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25 October 2016
Twin Cities Man Sentenced to 27 Years in Prison for Sex Trafficking of Teenage GirlsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of PHILLIP DWAYNE LOYD a/k/a “PC,” 45, for trafficking three teenage girls for the purpose of commercial sex and production of child pornography. LOYD pleaded guilty on January 25, 2016 and was sentenced yesterday before U.S. District Chief Judge John R. Tunheim.
“Phillip Loyd is a serial predator who bragged that sex trafficking is an essential part of who he is,” said Assistant U.S. Attorney Laura Provinzino. “While Loyd spends the next 27 years in prison, the girls he harmed can work to recover from the abuse suffered at his hands. This office will aggressively seek to hold accountable predators like Loyd and give hope to young victims.”
According to the defendant’s guilty plea and documents filed in court, between January 14, 2015, and January 27, 2015, LOYD, who is a registered sex offender, and his co-defendant RAQUEL MONE BELCHER, trafficked three girls in and around the Twin Cities for the purpose of commercial sex. LOYD and BELCHER advertised at least one of the girls for commercial sex on backpage.com.
All three victims were under the age of eighteen. During this time, LOYD also made pornographic videos of one of the minor victims engaging in sexually explicit conduct.
BELCHER pleaded guilty on June 21, 2016, to conspiring with LOYD to commit sex trafficking of minors. She was sentenced to 52 months in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, Saint Paul Police Department, Anoka County Sheriff’s Office, the Federal Bureau of Investigation, and the United States Marshals.
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
PHILLIP DWAYNE LOYD a/k/a “PC,” 45
Coon Rapids, Minn.
Convicted:
- Sex trafficking of a minor, 1 count
- Production of child pornography, 1 count
Sentenced:
- 27 years in prison
- 20 years supervised release
RAQUEL MONE BELCHER, 30
Minneapolis, Minn.
Convicted:
- Conspiracy to commit sex trafficking of minors, 1 count
Sentenced:
- 52 months in prison
- 10 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Twelve Defendants Plead Guilty to Marriage and Visa Immigration FraudRead the Press Release
Jackson, Miss – United States Attorney Gregory K. Davis and Special Agent in Charge Raymond R. Parmer Jr., of Immigration and Customs Enforcement (ICE) Homeland Security Investigations - New Orleans Field Office, announced today that twelve defendants have entered guilty pleas admitting to U-Visa fraud and marriage fraud in two separate cases.
Three defendants have entered guilty pleas to conspiracy charges in both cases. Sachin Girishkumar Patel, 33, of Clinton, Mississippi; Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri; and Simpson Lloyd Goodman, 29, of Waynesboro, Georgia, admitted to their roles in conspiracies to commit U-Visa fraud and to commit marriage fraud. Sachin G. Patel and Tarunkumar Patel both admitted to conspiring to obtain fraudulent U-Visas for non-citizens and to obtain fraudulent marriage visas by arranging fraudulent marriages to U.S. citizens. Simpson Lloyd Goodman, a licensed attorney, admitted to drafting and submitting false applications and documents in an attempt to fraudulently obtain U-visas and marriage visas for otherwise ineligible individuals referred to him by Sachin G. Patel and Tarunkumar Patel.
In the 16 count U-Visa Fraud indictment, it is alleged that Law Enforcement Certification forms purporting to certify that aliens were victims of certain crimes, were submitted to the U.S. Citizenship and Immigration Services (USCIS) along with the U-Visa applications. The forms fraudulently listed individuals as victims of certain crimes in Jackson, Mississippi in an effort to obtain U-Visas. To be eligible for a U-Visa, the alien must have (1) been a victim of a certain crime; (2) suffered mental or physical abuse as a result of the crime; and (3) helped law enforcement officials in the investigation and/or prosecution of the crime. In this case, the forms fraudulently listed individuals as victims of certain crimes in an effort to obtain U-Visas.
The defendants admitted that they were not victims of crime in Jackson, Mississippi, and some of them admitted that they were not even in Jackson at the time that the alleged crimes occurred. Officer Ivory Lee Harris of the Jackson Police Department, admitted that he was paid in cash to prepare false police reports that were submitted in support of the fraudulent U-Visa applications.
The following defendants have entered guilty pleas in the U-Visa fraud case for their roles in committing fraud and misuse of U-Visa permits:
Sachin Girishkumar Patel, 33, of Clinton, Mississippi;
Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri;
Simpson Lloyd Goodman, 29, of Waynesboro, Georgia;
Ivory Lee Harris, 45, of Jackson, Mississippi;
Sanjay Rathilal Patel, 35, of Lakewood, New Jersey;
Maheshkumar Mangaldas Patel, 50, of Houston, Texas; and
Rajan Nareshkumar Patel, 31, currently incarcerated in Adams County, Mississippi;
Four other individuals charged in the U-Visa case are currently scheduled to go to trial in January.
In the 16 count marriage fraud indictment, it is alleged that the aliens would enter into marriages with citizens of the United States solely for the purpose of obtaining immigration status to which the aliens would not otherwise be entitled. These marriages were solely to obtain immigration status for the alien partner, and the U.S. citizens were paid to enter into these fraudulent marriages.
The following defendants have entered guilty pleas in the marriage fraud case for their roles in a conspiracy to commit marriage fraud:
Sachin Girishkumar Patel, 33, of Clinton, Mississippi;
Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri;
Simpson Lloyd Goodman, 29, of Waynesboro, Georgia;
Chirag Nilesh Patel, 27, of St. Louis, Missouri;
Dana Cheetara Adams, 29, of Plano, Texas;
Brandy Nicole Edwards, 34, of Crystal Springs, Mississippi
Virendra Rambachan Rajput, 45, of Lawrence, Massachusetts; and
Javona Shanice Rajput, 27, of Jackson, Mississippi
Three other individuals charged in the marriage fraud indictment are currently scheduled to go to trial in January.
"We are committed to protecting our nation’s immigration system from all forms of fraud," said U.S. Attorney Gregory Davis. "The integrity of our nation’s immigration system will continue to be a priority of this office as we work together with our outstanding law enforcement partners at HSI and USCIS."
"It is an honor and privilege to become an American citizen", said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. "Fraudulently obtaining citizenship compromises the integrity of our legal immigration system. We will continue to work with our state and federal partners to bring violators of our immigration laws to justice." Parmer is the Special Agent in Charge of the New Orleans field office with responsibility for Mississippi, Arkansas, Alabama, Louisiana, and Tennessee.
The maximum penalties for the crimes charged in the indictments are: conspiracy to commit fraud and misuse of visa permits - 5 years in prison and $250,000 fine per count; fraud and misuse of Visa permits - 10 years in prison and a $250,000 fine per count; marriage fraud - 5 years in prison and $250,000 fine per count; mail fraud - 20 years in prison and a $250,000 fine per count; and wire fraud – 20 years in prison and a $250,000 fine.
This case was investigated by Homeland Security Investigations, the Mississippi Attorney General’s Office, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jerry Rushing and Dave Fulcher.
As to those defendants who have not entered a guilty plea, the public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Tonawanda Man Sentenced on Multiple Gun and Drug ChargesRead 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 Elijah Iverson, 39, of Tonawanda, NY, who was convicted following a jury trial of possession with intent to distribute 28 grams or more of cocaine, possession with intent to distribute marijuana, maintaining a drug involved premises, possession of a firearm in furtherance of drug trafficking crimes, and being a felon in possession of a firearm, was sentenced to 180 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Michael P. Felicetta and Joel L. Violanti, who handled the prosecution of the case, stated that on October 22, 2014, the defendant called the Tonawanda, NY Police Department and stated that an individual with a gun was attempting to get into his Kenmore Avenue apartment. When officers arrived, there was no sign of the alleged gunman.
Subsequently, officers went into Iverson’s apartment to speak with him about the incident. As the defendant was talking with officers, a police canine detected narcotics in the apartment. Iverson admitted to having a small amount of marijuana and powder cocaine which he surrendered to the officers but refused a full search of the apartment. As a result, officers obtained a search warrant and returned the next day.
During the full search, officers recovered an assault weapon, ammunition, a pound of marijuana and cash in a safe in Iverson’s bedroom closet. In addition, officers recovered more rounds of ammunition and approximately two ounces of crack cocaine in a bedroom used by the defendant’s young daughter.
Iverson has three prior felony convictions in state court which prevented him from legally possessing firearms.
The sentencing is the result of an investigation by the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan M. Benedict, New York Field Division.
Ten Assisted Living Facility Owners Indicted for Receipt of Health Care Kickbacks and Health Care FraudRead the Press Release
Ten owners of Miami-Dade assisted living facilities have been charged with participating in a health care fraud scheme and for receiving kickbacks, in violation of Title 18, United Sates Code, Section 1347 and Title 42, United States Code, Section 1320.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Marlene Marrero, 60, of Miami, Blanca Orozco, 69, of Miramar, Norma Casanova, 67, of Miami Lakes, Yeny De Erbiti, 51, of Miami, Rene Vega, 57, of Miami, Maribel Galvan, 43, of Miami Lakes, Dianelys Perez, 34, of Miami Gardens, Osniel Vera, 47, of Hialeah, Alicia Almeida, 56, of Miami Lakes, and Jorge Rodriguez, 57, of Hialeah, are charged in a 30-count indictment for receiving cash kickbacks and bribes in return for referring individuals residing in their assisted living facilities to the former owner of Florida Pharmacy Inc., a Miami-Dade company, for prescription medications and durable medical equipment paid for by Medicare and Florida Medicaid.
The indictment also charges these ten individuals with health care fraud for allegedly participating in a scheme where they signed and submitted Non-Institutional Medicaid Provider Agreements wherein they falsely represented to Medicaid that they would comply with state and federal laws and all agency rules contained in the Florida Medicaid Provider Handbook which prohibits the solicitation and receipt of kickbacks. As a result of the defendants’ submission of these false and fraudulent documents Medicaid renewed their provider numbers which allowed them to continue to submit claims for services purportedly rendered to eligible Medicaid beneficiaries. The defendants caused their assisted living facilities to submit false claims to Medicaid. As a result of these false and fraudulent claims, Medicaid made payments to the assisted living facilities owned and operated by the defendants.
“The U.S. Attorney’s Office and our law enforcement partners remain committed to prosecuting members of the South Florida assisted living community who fraudulently use the Medicare and Medicaid benefits of their residents to obtain illegal bribes and kickbacks,” stated U.S. Attorney Wifredo Ferrer.
Attorney General Pam Bondi stated, “We will not allow anyone to take advantage of seniors to defraud the Medicaid program. Thanks to the joint investigative efforts of my Medicaid Fraud Control Unit and our federal partners, this scheme has been stopped and those responsible will be held accountable.”
“No matter what the scheme or how elaborately disguised, the FBI and our law enforcement partners will investigate and prosecute Medicare fraud to the fullest extent of the law,” said George L. Piro, Special Agent in Charge, FBI Miami.
The case is being investigated by the FBI, HHS-OIG, and the State of Florida’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine cities have charged more than 2,180 defendants who collectively have falsely billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Stockton Real Estate Agent Sentenced to over 3 Years in Prison for Role in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Lillian Marquez, 41, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to three years and one month in prison for conspiring to commit mortgage fraud, Acting U.S. Attorney Phillip A. Talbert announced.
Marquez pleaded guilty on June 14, 2016. On September 20, 2016, co-defendant Michael Keatts, 59, of Stockton, was also sentenced to three years and one month in prison for his role in the conspiracy. Both Marquez and Keatts were ordered to pay $193,134 in restitution to financial institutions harmed by their scheme.
