish wrote on the site that he used it to control his attraction to young girls, encouraging others like him to “[l]eave the touching to the brave souls willing to risk everything for our relief.”
Matish was indicted by a federal grand jury on February 8 and faces a maximum penalty of 20 years in prison when sentenced on Jan. 30, 2017. 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; and Jonathan F. Trimble, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Kaitlin C. Gratton is 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. 4:16cr16.
Utah Chiropractor Indicted for Tax EvasionRead the Press Release
Submitted Checks Drawn on Closed Accounts to IRS
A Salt Lake City, Utah grand jury returned an indictment today charging a chiropractor and health care products business owner with one count of attempting to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010, and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to the allegations in the indictment, in March 2012, Louis Hansen, presented a check to the Internal Revenue Service (IRS) in the amount of $342,699.41 that was drawn on a closed bank account in an attempt to pay taxes, penalties and interest that he owed for tax years 2005, 2006, 2007 and 2010. He also caused a copy of this check to be mailed to an IRS revenue officer, as well as a signed certified letter claiming that he had submitted the check to discharge his debt. The indictment further alleges that in June 2012, Hansen presented four additional checks to the IRS drawn on a different closed bank account in an attempt to have funds credited to his IRS tax account. Each check was in the amount of $425,000. According to the indictment, at the time these four checks were presented to the IRS, Hansen owed more than $240,000 in taxes for the years 2005, 2006, 2007, 2010 and 2011.
If convicted, Hansen faces a statutory maximum sentence of five years in prison on the tax evasion charge and a statutory maximum sentence of three years in prison on the charge of endeavoring to impede the internal revenue laws, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Huber thanked agents of IRS–Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros 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.
United States Attorney Fishwick Announces Student Pledge Against Gun ViolenceRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that he, and other members of the U.S. Attorney’s Office for the Western District of Virginia and the Bureau of Alcohol, Tobacco, Firearms and Explosives, will team with school leaders and students from all across the Western District of Virginia over the next two weeks to take part in the office’s first Student Pledge Against Gun Violence.
The Student Pledge Against Gun Violence is a national initiative, held in conjunction with the National Day of Concern about Young People and Gun Violence (October 19) that honors the role that people, through their own decisions, can play in reducing gun violence. The initiative provides a means for teachers and community leaders to speak to young people about gun violence. Over 10 million students nationwide have taken the pledge since its inception in 1996.
“Since becoming U.S. Attorney, reducing gun violence has been one of my top priorities. It’s something I feel makes our communities safer,” U.S. Attorney Fishwick said today. “The Student Pledge Against Gun Violence is an opportunity to take this message into our schools and let students know that they have a responsibility to their community, to their friends and to themselves. We want them to know that the decisions they make matter and have a huge impact on their future.”
Beginning October 21, U.S. Attorney Fishwick will be traveling to schools throughout the Western District of Virginia to speak to over 13,000 students about gun violence, decision making and community safety. While there, students will also have the opportunity to take the pledge:
- I will never bring a gun to school;
- I will never use a gun to settle a personal problem or dispute;
- I will use my influence with my friends to keep them from using guns to settle disputes.
In addition to making copies of the Pledge available to all interested schools in the Western District, U.S. Attorney Fishwick will be talking to students about what they can do to reduce gun violence.
- October 21- Roanoke
- Patrick Henry High School
- William Fleming High School (presentation date not yet set)
- October 24- Augusta County
- Buffalo Gap High School
- Riverheads High School
- Beverley Manor Middle School
- Fort Defiance High School School
- Stewart Middle School
- Wilson Middle School
- Wilson Memorial High School
- Stuart’s Draft High School
- Stuart’s Draft Middle School
- October 25- Nelson County
- Nelson County High School
- October 26- Lynchburg
- EC Glass High School
- Fort Hill Community School
- Empowerment Academy
- Heritage High School
- October 27- Harrisonburg
- Skyline Middle School
- Thomas Harrison Middle School
- October 28- Danville
- Westwood Middle School
- O. Trent Bonner Middle School