According to court documents, from February of 2006, through at least August of 2012, Marquez and Keatts operated Colonial Home and Business Services in Stockton. Both defendants were licensed real estate agents who assisted clients in purchasing and selling homes. They both participated in supplying false information to mortgage lending institutions indicating that clients were employed by various businesses that the defendants set up and controlled. In fact, these clients were not employed by those businesses and their actual income from their true employment was far less than what was represented to lending institutions. To support these false claims, the defendants created and submitted fraudulent paystubs and tax documents falsely stating that their clients were so employed.
In addition, both defendants engaged in short sale fraud, in which they assisted clients facing default on their current loans to arrange for short sales of their properties. Unbeknownst to the lending institutions, the defendants arranged for the properties to be sold to straw buyers. The original owners would remain in the properties, and enjoy the benefits of the new loans that the lenders assumed were made to other individuals.
This case was the product of an investigation by the Federal Bureau of Investigation and the Office of the Inspector General for the Department of Housing and Urban Development. Assistant United States Attorney Philip Ferrari prosecuted the case.
Statement by United States Attorney Richard L. Durbin, Jr., Relating to November 2016 ElectionsRead the Press Release
United States Attorney Richard L. Durbin, Jr. announced today that Assistant United States Attorney (AUSA) Tom Moore will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Moore has been appointed to serve as the District Election Officer (DEO) for the Western District of Texas, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Durbin said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Durbin stated that AUSA/DEO Moore will be on duty in this District while the polls are open. He can be reached by the public at (210) 384-7188.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The San Antonio FBI field office can be reached by the public at (210) 225-6741; the El Paso FBI field office, at (915) 832-5000.
Elections Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Durbin said, “Ensuring free and fair elections depends on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Sinaloa Cartel Trafficker Victor Emilio Cazares Gastellum Sentenced to 180 Months in PrisonRead the Press Release
Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – October 25, 2016
SAN DIEGO – Drug kingpin Victor Emilio Cazares Gastellum, who for years was one of the United States’ most-wanted Mexican drug trafficking suspects, was sentenced in federal court today to 180 months in custody for his role as the leader of a large-scale narcotics trafficking organization.
Cazares, also known as “El Licenciado,” was indicted by a federal grand jury in San Diego in 2007, along with 18 of his suspected lieutenants and foot soldiers. Cazares’ organization shipped multi-ton quantities of drugs from Colombia and Venezuela through Central America to Mexico. The narcotics were then smuggled across the Southwestern border, eventually making their way throughout the United States.
During today’s sentencing hearing before U.S. District Judge William Q. Hayes, Cazares was also ordered to forfeit $10 million which he admitted represented proceeds from his drug distribution activities. Prior to his sentencing, Cazares provided the government with $150,000 cashier’s check as a partial initial payment.
According to his plea agreement, Cazares admitted he was the head of a large-scale Mexico-based drug distribution organization referred to as the “Cazares Organization.” The Cazares Organization was a vertical drug trafficking organization responsible for purchasing and coordinating the importation and distribution of controlled substances from Mexico into the United States.
Cazares admitted that during the course of the conspiracy, he was responsible for distributing more than 450 kilograms of cocaine within the Southern District of California. Cazares utilized a narcotics transportation cell that imported Cazares’s controlled substances into the United States.
The United States issued a provisional arrest warrant for Cazares following his indictment, and the U.S. Department of State offered a reward of up to $5 million for information leading to his arrest and/or conviction. Cazares was captured by Mexican authorities about five years later, on April 8, 2012, at a highway checkpoint near the western city of Guadalajara.
Cazares was believed to be aligned with Joaquin “Chapo” Guzman, former leader of the Sinaloa drug cartel, one of the most notorious and violent drug trafficking organizations operating in Mexico. The Sinaloa Cartel imports and distributes hundreds of tons of cocaine, methamphetamine, and marijuana into the United States each year.
The underlying indictments were announced at a news conference in San Diego by then Attorney General Alberto Gonzales. The 22-month sting, code-named “Operation Imperial Emperor,” resulted in the nationwide arrests of 402 people suspected of working for the cartel, more than $45 million in cash and tons of cocaine, heroin and marijuana.
DEFENDANT Case Number: 07CR0449
Victor Emilio Cazares Gastellum Age: 53
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substance, in violation of Title 21, U.S.C., Secs. 846 and 841(a)(1);
AGENCIES
Drug Enforcement Administration
El Centro Police Department
San Jacinto Man Affiliated with Riverside Gang Sentenced to 10 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
LOS ANGELES – A San Jacinto man affiliated with the Riverside San Jacinto First Street gang was sentenced to a decade in prison yesterday for his role in methamphetamine trafficking.
Luis Miguel Castro, aka “Fat Boy,” 27, was sentenced by United States District Judge Dale S. Fischer, who found that Castro was affiliated with the gang.
Castro pled guilty earlier this year to possession with the intent to distribute three large plastic bags containing over a half-pound of methamphetamine, approximately 1,080 days of daily personal use.
“Criminal street gangs continue to sell dangerous drugs as a major source of revenue, so the Department of Justice will continue to attack these gangs by seeking imprisonment for drug-traffickers affiliated with them,” said United States Attorney Eileen M. Decker. “The convictions and sentences in this case demonstrate how cooperation between state and federal law enforcement can bring positive results for a community.”
In its sentencing memorandum, prosecutors said, “Methamphetamine is a highly addictive and harmful controlled substance that wreaks havoc on communities across the country.” Prosecutors also argued that Castro was a member of the San Jacinto First Street gang.
Castro was the lead defendant in the indictment which also charged four other defendants with distribution of methamphetamine. Three defendants were previously convicted in this case and are currently serving federal prison sentences:
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Roberto Alvarado, 30, San Jacinto, was sentenced last week to 63 months in custody for possession with intent distribute methamphetamine;
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Terri Lynne Valenzuela, 50, San Jacinto, was sentenced in June to 78 months in custody for conspiracy to distribute methamphetamine; and
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Victor Chavez, 26, San Jacinto, was sentenced in February to five years in custody, consecutive to his state court sentences, for conspiracy to distribute methamphetamine.
As a condition of their sentences, these defendants were prohibited from associating with known members of the San Jacinto First Street gang.
“In conjunction with our law enforcement partners, DEA continues to target and combat the violent criminal street gangs engaged in the distribution of narcotics in our local communities,” said DEA Special Agent in Charge Steve Comer. “The San Jacinto First Street gang, a Riverside County based organization with a history of murder, home invasions, weapons violations and narcotics sales, has been decimated as a result of recent efforts by DEA and the Riverside County Sheriff’s Office.”
In a trial earlier this year, the fifth defendant charged in the indictment, Juan Carillo, was acquitted of both charges against him.
The case against Castro was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Riverside County Sheriff’s Department. This case was prosecuted by Assistant United States Attorneys Jay Robinson of the Terrorism and Export Crimes Section and Sandhya Ramadas of the Organized Crime and Drug Enforcement Task Force Section.
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Queensbury Contractor Sentenced for Income Tax EvasionRead the Press Release
ALBANY, NEW YORK – Jason Holcomb, age 46, of Queensbury, New York, was sentenced yesterday to serve 4 months in prison for evading income taxes.
The announcement was made by U.S. Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of Internal Revenue Service-Criminal Investigation’s New York Field Office.
U.S. District Judge Mae A. D’Agostino also sentenced Holcomb to serve 2 years of post-imprisonment supervised release, during which time Holcomb will be required to spend weekends in jail for 6 months, and to pay $538,948.31 in restitution to the Internal Revenue Service.
As part of his guilty plea, Holcomb admitted that while working as a construction contractor, he concealed his assets by putting assets in the names of other people and using cash to try to hide his income from the government. Holcomb did so in order to evade payment of $193,215 in income taxes, and more than $345,000 in interest and penalties.
This case was investigated by the New York Field Office of IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Prosecutor Appointed as District Election OfficerRead the Press Release
United States Attorney Barbara L. McQuade announced today that Assistant United States Attorney (AUSA) Dawn N. Ison will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Ison has been appointed to serve as the District Election Officer (DEO) for the Eastern District of District, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Barbara L. McQuade said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Barbara L. McQuade stated that AUSA/DEO Ison will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (313) 226-9567.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (313) 965-2323.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Barbara L. McQuade said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Christopher C. Myers announced today that Assistant United States Attorney (AUSA) Rick L. Volk will once again be leading the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Volk has served as the District Election Officer (DEO) for the District of North Dakota for several years, and in that capacity is responsible for overseeing the District’s handling of complaints regarding election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
USA Myers stated, "Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as: intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them or by photographing or videotaping them under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, USA Myers stated that AUSA/DEO Volk will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (701) 530-2420.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (763) 569-8000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC, by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
USA Myers further stated, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to our Office, the FBI, or the Civil Rights Division."
Portland Strip Club Operators Sentenced to Prison for Tax FraudRead the Press Release
PORTLAND, Ore. – On Tuesday, October 25, 2016, U.S. District Robert E. Jones sentenced David G. Kiraz to 3 years in federal prison and 3 years’ supervised release, George D. Kiraz to 3 years in federal prison and 3 years’ supervised release, and Daniel G. Kiraz to 12 months and one day in federal prison after their trial conviction in May 2016.
All three men were convicted for conspiring to defraud the Internal Revenue Service (IRS). Additionally, David Kiraz was convicted for filing false income tax returns, and George and Daniel Kiraz for aiding and assisting the filing of a false income tax return. Judge Jones also ordered the defendants to pay restitution of $511,754 to the IRS and $137,654 to the Oregon Department of Revenue.
The defendants operated Cabaret Lounge, a strip club located at 503 W Burnside Street in Portland and Cabaret Lounge II, a strip club located at 17544 SE Stark Street in Gresham. From 2007 through 2010 these clubs collected over $1,500,000 in cover charges and dancer stage fees, all in cash. To hide this money from the IRS, the defendants maintained two sets of books, one set that accurately accounted for all cover charges and dancer fees, and another that did not.
For each year alleged in the indictment, the defendants reported their business activity on the individual income tax return of defendant David Kiraz using a Schedule C, “Profit or Loss from Business.” The defendants knowingly provided their tax return preparers only a two-page summary from the false set of books rather than providing the accurate financial information. This resulted in David Kiraz intentionally underreporting $1,501,874 in taxable income, and causing a federal tax loss of $511,754 and a state tax loss of $137,654 for tax years 2007 through 2010.
“These sentences are significant sanctions for serious crimes,” said Billy J. Williams, United States Attorney for the District of Oregon. “Business owners who deal extensively in cash have the same legal obligation to pay their fair share of taxes as does everyone else. The U.S. Attorney’s Office and IRS,” continued Williams, “will continue to work together to identify and prosecute those who cheat the tax system.”
“Skimming cash and keeping two sets of books cheats not only the United States, but also honest taxpayers that play by the rules and pay their fair share of taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “The Department and the IRS will continue to make the investigation and prosecution of tax evaders like David, George and Daniel Kiraz, a top priority.”
“Our nation’s tax system funds many government services to include our military, infrastructure, and other vital services, so essentially, the Kiraz’s weren’t just cheating the IRS, they were cheating the men and women of our armed forces, anyone who drives our highways, and those who rely on any number of social services for their wellbeing,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Moreover, besides depriving the U.S. Treasury, tax scoffs shift their tax burden to every taxpayer who pays an honest tax, essentially robbing each and every one of us.”
This case was investigated by IRS Criminal Investigations. It was prosecuted by Quinn P. Harrington and Seth D. Uram, Assistant United States Attorneys for the District of Oregon, and by Department of Justice Tax Division Trial Attorney Leslie A. Goemaat.
Peach Springs Man Sentenced to Federal Prison for Aggravated AssaultRead the Press Release
PHOENIX – On Oct. 24, 2016, Lonewolf Deray Havatone, Sr., 34, of Peach Springs, Ariz., a member of the Havasupai Tribe, was sentenced by U.S. District Judge John J. Tuchi to 59 months in federal prison, followed by a term of three years of supervised release. Havatone had previously pleaded guilty to assault with a dangerous weapon. The 59-month sentence reflects a five-month reduction for the time Havatone spent in tribal custody for the same incident.
On Sept. 23, 2014, Havatone, a convicted felon, assaulted the victim, a member of the Hualapai tribe, by striking her with a rifle and threatening to kill her. He then fled on foot still armed with the rifle, requiring Hualapai Police Department officers to engage in a foot chase to apprehend him. The incident occurred on the Hualapai Nation Indian Reservation.
The investigation in this case was conducted by the Hualapai Nation Police. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8268-JJT
RELEASE NUMBER: 2016-094_ Havatone
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Oregon Strip Club Operators Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
Maintained Double Set of Books to Conceal $1.5 Million and Evade $650,000 in Taxes
Three family members who operated Portland, Oregon area strip clubs were sentenced to prison today for conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Billy J. Williams for the District of Oregon.
David Kiraz, 34, of Happy Valley, Oregon, was sentenced to serve 36 months in prison, George Kiraz, 56, of Portland, was sentenced to serve 36 months in prison and Daniel Kiraz, 32, of Portland, was sentenced to serve 12 months and one day in prison, for hiding $1.5 million in income from the IRS and evading more than $650,000 in income taxes.
“Skimming cash and keeping two sets of books cheats not only the United States, but also honest taxpayers that play by the rules and pay their fair share of taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “The department and the IRS will continue to make the investigation and prosecution of tax evaders like David, George and Daniel Kiraz, a top priority.”
“These sentences are significant sanctions for serious crimes,” said U.S. Attorney Williams. “Business owners who deal extensively in cash have the same legal obligation to pay their fair share of taxes as does everyone else. The U.S. Attorney’s Office and IRS will continue to work together to identify and prosecute those who cheat the tax system.”
“Our nation’s tax system funds many government services to include our military, infrastructure and other vital services, so essentially, the Kiraz’s weren’t just cheating the IRS, they were cheating the men and women of our armed forces, anyone who drives our highways and those who rely on any number of social services for their well-being,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Moreover, besides depriving the U.S. Treasury, tax scoffs shift their tax burden to every taxpayer who pays an honest tax, essentially robbing each and every one of us.”
In May, David Kiraz, his father George D. Kiraz and David’s brother Daniel Kiraz were convicted of conspiracy to defraud the IRS and charges related to filing false tax returns. The Kirazes operated two strip clubs in the Portland area, Cabaret Lounge I and Cabaret Lounge II. From 2007 through 2010, the Kirazes’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The Kirazes maintained a double set of books, tracking these charges and fees in one set of books that was stored at David Kiraz’s residence, and omitting the receipts in a second set of books that the Kirazes provided to their return preparers, intentionally causing them to prepare and file false income tax returns for David Kiraz that failed to report between $330,000 and $460,000 in door and stage fees each year. The defendants evaded more than $650,000 in federal and state income taxes for tax years 2007 through 2010.
In addition to the prison terms imposed, George and David Kiraz were also ordered to serve three years of supervised release and to pay more than $650,000 in restitution to the IRS and the Oregon Department of Revenue. Daniel Kiraz was ordered to pay more than $125,000 in restitution.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Northern District of Mississippi 2016 Election InformationRead the Press Release
United States Attorney Felicia C. Adams announced today that Assistant United States Attorney (AUSA) Robert W. Coleman II, will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Coleman has been appointed to serve as the District Election Officer (DEO) for the Northern District of Mississippi, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Adams said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Adams stated that AUSA/DEO Coleman will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (662) 234-3351.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (662) 234-3323.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Adams said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Northeast Iowa Man Pleads Guilty to Possessing BombsRead the Press Release
A man who unlawfully possessed three pipe bombs and a pressure cooker bomb pled guilty on October 24, 2016, in federal court in Cedar Rapids.
Trevor Satrom, age 34, from Oran, Iowa, was convicted of one count of possessing unregistered explosive bombs.
In a plea agreement, Satrom admitted that on February 10, 2016, law enforcement searched his residence in Oran, Iowa. During the search, police seized assorted length metal pipes, metal end caps sized for the pipes, three metal end caps with holes made in the end, a pressure cooker with a hole made on the top, hobby fuse of various lengths, various types of propellant powder, and packages of BBs. Satrom further admitted that, together, these items could readily have constituted three fully operational pipe bombs and one fully operational pressure cooker bomb.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Satrom remains in custody of the United States Marshal pending sentencing. He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tony Morfitt and was investigated by the Fayette County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2016.
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Nevada Business Owner and Bookkeeper Sentenced for Employment Tax CrimesRead the Press Release
An owner of several Reno, Nevada landscaping and rock hauling businesses was sentenced yesterday to 10 months in prison for failure to pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden of the District of Nevada. The bookkeeper for the business was sentenced to five years’ probation with three months home confinement for willful failure to file an employment tax return.
“The willful failure to comply with employment tax obligations is a crime – plain and simple,” said Principal Deputy Assistant Attorney General Ciraolo. “Stealing employee withholdings and failing to pay them over to the U.S. Treasury, gives dishonest employers an unfair advantage over their law-abiding competitors. The department will continue to work with the Internal Revenue Service (IRS) to prosecute these offenders and level the playing field.”
"Defendants’ illegal conduct injured not only the United States, but their former employees,” said U.S. Attorney Bogden. “While the United States of America will foot the bill for the employment and social security taxes that were withheld from the employees’ paychecks, the employees themselves will have any retirement diminished due to the non-reporting of cash wages.”
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Las Vegas Field Office. “When employers fail to do so, it affects revenue to the U.S. government, but more importantly, it affects their employees Medicare and social security benefits.”
According to documents filed with the court, Kyle Archie of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc. Kyle Archie admitted that he was responsible for the day-to-day operations of the businesses and that from 2003 through 2009; he had a legal duty to collect, truthfully account for, and pay over employment taxes to the IRS. He further admitted that although he collected these taxes from his employees’ wages and held them in trust, he failed to pay them over to the IRS for the third quarter of 2008.
Linda Archie of Reno, who is Kyle Archie’s mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. and was responsible for maintaining the books and records of the companies and filing documents with various government agencies. She admitted that between 2003 and 2009, she failed to file employment tax returns on behalf of these businesses to account for the taxes that were withheld from the employees’ wages.
In addition to the prison term imposed, Kyle Archie was also ordered to serve ¬three years of supervised release, and both Kyle and Linda Archie were ordered to pay restitution to the IRS in the amount of $1,235,528.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Carla B. Higginbotham of the District of Nevada and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Nevada Business Owner and Bookkeeper Sentenced for Employment Tax CrimesRead the Press Release
RENO, Nev.– An owner of several Reno, Nevada landscaping and rock hauling businesses was sentenced yesterday to 10 months in prison for failure to pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden of the District of Nevada. The bookkeeper for the business was sentenced to five years’ probation with three months home confinement for willful failure to file an employment tax return.
"The willful failure to comply with employment tax obligations is a crime – plain and simple,” said Principal Deputy Assistant Attorney General Ciraolo. “Stealing employee withholdings and failing to pay them over to the U.S. Treasury, gives dishonest employers an unfair advantage over their law-abiding competitors. The department will continue to work with the Internal Revenue Service (IRS) to prosecute these offenders and level the playing field.”
“Defendants’ illegal conduct injured not only the United States, but their former employees,” said U.S. Attorney Bogden. “While the United States of America will foot the bill for the employment and social security taxes that were withheld from the employees’ paychecks, the employees themselves will have any retirement diminished due to the non-reporting of cash wages.”
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said Special Agent in Charge Tara Sullivan of IRS Criminal Investigation, Las Vegas Field Office. “When employers fail to do so, it affects revenue to the U.S. government, but more importantly, it affects their employees Medicare and social security benefits.”
According to documents filed with the court, Kyle Archie of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc. Kyle Archie admitted that he was responsible for the day-to-day operations of the businesses and that from 2003 through 2009; he had a legal duty to collect, truthfully account for, and pay over employment taxes to the IRS. He further admitted that although he collected these taxes from his employees’ wages and held them in trust, he failed to pay them over to the IRS for the third quarter of 2008.
Linda Archie of Reno, who is Kyle Archie’s mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. and was responsible for maintaining the books and records of the companies and filing documents with various government agencies. She admitted that between 2003 and 2009, she failed to file employment tax returns on behalf of these businesses to account for the taxes that were withheld from the employees’ wages.
In addition to the prison term imposed, Kyle Archie was also ordered to serve three years of supervised release, and both Kyle and Linda Archie were ordered to pay restitution to the IRS in the amount of $1,235,528.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Carla B. Higginbotham of the District of Nevada and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Navajo Woman from Standing Rock, N.M., Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Chelsey A. Billy, 22, an enrolled member of the Navajo Nation who resides in Standing Rock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in prison for her conviction on an assault charge. Billy will be on supervised release for three years after completing her prison sentence.
Billy was arrested on Jan. 7, 2016, on a criminal complaint charging her with assaulting a Navajo man with a hammer on Dec. 22, 2015. The victim was seriously injured, suffering a fracture to his left orbital eye socket and various lacerations to his head and face.
Billy was indicted on Jan. 26, 2016, and was charged with assault with a dangerous weapon, a hammer, with intent to do bodily harm and assault resulting in serious bodily injury. The indictment alleged that Billy committed the crimes on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 22, 2015.
On July 18, 2016, Billy pled guilty to an assault resulting in serious bodily injury charge. In entering the guilty plea, Billy admitted striking the victim in the head with a hammer several times, causing serious bodily injury to the victim.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
Nashville Woman Pleads Guilty to Embezzlement SchemeRead the Press Release
Charlotte McEwen, 50, of Nashville, Tenn., pleaded guilty yesterday to eight counts of wire fraud in connection with a scheme to embezzle approximately $466,331 from her former employer, announced David Rivera, United States Attorney for the Middle District of Tennessee. McEwen was indicted by a federal grand jury on March 16, 2016.
In a hearing before U.S. District Court Judge Aleta Trauger, McEwen admitted to engaging in a scheme to embezzle from her employer, beginning in February 2010 and continuing for more than three years. McEwen admitted that while employed as the sole Payroll Garnishment Processor for Ingersoll Rand, Inc. (“IR”) in Nashville, she fraudulently transferred, via electronic transfers, approximately $466,331 from an IR bank account to her personal bank accounts. The funds McEwen transferred to herself were funds she withheld from IR employee paychecks in her position as IR’s Payroll Garnishment Processor, and pursuant to garnishment orders issued by creditors for unpaid debts owed by IR employees. McEwen then created and submitted fraudulent documents to IR in an attempt to conceal her actions.
McEwen faces up to 20 years in prison on each fraud count. She also faces a criminal fine of up to $250,000 for each fraud count, forfeiture of criminal proceeds, and will be ordered to pay restitution in the amount of $466,331. McEwen will be sentenced by Judge Trauger on January 26, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the United States Secret Service. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Mount Vernon Tax Preparer Sentenced in White Plains Federal Court to 51 Months in Prison for Filing False Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SAMUEL GENTLE, a tax preparer and the owner of tax preparation businesses named GenGen, Inc., and GenGen Financial, Inc., in Mount Vernon, New York, was sentenced today in White Plains federal court to 51 months in prison for obstructing the IRS and preparing false and fraudulent individual income tax returns for his clients. GENTLE was found guilty in July 2016 after a one-week trial before U.S. District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara said: “As established at trial, Samuel Gentle abused his position as a tax preparer to file false tax returns on behalf of his clients, himself, and his businesses. His fraud resulted in over half a million dollars in losses to the IRS, and now a sentence of 51 months in prison for Gentle.”
As established by the evidence at trial:
From 2010 through 2014, GENTLE operated a large and thriving tax preparation business that prepared and submitted to the IRS, on average, 3,200 tax returns each year. These tax returns contained a pattern of false and fraudulently inflated deductions for business expenses and gifts to charity. Numerous clients of GENTLE testified that they had not provided GENTLE with any information that he could have used to support the false or inflated deductions.
As part of the investigation of this matter, an undercover IRS agent posed as GENTLE’S client. During the operation, the agent provided GENTLE with no records that he could have used to support any deductions. But, consistent with his pattern, GENTLE included false and fraudulent deductions for business expenses and gifts to charity on the tax return he prepared for the undercover agent.
GENTLE also failed to report on his own personal and business tax returns nearly half of the $1 million in receipts that he received for his tax preparation services from 2010 through 2014. He spread the receipts across eight bank accounts at five banks, and he failed to issue required IRS forms to himself or his employees, further concealing from the IRS the amount of receipts he and his business had received.
As confirmed by IRS audits as well as the evidence at trial, GENTLE’s crimes resulted in a loss to the IRS of more than $550,000.
In addition to the prison term, GENTLE, 59, of Mount Vernon, New York, was sentenced to one year of supervised release and ordered to pay a $125,000 fine and to pay the IRS over $295,000 in back taxes.
Mr. Bharara praised the investigative work of the Internal Revenue Service, Criminal Investigation, and thanked the IRS for its assistance.
This matter is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jennifer Beidel, Margery Feinzig, and James McMahon are in charge of the case.
Middlesex County, New Jersey, Man Admits Role InRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in a conspiracy to traffic approximately four kilograms of ethylone from China to New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Seymore, 38, of Carteret, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court to an indictment charging him with one count of conspiring to distribute ethylone, a Schedule I controlled substance.
According to documents filed in this case and statements made in court:
On June 10, 2014, Seymore conspired with others to possess with the intent to distribute approximately four kilograms of ethylone, which had been ordered from China and shipped to a location in Teaneck, New Jersey. Ethylone is an illegal synthetic drug that stimulates the nervous system and can cause hallucinogenic effects. Seymore was indicted by a federal grand jury on April 18, 2016, for his role in the drug trafficking conspiracy.
The conspiracy charge to which Seymore pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million. Sentencing is scheduled for Feb. 1, 2017.
U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; the U.S. Department of Homeland Security-Homeland Security Investigations under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Postal Inspection Service under the direction of Inspector in Charge Maria L. Kelokates.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and Tazneen Shahabuddin of the U.S. Attorney’s Office Criminal Division in Newark.
Middle District Election Officers AppointedRead the Press Release
United States Attorney G.F. Peterman, III announced today that Assistant United States Attorneys (AUSA) C. Shanelle Booker and Todd Swanson will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Booker and AUSA Swanson have been appointed to serve as the District Election Officers (DEO) for the Middle District of Georgia, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Peterman said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Peterman stated that AUSA/DEO Booker and AUSA/DEO Swanson will be on duty in this District while the polls are open. They can be reached by the public at the following telephone number: 478-752-3511. This number is for reports of voting irregularities only. All press inquiries or requests for information should be directed to our Public Information Officer, Pamela Lightsey, at 478-621-2603.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The Macon FBI resident agency can be reached at (478) 745-1271, the Athens FBI resident agency can be reached at (706) 549-6477, and the Columbus FBI resident agency can be reached at (706) 596-9603.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Peterman said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Methamphetamine Trafficker Sentenced to 12 Years in PrisonRead the Press Release
SAN JOSE – Baldemar Valencia Alcazar was sentenced yesterday to 12 years in prison for his role in a conspiracy to possess with intent to distribute, and to distribute, methamphetamine, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentence follows a guilty plea entered July 6, 2016, in which Valencia admitted to conspiring to possess with the intent to distribute methamphetamine.
Valencia, 35, a citizen of Mexico who was living in Sunnyvale at the time of the offense, admitted he conspired with other individuals to distribute more than 7.4 kilograms of methamphetamine in the Northern District of California between June 30, 2015, and August 4, 2015. In furtherance of the conspiracy, he distributed methamphetamine and possessed with the intent to distribute methamphetamine on numerous occasions during the course of his participation in the conspiracy. Valencia was indicted by a federal grand jury on October 8, 2015. He was charged with one count of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and 841(b)(1)(A)(viii), and two counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii). Valencia pleaded guilty to all three counts. There was no plea agreement in this case.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District
Judge. In addition to the prison term, Judge Davila sentenced Valencia to a 5-year period of supervised release. The defendant has been in federal custody since December 3, 2015, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Bill Gullotta and Chinhayi Cadet are prosecuting the case with the assistance of Theresa Benitez and Lakisha Holliman. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Massillon man charged with enticement and distribution of child pornographyRead the Press Release
Richard Snyder, 72, of Massillon, was charged with enticement and distribution of child pornography, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Snyder knowingly used a computer and the Internet, to attempt to persuade, induce, entice and coerce, a 13-year-old girl, to engage in illegal sexual activity with him. This took place from May 26 through August 17, 2016, according to the indictment. The indictment also charges that on or about July 25, 2016, and July 26, 2016, Snyder knowingly distributed and attempted to distribute child pornography that, using any means and facility of interstate and foreign commerce, had been shipped and transported in and affecting interstate and foreign commerce by any means, including by computer.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation, the Ohio Internet Crimes Against Children Task Force, the Vermont Internet Crimes Against Children Task Force, the Jackson Township Police Department and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Managing Director of Venture Capital Firm Sentenced in Manhattan Federal Court in Connection with Multimillion-Dollar Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that GREGORY W. GRAY, JR., was sentenced today in Manhattan federal court to two years in prison for securities fraud and perjury charges stemming from his scheme to defraud an investor of approximately $5 million to cover up his mismanagement of other investor funds. GRAY pled guilty on December 23, 2015, and was sentenced today by United States District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “Gregory Gray deceived investors, claiming he would use their funds to buy shares of high-flying technology companies like Twitter and Uber. In reality, Gray did not make the investments he said he would, and later used new investor funds to pay back earlier investors. In an attempt to cover his tracks, Gray then lied about his investments to the SEC. Today, his federal crimes have led to a sentence of imprisonment.”
According to the allegations contained in the Information, the underlying criminal Complaint, and other statements made during court proceedings:
From at least in or about April 2014 through in or about February 2015, GRAY engaged in a Ponzi scheme to defraud investors who believed they had invested in funds GRAY controlled at Archipel Capital, LLC (“Archipel”), where GRAY was the Senior Managing Director.
Previously, from in or about June 2012 through in or about November 2013, GRAY raised over $5.2 million, from approximately 52 investors, for four Archipel “Social Media Funds.” GRAY promised to use that capital to purchase shares of Twitter before the company’s initial public offering (“IPO”). Based on GRAY’s representations to investors, GRAY promised to purchase over 200,000 pre-IPO Twitter shares.
GRAY frequently comingled funds between the various Archipel investment vehicles that he managed. Ultimately, GRAY’s withdrawals from the Social Media Funds left those funds with insufficient money to purchase the full complement of pre-IPO Twitter shares he had promised investors.
On or about November 6, 2013, Twitter had its IPO and began trading on the New York Stock Exchange. At that time, contrary to his representations to investors, GRAY had purchased only 80,000 pre-IPO Twitter shares for a total cost of $1,875,000. GRAY accordingly owed his investors millions of dollars’ worth of Twitter shares.
In an attempt to make up the shortfall of Twitter stock, in or about April 2014, GRAY persuaded Investor-1 to invest $5 million in Archipel’s “Late Stage Fund,” which GRAY also controlled. GRAY promised that, through that fund, he would use Investor-1’s $5 million investment to purchase a purported multimillion-dollar, privately held allotment of Uber shares. However, instead of using the $5 million as promised, GRAY instead used the money to make cash payments to investors in the Social Media Funds and to purchase post-IPO Twitter shares for those same investors, including Investor-1 himself.
When Investor-1 requested documentation of the purchase of Uber shares as promised, GRAY provided Investor-1 with a fabricated stock transfer agreement (the “Uber Stock Transfer Agreement”) that purported to show that the Late Stage Fund had purchased 175,438 Uber shares. In truth and in fact, and as GRAY well knew, the fund had not purchased any Uber shares.
On or about February 24, 2015, GRAY gave sworn testimony to the SEC. During his testimony, GRAY falsely stated, in substance and in part, that the Uber Stock Transfer Agreement reflected a bona fide purchase of Uber shares by the Late Stage Fund.
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In addition to the prison sentence, GRAY, 41, was sentenced to three years of supervised release. The Court further ordered that GRAY forfeit $5,000,000 and pay $5,000,000 in restitution.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Damian Williams and Michael Ferrara are in charge of the prosecution.
Macomb Township Trustee Arrested and Charged for Demanding and Taking BribesRead the Press Release
An elected Trustee of Macomb Township was arrested by agents of the Federal Bureau of Investigation (FBI) today based on a criminal complaint charging him with demanding and taking bribes in exchange for his vote and official assistance on a municipal contract, United States Attorney Barbara McQuade announced.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Clifford Freitas, 43, of Macomb Township, is charged with engaging in a pattern of corrupt activity, including demanding and accepting money in exchange for official acts as a Trustee. Freitas’ arrest is another part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County. The investigation has employed telephone wiretaps, consensual audio and video recordings by cooperative individuals, undercover operations, physical surveillance, telephone tracking warrants, and subpoenas of financial records and other documents.
The complaint charges that Freitas demanded and accepted money from a municipal vendor in exchange for using his official position as a Trustee to get the vendor a municipal contract and to secure favorable terms for the company. In July 2015, Macomb Township put out a request for proposal for a municipal contract. Soon thereafter, Freitas approached a representative of a prospective vendor, and Freitas demanded money in return for Freitas’ support as a Trustee. Freitas agreed to accept $7,500 from the vendor in return for his assistance in getting the contract. Through his position as a Trustee, Freitas obtained sensitive bid information on the municipal contract in order to help the vendor, telling the vendor what bid was needed to beat out competing contractors. After the vendor was awarded the contract by Macomb Township, Freitas demanded an additional $35,000 from the company representative for his additional assistance as a public official relating to the contract. In May 2016, Freitas accepted $2,000 in cash from an undercover agent of the FBI, with the payment being video recorded.
“Bribery in municipal contracting undermines clean and effective government and erodes public trust,” said U.S. Attorney McQuade.
“The citizens of Michigan must be able to trust that government officials will perform their duties in the best interests of the communities they serve,” said David P. Gelios, Special Agent in Charge, Detroit Division of the Federal Bureau of investigation. “Today’s arrest is another unfortunate reminder that some public officials have lost sight of that obligation choosing instead to utilize their positions of authority to serve their own interests. The Detroit FBI along with its partners assigned to the Detroit Area Public Corruption Task Force remain committed to investigating those who criminally violate their oaths of office. I would encourage anyone who has information about corrupt activity in Macomb County or any other community in Michigan to contact the Detroit FBI Public Corruption tip line at 313-965-2222.”
This investigation is being conducted by the Macomb Resident Agency of the FBI and the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Freitas will be in federal court this afternoon at 1pm for his initial appearance.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Freitas faces a maximum of ten years in prison and a fine of up to $250,000.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
Lenexa Man Sentenced for Impersonating IRS EmployeeRead the Press Release
KANSAS CITY, KAN. – A Lenexa man was sentenced Tuesday to five months he already served in jail for harassing former girlfriends and business partners by sending them letters on Internal Revenue Service letterhead saying they were under investigation for tax evasion, Acting U.S. Attorney Tom Beall said.
Jeffrey Nickerson, 56, Lenexa, Kan., pleaded guilty to one count of impersonating a federal employee. In his plea, Nickerson admitted he was an acquaintance of a woman who worked at the IRS Service Center in Kansas City, Mo. She brought IRS letterhead and IRS publications home. He used the information to send letters to former girlfriends and former business partners. The letters said the victims were under investigation as a result of reports being filed to the Internal Revenue Service Fraud Investigations Hotline.
Beall commended the U.S. Treasury Inspector General for Tax Administration and Assistant U.S. Attorney Chris Oakley for their work on the case.
Last Three Defendants Sentenced in Bangor Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jacob Gagnon, 27, formerly of Bangor and Van Buren, and Jamie Ketchen, 43, formerly of Bangor, were sentenced yesterday; and Ryan Ellis, 37, formerly of Greenbush and Levant, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. for conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”
Gagnon was sentenced to six years and three months in prison. Ketchen, who also pled guilty to maintaining a drug involved premises, was sentenced to 13 years and four months. Ellis, who also pled guilty to possession of firearms in connection with a drug trafficking offense, was sentenced to 15 years. Each defendant was also ordered to serve three years of supervised release.
According to court records, between April and December 2011, the defendants and their co-conspirators illegally distributed MDPV in Penobscot County and elsewhere. Ellis was the ring leader and obtained large quantities of the drug that he supplied to Gagnon, Ketchen and others, who distributed it to dealers in the Bangor area. Ellis also distributed the drug in the mid-coast area and in Aroostook County.
The three defendants were the last of sixteen defendants to be sentenced as part of this investigation which was conducted by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration, and the Bangor, Old Town, Brewer and Veazie Police Departments.
Justice Department Releases Information on Election Day Efforts to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
In anticipation of the upcoming general elections, the Justice Department today provided information about its efforts, through the Civil Rights Division and Criminal Division, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.
Civil Rights Division:
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote and the criminal provisions of federal statutes that prohibit discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Nov. 8, 2016, the Civil Rights Division will implement a comprehensive program to help protect the right to vote, including:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country (locations for monitoring will be announced closer to Election Day).
- Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorneys’ Offices and with other entities within the Justice Department concerning these complaints before, during and after Election Day.
- Civil Rights Division staff will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
- Complaints related to violence, threats of violence or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorneys’ Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin or religion (as noted above, voter intimidation that has a basis in race, color, national origin or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts and coordinating with the department’s election-crime experts in Washington, D.C.
On Nov. 8, 2016, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors in the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
- Again, complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone who has information suggesting voting discrimination or ballot fraud to contact the appropriate authorities.
Justice Department Releases Information on Election Day Efforts to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
WASHINGTON – In anticipation of the upcoming general elections, the Justice Department today provided information about its efforts, through the Civil Rights Division and Criminal Division, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.
Civil Rights Division:
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote and the criminal provisions of federal statutes that prohibit discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Nov. 8, 2016, the Civil Rights Division will implement a comprehensive program to help protect the right to vote, including:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country (locations for monitoring will be announced closer to Election Day).
- Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorneys’ Offices and with other entities within the Justice Department concerning these complaints before, during and after Election Day.
- Civil Rights Division staff will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
- Complaints related to violence, threats of violence or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorneys’ Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin or religion (as noted above, voter intimidation that has a basis in race, color, national origin or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts and coordinating with the department’s election-crime experts in Washington, D.C.
On Nov. 8, 2016, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors in the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
- Again, complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone who has information suggesting voting discrimination or ballot fraud to contact the appropriate authorities.
Justice Department Protects Eastern District of Texas Election ProcessRead the Press Release
BEAUMONT, Texas – Acting United States Attorney Brit Featherston announced today that Assistant United States Attorneys (AUSAs) have been appointed to lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Michelle Englade has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Texas, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Acting United States Attorney Featherston said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Featherston said that in addition to AUSA/DEO Englade, AUSAs Allen Hurst and M. Andrew Stover will be on duty in the Eastern District of Texas while the polls are open. AUSA Englade can be reached by the public in Beaumont at 409-839-2538, AUSA Hurst can be reached in Tyler, Texas, at 903-590-1400, and AUSA Stover can be reached in Plano, Texas, at 972-509-1201.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public in the Eastern District of Texas at the following telephone numbers:
Beaumont – 409-832-8571
Frisco – 214-705-7000
Lufkin – 936-637-3834
Sherman – 903-892-8754
Texarkana – 870-773-3382
Tyler – 903-592-4301
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Acting United States Attorney Featherston said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Jefferson County Man Sentenced for Killing Whooping CranesRead the Press Release
BEAUMONT, Texas – A 19-year-old Beaumont, Texas man has been sentenced for federal wildlife violations in the Eastern District of Texas announced Acting U.S. Attorney Brit Featherston.
Trey Joseph Frederick pleaded guilty on May 23, 2016 to a violation of the Migratory Bird Treaty Act and was sentenced to five years of federal probation today by U.S. Magistrate Judge Zack Hawthorn. As part of his probation, Frederick is prohibited from owning or possessing firearms, ammunition or any other dangerous weapon. He is also prohibited from hunting or fishing anywhere in the United States.
According to information presented in court, on Jan. 11, 2016, a Texas Game Warden received two calls reporting two whooping cranes had been shot on Blair Road in Jefferson County. Further investigation revealed the defendant had been seen in the area with a hunting rifle and had claimed to be hunting geese. Federal agents contacted Frederick at his home on LaBelle Road where he admitted to killing the cranes. Whooping cranes are migratory birds and are protected under the Migratory Bird Treaty Act making it unlawful to capture, kill, or attempt to capture or kill in the United States.
Acting U.S. Attorney Featherston quoted President Theodore Roosevelt saying, “’The nation behaves well if it treats the natural resources as assets which it must turn over to the next generation increased; and not impaired value.’” Featherston added, “Protecting our environment and wildlife is vital to making sure that future generations have the opportunity to enjoy the true beauty and excitement of nature.”
“The loss of these cranes is not simply a loss for the species. It is a loss for the community, for taxpayers and for future generations deprived of an opportunity to see these magnificent birds thriving in the wild," said Southwest Region Special Agent in Charge Nicholas E. Chavez of the U.S. Fish and Wildlife Service. "Moreover, the killing of these two whooping cranes is not an isolated incident. Over the past five years, more than 20 whooping cranes have been shot and killed in the U.S. By bringing criminals who perpetrate crimes against wildlife to justice, we hope to prevent future tragedies like this from occurring.”
“Justice was served here in no small part due to the strong partnership between Texas Parks and Wildlife Department game wardens and the United States Fish and Wildlife Services special agents, whose thorough and collaborative investigation of the heinous crime illustrates their commitment to protecting our shared natural resources, particularly endangered species like the whooping cranes,” said Colonel Craig Hunter, TPWD Director of Law Enforcement. “The fact that this act of senseless cruelty was universally condemned by the local community, who along with landowners played a vital role in this case being solved quickly, sends a strong message to future game law criminals; your actions will not be tolerated, nor will they go unpunished. We also appreciate the assistance from the United States Attorney’s Office and Assistant United States Attorney Joe Batte for making this case a priority.”
Frederick has been ordered to pay restitution to the International Crane Foundation in the amount of $12,907.50 and restitution to the Texas Parks and Wildlife Foundation in the amount of $12,907.50 for a total restitution judgment of $25,815.00. Frederick must also perform 200 hours of community service.
This case was investigated by special agents with the U.S. Fish and Wildlife Services, Office of Law Enforcement and Game Wardens with the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
James Bristol Pleads Not Guilty to Attempted Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that James Bristol, 44, of Burlington, pleaded not guilty yesterday in United States District Court in Burlington to a charge of attempted bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Bristol be detained pending trial, which has not been scheduled.
According to court records, on June 3, 2016, a man entered the College Street branch of Citizens Bank in Burlington and presented the teller with a note which stated that he had a gun and wanted large denomination bills. The teller told the robber she did not have large bills, only $20s, whereupon the robber took back the note and left the bank without taking any money. Less than an hour later, Burlington Police officers detained Bristol several blocks from the scene of the robbery. They later found that the demand note was in Bristol’s pocket. Bristol was originally charged in state court with attempted assault and robbery, but that charge was dismissed after a federal grand jury indicted Bristol for attempted bank robbery last week.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Bristol faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Allen is represented by the office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Investment Adviser Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID HOBSON, who served as an investment adviser in the Providence, Rhode Island, offices of two different national broker-dealer and investment advisers (“Brokerage Firm-1” and “Brokerage Firm-2”), pled guilty to engaging in a scheme to commit insider trading in connection with deals involving a pharmaceutical company (the “Pharma Company”) at which Michael Maciocio, HOBSON’s friend and client, worked. Maciocio, who had been employed by the Pharma Company, regularly possessed material, nonpublic information (“Inside Information”) concerning pending acquisitions and transactions under consideration by the Pharma Company. From at least 2008 through April 2014, Maciocio breached his duty of confidentiality to the Pharma Company by providing Inside Information about potential acquisitions and transactions to his friend and long-time broker, HOBSON. HOBSON, in turn, used the Inside Information to execute profitable securities trades for himself, for Maciocio, and for other clients of HOBSON’s.
U.S. Attorney Preet Bharara said: “As he admitted today, David Hobson exploited inside information provided by his friend and client Michael Maciocio to reap illegal profits for both of them. With Maciocio’s earlier guilty plea, both participants in this illegal insider trading scheme have now admitted to their crimes. Insider trading rigs the markets, and through prosecutions like this, we seek to make the securities markets fair.”
According to the allegations in the charging documents, including the Information and Indictment, and statements made in court proceedings:
From in or about May 2008 through in or about April 2014, Maciocio and HOBSON participated in a scheme to commit insider trading in advance of and in connection with acquisitions and transactions under consideration by the Pharma Company. Maciocio and HOBSON were childhood friends and HOBSON had served as Maciocio’s investment adviser and broker for many years.
Maciocio learned about the impending transactions through his role as a Master Planner in the Active Pharmaceutical Ingredient Supply Chain Group at the Pharma Company. In that role, Maciocio was tasked with evaluating manufacturing demands and capacity within the Pharma Company, and was consulted about potential acquisitions, to assist in determining whether the Pharma Company would be able to manufacture any new product in-house. Although Maciocio was not typically provided with the name of the target acquisition, he used the Inside Information he received – including the Pharma Company’s code name of the acquisition, the drug indication, the dosage, the phase of any clinical trial, and the chemical structure of the drug – to uncover the true identity of the target company. He was at times aided in this task by HOBSON.
Having learned the Inside Information about these impending transactions, Maciocio, in breach of fiduciary duties and other duties of trust and confidence owed to the Pharma Company, traded on his own behalf and tipped HOBSON so that HOBSON could use the information to trade both for himself and for Maciocio. HOBSON also used the Inside Information to trade in other of his clients’ accounts, first at Brokerage Firm-1 and later at Brokerage Firm-2.
HOBSON used the Inside Information that he received from Maciocio to make profitable trades in, among other securities: Medivation, Inc., Ardea Biosciences, Inc., and Furiex Pharmaceuticals, Inc. As a result of the scheme, HOBSON reaped more than $350,000 in ill-gotten gains for himself, for Maciocio, and for certain of HOBSON’s other clients.
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HOBSON, 47, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million or twice the gross gain or loss from the offense;
Maciocio, 46, pled guilty on May 20, 2016, to one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and two counts of securities fraud. Count One carries a maximum sentence of five years in prison. Counts Two through Four each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Mr. Bharara praised the work of the FBI, and thanked the SEC.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Aimee Hector and Rebecca Mermelstein are in charge of the prosecution.
Illinois Man Sentenced on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Adam Bernaix, Edwardsville, Illinois, was sentenced to 37 months imprisonment on a fraud and money laundering scheme involving false invoices submitted to his employer on behalf of a shell company he created.
According to his plea agreement, Bernaix earned approximately $350,000 through Trident Management Solutions, a company he created solely to bill companies doing business with his employer. Bernaix submitted invoices for "services rendered" to companies doing business with his employer, Albert Arno, an HVAC contractor in the City of St. Louis. Bernaix, as a project manager for Albert Arno, was able to mark up the invoices of Trident’s clients to Albert Arno so that his employer provided the extra money needed for Trident’s clients to pay their Trident bills.
Bernaix employed his father-in-law at one point to perform occasional jobs, but even after Trident’s sole employee left the company and Trident did absolutely nothing for its clients, Bernaix still sent Trident clients bills and marked up the client’s Albert Arno bills sufficiently to keep the money flowing to Trident.
Bernaix pled guilty in July to two felony counts of mail fraud and two felony counts of money laundering. He appeared today for sentencing before United States District Judge Henry Autrey. In addition to his term of imprisonment, Bernaix was ordered to pay $427,713 in restitution to the victim of his crime.
The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service and IRS Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
German Shipping Corporations Convicted of Environmental CrimesRead the Press Release
Two German shipping companies that owned and operated the Motor Vessel (M/V) Nils B, pleaded guilty today to an environmental crime in federal court in San Diego before the Honorable Jan M. Adler, announced Assistant Attorney General John C. Cruden and United States Attorney Laura E. Duffy.
W. Bockstiegel Reederei GmbH & Co. KG (which operated the vessel) and W. Bockstiegel GmbH & Co. Reederei KG MS “NILS B” (which owned the vessel), pleaded guilty to one felony violation of the Act to Prevent Pollution from Ships for failing to accurately maintain an oil record book for the M/V Nils B. In doing so, the firms failed to disclose that oil contaminated water had been discharged into the ocean from the vessel without the use of pollution prevention equipment.
According to the plea agreement, on August 5, 2014, personnel from the United States Coast Guard boarded the vessel after its entry into the Port of San Diego, California. Once onboard, the Coast Guard discovered that the crew had failed to keep an oil record book for a significant period of time, modifications had been made to piping coming from the oil water separator and oil was discovered in discharge piping that should not have been present.
The defendants acknowledged that Coast Guard examiners took oil samples from the oil water separator’s overboard discharge valve and from the vessel’s sludge tank and the samples from the two locations matched. Under U.S. and international law, sludge is never to be discharged through an oil water separator. The Coast Guard also discovered a black hose near the oil water separator that contained oil slightly weathered light fuel oil mixed with lubricating oil. In the industry, such a hose is known as a “magic hose.” The defendants, in pleading guilty, admitted that the oil record book on board the vessel did not disclose any discharges of sludge between the time that the overboard discharge valve had been cleaned while the vessel was in dry dock in June of 2014 and its entry into the Port of San Diego in August.
Sentencing for this case has been set for Nov. 3. According to the plea documents, the company and the United States agree to recommend that the court impose a total criminal penalty of $750,000.00, of which $250,000.00 will be a community service payment for the benefit of the Tijuana River National Estuarine Research Reserve to further research related to the effects of pollution on the marine estuarine environment.
This case was investigated by U.S. Coast Guard Investigative Service and U.S. Environmental Protection Agency, Criminal Investigation Division personnel in San Diego, California. The case was prosecuted by Senior Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice and Assistant U.S. Attorney Melanie Pierson of the U.S. Attorney's Office for the Southern District of California.
German Shipping Corporations Convicted of Environmental CrimesRead the Press Release
Assistant U. S. Attorney Melanie Pierson (619) 546-7976
NEWS RELEASE SUMMARY – October 25, 2016
SAN DIEGO – Two German shipping companies that owned and operated the Motor Vessel “Nils B” pleaded guilty to an environmental crime in federal court today, admitting that they knowingly failed to keep records related to the discharge of sludge into the ocean.
W. BOCKSTIEGEL REEDEREI GmBH & CO. KG (which operated the vessel) and W. Bockstiegel GmBH & Co. Reederei KG MS “NILS B” (which owned the vessel), pleaded guilty to one felony violation of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain an Oil Record Book for the Motor Vessel (M/V) Nils B.
By not maintaining an accurate Oil Record Book, the firms failed to disclose that oil contaminated water had been discharged into the ocean from the vessel without the use of pollution prevention equipment. As admitted at the time of the plea, on August 5, 2014, personnel from the United States Coast Guard boarded the vessel after its entry into the Port of San Diego, California. Once onboard, the Coast Guard discovered that the crew had failed to keep an Oil Record Book for a significant period of time, modifications had been made to piping coming from the Oil Water Separator, and oil was discovered in discharge piping that should not have been present.
The defendant acknowledged that Coast Guard examiners took oil samples from the Oil Water Separator’s overboard discharge valve and from the vessel’s sludge tank and the samples from the two locations matched. Sludge is never to be discharged through an Oil Water Separator; only machinery space bilge water may be discharged in that manner. The Coast Guard also discovered a black hose near the Oil Water Separator that contained slightly weathered light fuel oil mixed with lubricating oil. In the industry, such a hose is known as a “magic hose” because it makes the oil and sludge disappear like magic.
The defendants, in pleading guilty, admitted that the Oil Record Book on board the vessel did not disclose any discharges of sludge between the time that the overboard discharge valve had been cleaned (while the vessel was in dry dock in June of 2014) and its entry into the Port of San Diego in August.
According to the plea documents, the company and the United States agree to recommend that the Court impose a total criminal penalty of $750,000, of which $250,000 will be a community service payment for the benefit of the Tijuana River National Estuarine Research Reserve to further research related to the effects of pollution on the marine estuarine environment.
This case was investigated by U.S. Coast Guard Investigative Service and U.S. Environmental Protection Agency, Criminal Investigation Division personnel in San Diego, California. The case was prosecuted by Senior Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice, and Assistant U.S. Attorney Melanie Pierson of the U.S. Attorney's Office for the Southern District of California.
Sentencing is scheduled for November 3, 2016 at 9:30 a.m. before U.S. District Judge Dana Sabraw.
DEFENDANTS Case Number 16cr2440
W. Bocksteigel GmBH & Co., Reederei KG MS “NILS B”
Emden, Germany
W. Bockstiegel Reederei GmBH & Co. KG
Emden, Germany
SUMMARY OF CHARGES
Failure to Maintain Accurate Oil Record Book– Title 33, U.S.C., Section 1908(a)
Maximum penalty for a corporation: $500,000 fine
AGENCY
U.S. Coast Guard Investigative Service
U.S. Environmental Protection Agency, Criminal Investigation Division
Geary County Man Pleads Guilty in Kidnapping, Death of Junction City WomanRead the Press Release
TOPEKA, KAN. – A Geary County man pleaded guilty today to taking part in the kidnapping of a Junction City woman who was killed during the abduction, Acting U.S. Attorney Tom Beall said.
Drexel A. Woody, 26, who lived on Fort Riley at the time of the crime, pleaded guilty to one count of kidnapping resulting in death. The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.
In Woody’s plea, he admitted that on Feb. 7, 2014, he and his co-defendants met the victim, who was a prostitute, at a hotel in Junction City and kidnapped her. The defendants beat the victim in retribution for comments she had made on social media. During the beating, the defendants demanded the victim pay $300. They took the victim to another hotel room in an unsuccessful attempt to get the money, after which they transported her to Woody’s residence on Fort Riley.
While at Woody’s residence, the defendants allowed the victim to call her young son and her mother. The victim’s mother realized the victim was in danger and called Junction City Police. When police called the victim’s number to check on her, and the defendants listened to the call on speaker phone. Fearing arrest, the defendants transported the victim to a bridge in a remote part of Geary County, where they resumed the beating and attacked her with a knife. The victim broke free and jumped off the bridge, falling 15 feet and breaking her ankle. The defendants found the victim in the snow and resumed the assault during which they cut her throat and killed her.
Woody is set for sentencing Jan. 30. He faces a penalty of up to life in federal prison.
Co-defendants who are awaiting trial include:
Larry L. Anderson, 27, Manhattan, Kan.
Marryssa M. Middleton, 25, Fort Riley, Kan.
Shantrell D. Woody, 27, Fort Riley, Kan., formerly an active duty service member.
Christopher Pugh, 32, Junction City, Kan.
Beall commended the Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division, the FBI, Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney Jared Maag and Geary County Attorney Steven Opat for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Four men sentenced to prison for defrauding hundreds of investors out of $10 millionRead the Press Release
Four Ohio men were sentenced to prison for defrauding investors out of more than $10 million by selling unregistered securities and making several misrepresentations to investors about the product they purported to develop, law enforcement officials said.
Kenneth Jackson, 59, of Glenmont, William Schureck, 81, of Lexington, Dennis Deciancio, 73, of Macedonia, and Daryl Dane Donohue, 67, of Mansfield, were convicted following a trial earlier this year on counts including conspiracy to commit mail and wire fraud, conspiracy to launder money, mail fraud, wire fraud, money laundering, making false statements and other charges.
Jackson was sentenced to more than 15 years in prison. Schureck was sentenced to nine years in prison. Deciancio was sentenced to nearly six years in prison. Donahue was sentenced to more than four years in prison.
“These defendants misled investors and lied about their product,” said U.S. Attorney Carole Rendon said. “They earned these prison sentences by stealing the millions of dollars from hundreds of people.”
“These four individuals conspired to misrepresent a product to their investors in order to make a profit,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue efforts to bring to justice those that have duped investors out of their hard-earned money.”
“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 Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today's sentencings demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
All four men were affiliated with Medical Safety Solutions, or MSS, a company Jackson founded in 2007 which operated out of Mansfield and had a purported “research and development center” at Jackson’s home in Glenmont. Jackson held the title of Director of Research and Development at MSS. Schureck co-founded the company held the title of Chief Executive Officer at MSS. Deciancio co-founded the company and attended trade shows on the company’s behalf. Donohue was a longtime associate of Jackson who communicated with shareholders of MSS and held himself out as an “FDA consultant” hired by the company for the sole purpose of obtaining Food and Drug Administration approval for the Sharps Terminator, according to trial testimony.
The founders of MSS held the company out as an entity created to develop, market and sell a hypodermic needle destruction device they called the Sharps Terminator. The Sharps Terminator required premarket approval from the FDA before it could be sold in the United States. Jackson and Schureck filed a provisional application for a patent on the Sharps Terminator around April 2007 but did not file an actual patent application until September 2011. MSS filed a premarket approval application for the Sharps Terminator in October 2012. Between 2007 and May 2013, the defendants were engaged in the unregistered sale of securities. They did this by seeking out individuals to buy private shares of stock in MSS, but those shares were not registered with the Securities and Exchange Commission, according to trial testimony.
They defrauded investors by inducing them to buy stock and making false and fraudulent misrepresentations about MSS and the Sharps Terminator, including: that MSS had submitted a premarket approval application when it had not; that FDA approval of the Sharps Terminator was forthcoming or imminent when MSS had not even initiated the approval process; that the FDA had approved the Sharps Terminator when it had not; that the product was “market ready” that was ready for mass production when it was not, and other misrepresentations, according to trial testimony.
To make MSS appear functional and the Sharps Terminator market ready, the defendants took current and prospective investors to MSS’s “R&D facility” and showed them parts, a small number of assembled Sharps Terminator units, and large numbers of Sharps Terminator boxes, many of which were really empty, according to the indictment.
More than 500 investors were defrauded as part of the scheme. They lost more than $10 million between 2007 and 2013, according to trial testimony and court documents.
Jackson and Schureck transferred the money to cover other expenses, and Jackson gambled more than $3.3 million at Mountaineer Casino between 2009 and 2013, according to the court documents.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service—Criminal Investigations and the Food and Drug Administration.
Update Feb. 5, 2025:
In May 2013, before the indictment was returned in this matter, the defendants caused the company that they operated in connection with their fraud scheme—Medical Safety Solutions (“MSS”)—to transfer the use and management of the intellectual property for the Sharps Terminator device, including its patents, designs, proprietary information, and trademarks, to a Texas limited liability company known as “Sharps Terminator LLC.” Sharps Terminator LLC further took over the FDA application and approval process for the device under this agreement, and was given full control of the day-to-day management of the transferred intellectual property and the manufacture of distribution of the product. Defendants transferred the intellectual property in return for MSS and its shareholders receiving a share of net profits from Sharps Terminator LLC’s possible future sale of the Sharps Terminator device. As of the sentencing date (October 25, 2016), two independent third parties, specifically, Texas limited liability companies The Bucley Group, LLC, and Four on Point, L.L.C., owned and operated Sharps Terminator LLC, and none of the charged defendants maintained any control of any of those companies. Further, as part of the defendants’ sentences, the district court ordered that all defendants disgorge any shares of stock that they held in MSS, such that the MSS shareholders who were the victims of defendant’s scheme would receive the benefit of MSS’s agreement with Sharps Terminator LLC.
Four Individuals, Including a Former Miami-Dade County Procurement Employee, Pled Guilty in $5,000,000 Fraud and Kickback SchemeRead the Press Release
Four individuals, including a former Miami-Dade County procurement employee pled guilty in a $5,000,000 fraud and kickback scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Roy Jesus Bustillo, 37, Rolando Perez, 57, and Jose Barroso, 51, all of Miami, pled guilty to a one-count Information charging them with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371. Bustillo, Perez, and Barroso will be sentenced on January 6, 2017 at 9:00 a.m. before U.S. District Judge Robert N. Scola, Jr. Bustillo, Perez, and Barroso face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000. Ygnacio Valdez, 45, of Miami, a former employee in the Procurement Section of the Miami-Dade County Aviation Department, pled guilty to misprision of a felony, in violation of Title 18, United States Code, Section 4. Valdez will be sentenced on December 20, 2016 at 11:30 a.m. before U.S. District Judge Ursula Ungaro. Ygnacio Valdez faces a statutory maximum term of imprisonment of 3 years and a fine of $250,000.
According to the court record, including a stipulated statement of facts, Bustillo was the exclusive area representative in South Florida for the sale of certain LED light fixtures. In or about 2010, Ivan Valdes, a co-conspirator who previously pled guilty for his involvement in the scheme, told Barroso that he would request that the Miami-Dade County Aviation Department purchase the light fixtures represented by Bustillo, if he was paid a share of the proceeds. Valdes and Barroso agreed and during the period of 2010 through and including 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of millions of dollars of LED light fixtures. Bustillo provided a quote to each of the vendors interested in competing for the Invitation to Quote. Global Electrical & Lighting Supplies, Inc., owned by Rolando Perez, submitted bids and was awarded the contracts for each and every Invitation to Quote issued. Perez and Bustillo had a secret agreement wherein Perez would be the only vendor who knew the actual price that Bustillo had agreed upon with the lighting manufacturer for the light fixtures and that a fake mounting accessory was included in the Invitations to Quote. Knowing the additional profit that was to be received from each of the contracts, Bustillo and Perez were able to win the Invitation to Quote by keeping Perez’ bid price low. In order to help ensure that Perez was awarded each of the contracts, Ivan Valdes paid thousands of dollars in cash to Ygnacio Valdez, whose duties in the procurement section in the Miami-Dade County Aviation Department, included collecting and tallying the bids and declaring the lowest responsive bidder on the Invitations to Quote.
On two occasions, Ivan Valdes instructed Barroso to direct Perez to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. Instead, on one occasion the conspirators used light fixtures already in stock at the Miami-Dade County Aviation Department to satisfy the purchase. On the other occasion, no light fixtures were ever provided, not even from those already in stock. Perez bid and won the contracts and he and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to Miami-Dade County Aviation Department.
During the course of the conspiracy, the co-conspirators defrauded the Miami-Dade County Aviation Department of approximately $5,250,000. Barroso and Ivan Valdes split fraudulent proceeds of approximately $2.2 million. Bustillo, through his companies, received fraudulent proceeds of approximately $764,000. Perez received fraudulent proceeds of approximately $1.8 million.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Walgreens Clinical Pharmacy Manager Pleads Guilty to $4.4 Million TennCare Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. – On Oct. 25, 2016, Amber Reilly, 33, of Jonesborough, Tenn., pleaded guilty to one count of healthcare fraud contained in a federal information, before the Honorable J. Ronnie Greer, U.S. District Judge. Reilly was the former Clinical Pharmacy Manager at the Walgreens Specialty Pharmacy located in the Holston Valley Hospital in Kingsport, Tenn.
Sentencing has been set for Jan. 30, 2017. Reilly faces a potential sentence of up to 10 years in prison, a fine of up to $250,000, and supervised release of up to three years.
In a detailed plea agreement on file with the U.S District Court, Reilly admitted that between October 2014 and April 2016, she falsified prior authorizations, medical lab reports, and drug test results for at least 51 Hepatitis C patients who had prescriptions for the expensive Hepatitis C drugs of Sovaldi®, Harvoni®, Viekira Pak®, or Daklinza®. These patients had health insurance through TennCare, which does not pay for Hepatitis C prescriptions for patients who abuse illicit substances or who have limited or no scarring of the liver. The patient’s authentic medical lab reports and drug tests showed that they failed to meet TennCare eligibility requirements. However, Reilly admitted to replacing disqualifying information regarding levels of liver scarring and illicit substance abuse on the authentic records with qualifying information, and then submitting the altered records to TennCare. She also admitted to fabricating allergies on the prior authorization forms of some of these patients so they could receive the most expensive Hepatitis C drug, Harvoni®.
As a result of Reilly’s conduct, TennCare paid at least $4,400,000 to purchase Sovaldi®, Harvoni®, Viekira Pak®, and Daklinza® prescriptions for these 51 patients, which they would not have paid if true and accurate prior authorizations, drug test results, and medical lab reports pertaining to these patients had been submitted.
The investigation, which led to Reilly’s guilty plea, was conducted by the Tennessee Bureau of Investigation and Department of Health and Human Services – Office of the Inspector General. Assistant U.S. Attorney T.J. Harker represented the United States.
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Former Fish and Wildlife Service Employee Pleads Guilty to Making False Statements in Disclosure FormsRead the Press Release
A former senior employee of the Interior Department’s Fish and Wildlife Service (FWS) pleaded guilty to making false statements in several disclosure forms to conceal approximately $300,000 of income that he received from an association that received grants and cooperative agreements from the FWS.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S Department of the Interior Deputy Inspector General Mary L. Kendall made the announcement.
Stephen M. Barton, 67, of Boise, Idaho, pleaded guilty yesterday before U.S. Magistrate Judge Ronald E. Bush of the District of Idaho. He is scheduled to be sentenced on Jan. 24, 2017.
According to his plea agreement, Barton worked as the chief of administration and information management for FWS beginning in 2007. Throughout his entire time at FWS, Barton also worked as treasurer for an association that received grants and cooperative agreements from FWS.
According to admissions made in connection with his plea agreement, Barton willfully and knowingly submitted false disclosure forms to FWS, including a request for ethics approval to engage in outside work or activity, a confidential financial disclosure report (OGE Form 450), and several confidential certificate of no new interests forms (OGE Form 450-A), in which he concealed approximately $300,000 of income that he received from the association between Jan. 1, 2010, and Dec. 31, 2014.
The Interior Department’s Office of Inspector General’s Eastern Division investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section is prosecuting the case.
Former Chief Operating Officer at MetroHealth Hospitals indicted for taking bribesRead the Press Release
The former Chief Operating Officer of MetroHealth Hospital System is one of four men indicted for their roles in a conspiracy to defraud the hospital and others through a series of bribes and kickbacks totaling hundreds of thousands of dollars related to the hospital’s dental program, law enforcement officials said.
Named in the indictment are: Edward R. Hills, 56, of Aurora; Sari Alqsous, 32, of Cleveland; Yazan B. Al-Madani, 32, of Westlake; and Tariq Sayegh, 38, of Cleveland.
Hills worked in various capacities at MetroHealth, including as Chief Operating Officer and Director of MetroHealth Dental. He also served as interim President and Chief Executive Officer from December 2012 through July 2013. Alqsous, Al-Madani and Sayegh are dentists who worked for MetroHealth.
“I hoped we had reached a point in Cuyahoga County where public employees taking cash bribes and using downtown apartments to entertain friends was a thing of the past,” U.S. Attorney Carole S. Rendon said. “We will remain vigilant in stamping out public corruption and these defendants will be held accountable for their crimes.”
“Being extorted is not what a dental resident is expecting when applying to a dental program but that is exactly what happened, and that is not the only illegal scheme these four devised,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “MetroHealth officials discovered possible wrongdoing, contacted the FBI, and partnered with the FBI to ensure that these individuals would be held accountable for their criminal actions.”
“These government-funded programs were designed to help the men, women, and children of Cuyahoga County, but these individuals defrauded them for their own personal gain and used their companies as personal piggy banks." said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Therefore, in partnership with the U.S. Attorney’s Office and the FBI, the IRS Criminal Investigation Division gives priority to investigations involving the alleged breach of the public trust by public officials at any level.”
“This investigation found that these defendants were motivated by greed to manipulate the health care system and extort dental residents in order to line their own pockets,” said Ohio Attorney General Mike DeWine.
According to the 33-count indictment unsealed today in U.S. District Court:
Hills, Alqsous and Al-Madani engaged in a RICO conspiracy from 2008 through this year involving a series of elaborate bribery conspiracies, witness tampering and other crimes. These bribes include Hills soliciting cash, checks, a $3,879 Louis Vuitton briefcase, a 55-inch television, airline flights and use of a downtown apartment from Alqsous, Al-Madani and others. In return, Hills took official actions on their behalf, including allowing them to work at their private dental businesses during regular business hours while receiving a full-time salary from MetroHealth.
Alqsous, Al-Madani and others gave cash, checks and other things of value to Hills beginning in 2009. The indictment details text messages and meetings, often at expensive restaurants, which resulted in cash being deposited into Hills’ bank accounts.
Alqsous sent a text message to Al-Madani and another person in 2013 that stated: “With 22nd of October approaching we ll be celebrating Dr hills bday earlier this year…1000 dollars each is the gift from the 3 sons their father.” Later that day, $3,000 was deposited into Hills’ bank account.
In 2012, Alqsous rented and lived in an apartment at the Perry Payne apartment building in downtown Cleveland. When he bought a residence, Hills instructed Alqsous to continue paying rent and other bills at the Perry Payne building, even though Alqsous would no longer be living there. Hills used the Perry Payne apartment to house an associate and for his own personal use in 2013 and 2014 while Alqsous, acting on Hills’ orders, continued to pay rent and other bills.
Hills instructed Alqsous to purchase furniture for the apartment for Hills’ personal use. Alqsous sent Hills a text in 2013 stating: “I bought your bedroom yesterday…there is mirrors everywhere…You will like it.”
Hills became interim President and CEO of the MetroHealth Hospital System in December 2012. Around that time, he told Alqsous, Al-Madani and others that he wanted a specific Louis Vuitton briefcase because his predecessor had a similar briefcase.
Alqsous texted a photo of the briefcase to Hills and wrote: “The guys are also very excited about their raise haha.” Hills responded with: “Thanks I’m so excited to have my bag to start my new job as #1.” Later that day, Alqsous, Al-Madani and others purchased the briefcase for $3,879 from Saks Fifth Avenue in Beachwood and later presented it to Hills.
As director of MetroHealth Dental, Hills was responsible for determining monthly bonuses for dentists who produced receipts in excess of their monthly salary and benefits. Dentists typically received a monthly bonus totaling 25 percent of the monies they generated for excess receipts.
Between 2010 and 2014, Hills regularly upwardly adjusted the bonuses of Alqsous, Al-Madani and others, by a total of approximately $92,829.
Hills also allowed Alqsous, Al-Madani and others to retain full-time salaries and benefits at MetroHealth without requiring them to work full-time hours, thus allowing them to operate private dental clinics. Hills, acting at the request of Alqsous and Al-Madani, provided MetroHealth dental residents to practice at those private clinics during regular business hours. Neither Alqsous nor Al-Madani paid wages or salaries to the resident dentists.
Additionally, Alqsous, Al-Madani and Sayegh solicited and accepted bribes totaling tens of thousands of dollars from prospective candidates to the MetroHealth Dental residency program.
In a typical year, the MetroHealth Dental residency accepted four to six candidates for the residency program from a pool of 40 to 60 applicants. Alqsous, Sayegh and Al-Madani each had the authority to influence the selection of dental residents, and Hills had final decisional authority over who was selected for the residency program.
Alqsous and Sayegh often identified and selected candidates who were from Jordan or trained at a Jordanian dental school, telling them they would have to pay a “donation” to MetroHealth to be considered. Alqsous and Sayegh directed the candidates to pay the “donation” directly to them, and in some cases, told the candidates a portion of the money would go to Hills.
Alqsous, Sayegh and Al-Madani solicited at least $75,000 in bribes from resident dentist candidate between 2008 and 2014.
In another conspiracy, Al-Madani and Alqsous paid bribes to Hills in exchange for him taking actions to refer Medicaid recipients to private dental clinics owned by Al-Madani and Alqsous instead of MetroHealth. All three took steps to conceal this activity by claiming kickback checks totaling $17,600 written to Hills were for “consultation fees” or “professional fees”.
Hills, Alqsous and Al-Madani also conspired to obstruct justice, instructing people not to cooperate with law enforcement after becoming aware of the federal investigation in 2014.
Hills also made false statements on tax returns, failing to claim approximately $165,751 in unreported income stemming from bribes, kickbacks and other things of value between 2011 and 2013.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Michael L. Collyer following an investigation by the FBI, IRS-CI, Ohio Bureau of Criminal Investigation and the Ohio Office of the Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation is ongoing.
Former Beaumont ISD Teacher Sentenced for Child Exploitation ViolationsRead the Press Release
BEAUMONT, Texas — A 56-year-old former Jefferson County, Texas school teacher has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Gary Alan George pleaded guilty on April 5, 2016, to receiving child pornography and was sentenced to 60 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, during an undercover operation led by Homeland Security, George, a former middle school teacher from 1999 to 2014 with the Beaumont Independent School District, distributed images containing child pornography to an investigator. A search warrant was executed at George’s residence resulting in the seizure of electronic devices. Forensic analysis of the electronic devices revealed thousands of images containing child erotica and child pornography. George was indicted by a federal grand jury on May 6, 2015.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Lesley A. Woods.
Former Assistant Vice President of Bank Sentenced to over Six Years in Prison for Embezzling More Than $1 MillionRead the Press Release
NEWARK, N.J. - A Bergen County, New Jersey, woman was sentenced today to 81 months in prison for embezzling more than $1 million while she worked at a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.
Miye Chon, a/k/a/ “Karen Chon,” 36, of Englewood Cliffs, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to Counts One, Two, and 29 of a superseding indictment charging her with bank fraud, embezzlement or misapplication of funds by a bank officer or employee, and aggravated identity theft. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Chon was employed by BankAsiana, a federally insured financial institution, as an operations officer and later as an assistant vice president and operations officer at the Fort Lee branch until the bank was acquired by Wilshire Bank in October 2013. Chon had access to customer accounts and the bank’s internal account records, computer system and vault. Over several years, Chon stole more than $1 million from BankAsiana’s customer accounts by regularly making unauthorized transfers from customer certificate of deposit (CD) accounts into BankAsiana’s vault cash account and then physically removing cash from the bank’s vault.
Chon accomplished this scheme on dozens of occasions, typically taking tens of thousands of dollars at a time. One time, she converted $100,000 from a customer’s CD account. As part of the scheme, Chon also opened up a bank account in an individual’s name and forged checks using that individual’s name without permission.
In addition to the prison term, Judge Walls sentenced Chon to two years of supervised release and ordered her to pay restitution of $1,350,081.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Daniel Shapiro and Lakshmi Srinivasan Herman of the U.S. Attorney’s Office’s Economic Crimes Unit.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Defense counsel: Matthew Jeon Esq., Fort Lee, New Jersey
Former Arlington, Texas, Man Sentenced to 72 Months in Federal Prison in Passport Fraud CaseRead the Press Release
FORT WORTH, Texas — A former fugitive who was wanted for various offenses, including most recently, making a false statement on a passport application, pleaded guilty to that offense in federal court and has been sentenced by U.S. District Judge Reed C. O’Connor to 72 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Avniel Awan Anthony, 40, a U.S. citizen and former resident of Arlington, Texas, was taken into custody on April 14, 2016, by the Diplomatic Security Service (DSS) and the U.S. Marshals Service (USMS). Anthony pleaded guilty in June 2016 to an indictment charging one count of false statement in passport application.
In documents filed in the case, Anthony admitted that in October 2013, he willfully and knowingly made a false statement in an application for a passport, when he knowingly falsely stated his name was “Dominic Dewayne Wilson” on the passport application he submitted at the U.S. Post Office located on E. Bardin Road in Arlington. In support of that application, Anthony presented a postal clerk a Texas identification card bearing his photograph and the name “Dominic Dewayne Wilson,” and he falsely swore that the information on the application was true.
Anthony was a DSS fugitive wanted for passport fraud, identity theft, evading the police, and being a felon in possession of a firearm. Anthony changed his identity and fled to Playa de Carmen, Mexico, where he remained a fugitive until DSS located him in March 2016.
DSS and the USMS coordinated with the Playa de Carmen Tourist Police and Mexican immigration officials to locate, arrest, and return Anthony to the U.S. to face charges.
The DSS is the security and law enforcement arm of the U.S. Department of State with agents located in more than 160 countries worldwide. DSS and the USMS work together to locate and return U.S. fugitives from abroad.
Assistant U.S. Attorney J. Michael Worley prosecuted the case.
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Firearms Dealer Gets over Five Years in Prison for Selling More Than 200 Guns to Drug Dealer, Other Criminals in South JerseyRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 70 months in prison for selling to a Camden drug dealer and other criminals in the Camden area at least 200 firearms that he purchased with cash from other illicit firearms dealers, U.S. Attorney Paul J. Fishman announced.
Joshua Jackson, 36, a/k/a “Trent,” of Willingboro, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count each of dealing firearms without a license, conspiracy to deal in firearms without a federal firearms license, and possession of firearms by a convicted felon. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this and related cases and statements made in court:
Jackson admitted that between December 2009 and September 2010, he sold or brokered the sale of at least 200 handguns that he purchased with cash from illegal gun distributors in Ohio and from straw purchases made by his associates from gun stores in Columbus, Ohio.
Jackson sold many of the weapons to Terrance Laboo, 43, of Oaklyn, New Jersey. Laboo, who previously pleaded guilty in this matter, admitted that at the time he purchased these firearms, he was distributing PCP and cocaine from the corner of 4th and Chestnut Streets in Camden. Laboo also admitted that he sold, directed or brokered the sale of many of the firearms he purchased to other drug dealers in southern New Jersey.
Jackson obtained most of the firearms through purchases at gun shows from unlicensed gun sellers who were not subject to background checks. Some of the firearms also were purchased at Ohio gun stores by straw purchasers working for Jackson, who then transported the handguns to New Jersey from Ohio and resold them to Laboo and others in the Camden area.
Jackson transported the illegal firearms into the Camden area using a rental car or by having an associate transport them in duffel bags on Greyhound buses running between Columbus and bus terminals in Philadelphia and Mount Laurel, New Jersey.
In addition to the prison term, Judge Kugler sentenced Jackson to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentence. He also thanked the U.S. Attorney’s Office in the Southern District of Ohio, directed by U.S. Attorney Benjamin C. Glassman, and agents of the ATF Field Division in Columbus, under the direction of Acting Special Agent in Charge Bradley Earman for their assistance.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Justin Loughry Esq., Philadelphia
Fifty-seven Pounds of Meth Earns Driver 10 Years in Federal PrisonRead the Press Release
TOPEKA, KAN. – A man from Washington state was sentenced Monday to 10 years in federal prison for drug trafficking in Kansas, Acting U.S. Attorney Tom Beall said.
Hector M. Birrueta, 32, Pasco, Wash., pleaded guilty to one count of possession with intent to distribute methamphetamine. Law enforcement officers found 57 pounds of methamphetamine in his car when they stopped him Oct. 17, 2015, on I-70 Ellis County, Kan.
Beall commended the Drug Enforcement and Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Federal and State Officials and Maine ACLU Attorney Available to Field Election Fraud ClaimsRead the Press Release
Contact: John G. Osborn
Tel: (207) 771-3214
Andrew McCormack
Tel: (207) 262-4615
Assistant U.S. AttorneysPortland, Maine: United States Attorney Thomas E. Delahanty II announced today that his office, in cooperation with Maine State officials, will participate in the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016 general elections. The program is designed to handle complaints in the District of Maine of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington and the State of Maine Attorney General’s Office.
Assistant U.S. Attorneys (AUSAs) John G. Osborn and Andrew McCormack will lead the efforts of the U.S. Attorney’s Office. AUSAs Osborn and McCormack have been appointed to serve as District Election Officers (DEOs) for District of Maine. Maine Assistant Attorney General (AAG) Phyllis Gardiner and Deputy Secretary of State Julie Flynn will coordinate election oversight for the State of Maine. Attorney Zachary Heiden of the American Civil Liberties Union (ACLU) of Maine will also be available to assist anyone who experiences difficulty in exercising their right to vote.
In addition, the Federal Bureau of Investigation (FBI) will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.
Arrangements have been made for attorneys to have immediate access to both federal and state court judges during the times that the polls are open to assist in the enforcement of voting rights if necessary.
U.S. Attorney Delahanty said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.The voting franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Delahanty stated that DEOs Osborn and McCormack will be on duty in his office while the polls are open. They can be reached by the public at the following telephone numbers: (207) 771-3214 (AUSA Osborn) and (207) 262-4615 (AUSA McCormack).
The principal Maine FBI field office can be reached by the public at (207) 774-9322.
AAG Phyllis Gardiner may be contacted at the Attorney General’s Office by calling: (207) 626-8880. Deputy Secretary of State Flynn can be reached at (207) 624-7650. Attorney Zachary Heiden of the ACLU of Maine will be available at (207) 650-9535.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Delahanty said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Civil Rights Division.”